ID: MRFR/CnM/6429-HCR | February 2021 | Region: Global | 140 pages
Tall Oil Fatty Acid (TOFA) Market stood at over USD 874 million in 2019 and is expected to register a CAGR of over 4% by the end of 2030.
Tall oil fatty acid (TOFA) is formed by the reaction of carboxylic acids and esters under a specific temperature. TOFA is a product of crude tall oil that serves as a major substitute for fatty acid plant oil. TOFA comprises three components—fatty acids, resin acid, and unsaponifiable matters. Tall oil fatty acid acts as a lubricant, corrosion inhibitor, and viscosity modifier in the oil and gas industry. Tall oil fatty acid acts as a substitute for vegetable oil due to its low carbon footprint.
The increase in demand for TOFA is attributed to the growing demand for bio-based chemicals over crude oil-based chemicals coupled with the demand for unconventional resources for lubricants and metalworking fluids. Lubricants such as hydraulic oil, grease, gear oil, and engine oil help in the effortless functioning of equipment used in the construction industry, while extending their shelf-life by minimizing corrosion, and wear and tear. The rise in the construction activities worldwide, especially in the developing economies, is projected to propel the demand for construction lubricants, which is majorly expected to boost the growth of the global market. For instance, rapid urbanization in the emerging economies has resulted in infrastructure developments across the globe. Various governmental programs have resulted in an increase in construction activities, which is expected to boost the demand for TOFA.
Tall oil fatty acid finds major application in the industrial and household cleaning products such as liquid cleaners, soaps, and gel cleaners. The cleaning products market is expected to reach USD 120 billion by 2030. The growth in the number of healthcare facilities and medical institutions across the globe coupled with governmental initiatives for cleanliness and hygiene is expected to boost the growth of the global tall oil fatty acid (TOFA) market.
Product trends such as high adoption of TOFA in the oil and gas industry is expected to further drive the demand. According to the US Energy Information Administration, in 2019, the petroleum production in the US increased from 8 million barrels per day in 2014 to over 11 billion barrels per day in 2019 due to the growth in consumption across various industries, such as automotive, aviation, and construction. The countries in the Middle East such as UAE, Iraq, Saudi Arabia, Iran, and Kuwait accounted for over a quarter of the global petroleum production and is it expected to increase in the forecast period.
However, the increasing prevalence of substitutes such as coconut oil and palm oil based fatty acid is expected to hamper the growth of the global market.
PineChemical Group Oy (Finland), Forchem Oyj (Finland), Kraton Corporation(US), Univar Solutions (US), Ilim Group JSC (Russia), DRT (Derives Resiniques ET Terpeniqes) (UK), Harima Chemicals, Inc (Japan), Eastman Chemical Company (US), OOO Torgoviy Dom Lesokhimik (Russia), Lascaray S.A. (Spain), Georgia-Pacific Chemicals LLC (US), and Industrial Oleochemical Products (South Africa) are some of the key players operating in the global market.
Tall Oil Fatty Acid (TOFA) Market Share, by End-Use Industry, 2019 (%)
Source: MRFR Analysis
The Asia-Pacific market is expected to the fastest growing market by 2030 due to an increase in construction activities in the South-East Asian countries such as Thailand, Vietnam, Indonesia, and Malaysia. The growing construction equipment market in the region is expected to further boost the growth of the market for tall oil fatty acid due to its growing demand as lubricants and metalworking fluids.
The North American market is also expected to be the leading market owing to the growth of the oil and gas industry across the globe coupled with increasing mining activities, particularly in Canada.
The European market is expected to witness moderate growth during the forecast period owing to the growth in the construction industry by 1.4% according to the European Commission by 2021.
The Middle East & African market is expected to grow significantly due to the increase in construction activities across the region. The GCC countries has proposed an investment of US$ 2,700 billion by 2030, which is expected to boost the growth of the regional market.
The global construction lubricants market has been segmented based on product type, application, end-use industry, and region.
By product type, the global market has been classified into oleic acid, linoleic acid, and others.
Based on application, the global market has been divided into asphalt emulsions, ester solvents, fuel additives, lubricants, rubbers and tires, oilfield chemicals, resins, liquid cleaners and soaps, and others.
On the basis of end-use industry, the global market has been segregated into construction, oil & gas, textile, paints & coatings, and others.
The global market, by region, has been segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
September 2021- Kraton Corporation, a leading manufacturer of high-value polymers, has signed a merger agreement with DL Chemical. DL Chemical will acquire 100% of Kraton in an all-cash deal, indicating an enterprise value of USD2.5bn.
According to the deal, Kraton stockholders will receive USD46.50 in cash for all the Kraton common stock they have bought. The contract signifies a premium of 50% over Kraton's non-impacted market estimate as of July beginning.
DL Chemical has displayed attentiveness in Kraton's specialty polymer and bio-based chemical business. It might enable them to offer their customers a broader variety of products and offer a range of end markets.
CEO of DL Chemical said that the company has been carrying out the petrochemical business reliably in the DL Group for over the past 46 years. Post-acquisition of Kraton's Cariflex business in 2020, the company has effectively incorporated that business within the DL Group.
The merger agreement got approval from the board of directors of Kraton.
The acquisition is a matter of customary closing conditions, consisting of the regulatory approvals and receipt of the stockholder. It is projected to get done by the end of the first half of 2022.
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Product, Application, End-Use Industry and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||PineChemical Group Oy (Finland), Forchem Oyj (Finland), Kraton Corporation(US), Univar Solutions (US), Ilim Group JSC (Russia), DRT (Derives Resiniques ET Terpeniqes) (UK), Harima Chemicals, Inc (Japan), Eastman Chemical Company (US), OOO Torgoviy Dom Lesokhimik (Russia), Lascaray S.A. (Spain), Georgia-Pacific Chemicals LLC (US), and Industrial Oleochemical Products (South Africa)|
|Key Market Opportunities||The rise in the construction activities worldwide, especially in the developing economies, is projected to propel the demand for construction lubricants|
|Key Market Drivers||The growing demand for bio-based chemicals over crude oil-based chemicals coupled with the demand for unconventional resources for lubricants and metalworking fluids.|
Frequently Asked Questions (FAQ) :
The tall oil fatty acid market is projected to grow at a 4.3% CAGR between 2019-2024.
The APAC region is projected to lead the tall oil fatty acid market.
Major end use industries of the tall oil fatty acid market include paints and coatings, textile, oil and gas, construction, and others.
Demand for bio-based chemicals and increase in construction activities worldwide are the key factors driving the tall oil fatty acid market growth.
Availability of substitutes such as palm oil and coconut oil based fatty acid may limit the tall oil fatty acid market growth.