Global Fatty Alcohol Market

Global Fatty Alcohol Market, By Type (Short Chain, Pure And Mid Cut, Long Chain, Higher Chain), By Application (Industrial & Domestic Cleaning, Plasticizers, Food & Nutrition, Personal Care, Pharmaceutical Formulations, Others, Lubricants), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: September 2021
  • Report ID: BWC2181
  • Available Format: PDF
  • Page: 194

Report Overview

The global fatty alcohol market is growing at high rate owing to its increasing demand in end-user industries, such as personal care, pharmaceuticals, cleaning and plasticizers etc., along with the growing demand for biodegradable products for the production of certain goods.

Global Fatty Alcohol Market- Industry Trends & Forecast Report 2027

The global fatty alcohol market was worth USD 5.5 billion in 2020 and is further projected to reach USD 8.4 billion by the year 2027, growing at the CAGR of 6.3% in the forecast period. There are several factors contributing to the growth of the global fatty alcohol market, including the increasing demand in end-user industries such as personal care, pharmaceuticals, cleaning, and plasticizers. Furthermore, the growing demand for biodegradable products for the production of certain goods is also driving the market growth.

Global Fatty Alcohol Market

Source: BlueWeave Consulting

Global Fatty Alcohol Market- Overview

Fatty alcohol is a straight-chain, high-molecular-weight primary alcohol with properties similar to those of fatty acids. Alcohols of this type are biodegradable and virtually non-toxic. Therefore, all kinds of fatty alcohols are fit for consumption. They are derived from a wide range of natural fats and oils originating in plants and animals. However, many fatty alcohols are also prepared from petrochemical sources. There are several commercially important fatty alcohols, including stearyl, lauryl, and oleyl. Liquid fatty alcohols of this type are colorless and oily. Fatty alcohols are commonly used in various industries as emulsifiers, thickeners, emollients, and lubricant agents.

Global Fatty Alcohol Market Forecast and Trends

Growth Drivers

Growing Demand for Surfactant

The demand for surfactants in the form of detergents, wetting agents, emulsifiers, foaming agents, dispersants, etc., are witnessing significant growth in the market. With this growth in surfactants, the global fatty alcohols market is also projected to prosper. The manufacturers of personal care products such as shampoo, conditioners, shower gels, antiperspirants, etc., offer a wide range of products to meet their customers' growing demand in various regions. They are also engaging in R&D activities to develop and upgrade their products, which is expected to boost the global fatty alcohol market.

 

Increasing Shift Towards Bio-Based Products and Renewable Resources

Fatty alcohols are emerging as potential substitutes for fossil fuels, such as diesel and jet fuels. With an increasing shift towards renewable resources and sustainability, the demand for fatty alcohols is expected to boost significantly in the forecast period. Fatty alcohols are produced from petrochemicals or plant-based oils, which are sustainable, reliable, and scalable alternatives. Since it offers a wide range of applications in manufacturing, industries are increasingly turning to it as an energy source. It is anticipated that the market for fatty alcohol will grow as a result of this.

Restraints

Highly Volatile Prices of Raw Materials

The fluctuating prices of raw materials act as a major restraining factor for the global fatty alcohol market. Certain raw materials like rapeseed oil, tallow, palm oil, etc., are mainly produced in Asia-Pacific countries like Indonesia and Malaysia. This region's agriculture relies heavily on the monsoon for the cultivation of crops, which affects output and ultimately the price. Raw materials needed to produce fatty alcohol are highly reliant on these countries and prices fluctuate dramatically, which adversely affects market growth.

Impact of COVID-19 on Global Fatty Alcohol Market

As a result of the COVID-19-induced pandemic, the world has been negatively impacted. Several countries had to impose complete lockdowns which hindered the manufacturing and production operations besides the distribution channels. As a result, global fatty alcohol faced a sudden slump in its market. The lack of production and prevailing demand for certain products like soaps, shampoos, and sanitizers resulted in an enormous gap between supply and demand, resulting in huge losses for manufacturers. However, the global fatty alcohol market is expected to recover soon in the post-COVID-19 period as the lockdown restrictions are uplifted.

