Castor Oil and Derivatives Market: Overview
The market size for Castor Oil and Derivatives was USD 1192.3 million in 2021, projected to grow at a CAGR of 5.5 percent during the forecast period. Rapid urbanization, the rise of the middle class, and rising consumer demand for environmentally friendly goods are all expected to increase the demand for castor oil and derivatives. Demand for consumer goods like personal care and cosmetics is rising due to rising purchasing power, expanding economic prosperity, and product affordability is also driving the castor oil and derivatives. Over the projection period, strong expansion in end-user industries is anticipated to support demand for castor oil and its derivatives.
The automobile industry is also a driving force in the Castor oil and derivatives market. Polyamides are increasingly being used in automobiles, and castor oil derivatives such as ricinoleic acid, undecylenic acid, and particular grades of castor oil are utilized in producing bio-based polyamides, resulting in a substantial demand for castor oil derivatives. According to the China Association of Automobile Manufacturers (CAAM), total vehicle sales in China will be over 0.00285 billion units by December 2020. As a result, the demand for lubricants and greases rises, as does the demand for Castor oil and derivatives.
Castor oil and derivatives are becoming more and more well-known because of their superior chemical qualities. Top ingredient producers are introducing compounds based on castor oil to take advantage of opportunities in the market for green chemicals. For instance, in August 2020, BASF SE introduced Lamesoft Balance, a solution based on hydrogenated castor oil to stabilize components in washing formulations for the skin and hair. It aids in supplying homogeneous rheology, which is frequently difficult to obtain in cleansing formulations. Hence, the castor oil derivatives market is expanding due to such operations.
Castor Oil and Derivatives Market: COVID-19 Impact
The COVID-19 outbreak significantly harmed Castor oil production in these countries due to limited or no access to manufacturing facilities, limited feedstock, and workforce. Supply chain disruptions and decreased output contributed to the export slump. According to 'The Solvent Extractors Association of India and worldwide industry experts, global demand and export of castor oil may plummet by 10-30% due to the pandemic. However, with the progressive lifting of lockdowns and the normalization of supply chains, the world is expected to increase in the fourth quarter of 2020. On the other hand, castor oil and derivatives have benefited from the COVID-19 pandemic. Castor oil demand has increased in the last year due to its widespread use in cosmetic applications.
Castor Oil and Derivatives Market: Drivers
Increasing Adoption of Castor Oil Derivatives in Personal Care Products to Drive Market Growth
Ointments and skin care products have recently seen an increase in demand. In 2020, the natural and organic personal care product market was estimated to be worth USD 17.97 billion. The market for castor oil and its derivatives has expanded as a result of castor oil's exceptional abilities to treat skin infections and patches. A few of the important derivatives utilized in the production of hair care, skin care, and lip care products, as well as perfumes, include castor wax, castor oil esters, zinc ricinoleate, and undecylenic acid. These derivatives serve a variety of functions during the production of cosmetics, including those of surfactants, emulsion stabilizers, skin conditioners, and others. Future acceptance of natural components is anticipated to rise along with the demand for natural cosmetics products worldwide.
Increasing Demand for Pharmaceutical Grade Castor Oils to Drive Market Growth
The healthcare industry has experienced substantial expansion over the past few years, raising the demand for pharmaceuticals like those used for injecting lipophilic medications that cannot be taken orally. Ricinoleic acid and omega-6 fatty acids found in castor oil aid in developing lymphocytes, which are believed to combat disease-causing agents naturally. It also boosts white blood cell production. Castor oil strengthens the immune system and combats infection, which is essential, especially in light of the current pandemic. Castor oil and its derivatives are widely used in pharmaceuticals; therefore, considerable growth is anticipated during the forecast period. The pharmaceutical grade castor oil is employed in products like laxatives and capsules for oral consumption.
Castor Oil and Derivatives Market: Restraints
Fluctuations in Castor Oil Prices Caused by Extreme Dependence on Climate to Hamper Market Growth
Castor oil price fluctuations brought on by a disproportionate reliance on climate are one of the major obstacles to expanding the world's castor oil and its derivatives market. For instance, Gujarat dominates the production of castor seeds in India, and significant changes in the cultivation areas have been brought on by elements like drought and other extreme weather conditions, as well as the unorganized nature of farming, which have resulted in a decline in production rate. An imbalance in the supply chain of castor seeds might result from price changes and changing climate conditions. The global market for castor oil and its derivatives faces significant challenges from fluctuations in raw material prices brought on by the availability of cheap substitutes and the expanding supply-demand gap resulting from prolonged storage and hoarding periods.
