ID: MRFR/CnM/6253-CR | April 2019 | Region: Global | 168 pages
As per the analysis conducted by Market Research Future (MRFR), the Global Fatty Alcohol Market is expected to expand at a CAGR of 6.67% while acquiring a market value of USD 10,078.8 Million by 2023.
Fatty alcohols find an extensive application in foods, plasticizers, cosmetics, and personal care products, lubricants, and pharmaceuticals. The increasing application of fatty acids in various end-user sectors is expected to bolster the fatty alcohol industry during the projection tenure. On the flip side, the prices associated with manufacturing and the fluctuating prices of raw materials is predicted to hinder the market growth in the review timeframe.
The outbreak of COVID-19 has caused the suspension of fatty alcohol production owing to the decreasing demand and disrupted supply chain. The market for fatty alcohols is anticipated to decline in 2020 due to the imposition of lockdown in various countries.
The demand for fatty alcohols is predicted to be driven majorly by its various usage in textile coatings, mineral processing, household and industrial cleaners, detergents, laundry softeners, and agricultural chemicals. In addition, the expansion of the cosmetics and personal care sector is projected to underpin the global market at a significant rate in the projection timeframe.
Growing Demand for Surfactants to Boost the Market
The increasing demand for surfactants in personal care products, conditioners, lipsticks, shower gel, and antiperspirant is recognized to be a salient cause that can grow the market significantly during the forecast period. They are cost-effective and as well as biodegradable in nature, Which is expected to boost the natural fatty alcohol market during the review tenure.
Increasing Demand for Bio-Based Products can Offer Significant Opportunities
The growing awareness among consumers regarding the benefits of bio-based products owing to the toxicities caused by petrochemical-based substitutes is likely to encourage consumers to adopt natural products that can enhance the significant opportunities for market growth.
High Manufacturing Costs to Obstruct the Market
The high expenses associated with the manufacturing process is projected to be a significant factor that can obstruct the industry growth during the review timeframe.
Fluctuating Prices of Raw Materials can Hinder Market Growth
The raw materials used for fatty alcohol production are palm oil, rapeseed oil, and PK oil. Europe and North America import these raw materials from APAC since the climatic condition favors fatty alcohol production. The prices of these raw materials depend on the trading scenario among these regions. The fluctuating price can have an adverse impact on the market during the projection tenure.
Cumulative Growth Analysis
Fatty Alcohol Market is Expected to Grow Significantly during the Forecast Period
The market is likely to augment significantly during the projection tenure due to its rising application in various end-use industries. Furthermore, the surging requirement for bio-based products is anticipated to be another salient cause that can notably grow the natural fatty alcohols market in the coming period.
Global Fatty Alcohol Market has been segmented on the basis of Type and Application.
Based on the type, the global market for global fatty alcohol is segmented into a long chain, higher chain, pure and mid-cut, and short-chain. The pure and mid-cut segment is anticipated to witness a CAGR of 6.58% while garnering the market value of USD 4,510.3 million by 2023. However, the long-chain is projected to be the fastest-growing segment. This group of alcohols is gaining prominence owing to the growing demand for cosmetics and personal care products such as; skin lotions and creams.
Based on the application, the global market for global fatty alcohol is segmented into cosmetic and personal care, detergents and cleaners, lubricants, pharmaceuticals, plasticizers, food & nutrition, and others. Among all, the detergents and cleaners segment is projected to record a CAGR of 6.13% while garnering the market value of USD 3,152.3 million by the end of 2023. However, the cosmetics and personal care segment is predicted to witness the highest CAGR of 7.29% during the review tenure. The rapid expansion of the cosmetics and personal care industry with increasing expenditure on skincare products, especially by men, is predicted to propel the demand for fatty alcohols during the projection tenure.
APAC Region to Dominate the Global Market Owing to Expanding Population and Rising Disposable Income
The APAC region is expected to dominate the global market owing to the rising demand for fatty alcohols in the personal care & cosmetics industries. The developing nations such as India, China, Japan, and others are projected to make the most significant contribution in strengthening the regional market during the review timeframe. Asia-Pacific was recognized as the most lucrative market for fatty alcohols in 2017, and it has been estimated that the region will exhibit a CAGR of 7.29% while garnering the market value of USD 4,513.9 million by the end of 2023.
The European market is expected to acquire the second most significant market share and is likely to witness a CAGR of 6.07% during the assessment timeframe. The prevailing strict regulations regarding the application of chemicals in detergents are likely to result in the surged need for natural fatty alcohols, which is expected to strengthen the regional trade. Among all, Germany acquired the largest market share of 33% in 2017, and the market is likely to witness a CAGR of 6.13% during the review tenure.
The market in the Middle East & Africa is expected to witness a CAGR of 6.93% owing to the expansion of the end-use sectors such as; cosmetics and personal care and surfactants
Growing Initiatives to Enhance Production Capacities to Strengthen the Market Competition
The on-going development in the product with increasing initiatives to enhance production capacities is anticipated to strengthen the competitiveness of the industry in the assessment timeframe.
December 2020: The Dutch fish feed and animal nutrition group, Nutreco, is aiming to source soy and oil palm ingredients by 2025 that are free from legal and illegal deforestation, with the motive of having a minimalistic impact on climate change and biodiversity.
The market for fatty alcohols is anticipated to grow significantly in the assessment tenure due to the rapid expansion of the personal care industry. The developing countries are likely to play a significant role in strengthening the trade.
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||VVF LLC (India),Ecogreen Oleochemicals (Singapore),KLK Oleo (Malaysia),Kao Corporation (Japan),Univar Inc (US), Sasol Limited (South Africa),Royal Dutch Shell Plc (The Netherlands),Berg+ Schmidt GmbH & Co. KG (Germany),Emery Oleochemicals (Malaysia), BASF SE (Germany),P & G Chemicals (US),Wilmar International Ltd (Singapore),Arkema SA (France),Godrej Industries Ltd (India)|
|Key Market Opportunities||Increasing Demand for Bio-Based Products can Offer Significant Opportunities|
|Key Market Drivers||Growing Demand for Surfactants to Boost the Market|
Frequently Asked Questions (FAQ) :
The global fatty alcohol market is expected to expand at 6.67% CAGR from 2018 to 2023.
The global fatty alcohol market valuation can touch USD 10,078.8 million by 2023.
Massive demand for non-ionic surfactants is the major driver of the global fatty alcohol market.
Fluctuating raw material prices can restrain the global fatty alcohol market.
Sasol Limited, VVF LLC, Berg+ Schmidt GmbH & Co. KG, Godrej Industries Ltd, P & G Chemicals, Kao Corporation, BASF SE, Univar Inc, KLK Oleo, Emery Oleochemicals, Royal Dutch Shell Plc, Ecogreen Oleochemicals, Wilmar International Ltd, and Arkema SA are major players of the global fatty alcohol market.