Global Fatty Alcohol Market - By Type

Based on types, the global fatty alcohol market is segmented into short-chain, pure and mid-cut, long-chain, and higher chain. The pure and mid-cut segment accounts for the largest market share because of its wide use in personal care products. This type of fatty acid is increasingly being used in manufacturing Sodium lauryl ether sulfate (SLES) and Sodium laureth sulfate (SLS). These chemicals are used in manufacturing personal products, such as shampoo, toothpaste, soaps, and detergents, etc., which propels its market growth.

Global Fatty Alcohol Market - By Application

Based on applications, the global fatty alcohol market is segmented into industrial & domestic cleaning, plasticizers, food & nutrition, personal care, pharmaceutical formulations, lubricants, and others. The industrial and domestic cleaning segment holds the largest market share because of the high demand for soaps and detergents. The availability of a wide range of soaps and detergent products for wide applications plays a major role in propelling the fatty alcohol market growth. However, the personal care segment is projected to witness the highest CAGR during the forecast period.

Global Fatty Alcohol Market - Regional Insights

Geographically, the global fatty alcohol market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region accounts for the largest market share and is expected to witness the highest CAGR during the forecast period as well. Aside from being the largest, the Asia Pacific region is expected to be growing at the fastest rate as well. The vast market of soaps, detergents, and surfactants in this region is dramatically influencing the growth of the fatty alcohol market. Furthermore, the easy availability of raw materials like vegetables is attracting the producers to shift their manufacturing operations in countries like Malaysia, Indonesia, etc., which is projected to boost the market in the forecast period.

Regional Insights

Source: BlueWeave Consulting

 

Competitive Landscape

The leading market players in the global fatty alcohol market are Air Liquide, Wilmar International Ltd, Arkema SA, VVF LLC, Croda International PLC, SASOL, Eastman Chemical Company, Procter & Gamble, Ecogreen Oleochemicals, Oleon NV, Emery Oleochemicals, Musim Mas Holdings Pte. Ltd, KLK OLEO, Godrej Industries Limited, BASF SE, Royal Dutch Shell, SABIC, Berg + Schmidt, Oxiteno, and other prominent players.

The global fatty alcohol market is considered fragmented with the presence of several global and regional market players. The companies are concentrating on reducing their production costs and locating factories in places where raw materials are more readily available. They also adopt competitive strategies like mergers, acquisitions, partnerships, collaborations, etc., to stay ahead in the competition.

Recent Developments

  • In July 2021, Rossari Biotech, an Indian chemical manufacturing company, announced the completion of two acquisitions in Unitop Chemicals and Tristar Intermediates, aimed towards leveling up its surfactant requirements.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia

Product Service/Segmentation

By Type, By Application, By Region

Key Players

Air Liquide, Wilmar International Ltd, Arkema SA, VVF LLC, Croda International PLC, SASOL, Eastman Chemical Company, Procter & Gamble, Ecogreen Oleochemicals, Oleon NV, Emery Oleochemicals, Musim Mas Holdings Pte. Ltd, KLK OLEO, Godrej Industries Limited, BASF SE, Royal Dutch Shell, SABIC, Berg + Schmidt, Oxiteno, and other prominent players.

 

By Type

  • Short Chain
  • Pure and Mid Cut
  • Long Chain
  • Higher Chain

By Application

  • Industrial & Domestic Cleaning
  • Plasticizers
  • Food & Nutrition
  • Personal Care
  • Pharmaceutical Formulations
  • Others
  • Lubricants

By Region

  • North America
  • Europe
  • The Asia-Pacific
  • Latin America
  • The Middle East & Africa

Frequently Asked Questions:

Ans: The global fatty alcohol market reached USD 5.5 billion in 2020.
Ans: The major factors driving the growth of the global fatty alcohol market are the growing demand for surfactants and increasing shift towards bio-based products and renewable resources.
Ans: The key players in the global fatty alcohol market are: Air Liquide, Wilmar International Ltd, Arkema SA, VVF LLC, Croda International PLC, SASOL, Eastman Chemical Company, Procter & Gamble, Ecogreen Oleochemicals, Oleon NV, Emery Oleochemicals, Musim Mas Holdings Pte. Ltd, KLK OLEO, Godrej Industries Limited, BASF SE, Royal Dutch Shell, SABIC, Berg + Schmidt, Oxiteno, and other prominent players.
Ans: The industrial and domestic cleaning segment accounted for the largest share in the global fatty alcohol market.
Ans: The Asia-Pacific holds the largest share in the global fatty alcohol market.