Castor Oil and Derivatives Market: Segment Overview
Sebacic Acid Compressors Segment to Dominate Market Due to its Increased Inclusion in Production of Resins and Polyamides
Based on product, the Castor Oil and Derivatives market is segmented into sebacic acid, 12-HAS, ricinoleic acid, hydrogenated castor oil (castor wax), undecylenic acid, dehydrated castor oil and others. The sebacic acid segment dominates the market and is expected to maintain its dominance over the forecast period. The increased inclusion of sebacic acid in the production of resins and polyamides is thought to be the cause of the larger share. It is projected that the rising demand for sebacic acid in the synthesis of plastics, biopolymers, and aromatic goods will propel the market for the product and castor oil production in the Asia Pacific region, particularly in China. The highest rate is projected for ricinoleic acid during the forecasted timeframe. The expansion is anticipated due to rising demand for various end-use applications, including finishing textiles, coating inks, and manufacturing soap. Soaps are made when ricinoleic acid reacts with bases like ammonia, caustic, and ethanolamines. The substance is utilized in cutting oils, metalworking compounds, and emulsifiers.
Plastics and Resins Category to Dominate Market Owing to Rising Use of Biodegradable Plastics
Based on application, the Castor Oil and Derivatives market is segmented into lubricants, surface coatings, biodiesel, cosmetics and pharmaceuticals, plastics and resins and others. The plastics and resins segment dominates the market and is expected to maintain its dominance over the forecast period. The rise in the use of biodegradable plastics is attributed to the need. Compared to crude oil, the product is far more frequently used as a raw ingredient for the production of plastics. The textile business is additionally utilized as a replacement for recovered plastics. The notable characteristics of castor oil-based resins, such as castor oil-modified epoxy and polyamide resin, include a performance at high temperatures, toughness, flexibility, rigidity, chemical resistance, strong adhesive, and formulation flexibility. Castor oil has become an active component in epoxy and polyamide resin compositions. The paints and coatings sector uses its modified resins extensively.
Castor Oil and Derivatives Market: Regional Landscape
Asia Pacific to Dominate Market due to Increased Investments in Consumption and Production of Castor Oil
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. The growth in production and consumption of the commodity is related to the increase in demand. As castor seeds are widely available in India, it is one of the leading producers and consumers of castor oil and derivative goods. Castor seed production is expected to be around 1653 kilotons from July 2020 to June 2021, according to the Solvent Extractors Association of India (SEA). India also exports significantly to China, Japan, and other regions yearly. The Solvent Extractors Association of India (SEA) estimates that India's Castor oil exports will increase from 600.76 kilotons in 2019 to 709.88 kilotons in 2020. India's great production of castor oil and its derivatives is that castor seeds grow well in rains, high temperatures, and low humidity, making them appropriate for growing in various locations of India.
The European market is anticipated to experience stable revenue growth throughout the forecast period. Increased usage and favorable government laws surrounding bio-based chemicals will fuel market expansion shortly. The European Commission launched a "Green Deal" in 2019 to achieve carbon neutrality by 2050. This agreement is supported by regulatory reforms and green technologies across Europe's chemical industries. As a result, both European manufacturers and consumers are adjusting their preferences toward bio-based chemicals. Thus, such government measures are projected to drive demand for these oil derivatives in Europe shortly. Furthermore, for its domestic needs, Europe mostly imports from nations such as India, Brazil, Malaysia, Mexico, and China. France, the Netherlands, Germany, Belgium, Italy, and the United Kingdom were the top importing countries
Global Castor Oil and Derivatives Market: Competitive Landscape
In August 2021, Adani Wilmar, one of the main market players, submitted draught documents with market regulator Sebi to conduct its initial public offering (IPO) and raise Rs 45,000 million for expansion capital. Similarly, in June 2020, Rioconn Interactive, inventive communication and digital marketing agency, won the digital mandate for N.K. Proteins Pvt. Ltd., a market leader. The mandate entails working on digital marketing strategy, general social media, and influencer outreach requirements for all sub-brands. In March 2020, under its "Creme of Nature" brand, Revlon introduced a new line of hair care items based on black castor oil, aloe vera, and vitamins.
A few players in the Castor Oil and Derivatives Market include Thai Castor Oil Industries Co., Ltd.; ITOH Oil Chemicals Co., Ltd.; Jayant Agro Organics Limited; Hokoku Corporation; RPK Agrotech; Taj Agro Products Limited; Tongliao Tonghua Castor Chemical Co., Ltd.; Xingtai Lantian Fine Chemical Co., Ltd.; N.K. Proteins Pvt. Limited; Adani Wilmar Ltd.
Global Castor Oil and Derivatives Market is Segmented as Below:
Key Elements Included In The Study: Global Castor Oil and Derivatives Market
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