Global Fatty Alcohol Market - 2021-2028
The global fatty alcohol market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX % during the forecast period (2021-2028).
Fatty alcohols are straight-chain primary alcohols ranging from as few as 4–6 carbons to as many as 22–26, derived primarily from natural fats and oils. The precise chain length varies with the Source. In general, fatty alcohols are found in nature as waxes esters with fatty acids and fatty alcohols. Plants, bacteria, and animals produce them. The conventional sources of fatty alcohols have largely been various vegetable oils, which remain a primary feedstock. In addition, they are also prepared from petrochemical sources. About 50% of fatty alcohols used commercially are of natural origin, the remaining being synthetic.
Fatty alcohols are widely used in industry, mainly in the production of detergents and surfactants. In addition, they are components also of cosmetics, foods, and industrial solvents. Moreover, very-long-chain fatty alcohols obtained from beeswax and plant waxes have lower plasma cholesterol in humans. They can be found in unrefined beeswax, cereal grains, and many plant-derived foods.
Market penetration of fatty alcohols has risen in surfactant-based industries, such as soaps & detergents, which is expected to drive the market. In addition, the growing cosmetics industry drives the fatty alcohols market. However, varying raw material prices are likely to restraint the market.
Market penetration of fatty alcohols has risen in surfactant-based industries, such as soaps & detergents, which is expected to drive the market
Due to the COVID-19 pandemic, there is increased awareness regarding the use of home care products. The demand for surfactant-based products, such as washing soaps and detergents, has risen significantly. In addition, the demand for hand sanitizers and other personal care products has rapidly increased as a careful measure against the spread of coronavirus.
Fatty alcohol-based surfactants are used as cleaning agents in the cosmetics, agriculture and pulp & paper industries. The major application is in the cosmetic industry is as an emulsifying and solubilizing agent. These alcohol surfactants are used as lipophilic solubilizers in the pharmaceutical industry for lotions and ointments. These properties of fatty alcohols are anticipated to drive their demand in the homecare and personal care industry.
The growing demand for cosmetics to drive the fatty alcohol market
Fatty alcohols are heavier in molecular weight, are very beneficial for the skin. Their heavier molecular weight improves to lock in moisture. Fatty alcohol such as Cetearyl and Stearyl help the skin absorb Vitamin C and retinol. In addition, they are usually rich in healthy fats that help to nourish and plump up the skin. Moreover, fatty alcohols act as thickeners and skin moisturizers. Therefore, they can be mixed with moisturizer. These help skincare products to get absorbed more easily. Also, the moisturizers layer on the skin, which protects it from further moisture loss.
As per the UN Department of Economics and Social Affairs, the world's young population was around 1200 million in 2019, 16% of the total population. Moreover, it is projected that the world's youth population will reach 1400 million around 2026. The younger population holds lucrative demography for the cosmetics and personal care industry. Therefore, the growing significance of cosmetics products is expected to drive the fatty alcohol market over the forecast period.
Fluctuating raw material prices is expected to hinder the fatty alcohol market
The primary raw materials utilized for assembling fatty alcohols are palm oil, PK oil, fat, and rapeseed oil. North America and Europe import these raw materials from Asia-Pacific, as the last's geographic conditions support raw materials for fatty alcohols. Because of this, costs might frequently vacillate, relying upon the exchanging situation between these locales.
In 2020, because of the COVID-19 pandemic across the globe, the costs of palm oil had dropped essentially. Because of the disturbance in the worldwide inventory network and lockdown condition in numerous Asian nations, there is a huge drop in the creation of palm oil. For instance, in February 2020, Indonesia's palm oil trades fell by 12% to 2.54 million tons, contrasted with the earlier year. Palm oil trades from Malaysia, the world's second-biggest palm oil maker, tumbled to 8.90 million tons, a 41.7% reduction contrasted with the earlier year.
Moreover, China and India are the biggest merchants of palm oil. Because of the COVID-19 in China, the interest in palm oil has decreased fundamentally. Likewise, the stock is essentially diminished because of import limitations set on refined palm oil in India. Accordingly, fluctuating costs of raw materials straightforwardly influence the final costs of fatty alcohols, going about as a significant limitation for market development.
