Global Stearic Acid Market - Segmented by End-user Industry – Growth, Trends, and Forecasts (2017 - 2022)
The global stearic acid market was valued at USD XX million in 2016 and is poised to grow with an estimated CAGR of XX%, during the forecast period of 2017-2022. In terms of volume, the market was estimated at XX kilo metric tons in 2016 and is expected to grow with a CAGR of XX% over the forecast period. The demand for stearic acid is driven by a plethora of its uses in the manufacture of soaps and detergents, in addition to the cosmetic industry.
Stearic acid forms an integral part of the personal care segment, primarily due to its role as a surfactant and a cleansing agent. Stearic acid is an essential ingredient of cosmetic creams, cakes, soaps, and pastes, where it acts as an emulsifier. It is also a one-stop solution for versatility, thickening, binding, stability, and enhanced shelf life, which justifies its extensive use in personal care products, including shampoos, soaps, and shaving creams. Owing to the increasing consumer preference for organic personal care products, this segment is set to experience the fastest growth over the forecasted period.
This market is majorly driven by the variety of applications of stearic acid, due to its inexpensive availability and chemically benign nature. There is also a growing application scope in niche sectors, such as dietary supplements, candle manufacturing, metal processing, and pharmaceutical industry. Stearic acid is used in lubricants, release agents, and softening agents, as an intermediary for the preparation of stearate salts of lithium (grease), calcium, cadmium, lead, and zinc among others, which are used for softening PVC and as releasing agents in the production of automobile tires. It prevents the oxidation of metal powders used in fireworks, and protects metal parts from corrosion. In addition, stearic acid is used in the manufacture of lead acid batteries, as a negative plate additive. Moreover, it is used as a hardener in candies, lubricant in injection molding, and in plaster castings. Commercially, stearic acid is sold as a mixture of palmitic, stearic, and oleic acids, which are distinguished on the basis of stearic acid content and iodine value. However, the fluctuating raw material supply for petrochemical and vegetable oils, along with the health hazards of products in the long run, may negatively impact the stearic acid market price and pose challenges for the key players.
AREAS WITH SCOPE FOR STEARIC ACID
In 2015, Asia-Pacific, led mainly by China, India, and Japan, was the prominent regional industry and contributed to approximately 40% of the global volume. The fast-paced growth in the industries, such as automotive, construction, cleaners, and detergents in these regions, is expected to drive the demand for stearic acid. Moreover, rapid industrialization and high disposable incomes of consumers in the region are poised to drive the stearic acid market size over the forecast period. Latin America is expected to experience substantial gains, mainly driven by rapid industrialization, consequently driving the industry growth for lubricants, rubber, and metal processing.
NOTABLE DEVELOPMENTS IN THE MARKET
• In November 2016, The Bank of England confirmed the use of tallow (animal fat consisting 18% stearic acid) in the base substrate of the polymer 5 GBP notes, leading to outrage from vegans. This led to the promotion of vegetable-based tallow, created by treating coconut oil with water at high temperatures, which hydrogenates to create stearic acid.
• In February 2016, IOI acquired the entire oleochemical manufacturing business of Cremer Oleo GmbH & Co KG (now renamed as IOI Oleo GmbH) in Germany, to move up the value chain into a more specialized oleochemical business.
Why purchase our global stearic acid market report?
• Will the growing consumer awareness increase the growth of the stearic acid market?
• Know about: the latest regulations and policies of stearic acid
• How will the volatile petroleum prices affect the stearic acid market?
• Analyzing various perspectives of the market, with the help of Porter’s five forces analysis
• What would be the impact of IOI’s acquisition of stearic acid joint venture?
• Which regions are expected to witness the fastest growth during the forecast period?
• Identify the latest developments, market shares, and strategies employed by the key market players, including -
o Kuala Lumpur Kepong (KLK)
o IOI Oleochemicals
o VVF LLC
o Pacific Oleo