There are many industries and processes that don’t always get the acclaim they deserve, but which play crucial roles in our everyday lives. Oleochemicals are just one such example. These are natural compounds in the form of fats and oils extracted from plants and animals and used as alternatives to petroleum-based petrochemicals. The major process that transforms animal and vegetable oils and fats into oleochemicals is hydrolysis. This splits the natural triglycerides into crude glycerin, crude mixed fatty acids and fatty alcohols under high water, temperature and pressure conditions. These oleochemicals are then used in various applications such as detergent, soap, candles and other household products as well as industrial coatings. They also serve as raw materials for the production of plastics, pharmaceutical and cosmetics. Other notable uses include insulating materials for carpet underlay, freezers and refrigerators as well as flower foam and seat cushions. As more consumers become eco-aware, oleochemicals are becoming a popular alternative to petroleum-based petrochemicals. They are a renewable resource and offer us a way to cut down on carbon emissions. Additionally, they’re biodegradable, making them a more sustainable option. While the production of these chemicals is light years away from Mother Nature’s organic principles, oleochemicals are far better for the environment than their petro-based counterparts. They are sourced from plant-oil, such as palm oil, which requires less land to produce a ton of oil than any other crop and is grown using responsible production methods.
Coherent Market Insights estimates that the market for oleochemicals market was estimated at US$ 22.66 billion in 2023, and from 2023 to 2030, it is expected to increase to reach US$ 38.64 billion in 2030 at a compound growth rate (CAGR) of 6.9% over the forecast period.
Key Companies in the Oleochemicals Industry:
1. Evonik Industries Ltd.
Established in 2007 and headquartered in Essen, Germany, Evonik Industries Ltd. is a significant player in the Oleochemicals market. Operating globally, with a presence in countries like the USA and China, the company specializes in oleochemicals productions. Evonik may have focused on expanding production capacity, sustainable practices, product innovation, strategic innovation, strategic partnerships, and alignment with market trends, such as bio-based and environmentally friendly solutions.
2. Emery Oleochemicals
Established in 1840 and headquartered in Malaysia, Emery Oleochemicals is a significant player in the Oleochemicals market. Operating globally, including countries like the USA and Germany, the company specializes in oleochemical production. Notably, in 2020, Emery introduced EMERY E, a fatty acid esters product line as a petrochemical alternative. Partnerships with Omya Inc. and Nordic IMCD expanded their green polymer additives distribution, emphasizing and innovation.
3. Vantage Specialty Chemicals
Established in 2008 and headquartered in Chicago, Illinois, Vantage Specialty Chemicals is a notable player in the Oleochemicals market. Operating globally, including countries like Germany and China, the company specializes in specialty chemicals and surfactant manufacturing. Notably, vantage announced capacity increase for N-Methyltaurine in 2020, enhancing production of taurate surfactants, and acquired LEUNA-Tenside GmbH in 2018to bolster its presence in the European market.
4. Wilmar International Ltd.
Established in 1991 and headquartered in Singapore, Wilmar International Ltd. is a significant player in the oleochemical production. Wilmar may have expanded production capacity, embraced sustainability practices, involved products, formed strategic partnerships, and aligned with market trends towards bio-based and environmentally friendly solutions.
5. Corbion N.V.
Established in 1919 and headquartered in Amsterdam, Netherlands, corbion N.V. is a significant player in the Oleochemicals market. Operating globally with branches in countries like the USA and Brazil, the company specializes in sustainable food and biochemical solutions. Corbion might have emphasized sustainable sourcing, diversified oleochemicals product portfolio, biodegradable solutions, collaborations, and innovation to align with eco-friendly trends and enhance market offerings.
6. Cargill
Established in 1865 and headquartered in Minneapolis, Minnesota, Cargill is a significant player in the oleochemicals market. With a global presence spanning multiple countries, including Brazil and China, the company specializes in agribusiness and food production. Cargill’s diverse oleochemical products range caters to various industries. Their sustainability focus, research and development efforts, global reach, industry collaborations, and responsiveness to consumer demand trends highlight their commitment to innovation and responsible practices.
*Definition – Oleochemicals are natural compounds derived from plant and animal fats, used in various industries for manufacturing soaps, detergents, and more.
