There is a trend of increasing usage of biodegradable and sustainable products such as fatty alcohols that include lauryl, stearyl, and oleyl alcohols, and these are gaining propitious prominence in the end-use industries ranging from pharmaceutical and lubricants to food & nutrition and personal care. The fatty alcohols market valuation is poised to catapult because of the profitable growth prospects offered by the pharmaceutical industry that is into a transition phase with a myriad of new drugs emerging in the market, and fatty alcohols are used for formulation of these drugs. The fatty alcohol market’s most lucrative and advantageous avenue is in the detergent industry, wherein it will witness tremendous revenue sources in the upcoming years. Furthermore, the increasing application of fatty oils as plasticizers and lubricants due to their cost-effectiveness and biodegradability as compared to their petrochemical counterparts is boosting the market value. Another application which is driving the fatty alcohols market is the one in food & nutrition as they are reported to lower the plasma cholesterol levels in human beings. Over the years, there has been an incremented demand influx in the personal care industry due to the perpetually increasing purchasing power of customers. This is also creating prospects in the fatty alcohols market as they are used in skin care products such as lotions and creams. The Fatty Alcohols Market size was assessed to be $3.75 billion as of 2018, and their demand will be increase at a CAGR of 4.87% during the forecast period 2019-2025.

The growth in the demand for fatty alcohols worldwide can be further fathomed by the increasing trade in the parent industry that includes acid oils and fatty alcohols. According to the International Trade Centre (ITC), the trade value in the parent industry was evaluated at $10.20 billion in 2018. Furthermore, the organization has found that the trade of products in the parent industry has been increasing by 5% between 2014 and 2018. A significant amount of the above value is attributable to the trade of fatty alcohols worldwide, and it evinces the growth of the fatty alcohols market size.

APAC – The Most Lucrative Fatty Alcohols Marketplace:

APAC was found to be the most profitable fatty alcohols marketplace with shares in the global valuation that translated to 31% in 2018. The growth of the fatty alcohols market in APAC was attributable to a gamut of factors such as gainful scope in the pharmaceutical and detergent industries coupled with the growth of the personal care sector owing to the increasing incomes in countries of APAC. Here’s the table that signifies the import of products from the parent industry in countries of APAC, which reflects the demand influx in the fatty alcohols market in the region –

Table 1 – Import of Acid Oils and Fatty Alcohols in Countries of APAC

Sr. No.

Country

Import Value – 2018

(In USD)

Growth Rate in % (2014-18)

1

China

1.29 billion

2

2

India

667.44 million

25

3

Indonesia

237.80 million

40

4

Malaysia

683.01 million

-1

5

Philippines

34.83 million

31

6

Japan

310.31 million

4

Import data source – ITC

From the above table, it is conspicuous that the import of fatty alcohols – a significant segment of its parent industry is growing continuously since 2014, while the import value in Malaysia observed a slight slump during the period. This downslide of the import in Malaysia is due to the internal production by global leaders such as Kuala Lumpur Kepong Berhad and Emery Oleochemicals Sdn Bhd and a local players like Timur Oleochemicals – an organization that has gained an eminent position in the Malaysia fatty alcohols market.

Factors Affecting the APAC Fatty Alcohols Market Growth –

· The Pharmaceutical Industry Upsurge in India to Instill Growth Forces in the Fatty Alcohols Market –

India houses the third largest pharmaceutical industry in the world with around 3,000 companies and over 10,500 manufacturing capacities. According to India Brand Equity Foundation (IBEF), the enhancing expenditures on R&D and exports will help Indian pharmaceutical industry to reach a valuation of $17.15 billion in FY19. This will be backed by Government of India’s “Pharma Vision 2020” initiative, which is going to attract more investments. The increasing trade will require an increment in the production capacities, and this will create a consistent requirement for fatty alcohols. The APAC fatty alcohols market players would be finding India as a sustainable fatty alcohols marketplace, because the hefty investments in the Indian pharmaceutical industry will create a favorable pricing environment for them.

