"Innovative Market Solutions to Help Businesses Make Informed Decisions"

Oleochemicals Market Size, Share & Industry Analysis, By Type (Fatty Acids, Fatty Alcohols, Methyl Esters, and Glycerin), By Application (Food & Beverages, Chemicals, Animal Feed, and Others), and Regional Forecast, 2024-2032

Region : Global | Format: PDF | Report ID: FBI106250



Play Audio Listen to Audio Version

The global oleochemicals market size was valued at USD 37.88 billion in 2023 and is projected to grow from USD 40.37 billion in 2024 to USD 65.38 billion by 2032, exhibiting a CAGR of 6.3% during the forecast period.

Oleochemicals are chemicals produced by chemical and enzymatic reactions from vegetable oils and animal fats. They are analogous to petrochemicals products. The market is set to experience high growth rate due to increased demand from the food and chemical industries. Increasing preference for sustainable fuels is expected to surge product demand during the forecast period.

The COVID-19 pandemic significantly affected every sector’s demand and supply chains. The impact of the viral infection led to the enforcement of various government norms and regulations and prompted them to action. These rules included lockdowns, halt in manufacturing activities, social distancing, and transportation restrictions. Many countries imposed a lockdown and transportation was halted since the spread of coronavirus in late 2019. Due to this, the production of biodiesel was recorded to fall, further impacting the production of glycerin, influencing product usage in oral care, personal care, and food products.

However, manufacturers recorded a return to their full production and operational activities. According to the Malaysian Palm Oil Council (MPOC), the demand has been high after COVID-19. The escalated product adoption was associated with the increased demand for sanitizers, disinfectants, and cleaning products.

Oleochemicals Market Trends

Increasing Demand for Biofuels Offers Market Growth Opportunities

Various organizations and departments of government have closely observed the fuel industry. Fossil fuels account for the major share in the consumption of fuel and have always led to environmental and health issues. According to the research carried out by Our World in Data, 135,807 terawatts-hours of energy were consumed in 2019, which was sourced from fossil fuels like coal, gas, and oil. The challenges put forth by global pollution and the depletion of fossil fuels have led the world to serious environmental challenges, including global warming, ozone layer depletion, and pollution.

Hence, consumers are moving toward sustainable and green alternatives such as biofuels. Biodiesel is produced by the transesterification of oil and fats obtained from natural sources. The U.S. biofuels industry produced 2.6 billion gallons of biofuels in 2018. The increasing adoption of sustainable alternatives to petrochemicals products in the food & beverages and feed products and rising technological advancement are anticipated to act as a growth opportunity.

Request a Free sample to learn more about this report.

Oleochemicals Market Growth Factors

Rising Demand from Several End-use Industries to Propel Market Growth

Oleochemicals are projected to experience significant growth by the end of the forecast period. These chemicals are highly employed by various sectors, including personal care, cosmetics, food & beverages, pharmaceuticals, and plastics. These green chemicals are used in hair care and skincare products..

The demand for naturally derived cosmetic products has amplified progressively, with significant growth over the past decade. The cosmetics industry depends on oleochemicals to manufacture safe products for its consumers. For instance, Octyl stearate is a palm derivative that is used as an emollient for lipsticks, chapsticks, and eyeshadow, while polyhexanide is a water-based antibacterial chemical and preservative used in multiple makeup products.

Oleochemicals are also used in personal care products such as hair care and skin care essentials. Glycerine is derived from vegetable fats and is commonly used in moisturizers due to its excellent moisturizing properties. Similarly, AHCOHOL 1618 is a combination of both natural and synthetic sources but is primarily vegetable-based and hypoallergenic. It is often used as a thickening agent in personal care.

Attributed to the high demand for hypoallergenic, non-carcinogenic nature, and chemical-free ingredients from the cosmetics and personal care industry, the market is expected to grow strongly. Moreover, sustainable cosmetics and personal care product manufacturers are driving the use of these products

Additionally, the use of bio-based chemicals in the food industry is another factor driving growth. These chemicals are used in FDA-approved food packaging and as thickening and flow agents. For instance, calcium stearate is used as a food emulsifier and a flow agent in manufacturing candies. Moreover, the demand for bio-based and sustainable chemicals owing to the concerns regarding the detrimental effects of synthetic chemicals on humans and the environment is one of the factors driving the oleochemicals market growth.

