NEW YORK, Aug. 8, 2024 /PRNewswire/ -- The global fatty alcohols market size is estimated to grow by USD 611.9 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 2.15% during the forecast period. Growing demand for industrial and institutional cleaners is driving market growth, with a trend towards growing demand for biosurfactants. However, fluctuating raw material prices of fatty alcohols poses a challenge. Key market players include AVRIL SCA, BASF SE, CREMER OLEO GmbH and Co. KG, Croda International Plc, Eastman Chemical Co., Ecogreen Oleochemicals PTE Ltd., Evonik Industries AG, Godrej and Boyce Manufacturing Co. Ltd., Jarchem Industries Inc., Kao Corp., Kuala Lumpur Kepong Berhad, Musim Mas Group, Sasol Ltd., Saudi Basic Industries Corp., Shell plc, Sime Darby Plantation Berhad, The Procter and Gamble Co., Timur OleoChemicals Malaysia Sdn. Bhd., VVF LLC, and Wilmar International Ltd..

Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report

Market Driver

Fatty alcohols are essential oleochemicals with broad industrial applications, particularly in detergent production, cosmetics and personal care, emulsion polymerization, and oil field exploitation. The demand for fatty alcohols is driven by their versatility and effectiveness in various applications. Traditional methods of producing fatty alcohols, primarily through chemical conversion of fatty acids from oil crops or petrochemical feedstocks, have significant environmental and social implications. Biosurfactants, produced through microbial fermentation, offer a sustainable alternative to traditional methods. These biodegradable and renewable surfactants can produce fatty alcohols with specific chain lengths and properties, reducing the environmental impact of their production. The global fatty alcohols market is growing, and the development and implementation of biosurfactant technology will be crucial in meeting demand while minimizing production's environmental impact. Biosurfactants, which are amphiphilic compounds produced by microorganisms, are gaining importance in various industries, including pharmaceuticals, biomedicals, cosmetics, and food. Governments are promoting the use of eco-friendly surfactants due to the harmful effects of chemically synthesized surfactants. The increasing trend towards using biosurfactants for various applications is expected to positively influence the growth of the global fatty alcohols market. 

The Fatty Alcohols market is witnessing significant trends in various industries. In the Personal Care sector, the demand for eco-friendly ingredients is driving the shift from petroleum-based products to bio-based oleochemicals. The Coronavirus crisis and rising disposable income have led to increased demand for hygiene products like soaps and detergents. However, supply chain disruptions due to the crisis have caused challenges for manufacturing sectors. Bio-based raw materials like palm oil, PK oil, tallow, rapeseed oil, and others are in high demand for surfactant production. The detergent industry, particularly surfactant-based industries, is a major consumer of fatty alcohols. Amines and ethoxylates are essential synthetic detergent intermediates. The global production of fatty alcohols is concentrated in major economies, and delivery schedules and raw material prices are critical factors affecting the industry. The amphipathic nature of nonionic surfactants makes them ideal for use in modern detergents, cosmetics, and therapeutic medicines. The International Trade Centre reports that washing machines and soaps remain popular household items, with toilet/bathing soaps and synthetic detergent intermediates being key applications. Overall, the Fatty Alcohols market is expected to grow, driven by the demand for renewable resources-based products and the industrial and domestic application in various sectors. 

Discover 360° analysis of this market. For complete information, schedule your consultation - Book Here!

Market Challenges

• Fatty alcohols are essential industrial chemicals used in various applications, primarily in the production of surfactants, personal care products, and lubricants. The market's growth is influenced by the availability and cost of raw materials, primarily vegetable oil and animal fat. However, supply constraints and price fluctuations of these raw materials pose challenges for manufacturers. Animal fat's supply remains inelastic due to farmers and ranchers not raising animals primarily for fat production. This inconsistency in supply has resulted in year-over-year production rate stability and price volatility. Additionally, the food industry's growing demand for vegetable oil for human consumption and biofuel production further increases the competition for these raw materials, driving up prices. Moreover, the production of synthetic fatty alcohols from ethylene and natural gas is also affected by raw material price fluctuations. Ethylene's price is linked to crude oil prices due to its production process, making it susceptible to volatility. The Middle East, a significant crude oil supplier, experiences demand-supply imbalances and political instability, leading to unpredictable crude oil prices and, consequently, ethylene prices. In conclusion, the fatty alcohols market's growth is hindered by the unpredictable availability and pricing of raw materials, including vegetable oil, animal fat, and ethylene. These factors create challenges for manufacturers, requiring them to adapt to market fluctuations and maintain operational efficiency.
• The Fatty Alcohols market faces several challenges in various industries. In personal care and lubricants, the demand for renewable resources-based products is increasing, leading to a shift from traditional sources like palm oil, PK oil, tallow, and rapeseed oil. This requires factories to adapt and adjust their supply networks to meet delivery schedules. In the detergent industry, the shift to modern detergents and nonionic surfactants like ethoxylates has intensified competition. Raw material prices, especially for amines and oleochemicals, remain a significant challenge. Surfactant-based industries, including cosmetics, also face pressure to reduce environmental impact and increase use of sustainable raw materials. International trade plays a crucial role in the Fatty Alcohols market, with major economies like China and the US influencing global production. The detergent industry's reliance on synthetic detergent intermediates and amphipathic nature of fatty alcohols make them essential for the production of detergents, washing machines, soaps, and toilet/bathing soaps. Additionally, fatty alcohols have applications in therapeutic medicines and active pharmaceutical ingredients, as well as in traditional Chinese medicine.