According to Azelis, a life science company, the impact of the COVID-19 outbreak will have a clear and lasting change in which demand for color cosmetics is anticipated to slow down. However, there are new opportunities for personal care companies. For instance, there is a need for more 'me-time and self-care due to social isolation and distancing. The need for cosmeceuticals products with bioactive ingredients, which have medical benefits, will increase tremendously.
Moreover, in 2020, there was a huge drop in the creation of palm oil because of the disturbance in the worldwide inventory network and lockdown condition in several Asian nations, resulting in cost price. For instance, in February 2020, Indonesia's palm oil trades fell by 12% to 2.54 million tons, contrasted with the earlier year.
Based on application, the fatty alcohol market is categorized into surfactants, industrial & domestic cleaning, personal care, lubricants, pharmaceutical formulations, food & nutrition and others.
Fatty alcohols are the most used ingredients in surfactant formulations, produced from sulfates and fatty alcohol ethoxylates. A fatty alcohol ethoxylate is a non-ionic surfactant extensively consumed in detergents used for industrial and domestic applications. Ethoxylates are synthesized formed from the ethoxylation process. In this process, either natural or synthetic fatty alcohol groups, such as alkyl alcohols, stearyl alcohol, and lauryl alcohols, combine with ethylene oxide to produce ethoxylates. All these fatty alcohol products vary in physical properties such as density, viscosity, and flashpoint, which depend on the degree of the ethoxylation process from which they are derived.
Moreover, surfactants are widely used in various personal care products, such as shampoo, shower gel, conditioner, antiperspirant, and lipsticks as emollients and thickeners, owing to their amphipathic and non-ionic surfactant nature.
The fatty alcohol market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.
The Asia-Pacific region dominates the fatty alcohol market with expanding interest for surfactants in assembling individual consideration items in economies like China, India, and Japan. Also, rising buyer use on green items and expanding mindfulness regarding the severe impacts of synthetic substances utilized in surface-level items have brought about an ascent in the oleochemicals market in the area, particularly in recent years.
Asia-Pacific is the largest oil & fat producer and raw material base for oleochemicals globally, followed by Europe. Accordingly, as a consumer, Asia-Pacific has better control of the creation and conveyance of oleochemicals. For example, In June 2019, Sasol began another alkoxylation plant in Nanjing, Jiangsu Province, China. The new creation unit is relied upon to change and grow the organization's present alkoxylation limit, R&D office, and specialized help ability in Nanjing. This development is relied upon to assist the organization with fortifying its situation in China and fulfilling its developing need for a claim to fame synthetics. The task is to utilize stretched or straight alcohols to meet client prerequisites in applications like cleanser, metalworking and oil, individual consideration, and others.
The fatty alcohol market is moderately competitive with the presence of local and global companies. Major companies contributing market's growth include Croda International plc, SASOL, Air Liquide, Emergy Oleochemicals, Arkema SA, Wilmar International Ltd., Kao Corporation, Kuala Lumpur Kepong Berhad, Procter & Gamble, Jarchem Indutries Inc among others. In addition, the companies are adopting growth strategies such as product launches, acquisitions, and collaborations, which contribute to the growth of the fatty alcohol market globally.
Croda International plc
Overview: Croda International plc is a Europan specialty chemicals company. The company's primary operating segments are Surfactants, Dietary Supplements and fatty acid amides. It is headquartered in Snaith, UK.
Product Portfolio: The company offers Crodacols, a range of saturated fatty alcohols of natural, non-animal origin. They are wax-like emollients, stabilizers and viscosity builders in lotions, creams, and anhydrous salves.
• On August 02, 2021, Croda International Plc announced the expansion of its high purity pharmaceutical excipients manufacturing capability.
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• Oleochemicals Manufacturers
• Industry Investors
• Supply Chain Companies
• Cosmetics Manufacturers
• Emerging Companies
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