Lower Cost and Sustainability of Raw Materials to Boost the Market Growth

Oleochemicals are derived from vegetable and animal feedstock. Waste vegetable oil is a renewable, sustainable, low cost, and low-toxicity of raw materials for production. They are an excellent substitute for petroleum-based chemicals. These chemicals obtained from trans-esterification, epoxidation, and sulfonation of waste vegetable oils are used to manufacture surface active agents (biosurfactants) with extensive petroleum applications.

In addition, these raw materials have remarkable benefits compared to petroleum feedstock as these living feedstocks have high efficiency and productivity. For instance, palm oil is a significant raw material attributed to its low cost, high efficiency, and productivity. Thus, these factors are anticipated to surge the demand for these chemicals during the forecast period.


VOC Production during Pre-treatment of Glycerin May Hamper the Market Growth

Oleochemical products, such as fatty acids, fatty alcohol, and glycerin, are used in applications ranging from food to cosmetics. However, the production of these chemicals comes with environmental and health issues as Voltaic Organic Compounds (VOC) are released during the glycerin processing. Exposure to VOC can harm human organs, including the throat, eyes, and nose. Additionally, VOC vapors can cause nausea, damage to the liver and kidney, and permanent damage to the central nervous system. Thus, all these factors are expected to hamper market growth.

Oleochemicals Market Segmentation Analysis

By Type Analysis

To know how our report can help streamline your business, Speak to Analyst

Fatty Acids to Hold Dominant Share Owing to its Demand from the Personal Care Industry 

Based on type, the market is categorized into fatty acids, fatty alcohols, methyl esters, and glycerin.

The market is dominated by the fatty acids segment owing to the easy availability of raw materials and growing demand for organic personal care products across the globe. In addition, fatty acids function as surfactants employed in detergents and soaps due to their amphipathic characteristics. Fatty acid is a crucial raw material to produce several downstream derivatives, including elastomers, toiletry, biocides, softeners, and wax for diversified industries. This is anticipated to drive segment growth.

Glycerin is used to create and preserve botanical extracts, such as rosemary and lavender, which are further used in various products as a flavoring agent. The glycerin segment is gaining momentum owing to its increased use in food and industrial applications. Fatty alcohols and methyl esters are expected to exhibit substantial growth owing to increasing product demand from the chemical and detergent industries.

By Application Analysis

Food & Beverages Segment Accounts for Largest Market Share Due to High Product Adoption as an Additive

The market is segmented based on application: food & beverages, chemicals, animal feed, and others.

The food & beverages segment accounted for the largest oleochemicals market share in 2021. Increasing adoption of bio-based thickeners, stabilizers, and other food additives in the food industry is expected to drive segment growth. The chemicals sector is expected to be growing at the fastest CAGR, owing to high demand for green alternatives for petroleum-derived chemicals.

Oleochemicals are also used in the manufacturing of animal nutrition products. They help in the area of processing, enhancing digestibility, providing easy digestible energy source, and antimicrobial activity in animals. This is expected to boost market growth.


Asia Pacific Oleochemicals Market Size, 2023 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Asia Pacific accounted for the highest market value of USD 18.51 billion in 2023, followed by North America and Europe. The majority of Asia Pacific market share is contributed by ASEAN countries and China. The region is a major producer and exporter of oleochemical feedstock as well as its derivatives. This includes fatty alcohols, fatty acid methyl esters, alkyl ethoxylates, glycerol esters alkoxylates, glycerin, specialty esters, and fatty alcohols. The growing awareness amongst people regarding the detrimental effects of the exploitation of fossil fuels and petrochemical resources is one of the major factors driving the market growth.

To know how our report can help streamline your business, Speak to Analyst

North America is expected to show considerable growth by the end of the forecast period, owing to stringent regulations regarding practicing sustainability and the growing demand for plant-based products. Moreover, the growing market for the chemical sector in the U.S. is expected to drive the market in the country.

European countries, including Germany, Italy, France, and the U.K. are practicing sustainability for the last decade owing to the growing awareness in consumers regarding climate change, pollution, and other environmental issues. Increasing emphasis on the efficient use of bio-based resources, including agricultural and animal-based products and waste, is a major factor driving the regional market.

The animal feed segment is growing moderately in Latin America due to the large number of cattle in the region. Countries in the region, such as Brazil and Argentina, are inclined to improve animal nutrition. These chemicals work as antimicrobial agents, processing and digestive aid, and improve animal feed products.

