Global Oleochemical Fatty Acids Market Sees Consistent Growth, Reaching $17.5B in 2023
WELLESLEY, Mass., January 14, 2019 (Newswire.com) - The global oleochemical fatty acids market is expanding due to factors such as price, performance and rising consumer demand for more environmentally friendly, natural ingredients, according to BCC Research.
The global market for natural fatty acids was valued at $13.5 billion in 2018 and is expected to reach $17.5 billion by 2023 at a compound annual growth rate (CAGR) of 5.4 percent during the forecast period, according to the report “Oleochemical Fatty Acids: Global Markets to 2023.”
Prominent players in the market include: AAK, ABITEC Corp., Chemithon Enterprises Inc., PT. Dua Kuda Indonesia, Eastman Chemical Company, Emery Oleochemicals, Oleon, Evonik Industries AG, Ingevity and IOI Corporation Berhad, among many others.
- The global nature of the oleochemical industry is shown by the manufacturing capacity largely residing in the Asia-Pacific region.
- Nearly half of all oleochemical fatty acids were used for derivative production in 2017, a percentage that is expected to increase to 53.9 percent by 2023. Other important fatty acid applications include personal care products, cleaning products, rubber processing and emulsion polymerization.
- The push for environmentally friendly chemical compounds is driving growth within the oleochemical industry as its raw material meets the basic definition of green material.
“The key driver for the production of natural oils and fats is the food industry; only about 15 percent of the production is used by the oleochemical industry,” the report notes. “Oleochemical companies often use those raw materials that are not suitable for human consumption, but which are beneficial feedstock in non-edible oleochemicals production.”
Asia-Pacific Region Leads the Global Oleochemical Fatty Acids Market
Overall, growth in the global oleochemical fatty acids market is primarily driven by the Asia-Pacific region. Although it is slowing down economically due to the decreasing exports from China to Europe and the U.S., the domestic market share is still rising. This trend is expected to continue for years to come.
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Source: BCC Research
Categories: Food Sciences