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

Regional Analysis

Global Crude Tall Oil Market Regional Analysis:

• North America has established itself as the dominant region in the global crude tall oil market over the past few decades. The North America market is expected to be the dominant market for crude tall oil, with a CAGR of over 40% during the forecast period. The U.S. accounts for the lion's share of the market due to the presence of well-established pulp and paper industry in the region. Major pulp and paper companies operating in North America produce huge volumes of crude tall oil as a by-product, which is further used in various end-use industries such as construction, paints and coatings, etc. In addition, the demand for bio-based products is growing rapidly in North America owing to stringent environmental regulations imposed by regulatory bodies such as Environmental Protection Agency. This has further propelled the consumption of crude tall oil-based products in the region. Moreover, the presence of leading crude tall oil traders and distributors aids in smooth supply chain operations across the continent. All these factors collectively make North America the most lucrative market globally.
• The Asia Pacific region has emerged as the fastest expanding market for crude tall oil in recent years on account of robust economic growth and increasing industrialization. The Asia Pacific market is expected to be the growing market for global crude tall oil, with a CAGR of over 30% during the forecast period. Countries such as China and India are major contributors to the Asia Pacific crude tall oil market. The thriving construction industry where crude tall oil and its derivatives finds extensive usage as concrete additives has been instrumental in driving the market growth in the region. Furthermore, rising exports of paper products from Asia Pacific to European and North American countries has augmented the crude tall oil production volumes. This offers new opportunities for existing as well as new market players. However, the presence of abundant raw material reserves and relatively cheaper labor costs gives domestic crude tall oil producers a competitive edge over import operations in Asia Pacific nations. This is expected to catapult the regional market to new heights in the coming years.
• The Europe market is expected to be the growing market for crude tall oil, with a CAGR of over 15% during the forecast period. The growth is attributed to the increasing demand for crude tall oil in various applications such as inks and toners, adhesives, metalworking, chemicals, electronics, and electrical. The renewable EU's 'Renewable Energy Directive' aims to confirm that at least 10% of their energy consumption comes from renewable sources, which is expected to drive the demand for crude tall oil in Europe.
• The Latin America market is expected to be the growing market for crude tall oil, with a CAGR of over 8% during the forecast period. The growth of the market in Latin America is attributed to the lack of awareness and the presence of alternative biofuels, which may impede the market growth.
• The Middle East & Africa market is expected to be the growing market for crude tall oil, with a CAGR of over 7% during the forecast period. The growth of the market in the Middle East & Africa is attributed to the increasing demand for crude tall oil in various applications such as inks and toners, adhesives, metalworking, chemicals, electronics, and electrical.

Figure 1. Global Crude Tall Oil Market Share (%), by Region, 2024