According to Grand View Research, industry has shifted its focus towards developing bio-based products on account of volatility in petrochemicals prices due to supply demand imbalances which is also expected to have a positive influence on oleochemicals demand.
Initiatives from different environmental associations regarding toxic emissions from petrochemicals are expected to further help oleochemicals penetrate the market on account of its biodegradable and renewable raw materials.
Oleochemical products are used in various end-use industries including personal care, food additives, surfactants, and pharmaceuticals.
Growth of these end-use industries particularly in emerging economies of India, China and Brazil is also expected to drive the demand for oleochemicals.
In personal care, it is fatty acids in particular that are growing demand and they are the leading oleochemical product accounting for 57% of total demand in 2013, and is expected to grow at an estimated CAGR of 6.4% from 2014 to 2020.
Glycerol is expected to witness significant growth rate over the next six years with growing awareness for green chemistry among consumers expected to have positive impact on demand.
According to the Grand View report, Asia Pacific was the largest regional oleochemicals market and accounted for 41.9% of total market volume in 2013.
Availability of key raw material in abundance particularly in Malaysia, China, Indonesia and Thailand is expected to have a positive influence on the market growth, with demand coming from personal care once more, among other industries.
Asia Pacific is also expected to be the most lucrative regional market for oleochemicals over the foreseeable future, and boasts the largest consumer-base and is also the largest producer of oleochemicals.
European oleochemicals demand is expected to grow at an estimated CAGR of 4.1% from 2014 to 2020.