Fatty Alcohol Market Size
The Global Fatty Alcohol Market reached USD 5.0 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 7.5 billion by 2030. The market is growing at a CAGR of 5.1% during the forecast period (2024–2031). The global fatty alcohol market is experiencing steady growth and is driven by various factors such as increasing demand from growing consumer awareness regarding sustainable products and expanding personal care and home care sectors.
Fatty alcohols are derived from natural fats and oils and are widely used in various applications due to their beneficial properties.
The U.S. is renowned for having excellent capabilities in research and development. Academic institutions, research organizations, and private companies in the U.S. conduct studies and experiments to explore new applications, technologies and processes related to fatty alcohols. Advancements in research and development can drive innovation in the market and create opportunities for growth. Therefore, the U.S. was accounting for more than 80.4% of the regional market share in 2022.
Market Scope
| Metrics | Details |
| CAGR | 5.1% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (USD ) |
| Segments Covered | Type, Source, Application, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Growing Consumer Awareness and Preference for Sustainable Products
Increasing consumer awareness about the environmental impact of products has led to a shift in preferences towards natural and eco-friendly ingredients. Fatty alcohols, derived from natural sources such as vegetable oils and fats, align with this trend. They are considered renewable, biodegradable, and less harmful to the environment compared to synthetic alternatives.
Consumer awareness of sustainable packaging is increasing, with a focus on reducing plastic waste and using recyclable materials. Fatty alcohols can contribute to sustainable packaging solutions by enabling the development of biodegradable and compostable materials. For example, fatty alcohols are used in the production of bio-based films and coatings that offer sustainable alternatives to conventional plastic packaging.
Volatility in Raw Material Prices
Fatty alcohols are derived from natural oils and fats and their prices are influenced by the fluctuations in the prices of these raw materials. Fluctuations in the prices of vegetable oils and animal fats can impact the cost of fatty alcohol production. Price volatility can pose challenges for manufacturers in terms of cost management and pricing strategies, potentially affecting the growth of the market.
Volatility in raw material prices can affect profitability margins for fatty alcohol manufacturers. When the prices of raw materials increase, manufacturers might face difficulties in passing on the cost burden to customers due to price sensitivity and competition. Maintaining price competitiveness can be challenging in the face of unpredictable raw material costs. As a result, manufacturers may face constraints in the expansion of their market presence and investment in research and development activities.
Market Segment Analysis
The global fatty alcohol market is segmented based on type, source, application, end-user and region.
Versatility of Surfactants Derived from Fatty Alcohols Drives Market Dominance Across Industries
Surfactants derived from fatty alcohols are versatile and find applications in various industries such as oil and gas, agrochemical and personal care & cosmetics and institutional cleaning, pharmaceuticals, agriculture, etc. It is used as a key ingredient in shampoos, body washes, laundry detergents, dishwashing liquids, surface cleaners, and agricultural formulations.
The extensive range of applications across multiple industries contributes to the dominance of surfactants in the fatty alcohol market. Therefore, the surfactants segment was holding approximately 50.4% of the global segmental share in 2022 and is expected to dominate during the forecast period.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Asia-Pacific's Thriving Personal Care and Home Care Industries Propel Market Dominance
The personal care and home care industries in Asia-Pacific have witnessed significant growth. Countries like China, India, Japan and South Korea are major contributors to the market due to their large consumer base and evolving consumer preferences. Fatty alcohols are extensively used in products including skincare, haircare, and cleaning formulations, which is making the region a dominant player in the global market.
China's well-developed industrial infrastructure and manufacturing capabilities have supported the growth of the fatty alcohol market. The country has a strong presence of manufacturers and suppliers, allowing for efficient production and supply chain management. Therefore, China was accounting for over 48.5% of the regional shares in 2022 and is expected to grow at the highest CAGR during the forecast period.
Source: DataM Intelligence Analysis (2023)
Fatty Alcohol Companies
The major global players include Croda International plc, SASOL, Air Liquide, Emergy Oleochemicals, Arkema SA, Wilmar International Ltd., Kao Corporation, Kuala Lumpur Kepong Berhad, Procter & Gamble and Jarchem Industries Inc.
COVID-19 Impact
Due to the pandemic, the demand for color cosmetics, such as makeup and beauty products primarily used for aesthetic purposes, may have experienced a decline. Factors like remote work, reduced social gatherings and the widespread use of face masks could have contributed to this slowdown. With fewer opportunities for public appearances and events, consumers might have prioritized other personal care products or shifted their spending habits. Therefore, the global fatty alcohol market experienced a slowdown during the pandemic.
AI Impact
Artificial intelligence (AI) has the potential to impact various industries, including the global fatty alcohol market. Fatty alcohols are widely used in industries such as personal care, pharmaceuticals, and industrial applications. AI can be employed to optimize manufacturing processes involved in the production of fatty alcohols. Machine learning algorithms can analyze large amounts of data and identify patterns to improve efficiency, reduce waste and enhance productivity in production facilities.
AI can enhance supply chain management by analyzing data related to raw material availability, demand forecasting, transportation logistics and inventory management. This can help optimize supply chain operations, reduce costs, and ensure timely delivery of fatty alcohols to customers.
Russia-Ukraine War Impact
The conflict may lead to changes in trade patterns and restrictions. It could result in trade barriers, embargoes, or sanctions imposed by various countries, impacting the import and export of fatty alcohols. Alterations in trade routes or limitations on cross-border movements could affect the global distribution of fatty alcohol products.
Key Developments
- On May 8, 2023, the Ministry of Commerce in India's Directorate General of Trade Remedies suggested a higher ADD rate on imports of all varieties of saturated fatty alcohol from Indonesia, Malaysia and Thailand. Saturated fatty alcohols with a chain length of C12–C18 and their mixtures are impacted by the final result. The final result indicates that C12-14 and C12-16 grades make up the majority of imports into India.
- On March 30, 2023, the yeast Ogataea polymorpha was modified by a research team under the direction of Prof. ZHOU Yongjin from the Dalian Institute of Chemical Physics (DICP) of the Chinese Academy of Sciences (CAS) for the effective generation of fatty alcohols from primary methanol by coupling peroxisomal metabolism.
- On June 16, 2022, Unilever announced a new biotech project worth USD 120 million (£99 million) that aims to develop a palm oil replacement. Within the next five years, it is anticipated that a new fatty alcohol generated from fermented sugar will be added to cosmetics and cleaning products as an alternative, plant-based ingredient.
- By 2020, the company, BASF had fulfilled its commitment to solely purchase palm (kernel) oils from RSPO-certified suppliers. All of BASF's volume was RSPO certified last year, which amounted to 227,213 metric tonnes of certified sustainable palm (kernel) oil. Additionally, BASF made further progress towards constructing transparent supply chains: the company was able to monitor nearly 95% of its 441,107 metric tonnes of worldwide palm footprint back to the oil mill level.
Why Purchase the Report?
- To visualize the global fatty alcohol market segmentation based on type, source, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of fatty alcohol market level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global fatty alcohol market report would provide approximately 69 tables, 70 figures and 218 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
