Oleochemicals are chemical compounds derived from natural oils and fats, typically sourced from plants and animals. They serve as eco-friendly alternatives to petrochemicals and play a vital role in various sectors. In personal care and cosmetics, oleochemicals like fatty acids and glycerol are used in soaps, lotions, and creams for their moisturizing properties.

In food and beverages, they act as emulsifiers and preservatives. For example, glycerol is used in food processing as a sweetener and solvent. In pharmaceuticals, fatty acids are critical for drug delivery systems and active ingredients. In 2019, oleochemicals became integral to bioplastics, helping reduce reliance on petroleum-based plastics. Additionally, in agriculture, they are used in making biodegradable pesticides and herbicides, promoting sustainable farming practices. Their environmental advantages and versatility drive their growing importance across industries. “In Terms of Revenue, the Global Oleochemicals Market was Worth US$ 27.8 Bn in 2023, Anticipated to Witness CAGR of 7.3% During 2024 – 2034.”

Top Markets For Malaysia’s Exports Of Oleochemical Products:

Malaysia’s top export markets for oleochemical products included China, the European Union, and India. These regions drive demand for oleochemicals in personal care, detergents, and biodiesel. For instance, Malaysia exported substantial amounts of palm-based oleochemicals to China for use in cosmetics and cleaning agents. Similarly, Indian manufacturers imported Malaysian oleochemicals for soaps and lubricants, reinforcing Malaysia’s status as a leading global supplier in the oleochemicals industry.

Oleochemical Export:

According to “Malaysian Palm Oil Board & Department of Statistics” in 2022, total exports of oleochemical products dropped by 5.14%, reaching 2.73 million tonnes compared to 2.88 million tonnes in 2021. Despite this volume decline, the export value saw a substantial rise of 31.1%, amounting to RM 22,875 million. Oleochemical exports contributed 17.6% to the total revenue from palm oil product exports in 2022.

Opportunities in the Global Oleochemicals Market

• Expansion of Bio-based Personal Care Products: The global oleochemicals market offers significant growth potential in the bio-based personal care industry. As consumers increasingly shift towards natural, eco-friendly products, oleochemicals derived from plant oils, such as palm and coconut oil, have become key ingredients in cosmetics, soaps, and lotions. Companies like Unilever, which launched its Love Beauty and Planet brand in 2018, leverage oleochemicals to develop sustainable personal care products. This demand is expected to rise as consumers prioritize environmental impact and ingredient transparency, further driving the adoption of oleochemicals in the personal care sector through 2024 and beyond.
• Growing Demand in Biodegradable Packaging: With the global push for reducing plastic waste, oleochemicals are gaining traction in the development of biodegradable packaging solutions. For example, in 2021, BASF and Lactips collaborated to create water-soluble films using oleochemical-derived materials. These films are used in applications like packaging for detergents and cleaning products. Oleochemicals, derived from natural fats and oils, present an environmentally friendly alternative to conventional plastics. This opportunity is poised to expand, especially as governments globally, such as in the European Union, implement stricter regulations on single-use plastics by 2030.

Global Oleochemicals Market Segmental Analysis-

Animal based oleochemicals dominated the global market with revenue share of 50.7% in 2023. These oleochemicals are primarily derived from animal fats, such as tallow, and are widely used in industries like soap manufacturing, lubricants, and biodiesel. For example, in 2021, Emery Oleochemicals expanded its animal-based tallow production for biodiesel, catering to the rising demand for renewable energy sources. The soap industry has also benefited from animal-based oleochemicals, with companies like Procter & Gamble using tallow in various products. As the demand for eco-friendly and sustainable alternatives increases, animal-based oleochemicals continue to play a crucial role across multiple sectors.

By type, specialty esters are supposed to grow fastest in the global oleochemicals market capturing a revenue share of 21.6% in 2023. Specialty esters, used for their superior emulsifying and lubricating properties, are gaining traction in industries such as cosmetics, lubricants, and plastics. For example, Croda International introduced Priolube esters in 2021, targeting eco-friendly lubricant formulations. These esters, derived from renewable oleochemical sources, are also used in personal care products due to their skin-conditioning benefits. As companies seek greener, high-performance alternatives for various applications, the demand for specialty esters is expected to expand further, driving innovation in multiple industries.

Oleochemicals are widely used in personal care & cosmetics as emulsifiers, emollients, and surfactants, contributing to the segment’s dominance with a 23.2% revenue share in 2023. These ingredients, derived from natural oils and fats, enhance product texture and moisturization. For example, in 2022, BASF launched a bio-based oleochemical ingredient for skin care, improving formulation sustainability. Companies like L’Oréal and Unilever also use oleochemicals in lotions, shampoos, and soaps for their mildness and biodegradability. As consumers increasingly demand eco-friendly and sustainable products, the personal care sector continues to drive growth in the oleochemicals market globally.

In 2023, North America strengthened its position in the global oleochemicals market, accounting for a revenue share of 29.1%. The region’s dominance is driven by its robust industrial base, increasing demand for bio-based products, and advancements in renewable chemical technologies. For example, in 2022, Cargill expanded its oleochemical production capacity in the U.S., supplying industries such as personal care, food, and biodiesel. Additionally, companies like Procter & Gamble and Clariant are utilizing oleochemicals in sustainable product lines. As North American regulations continue to encourage eco-friendly practices, the region remains a key player in the global oleochemicals landscape.

Competitive Landscape

Some of the players operating in the oleochemicals market are

• Cargill, Incorporated
• Corbion N.V
• Ecogreen Oleochemicals
• Emery Oleochemicals
• Evonik Industries AG
• Evyap
• Godrej Industries
• IOI Corporation Berhad
• JNJ Oleochemicals, Incorporated
• Kao Chemicals Global
• KLK OLEO
• Oleon NV
• Pepmaco Manufacturing Corporation
• Philippine International Dev.
• Sakamoto Yakuhin Kogyo Co., Ltd.
• Stepan Company
• Vantage Specialty Chemicals, Inc.
• Wilmar International Ltd.
• Other Industry Participants

Global Oleochemicals Market Scope:

Global Oleochemicals Market

By Source

• Plant Based
• Animal Based

By Type

• Glycerol Esters
• Specialty Esters
• Fatty Acid Methyl Ester
• Fatty Amines
• Alkoxylates
• Others

By Application

• Personal Care & Cosmetics
• Food & Beverages
• Pharmaceuticals
• Polymers & Plastics
• Agrochemicals
• Paints & Coatings
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

Report Layout:

Table of Contents

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Global Oleochemicals Market

By Source

• Plant Based
• Animal Based

By Type

• Glycerol Esters
• Specialty Esters
• Fatty Acid Methyl Ester
• Fatty Amines
• Alkoxylates
• Others

By Application

• Personal Care & Cosmetics
• Food & Beverages
• Pharmaceuticals
• Polymers & Plastics
• Agrochemicals
• Paints & Coatings
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

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