For more insights on driver and challenges - Request a sample report!

Segment Overview

This fatty alcohols market report extensively covers market segmentation by

1. Type
   • 1.1 Pure and midcut
   • 1.2 Long chain
   • 1.3 Short chain
2. Application
   • 2.1 Cleaning products
   • 2.2 Personal care
   • 2.3 Lubricants
   • 2.4 Others
3. Geography
   • 3.1 APAC
   • 3.2 Europe
   • 3.3 North America
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Pure and midcut- The global fatty alcohols market experienced notable growth in 2022, driven by the increasing demand for both pure and midcut types. Pure fatty alcohols, known for their long carbon chains and superior emollient and cleaning properties, are extensively used in various applications such as personal care items, detergents, and pharmaceuticals. Midcut fatty alcohols, with their medium-length carbon chains, are integral to surfactants, industrial lubricants, and plasticizers. Consumer preference for sustainable products, the expanding personal care and cosmetics industry, and the rise of applications in the chemical and pharmaceutical sectors fueled the market's growth. Post-pandemic, industrial activity resumed, leading to a rebound in demand for fatty alcohols. This situation presented promising opportunities for producers and suppliers of both pure and midcut fatty alcohols, ultimately contributing to the market's significant expansion during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2017-2021) - Download a Sample Report

Research Analysis

The Fatty Alcohols market is witnessing significant growth, particularly in the personal care industry, due to the rising disposable income and increasing awareness towards eco-friendly ingredients. The Coronavirus crisis, however, has led to supply chain disruptions, affecting the manufacturing sectors that rely on petroleum-based products. In response, there is a growing trend towards bio-based products derived from renewable resources such as bio-based oleochemicals. The amphipathic nature of fatty alcohols makes them essential in various industries, including surfactant-based industries, cosmetics, soaps & detergents, and ethoxylates. Global production of fatty alcohols is increasing, but delivery schedules and raw material prices remain crucial factors in the market's dynamics. Factories are adapting to the challenges by optimizing their supply networks and exploring alternative sources to ensure uninterrupted production.

Market Research Overview

The Fatty Alcohols market is witnessing significant growth in various industries, particularly in the personal care sector. The rising disposable income and increasing awareness towards eco-friendly personal care products are driving the demand for fatty alcohols as key ingredients in surfactants, soaps, and detergents. The coronavirus crisis has caused supply chain disruptions in manufacturing sectors, leading to fluctuations in raw material prices and delivery schedules. Petroleum-based fatty alcohols have traditionally dominated the market, but the shift towards renewable resources-based products is gaining momentum. Bio-based oleochemicals derived from palm oil, PK oil, tallow, rapeseed oil, and other sources are increasingly being used due to their eco-friendliness and sustainability. The personal care and pharmaceutical industries are major consumers of fatty alcohols. Surfactants, which are amphipathic compounds with both hydrophilic and lipophilic properties, are essential in various industries, including detergents, cosmetics, and therapeutic medicines. The detergent industry, in particular, is a significant consumer of nonionic surfactants, which are derived from fatty alcohols. The global production of fatty alcohols is concentrated in major economies, with China and the United States being the leading producers. The International Trade Centre reports that the global trade in synthetic detergent intermediates, including fatty alcohols, was valued at USD 23.3 billion in 2019. The demand for fatty alcohols is expected to continue growing due to their wide applications in various industries and the increasing trend towards eco-friendly and sustainable products. Factories producing fatty alcohols face challenges in maintaining supply networks due to the volatility of raw material prices and delivery schedules. The use of renewable resources as raw materials can help mitigate these risks and ensure a stable supply of fatty alcohols. The market for fatty alcohols is expected to grow significantly in the coming years, driven by the increasing demand for eco-friendly ingredients in various industries and the shift towards renewable resources-based products.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• • Pure And Midcut
  • Long Chain
  • Short Chain
• Application
• • Cleaning Products
  • Personal Care
  • Lubricants
  • Others
• Geography
• • APAC
  • Europe
  • North America
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/fatty-alcohols-market-size-is-set-to-grow-by-usd-611-9-million-from-2024-2028--growing-demand-for-industrial-and-institutional-cleaners-boost-the-market-technavio-302216676.html

SOURCE Technavio