The Asia Pacific oleochemical market is anticipated to expand at a CAGR exceeding 7% from 2024 to 2029, driven by increasing industrial applications and the shift towards green che
Oleochemicals are generated from the natural fats and oils in plants and animals. Usually, the triglyceride structure of oils and fats is broken down into glycerol and fatty acids to produce these compounds. Among the often utilized oleochemicals are fatty acids, fatty alcohols, and glycerol. These substances are used in different industries, such as biofuels, electronics, mining, and wax. The APAC regional market is projected to expand due to the rising costs of petrochemical goods and the growing demand for bio-based, renewable, and sustainable chemicals across various industries, including food and beverage, pharmaceutical, personal care, and cosmetics. The outbreak of the COVID-19 pandemic led to partial or complete shutdown of production facilities, which do not come under essential goods, owing to prolonged lockdown in major countries such as the Malaysia, Indonesia, China, Japan, India, and others. It has led to either closure or suspension of their production activities in most of the industrial units across the world. The COVID-19 outbreak has affected the demand as well as manufacturing of oleochemicals. The manufacturing activities of industries, such as automotive and construction, were disrupted, owing to spread of COVID-19 in many countries across the globe, which resulted in decrease in demand for oleochemicals. In addition, other factors influencing the market include the use of oleochemicals in the form of fatty acids for the manufacture of pharmaceuticals, soaps, surfactants, detergents, varnishes, and lubricants and initiatives to replace chemically derived products with bio-based chemicals to reduce the time and expense associated with reformulation and re-equipment. Emery Oleochemicals produces and markets natural compounds derived from fats and natural oils. The company uses five business units, namely Bio-Lubricants, Green Polymer Additives, Agro Green, Oleobasics, and Eco-Friendly, to distribute its goods. It produces Oleochemicals under the Oleobasics business division. According to the research report "Asia Pacific Oleochemical Market Overview, 2029," published by Bonafide Research, the Asia Pacific oleochemical market is anticipated to grow with more than 7 % CAGR from 2024–2029. The region has emerged as a major producer and exporter of oleochemical feedstock and derivatives, including fatty alcohols, fatty acid methyl esters, alkyl ethoxylates, glycerol esters, alkoxylates, glycerin, specialty esters, and fatty alcohols. One of the key drivers for the market's expansion is the increasing demand for biofuels and the growing awareness among people regarding the detrimental effects of fossil fuels and petrochemical resources. Governments in the region are implementing stringent regulations to promote sustainability, further boosting the demand for plant-based products. The Asia Pacific market is also benefiting from the relocation of various industries that require oleochemicals to the region, attracted by better economies and logistics. The Asia Pacific oleochemicals market is witnessing several developments and presenting opportunities for growth. Manufacturers are focusing on geographical expansion and broadening their market presence through strategic alliances, mergers, and acquisitions. For instance, in December 2020, Wilmar accelerated investments in China and Indonesia, adding oil refineries, crushing plants, flour mills, rice mills, consumer edible oil, flour and rice packing plants, and ships, significantly boosting its production capacity. The growing demand for personal care and cosmetic products in the region is another factor driving the market's expansion. The luxury cosmetics sector in Europe, particularly, is experiencing an increase in per capita spending on personal care products, presenting opportunities for oleochemical suppliers. The rapidly expanding pharmaceutical and food and beverage industries in Asia Pacific are also contributing to the market's growth.
Click Here to Download this information in a PDF
A Bonafide Research industry report provides in-depth market analysis, trends, competitive insights, and strategic recommendations to help businesses make informed decisions.
