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The global castor oil derivatives market size is expected to reach USD 1,429.7 million by 2027. The introduction of novel castor oil-based ingredient in various products will propel the market, mentioned in a report, titled “Castor Oil Derivatives Market Size, Share & COVID-19 Impact Analysis, By Product Type (Sebacic Acid, Ricinoleic Acid, Hydrogenated Castor Oil, 12-Hydroxy Stearic Acid, Dehydrated Castor Oil and Others), Application (Cosmetic & Pharmaceuticals, Plastic & Resins, Lubricants, Biodiesel, and Others) and Regional Forecast, 2020-2027.” The market size stood at USD 1,035.4 million in 2019 and is expected to exhibit a CAGR of 4.3% between 2020 to 2027.
Inauguration of First Sebacic Acid Plant in Middle East to Bolster Growth
Omani businessman Shaikh Hilal bin Khalid Al Mawali announced that it has signed a contract with Shipra Agrichem for the new Oman Sebacic Co. facility in the Duqm Special Economic Zone. The 30,000 m.t./year plant will utilize castor oil as feedstock while covering 400,000 sq m of land. The project will involve two phases. The first phase is expected to create approximately 450 new jobs. While the second phase is expected to begin during the next five years, involving an investment of around $250 million, it is expected to create another 250 jobs in the forthcoming days. The 62.7 million sebacic acid production plant will be the first of its kind in the Middle East and North Africa. The launch of the new facility is expected to stimulate the healthy growth of the market owing to the application of sebacic acid in high-performance engine oil and lubricants, adhesives, engine coolants, bio-degradable packaging, sub-sea pipe/cable coatings, aerospace polymers, anti-corrosion applications, and bio-plastics. In addition, the facility will also cater to enormous demand from the United States, Europe, and Japan.
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Ever-changing Raw Material Prices to Diminish Market Growth
The high dependency on temperature, light, rainfall, soil characteristics, latitude, altitude for higher castor oil yield can be a restricting factor for the growth of the market. Moreover, the unreliable costs of castor oil derivatives and raw materials will further limit its adoption in the forthcoming years. The growing acceptance of modern agricultural practices backed by government policies will retard the development of the market during the forecast period. However, the growing prominence of castor oil and its derivatives will have an excellent effect on the market.
Concentration on Sustainable Feed Stock by Key Players to Reinforce Position
The eminent players in the market are focused on securing feedstock for the production of castor oil derivatives, thus establishing a footprint in the industry. Jayant Agro Organics Limited, a major producer and exporter of castor oil and its derivatives announced that it will take initiative to improve castor feedstock in India. For instance, in 2016, the company launched the ‘Pragati’ project in association with BASF and Arkema to develop more sustainable farming practices in India. Through this initiative, companies will help local Indian farmers to increase the yield of castor oil and support economic growth.
The Report Lists the Key Companies in the Castor Oil Derivatives Market:
Further Report Findings:
The global Market is Segmented into:
Value (USD Million) & Volume (Kilo Tons)
Product Type, Application, and Geography
By Product Type