Fatty Alcohols Market size is set to grow by USD 611.9 million from 2024-2028, Growing demand for industrial and institutional cleaners to boost the market growth, Technavio

NEW YORK, July 15, 2024 /PRNewswire/ -- The global fatty alcohols market size is estimated to grow by USD 611.9 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 2.15% during the forecast period. Growing demand for industrial and institutional cleaners is driving market growth, with a trend towards growing demand for biosurfactants. However, fluctuating raw material prices of fatty alcohols poses a challenge. Key market players include AVRIL SCA, BASF SE, CREMER OLEO GmbH and Co. KG, Croda International Plc, Eastman Chemical Co., Ecogreen Oleochemicals PTE Ltd., Evonik Industries AG, Godrej and Boyce Manufacturing Co. Ltd., Jarchem Industries Inc., Kao Corp., Kuala Lumpur Kepong Berhad, Musim Mas Group, Sasol Ltd., Saudi Basic Industries Corp., Shell plc, Sime Darby Plantation Berhad, The Procter and Gamble Co., Timur OleoChemicals Malaysia Sdn. Bhd., VVF LLC, and Wilmar International Ltd..

Get a detailed analysis on regions, market segments, customer landscape, and companies - Click for the snapshot of this report

Key Market Trends Fueling Growth

Fatty alcohols are essential oleochemicals with diverse industrial applications, particularly in detergent production, cosmetics and personal care, emulsion polymerization, and oil field exploitation. The demand for fatty alcohols is driven by their versatility and effectiveness in various applications. Traditional methods of producing fatty alcohols, mainly through chemical conversion of fatty acids from oil crops or petrochemical feedstocks, have significant environmental and social implications, such as deforestation, biodiversity loss, increased carbon emissions, and chemical waste. Biosurfactants, produced through microbial fermentation, offer a sustainable alternative to traditional methods. These biodegradable and renewable surfactants can produce fatty alcohols with specific chain lengths and properties, reducing the environmental impact of their production. The use of biosurfactants also enhances the solubility and stability of fatty alcohols, expanding their industrial applications. The global fatty alcohols market is growing, driven by the increasing demand for eco-friendly and sustainable production methods. Governments worldwide are promoting the use of environmentally friendly surfactants, and manufacturers are required to use eco-friendly raw materials in their production processes. The biosurfactant market is developing rapidly, and intensive research is ongoing to optimize their production and applications. The use of biosurfactants in the production of fatty alcohols is expected to positively influence the growth of the global fatty alcohols market during the forecast period. 

The Fatty Alcohols market is witnessing significant trends in various industries. In the personal care sector, the demand for eco-friendly ingredients is driving the shift from petroleum-based products to bio-based ones. The coronavirus crisis and rising disposable income have boosted the sales of personal care and pharmaceutical products. However, supply chain disruptions due to the crisis have affected the manufacturing sectors, leading to raw material price hikes and delivery schedule delays. Bio-based oleochemicals, derived from renewable resources like palm oil, PK oil, tallow, rapeseed oil, etc., are gaining popularity as raw materials in surfactants used in soaps and detergents. The detergent industry, particularly surfactant-based industries, is a major consumer of fatty alcohols. The amines and ethoxylates used in these industries are also experiencing increased demand. The international trade centre reports that modern detergents and washing machines are driving the demand for synthetic detergent intermediates and surfactant production. The detergent industry's amphipathic nature, which allows them to lower the surface tension between two immiscible liquids or a liquid and a solid, makes them essential in various industrial and domestic applications. The major economies, including China, the US, and Europe, are the leading producers of fatty alcohols. The production of these chemicals is crucial to industries like lubricants, cosmetics, and therapeutic medicines. Despite the challenges, the fatty alcohols market is expected to grow, driven by the increasing demand for eco-friendly and renewable resources-based products. 

Discover 360° analysis of this market. For complete information, schedule your consultation- Book Here!

Market Challenges

• Fatty alcohols are essential chemicals used in various industries, primarily produced from vegetable oil and animal fat. However, the supply of these raw materials faces constraints, with animal fat production remaining relatively stable due to farmers and ranchers not raising animals specifically for fat. Additionally, the food industry's increasing demand for vegetable oil for human consumption and biofuel production further reduces the availability for industrial use. Furthermore, the prices of ethylene and natural gas, essential raw materials for synthetic fatty alcohols, are volatile due to the crude oil price fluctuations and geopolitical instability in major oil-producing regions. These factors are expected to pose challenges to the growth of the global fatty alcohols market during the forecast period.
• The Fatty Alcohols market faces several challenges in various industries such as personal care and lubricants. The use of amines in their production can pose regulatory issues. In industrial and domestic applications, the shift towards renewable resources-based products like palm oil, PK oil, tallow, and rapeseed oil, poses challenges for factories in managing their supply networks and delivery schedules. Raw material prices also impact production costs. In surfactant-based industries, including cosmetics, detergent industry, and modern detergents, the amphipathic nature of fatty alcohols is essential. However, producing nonionic surfactants, a common type, from fatty alcohols can be complex. Synthetic detergent intermediates and surfactant production require careful planning and coordination with major economies. Additionally, fatty alcohols have applications in therapeutic medicines and active pharmaceutical ingredients, as well as traditional Chinese medicine. Ensuring compliance with international trade regulations and maintaining consistent quality is crucial in these sectors. With the increasing use of washing machines and the growing demand for soaps, the market faces pressure to meet production targets and maintain delivery schedules.

