Growing Demand for Natural Cosmetics and Personal Care Products to Fuel Global Oleochemicals Market Growth
Cosmetic products derived from natural sources have witnessed steady rise in demand since past couple of years. This is mainly attributed to rising inclination of manufacturers and customers towards sustainable chemicals used in the manufacturing of cosmetic and personal care products. From the manufacturers’ standpoint, natural sources for cosmetics such as oleochemicals are more desirable than petrochemicals. In addition, low cost of oleochemicals due to abundance of raw material is another aspect driving their use in cosmetic production. From the customer point of view, cosmetics from natural sources support enhanced skin health and do not contain carcinogens as compared to traditional petrochemicals used in cosmetic production. In this backdrop, use of oleochemicals such as glycerine in skin care and hair care products is expected to gain high traction as efficient and low risk cosmetic emollients, thickening agents, moisturizers, and conditioners. Moreover, various benefits of using oleochemicals such as enhanced product quality can result in improved brand recognition and higher level of customer satisfaction. This factor combined with the aspect that oleochemicals are eco friendly and reduce waste disposal costs, is propelling their use in the manufacturing of cosmetic and personal care products, in turn favouring the growth of the global oleochemicals market.
Palm Oil Likely to Witness Huge Demand for Production of Oleochemicals
Oleochemicals are naturally derived using animal and plant feedstock. Major plant-based feedstocks include lauric oil (coconut oil and kernel oil), palm oil, tallow and soybean oil. Off these, oleochemicals derived from palm oils are largely used on the back of various perceived benefits of the feedstock. Palm oil offers significant benefits over other palm-based sources, such as competitive pricing, higher productivity and enhanced efficiency. It is less expensive as compared to soybean oil. Albeit a fluctuating nature of palm oil, it is considered as most cost effective for customers, especially in medium-to-low income countries. Moreover, palm can grow on lands that are less or not suitable for other crops yet generates yields that are commercially viable. It also requires fewer amounts of pesticides, fertilizers and energy, making it an eco-friendlier option. In addition, being perennial in nature, it has the added benefit of being a reliable source. This has resulted in a higher demand for palm oil for producing oleochemicals, making it a crucial source influencing the growth of the oleochemicals market.
Asia Pacific Expected to Showcase Significant Growth Prospects for Oleochemicals Market
Asia Pacific is expected to showcase significant growth opportunities for oleochemicals market. This is mainly attributed towards growing plantations in Malaysia, Philippines, and Indonesia in a bid to manufacture various personal care and cosmetic products, especially organic soaps from oleochemicals. For instance, caustic soda, various fragrances, sodium along with preservatives is combined with plant based oleochemicals to produce organic soaps. Additionally, rising inclination towards green alternatives along with easy raw material availability is expected to contribute to the growth of the oleochemicals market in Asia Pacific. For instance, Malaysia and Indonesia are the largest producers of palm oil, which is a major feedstock for production of oleochemicals. According to analysis of MPOC (Malaysian Palm Oil Council), Malaysia accounted for over 25% and 34% of the global production of palm oil and exports respectively. Steady growth of end use industries such as food and beverages, pharmaceuticals, cosmetics and personal care coupled with higher availability of oleochemicals is expected to drive the growth of the oleochemicals market in Asia Pacific in the years to follow.
Global Oleochemicals Market: Competitive Landscape
Key players in the oleochemicals market are functioning principally on price characteristics and product application. Various players are engaging in signing alliances and increasing the capacity of their production facility to amplify their position in the oleochemicals market. For instance, in 2019, a joint venture of Apical Group Ltd., and Kao Corporation – PT Apical Kao Chemicals – was established that focused on enhanced production capacity, ensuring stable supply of oleochemicals. Likewise, in 2021, Arkema announced a global capacity expansion by 50% for Oleris, its bio-based oleochemical. This expansion will be concluded in 2022, complementing to Arkema’s current production in France, representing a step change apropos to global supply assurance.
Few of the key players in the global oleochemicals market are Cargill Inc., BASF SE, Kao Chemicals, Evonik Industries, Godrej Industries, and Wilmar International.
Global Oleochemicals Market is Segmented as Below:
Key Elements Included In The Study: Global Oleochemicals Market
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