Download SampleMarket Drivers • Rapid Industrialization:Rapid industrialization refers to the swift growth and development of industrial sectors, often in emerging economies. This trend drives increased demand for materials, including oleochemicals, which are used in various industrial applications like coatings, lubricants, and plastics. As industries expand, they require more raw materials and advanced chemicals to support new technologies and higher production volumes. Oleochemicals, with their renewable origins and diverse applications, play a crucial role in supporting this growth. Industrialization also drives technological advancements in oleochemical processing and application, fostering innovation and improving efficiency in product usage. • Growing Consumer Markets:Growing consumer markets, particularly in developing regions, drive the demand for a wide range of products, including those made with oleochemicals. Increased disposable incomes, urbanization, and shifting consumer preferences towards natural and eco-friendly products contribute to this demand. As more consumers seek sustainable and high-quality products, the oleochemical industry benefits from increased opportunities in sectors like personal care, food packaging, and household goods. This expansion of consumer markets presents significant growth potential for oleochemical producers, enabling them to tap into new demographics and market segments. Market Challenges • Infrastructure Limitations:Infrastructure limitations involve challenges related to inadequate facilities, transportation, and logistics that hinder the efficient production and distribution of oleochemicals. Poor infrastructure can lead to inefficiencies, increased costs, and delays in the supply chain. For example, inadequate transportation networks affect the timely delivery of raw materials and finished products. In regions with underdeveloped infrastructure, investments in upgrading processing facilities and improving logistical systems are essential to support market growth and meet increasing demand. Overcoming these limitations is crucial for enhancing industry efficiency and competitiveness. • Price volatility of raw materials:Price volatility of raw materials refers to the fluctuations in the cost of raw materials due to various factors such as supply-demand imbalances, geopolitical events, weather conditions, and market speculation. For oleochemical producers, this volatility is particularly significant for feedstocks like palm oil, soybeans, and animal fats. Changes in raw material prices can affect production costs, profit margins, and pricing stability of oleochemical products. Volatile prices can complicate budgeting and financial planning, leading to increased uncertainty and risk for manufacturers. To mitigate these challenges, companies engage in long-term contracts, diversify their supply sources, or invest in alternative feedstocks. Managing price volatility effectively is crucial for maintaining competitive pricing and ensuring financial stability in the oleochemical industry. Market Trends • Expansion of Biofuel Production:The expansion of biofuel production is driven by the push for renewable energy sources and reduced reliance on fossil fuels. Oleochemicals, derived from plant and animal fats, are crucial in producing biodiesel and other biofuels. Advances in biofuel technology, supportive government policies, and environmental concerns fuel this growth. As biofuel production scales up, the demand for oleochemical feedstocks rises, benefiting the industry. This trend not only supports renewable energy initiatives but also contributes to a more sustainable energy landscape by reducing greenhouse gas emissions. • Focus on Health and Wellness Products:The focus on health and wellness products highlights the growing consumer preference for natural, safe, and effective personal care items. Oleochemicals are increasingly used in skincare, haircare, and other health-related products due to their gentle, biodegradable, and non-toxic properties. Consumers are increasingly aware of the potential health impacts of synthetic chemicals and are seeking products with natural ingredients. This trend drives the demand for oleochemicals, as they align with the shift towards healthier and more environmentally friendly product options. Companies leveraging these trends can enhance their market appeal and meet consumer expectations for wellness-oriented products.
By Source | Palm Oil and Palm Kernel Oil | |
Coconut Oil | ||
Soybean Oil | ||
Rapeseed Oil | ||
Sunflower Oil | ||
Other Oil (Animal Fats, Waste and By-Products, Microbial and Emerging Sources) | ||
By End Users | personal care and comestics | |
soaps and detergents | ||
food and feed | ||
rubber and plastics | ||
coatings and Resins | ||
Lubricants | ||
Others | ||
By Types | fatty acids | |
fatty alcohols | ||
fatty acid derivatives | ||
fatty acid methyl ester (FAME) | ||
Asia-Pacific | China | |
Japan | ||
India | ||
Australia | ||
South Korea |
The dominance of palm oil and palm kernel oil in Asia Pacific's oleochemical market is primarily driven by the region's abundant supply of these raw materials, which are essential for producing a wide range of bio-based chemicals. Asia Pacific, particularly countries like Indonesia and Malaysia, is the largest producer of palm oil globally, accounting for approximately 80% of the world's palm oil supply. This region benefits from favorable climatic conditions and extensive agricultural land, which facilitate high yields of oil palm cultivation. The availability of palm oil and palm kernel oil not only meets the local demand but also supplies the global market, making these oils the preferred feedstocks for oleochemical production. The oleochemical industry relies heavily on these raw materials to produce fatty acids, fatty alcohols, and glycerol, which are integral components in numerous applications, including personal care products, detergents, and biofuels. Moreover, there is a growing trend towards sustainable and bio-based products, as industries shift away from petrochemical-derived chemicals due to environmental concerns. Palm oil's versatility and renewable nature position it as a favorable alternative, aligning with the increasing demand for sustainable practices across various sectors. The rapid industrialization in emerging markets within the region, coupled with heightened awareness of eco-friendly products, further propels the growth of palm oil and palm kernel oil in the oleochemical market. Additionally, technological advancements in extraction and processing methods enhance the efficiency of utilizing these oils, solidifying their role as key players in the Asia Pacific oleochemical landscape. This combination of abundant supply, sustainability, and technological innovation is pivotal in establishing palm oil and