CRUDE TALL OIL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Challenges And Opportunities

Global Crude Tall Oil Market Drivers:

• Growth in Bio refineries and Biofuel Industry: The crude tall oil market is expected witness significant growth due to expanding applications of crude tall oil in the production of biofuels and biochemical. There has been a continuous push towards developing a sustainable bio-based economy and reducing dependence on fossil fuels. Many countries have implemented regulatory policies and set mandates to increase the usage of renewable fuels in the transportation sector. This is positively impacting the establishment of new biodiesel and biofuel refineries that use vegetable oils, algae, and other biomass as raw materials.

Crude tall oil serves as a valuable raw material for these bio-refineries due to its balanced ratio of fatty and resin acids. The aliphatic compounds present in crude tall oil can be converted into biofuels like fatty acid methyl esters through esterification reactions. Meanwhile, the rosin acids have various applications as additives, emulsifiers, and corrosion inhibitors in biofuels. Leading biofuel producers are increasingly utilizing crude tall oil or its derivatives as an affordable biomass-based feedstock. Additionally, many new entrants are setting up dedicated bio refineries focused on deriving multiple bio products from crude tall oil. This includes compounds for food additives, surfactants, lubricants, and biochemical.

The growing demand for sustainable and low carbon liquid transportation fuels is a major driver for investments in biofuels and associated bio refining projects. Successful commercialization and higher blending mandates for advanced biofuels will positively impact crude tall oil consumption. Ongoing research efforts to optimize crude tall oil conversion processes and develop its high-value applications will further encourage bio refineries to adopt it as a versatile resource. Overall, there exists immense opportunity for crude tall oil considering the push for renewable and green alternatives across different industries.

• Rising Consumption in Adhesives and Sealants Sector: Another key factor leading to higher crude tall oil consumption is the increasing usage of bio-based additives in adhesives and sealants. Stricter environmental regulations globally have put pressure on manufacturers to reduce volatile organic compound emissions from their product formulations. Meanwhile, many industries have goals to increase the use of sustainable ingredients and lower their carbon footprint. This growing trend provides significant opportunities for crude tall oil and its derivatives in the adhesives sector.

Rosin tall oil and tall oil pitch, which are obtained from crude tall oil, function as effective resin tackifiers in hot melt, solvent-based, and water-based adhesives. Their hydrophilic nature allows for enhanced adhesion to various substrates. Meanwhile, the oligomers and acids improve bond strength and flexibility of joint sealants. Leading adhesive producers are actively focusing on crude tall oil-based additives to replace petroleum-derived alternatives. A few have already commercialized product lines with over 50% bio-based content including rosin tall oil.

Additionally, the woodworking, furniture, footwear and construction industries extensively use plywood, particleboard, laminates and other wood composite panels. These sectors also offer high growth potential for crude tall oil-based adhesives. Ongoing research on upgrading crude tall oil into value-added intermediates like dimer acids, polyamides, and fatty acid esters will drive their broader adoption in specialty adhesive formulations. With stricter eco-labeling and bio-preference policies, crude tall oil is anticipated capture a notable share of the rapidly expanding bio-based adhesive market.

Global Crude Tall Oil Market Opportunities:

• Advancements in extraction technology: Advancements in extraction technology could unlock tremendous opportunities in the global crude tall oil market. Tall oil is a byproduct of the kraft pulping process used in paper manufacturing. Traditionally, tall oil has been extracted through acidulation, which introduces impurities and limits the applications of the product. However, new separation techniques are now allowing for purer forms of tall oil to be produced.

For example, vacuum evaporation and vacuum distillation technologies allow crude tall oil to be separated into pure fatty acid and rosin products under controlled temperature and pressure conditions without the use of chemicals. This enables the individual components to be further refined for specialized industrial and consumer applications. As a result, a much wider range of end products become feasible such as tall oil fatty acid for lubricants and fuel additives as well as distilled tall oil for resins and adhesives.

• Growth of end-use industries in developing countries: The rapid industrialization and infrastructure development occurring in many developing economies presents a major growth opportunity for the global crude tall oil market. Many developing countries in Asia Pacific and Africa are witnessing significant expansion of their construction, paints and coatings, and automotive industries which are key end-use segments for crude tall oil derivatives. The increasing construction activities point to a surge in demand for concrete admixtures, which are prime application areas for crude tall oil.