For more insights on driver and challenges - Download a Sample Report

Segment Overview 

This fatty alcohols market report extensively covers market segmentation by

1. Type 
• 1.1 Pure and midcut
• 1.2 Long chain
• 1.3 Short chain
2. Application 
• 2.1 Cleaning products
• 2.2 Personal care
• 2.3 Lubricants
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Pure and midcut- The global fatty alcohols market experienced notable growth in 2022, driven by the increasing demand for pure and midcut types. Pure fatty alcohols, with their long carbon chains, are widely used in personal care products, detergents, and pharmaceuticals due to their excellent emollient and cleaning properties. Midcut fatty alcohols, featuring medium-length carbon chains, are essential in surfactants, industrial lubricants, and plasticizers. Consumer preference for sustainable products, the expanding personal care and cosmetics industry, and the growing applications in the chemical and pharmaceutical sectors fueled market growth. Post-pandemic, industrial activity resumed, leading to a rebound in fatty alcohols demand. This favorable market situation presents opportunities for producers and suppliers of both pure and midcut fatty alcohols, resulting in significant market expansion during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022) - Download a Sample Report

Learn and explore more about Technavio's in-depth research reports

The global low-alcohol beverages market is witnessing significant growth, driven by increasing health consciousness and demand for mindful drinking. In Europe, the vodka market is adapting to these trends, introducing lower ABV options to appeal to health-savvy consumers. Meanwhile, the global coconut alcohol market is expanding as tropical flavors gain popularity, with coconut-based spirits and cocktails becoming trendy in bars and households. These market dynamics reflect a broader shift towards healthier and innovative alcoholic beverage choices worldwide.

Research Analysis

The Fatty Alcohols market is witnessing significant growth, particularly in the personal care industry, due to the rising disposable income and increasing awareness towards eco-friendly ingredients. The Coronavirus crisis has caused supply chain disruptions, affecting the manufacturing sectors that produce both petroleum-based and bio-based fatty alcohols. The personal care sector, including surfactant-based industries, cosmetics, soaps, and detergents, is a major consumer of fatty alcohols. Ethoxylates and oleochemicals are the primary types of fatty alcohols used in these applications. The shift towards renewable resources-based products is also driving the demand for bio-based oleochemicals. Factories and supply networks are working to maintain global production and delivery schedules amidst raw material price fluctuations. The amphipathic nature of fatty alcohols makes them essential components in various industries, including industrial and domestic applications.

Market Research Overview

The Fatty Alcohols market is witnessing significant growth in various industries, particularly in the personal care sector. The rising disposable income and increasing awareness towards eco-friendly ingredients have led to a surge in demand for bio-based fatty alcohols derived from renewable resources such as palm oil, PK oil, tallow, rapeseed oil, and others. However, the coronavirus crisis has caused supply chain disruptions, affecting the manufacturing sectors and delivery schedules. The petroleum-based fatty alcohols market is also facing challenges due to the volatile raw material prices. The personal care and pharmaceutical industries are major consumers of fatty alcohols, using them as raw materials in the production of surfactants, soaps and detergents, cosmetics, ethoxylates, and synthetic detergent intermediates. The amphipathic nature of fatty alcohols makes them essential in various industries, including lubricants, amines, and industrial and domestic applications. The global production of fatty alcohols is concentrated in major economies, with factories in China, the United States, Europe, and India being the leading producers. The International Trade Centre reports that the global trade in fatty alcohols has been increasing steadily, with major exports coming from China, the United States, and the European Union. The detergent industry, particularly modern detergents, is a significant consumer of nonionic surfactants, which are produced from fatty alcohols. The demand for detergents has increased due to the widespread use of washing machines, particularly in developing economies. In addition, fatty alcohols are used in therapeutic medicines and active pharmaceutical ingredients, as well as in traditional Chinese medicine.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Pure And Midcut
• Long Chain
• Short Chain
• Application
• Cleaning Products
• Personal Care
• Lubricants
• Others
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED