Fatty Alcohol Market Size, Share & Industry Analysis, By Product (C6-C10, C11-C14, and C15-C22), By Application (Soaps & Detergents, Personal Care, Lubricants, Amines, and Others) and Regional Forecast, 2024-2032

The global fatty alcohol market size was USD 5.08 billion in 2019 and is projected to reach USD 7.40 billion by 2027, exhibiting a CAGR of 5.2% during the forecast period. Asia Pacific dominated the fatty alcohol market with a market share of 28.94% in 2019. Moreover, the U.S. fatty alcohol market is projected to reach USD 1.20 billion by 2027, supported by demand in personal care products, detergents, and surfactants.

Fatty alcohols are straight-chain and high molecular weight primary alcohols. These are natural and petrochemical based waxy solids or oily liquids. These alcohols are exhibiting high demand from the personal care industry due to the increasing importance of personal hygiene and sanitation, amidst the coronavirus crisis. The surging demand for sustainable and biodegradable cosmetic products is further set to support the growth of the market. The rising disposable income and increasing expenditure by consumers on cosmetic products is another factor driving the market growth. Factors such as supply chain disruptions and volatile raw material prices, on the other hand, would weaken the market growth.

COVID-19 Pandemic to Affect Growth Negatively Backed by Decline in Production Volumes

The impact of the COVID-19 pandemic on the market is estimated to be significant due to the slowdown in the manufacturing sectors. The unforeseen effects of coronavirus have forced major companies such as Wilmar International Limited to temporarily shut down their manufacturing facilities to curb the spread of this virus. This shut down of facilities would severely impact the company’s revenue generation and market share. Lockdown in several countries has led to a substantial decline in production volumes. Restrictions on the transportation of materials have created supply chain bottlenecks in the market. Owing to the above factors, the demand is anticipated to decline.

Global Fatty Alcohol Market Key Takeaways

Market Size & Forecast:

• 2019 Market Size: USD 5.08 billion
• 2027 Forecast Market Size: USD 7.40 billion
• CAGR: 5.2% from 2020–2027

Market Share:

• Asia Pacific dominated the fatty alcohol market with a 28.94% share in 2019, driven by rising demand from the personal care & cosmetics and surfactant industries across countries like China, India, and South Korea.
• C11–C14 product segment held the largest market share in 2019 due to its extensive usage in the soaps and detergents industry.
• Soaps & detergents led the market by application in 2019, supported by increasing attention towards personal hygiene and rising demand for domestic & industrial cleaners.

Key Country Highlights:

• United States: Projected to reach USD 1.20 billion by 2027, fueled by growing demand in personal care products, detergents, and surfactants.
• China: The C6–C10 segment held a 17% share in 2019, with the country being a major hub for soap and detergent manufacturing.
• India: Growth supported by rising disposable income and higher expenditure on cosmetic and hygiene products.
• Europe: Driven by growing demand for personal care products and increasing consumer preference for liquid soaps.
• Asia Pacific (overall): Witnessed growth from USD 1.39 billion in 2018 to USD 1.47 billion in 2019, reflecting steady market expansion.

FATTY ALCOHOL MARKET TRENDS

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Rising Demand for Bio-based Products is a Prominent Trend

Globally, concerns regarding the negative effects of petroleum-based products have stimulated the demand for sustainable products. The increasing consumer preference towards bio-based products has driven manufacturers to use eco-friendly ingredients. These alcohols derived from bio-based oleochemicals are less toxic and are recyclable, as compared to their conventional substitutes. These alcohols have a high demand from personal care and pharmaceutical industries due to the minimum number of side effects associated with them.

• Asia Pacific witnessed a growth from USD 1.39 Billion in 2018 to USD 1.47 Billion in 2019.

Wilmar International, for instance, offers WILFAROL 1698, an alcohol derived from palm oil and palm kernel oil. Similarly, another key player named KLK OLEO offers a series of fatty alcohols derived from vegetable oils under the name PALMEROL. Moreover, restrictions imposed by regulatory bodies such as REACH on the environmental effects related to the use of petroleum-based products is set to drive the market growth.

FATTY ALCOHOL MARKET GROWTH FACTORS

Increasing Demand for Surfactants to Propel Market Growth

The demand for surfactants such as soaps and detergents is rising exponentially. Surfactants based on fatty alcohols serve various purposes in agriculture, paper & pulp, and cosmetic industries. They are used as solubilizing and emulsifying agents, as well as wetting and cleaning agents. Owing to these properties, fatty alcohols are expected to experience high demand. Additionally, the increasing demand for personal care products such as liquid soaps and hand sanitizers in an attempt to stop the spread of the COVID-19 is expected to boost the market growth.   

RESTRAINING FACTORS

Fluctuating Prices of Raw Materials to Hamper Growth

Fatty alcohols are manufactured from raw materials such as tallow, palm oil, rapeseed oil, and others. Various countries in Asia Pacific such as Indonesia and Malaysia are major producers of these raw materials. Other regions including North America and Europe are dependent on the Asian countries to source their raw materials. Hence, fluctuations in the cost of raw materials are dependent on the trade scenarios in these regions. Additionally, newly imposed restrictions on the import of refined palm oil in India will further act as an obstruction in the growth of the market.

FATTY ALCOHOL MARKET SEGMENTATION ANALYSIS

By Product Analysis

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C11-C14 Segment Dominated the Market in 2019 Backed by Usage in Soaps & Detergents Industry

On the basis of product segmentation, the market is fragmented into C6-C10, C11-C14, and C15-C22. The C11-C14 segment held the dominant share of the market in 2019. This growth is attributed to its extensive usage in the soaps and detergents industry.

The C15-C22 segment is projected to showcase high growth owing to its surging demand from the personal care industry. Rising disposable income is resulting in the increasing demand for cosmetics products such as shampoos, lotions, vanishing creams, lipsticks, and shaving creams, thereby raising the demand for C15-C22 alcohols.

By Application Analysis

Soaps & Detergents Segment to Generate Highest Revenue

In terms of application, the market is segmented into soaps & detergents, personal care, lubricants, amines, and others. The soaps & detergents segment is expected to generate a dominant share in the market during the forecast period. Improvements in the standard of living in developing economies and the increasing attention towards personal hygiene are anticipated to drive the growth of this segment. Furthermore, the rising demand for domestic & industrial cleaners to maintain a hygienic environment is expected to boost the segment.

The personal care segment is projected to be the second-largest segment during the forecast period. Personal care products such as shampoos, lotions, and essential oils are exhibiting high demand from Asia Pacific due to the rising expenditure capacity of consumers.

REGIONAL FATTY ALCOHOL MARKET ANALYSIS

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The market size in Asia Pacific stood at USD 1.47 billion in 2019. It is the major contributor to the market growth owing to the escalating demand from personal care & cosmetics and surfactant industries. An exponential growth of population, coupled with the surging disposable incomes in India, China, and South Korea would support the market growth. In addition to this, China being the hub for major soaps and detergent manufacturers is showcasing a rise in consumption.

• In China, the c6-c10 segment is estimated to hold a 17% market share in 2019.

In North America, the market growth is associated with the rising demand for surfactants. Additionally, a spike in the demand for sanitizers and home cleaning products in this region due to the COVID-19 outbreak would spur consumption.

The market in Europe is characterized by the surging demand from the personal care industry. Furthermore, the increasing consumer preference for liquid soaps is boosting the market growth. According to Eurostat, in 2018, around 12.6 million tons of soaps & detergents were manufactured in the European Union, out of which 81% accounted for detergents and washing preparations and 19% for soap and organic surface-active products. In Latin America and the Middle East & Africa, the high demand from multiple lubricant manufacturing companies is estimated to boost growth.

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KEY INDUSTRY PLAYERS

Key Players Focus on Expansion & Acquisition Strategies to Strengthen Their Positions

The global fatty alcohol market is fragmented. Key players are investing in research and development activities to create new formulations for various applications. These companies are also implementing expansion and acquisition strategies to increase their presence in the market. Many manufacturers are establishing new plants in developing countries to serve the growing markets and upcoming opportunities.

LIST OF KEY COMPANIES PROFILED IN FATTY ALCOHOL MARKET:

• Godrej Industries (India)
• Berg + Schmidt (Germany)
• Wilmar International Ltd (Singapore)
• KLK OLEO (Malaysia)
• SABIC (Saudi Arabia)
• P&G Chemicals (U.S.)
• Musim Mas (Singapore)
• VVF L.L.C. (India)
• Sasol (South Africa)
• Emery Oleochemicals (Malaysia)
• Royal Dutch Shell (Netherlands)
• Univar Solutions Inc. (U.S.)
• BASF SE (Germany)
• Other Players

KEY INDUSTRY DEVELOPMENTS:

• March 2018- Musim Mas expanded its fatty alcohol production capabilities by opening a new facility in Batam with a production capacity of 150 KT per annum.
• June 2017- Royal Dutch Shell is set to expand the production capacity of mid-cut and low-cut alcohols at its Geismar, U.S. facility. This expansion will help the company to meet the growing demand for surfactant and plasticizer alcohol from consumers.

REPORT COVERAGE

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The fatty alcohol market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation