Oleochemicals growing at a CAGR of 7.0% from 2024 to 2030

The global oleochemicals market size was estimated at USD 24,417.0 million in 2023 and is projected to reach USD 39,430.4 million by 2030, growing at a CAGR of 7.0% from 2024 to 2030. The market outlook is considered positive due to the increasing demand for biodegradable products and restrictions on petrochemical-based products.

Key Market Trends & Insights

• In terms of region, Asia Pacific was the largest revenue generating market in 2023.
• Country-wise, South Africa is expected to register the highest CAGR from 2024 to 2030.
• Based on the product, glycerol esters accounted for a revenue share of 35.55% in 2023.
• Fatty Acid Methyl Ester is the most lucrative product segment registering the fastest growth during the forecast period.

Market Size & Forecast

• 2023 Market Size: USD 24,417.0 Million
• 2030 Projected Market Size: USD 39,430.4 Million
• CAGR (2024-2030): 7.0%
• Asia Pacific: Largest market in 2023

Request Free Sample Report: https://www.grandviewresearch.com/industry-analysis/oleochemicals-industry/request/rs1

Oleochemicals are the products derived from fats and oils. They can be produced from natural sources such as plant oils and animal fats as well as fossil fuel sources such as petrochemicals. Oleochemicals can be produced using various chemical or enzymatic reactions by the manufacturers. Fluctuating crude oil prices have resulted in a major shift toward the utilization of vegetable oils such as palm and palm kernel oil as a key feedstock for oleochemical production. The global oleochemicals market has an advantageous edge owing to the constantly increasing raw material availability, minor toxicity, and green image of the products.

The demand for oleochemicals derivatives is growing at a steady pace owing to an increase in the consumption of personal care, pharmaceutical, and food products. The demand for personal care products is witnessing growth due to an increase in disposable income, product innovation, and high market penetration. Oleochemicals are widely used in FMCG products such as soaps, toothpaste, and moisturizing lotions. The demand for these products is increasing as companies in the personal care industry are focusing on maximizing the visibility of the products to potential customers through online promotional activities, sweepstakes, and other initiatives in the developed regions.

A major opportunity for the global oleochemicals industry lies in the increasing demand for sustainable and renewable products across various industries. Oleochemicals, derived from natural fats and oils, offer a viable alternative to petroleum-based chemicals. As consumers become more environmentally conscious, there is a rising preference for products with a reduced carbon footprint. For instance, in the personal care industry, there is a growing demand for natural and organic ingredients. Oleochemicals such as coconut oil and palm oil derivatives are used in the production of soaps, shampoos, and skin care products due to their gentle and eco-friendly properties.

On the other hand, determining reliable sources of raw material suppliers and optimizing supply chain efficiency is one of the crucial challenges faced by the market on a global scale. However, the manufacturers have majorly adopted vertical integration to overcome the challenges mentioned above. For instance, IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK) are some of the players that have established downstream integration into refineries and production of oleochemicals in Europe and China and upstream integration with the help of their plantations in Indonesia and Malaysia.

Oleochemicals Market Report Scope