OLEOCHEMICALS MARKET ANALYSIS

Market Challenges And Opportunities

Global Oleochemicals Market Drivers:

Growing demand for sustainable and biodegradable products to augment market growth

These products are also environmentally friendly and easy to use. Therefore, they are becoming the preferred alternative to synthetic chemicals. Moreover, the demand for oleochemicals is expected to increase as consumer expenditure shifts from cosmetics to essentials, including soap and disinfectants. The oleochemicals industry is growing rapidly and will continue to do so in the future. This is because oleochemicals are inexpensive and can be produced easily using natural, renewable resources.

Rising demand from cosmetic and personal care sector to propel market growth

The demand for oleochemicals is being driven by the growing demand for cosmetics and personal care items that are hypoallergenic and chemical-free. Additionally, the rising construction activities across residential, commercial, and industrial spaces is driving the need for oleochemicals in the manufacturing of paints and adhesives. The growing demand for premium apparel that requires high-quality fabric finishes is further boosting the growth of the oleochemicals market.

Global Oleochemicals Market Opportunities:

Growing awareness regarding the benefits of using green chemicals is expected to open new avenues for the oleochemicals market. The oleochemical industry has gained momentum in recent years due to surging demand for green chemicals, growing environmental regulations and depletion of fossil fuels. Moreover, the industry is expected to grow at a faster rate because of high demand from end-use industries and increasing supply availability of raw materials.

The major oleochemicals producers are focusing on agreements & partnerships to expand their product portfolio for various applications and deepen their regional reach. This strategy can prove to be effective for oleochemicals manufacturers as it helps them increase their market share in the global market. For instance, in February 2022, DKSH has entered a partnership with IOI Oleo, a supplier of oleochemical specialties, for Australia, New Zealand, the Philippines, Taiwan, South Korea, and Vietnam.

Global Oleochemicals Market Restraints:

Fluctuating price of raw materials is expected to hamper the market growth

The development of oleochemicals market is often hindered by high input costs. This is especially the case for the production of fatty acids, which are essential to the manufacture of oleochemicals. The price of crude oil is usually volatile, making it difficult to predict future pricing for these chemicals. Palm kernel oil, coconut oil, high erucic rapeseed oil and beef tallow are the most commonly used raw materials in oleochemicals production. However, volatility in the prices of these materials has had a significant impact on the oleochemicals industry.

Release of VOC emissions during production of chemicals to restrict market growth

The production of oleochemicals leads are associated with the environmental and health issues as VOC are released during the glycerin processing. This leads to can harm human organs like eyes, throat, nose, and eyes. All these factors are expected to hinder the market growth over the forecast period.