palm kernel oil as leaders in the region's oleochemical market. The leading position of soaps and detergents in the Asia Pacific's oleochemical market is primarily attributed to the rising consumer demand for personal hygiene products, driven by increased awareness of health and sanitation. There has been a notable shift in consumer behavior towards prioritizing hygiene and cleanliness, significantly influenced by global health crises such as the COVID-19 pandemic. This heightened awareness has led to a surge in the consumption of soaps and detergents, which are essential for maintaining personal and household hygiene. The soap and detergent segment accounted for a substantial share of the oleochemical market, reflecting its critical role in everyday life. Oleochemicals, derived from natural oils and fats, are integral to the formulation of these products, providing effective cleaning properties while aligning with the growing trend towards sustainable and eco-friendly solutions. The Asia Pacific region, being a major producer of oleochemicals, benefits from the abundant availability of raw materials such as palm oil and palm kernel oil, which are key ingredients in the production of soaps and detergents. This local sourcing not only supports the industry but also reduces dependency on imported petrochemical derivatives, enhancing the market's resilience. Furthermore, the increasing urbanization and disposable income in countries like China and India are contributing to the rising demand for quality personal care products, including premium soaps and detergents. Manufacturers are responding to this trend by innovating and expanding their product lines to cater to diverse consumer preferences, further solidifying the position of soaps and detergents as the leading application in the oleochemical market. The combination of health awareness, local raw material availability, and evolving consumer preferences continues to drive the growth of this segment in the Asia Pacific oleochemical landscape. The leading position of fatty acids in Asia Pacific's oleochemical market is primarily driven by their widespread application across various industries, including personal care, pharmaceuticals, and food, coupled with the region's abundant supply of raw materials. Fatty acids are essential building blocks in the production of a wide range of products, making them highly versatile and valuable in the oleochemical sector. Their applications span from personal care products, such as soaps and cosmetics, to industrial uses in lubricants and surfactants. The increasing consumer demand for natural and biodegradable products has significantly boosted the utilization of fatty acids, as they are derived from renewable sources like palm and coconut oils. This shift towards sustainability aligns with global trends favoring eco-friendly alternatives to petrochemicals, further enhancing the appeal of fatty acids in the market. Countries like Indonesia and Malaysia have established themselves as key players in the production of palm oil, which is a primary feedstock for fatty acid manufacturing. The local availability of these raw materials not only supports competitive pricing but also ensures a stable supply chain for manufacturers. Additionally, the growth of emerging economies in the region, such as India and Vietnam, is driving increased consumption of fatty acids in various applications, including food processing and pharmaceuticals. As industries continue to innovate and expand their product lines to include sustainable options, fatty acids are poised to maintain their leading position in the Asia Pacific oleochemical market, driven by their versatility, sustainability, and the region's robust production capabilities.
Click Here to Download this information in a PDF
China's leadership in the Asia Pacific's oleochemical market is primarily driven by its robust manufacturing capabilities and the increasing demand for sustainable, bio-based products across various industries. As one of the largest economies in the world, China has established itself as a global manufacturing hub, attracting significant investments in the oleochemical sector. The country's extensive industrial base encompasses key sectors such as personal care, pharmaceuticals, food and beverages, and textiles, all of which heavily utilize oleochemicals. The rising consumer awareness regarding health and environmental sustainability has further accelerated the demand for bio-based products, which are derived from renewable resources like palm oil and coconut oil. This shift towards eco-friendly alternatives is a critical factor propelling the growth of oleochemicals in China, as manufacturers seek to comply with stringent environmental regulations and cater to the evolving preferences of consumers. China's favorable labor costs and government policies aimed at promoting green technologies have made it an attractive destination for global companies looking to establish or expand their production facilities. The availability of abundant raw materials, coupled with a well-developed supply chain, enhances the competitiveness of Chinese oleochemical producers. Additionally, the rapid urbanization and increasing disposable incomes in the country are driving the growth of end-user industries that rely on oleochemicals, such as cosmetics and cleaning products. With ongoing advancements in technology and production processes, China is expected to continue its dominance in the oleochemical market, leveraging its manufacturing strengths to meet both domestic and international demand. The combination of strong industrial growth, a shift towards sustainable products, and supportive government initiatives positions China as a leader in the Asia Pacific oleochemical landscape.
Click Here to Download this information in a PDF
• In April 2023, Emery Oleochemicals unveiled a new product, INFIGREEN 420R, a polyester polyol with recycled components made from waste from the post-industrial era. Autocatalytic qualities, mechanical and hydrolytic resistance, and 50% biobased certification are some of the main advantages. Furthermore, the business sells EMEROX renewable polyester polyols, which have advantages in terms of sustainability and performance. Emery offers a wide range of polyester polyol solutions that are ideal for urethane applications • In April 2023, KLK OLEO acquired a majority share in Temix Oleo SpA (Temix Oleo). The transaction was finalized after obtaining all required approvals and meeting all usual closing requirements. The company's long-term strategy and growth goal are in line with this acquisition, which will enhance its product specialization strategy throughout its European operations, expand access to important clients, and further diversify the company's product offering
We are friendly and approachable, give us a call.