The Middle East & Africa is expected to grow considerably due to the rapidly expanding cosmetics and personal care industry.

List of Key Companies in Oleochemicals Market

Key Companies Focus on Geographical Expansion and Broaden their Market Presence

With a few global players capturing a significant share, the global market is concentrated in nature. BASF, Evonik, Emery Oleochemicals, Twin River Technologies, Cargill Inc., and Croda Industrial Chemicals are some of the key players.

Industry players operate principally based on the product's price and application. To boost their market share and achieve a competitive advantage, several major players are engaged in numerous strategic alliances to promote brand and sales.


  • Cargill Inc. (U.S.)

  • Kuala Lumpur Kepong Berhad (Malaysia)

  • BASF SE (Germany)

  • Oleon N.V. (Belgium)

  • IOI Group Berhad (Malaysia)

  • Wilmar International (Singapore)

  • Kao Chemicals (Japan)

  • Twin Rivers Technologies (U.S.)

  • Croda Industrial Chemicals (U.K.)

  • Evonik Industries (Germany)

  • Emery Oleochemicals (Malaysia)

  • Godrej Industries (India)


  • August 2022 - The Kuala Lumpur Kepong Berhad Group offered a product named DavosLife E3, which can be used in food and nutrition applications. According to Kuala Lumpur Kepong Berhad, the product has wide-reaching, clinically proven health benefits for heart health, liver health, and brain health.

  • July 2022 BASF SE offered the first rainforest alliance-certified personal care ingredients based on coconut oil. The company established a renewable supply chain, which will help the company maximize its revenue.

  • April 2022 - Oleon N.V. launched the construction of a new plant in Baytown, Texas. The company invested USD 50 million. The purpose of the investment is to establish international expansion.

  • September 2020 – Emery Oleochemicals announced the launch of its fatty acid ester product line under the brand name Emery E. These fatty esters offer good color stability, biodegradability, and low odor.

  • May 2019- The new plant of PT Apical Kao Chemicals, a joint venture of Kao Corporation and Apical Group Ltd., a producer of fatty acids, was completed. This joint venture resulted in an increase in production capacity and promoted stable supply of oleochemicals.


An Infographic Representation of Oleochemicals Market

To get information on various segments, share your queries with us

The research report provides a detailed market analysis and focuses on crucial aspects such as leading companies, applications, and products. The report also offers insights into key oleochemicals market trends and highlights vital industry developments. In addition, the report encompasses various factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 6.3% from 2024 to 2032


Value (USD Billion)





By Type

  • Fatty Acids

  • Fatty Alcohols

  • Methyl Esters

  • Glycerin

By Application

  • Food & Beverages

  • Chemicals

  • Animal Feed

  • Others

By Geography

  • North America (By Type, By Application, By Country)

    • U.S. (By Application)

    • Canada (By Application)

  • Europe (By Type, By Application, By Country)

    • Germany (By Application)

    • U.K. (By Application)

    • France (By Application)

    • Rest of Europe (By Application)

  • Asia Pacific (By Type, By Application, By Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • Indonesia (By Application)

    • Other ASEAN (By Application)

    • Rest of Asia Pacific (By Application)

  • Latin America (By Type, By Application, By Country)

    • Brazil (By Application)

    • Mexico (By Application)

    • Rest of Latin America (By Application)

  • Middle East & Africa (By Type, By Application, By Country)

    • GCC (By Application)

    • South Africa (By Application)

    • Rest of Middle East (By Application)

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 37.88 billion in 2023 and is projected to reach USD 65.38 billion by 2032.

In 2023, the Asia Pacific market size stood at USD 18.51 billion.

Growing at a CAGR of 6.3%, the market will exhibit steady growth during the forecast period (2024-2032).

The food & beverages segment is expected to be the leading segment in this market during the forecast period.

Growing demand from food & beverages and chemical industries is expected to drive market.

Cargill, Inc., Kuala Lumpur Kepong Berhad, Croda Industrial Chemicals, Emery Oleochemicals, BASF, and Wilmar International are major players in the global market.

Adoption of biofuels such as biodiesel and increasing preference for animal feed products are the factors driving the product adoption.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Mar, 2024
  • 2023
  • 2019-2022
  • 198

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.