Global Oleochemicals Market 2017-2021
Oleochemicals are chemical compounds that are extracted from the hydrolysis or methylation of fats and oils of both plants and animals. The basic oleochemicals include fatty acids, fatty alcohols, fatty amines, and glycerol. Oleochemicals are the potential alternatives to petrochemical products.The raw materials from which oleochemicals are obtained are:
Technavio Announces the Publication of its Research Report – Global Oleochemicals Market 2017-2021
Technavio recognizes the following companies as the key players in the global oleochemicals market: BASF, Cargill, Emery Oleochemicals, Kuala Lumpur Kepong Berhad, Procter & Gamble, and Wilmar International
Other Prominent Vendors in the market are: 3F Industries, Berg + Schmidt, Ecogreen Oleochemicals, Evyap-Oleo, Evonik Industries, Godrej Industries, KAO CORPORATION, Kraton Corporation, Oleon, Vantage Specialty Chemicals, Vegetable Vitamin Foods Company, and TerraVia Holdings.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Government agencies promoting environment-friendly products. Green practices in industries are increasing and are being driven by the various benefits which include increased cost saving, favorable regulations by government agencies, and increasing profitability. The green industry primarily focuses on making a profit but with minimal or negligible harmful impact on the environment. In the past few decades, there has been an increasing concern over the impact of the chemical industry on the global environment. The major concerns include acid rains, increase in the level of greenhouse gases, ozone layer depletion, air pollution, and effect of chemical fertilizers and pesticides on water bodies.”
According to the report, one of the major drivers for this market is Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH). REACH is a regulation of the European Union, formed for the protection of human health and environment from the risks caused by the negative impacts of chemicals. It has laid certain rules in the European market to ensure that surfactants and detergents are fully biodegradable. This is promoting the use of oleochemicals rather than the traditional petrochemicals as raw materials.
Further, the report states that one of the major factors hindering the growth of this market is Fluctuating raw material prices. Vegetable oils and animal fats are the primary raw materials used in manufacturing oleochemicals. Another growing application of vegetable oil and animal fat are in manufacturing biofuels. However, there are certain issues related to the use of vegetable oil and animal fat as biofuels, which is hindering the oleochemical raw material supply and pricing. Animal fats are used as a raw material primarily in the North American and European oleochemical markets. The major disadvantage of animal fat is that the supply is inelastic. This is primarily because farmers and ranchers do not raise their animals for fat. The year-over-year production rate is marginally flat for the past ten years.
BASF, Cargill, Emery Oleochemicals, Kuala Lumpur Kepong Berhad, Procter & Gamble, and Wilmar International, 3F Industries, Berg + Schmidt, Ecogreen Oleochemicals, Evyap-Oleo, Evonik Industries, Godrej Industries, KAO CORPORATION, Kraton Corporation, Oleon, Vantage Specialty Chemicals, Vegetable Vitamin Foods Company, and TerraVia Holdings.
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