· The Prospects for the Fatty Alcohols Market Players in China –

The International Trade Administration (ITA) has identified China pharmaceutical industry as one of the most promising ones for the lucrative US exports. According to the Organization, China is the second largest pharmaceutical marketplace, and it is poised to reach a lucrative valuation of $167 billion by 2020 representing a highly profitable growth rate of 9.1% through to the end of the year. Evidently, the growth of the pharmaceutical industry in China is going to impact the associated industries, and fatty alcohols market players will witness a surge in opportunities.

·  The Japan Pharmaceutical Industry to Create Demand Influx in the APAC Fatty Alcohols Market –

The Ministry of Health, Labour, and Welfare (MHLW) has found that the Japanese market for non-prescription and prescription pharmaceutical products was valued to be $95 billion in 2017. The upcoming years foresee an incredible growth of the Japan pharmaceutical industry, because it is opening up to foreign markets and the international companies that are making strides in Japan. This growth of the pharmaceutical industry in Japan will create a myriad of opportunities for the fatty alcohols market players.

· The APAC Detergent Industry Growth Proving to be a Boon to the Fatty Alcohols Market –

The growth prospects in the APAC detergent industry can be understood with the surging sales in the surfactants market – that directly reflects the detergent industry growth. Now, APAC had the greatest surfactants market share of 37% in 2018, which resonates with the growing demand for detergents in region. Now, the manufacturing of detergents require lauryl alcohol ethoxylate – a type of fatty alcohols. Hence, the detergent industry growth is creating opportunities in the fatty alcohols market.

· The APAC Personal Care Industry Bolstering the Fatty Alcohols Market –

There has been a discernible rise in the disposable income in countries of APAC in this decade after the economic doom during the first decade of 2000s. This economic rise is supporting industries that attributably belong to “luxury”. One such industry which is gaining grounds is the personal care sector. The residents in the countries of APAC have acquired a higher purchasing power due to incremented income, and there is a mega trend of male grooming, which is creating more opportunities in the industry. Due to the growth of the personal care sector, the associated markets such as that of fatty alcohols is witnessing a greater demand influx.

The Key Application in the Global Fatty Alcohols Market – Detergents:

The key application that will be offering the maximum revenue sources to the vendors in the fatty alcohols market is found to be in the detergent industry. This application is poised to witness growth at a CAGR of 4.05% through to 2025. The detergent industry has been experiencing an impressive trade over the years, which can be observed in the findings by ITC, according to which the trade value of organic surface active agents (excluding soaps) that include detergents was evaluated at $31.03 billion in 2018. The figure has been continually increasing from 2014 to 2018 at a growth rate of 2% while it saw year on year growth of 8% in 2018. The growth of the oleochemicals market and an augmented demand for bio-based detergents is going to further enhance the fatty alcohols market size during the forecast period.

Fatty Alcohols Market – The Global Scenario & Growth Drivers:

· The Global Pharmaceutical Industry: A Sustainable Fatty Alcohols Marketplace –

According to the International Federation of Pharmaceutical Manufacturers Association (IFPMA), the global pharmaceutical market is projected to reach a valuation of nearly $1.43 trillion by 2020. Subsequently, there will be a boom in the associated industries that will be gaining immense traction from the pharmaceutical industry, and one of those is the fatty alcohols market.

· The Application of Fatty Alcohols As Plasticizers Creating Opportunities for the Vendors –

The plasticizers market is booming, and the products are gaining traction from the end-use industries such as automobile, building & construction, food & beverage (F&B), and others. Fatty alcohols with glycerol fatty esters are prevalently used as plasticizers in co-polymer compositions in order to improve the processing and mechanical properties of materials. Furthermore, there is a perceptible penetration of biodegradable materials, which is also reflecting in the plasticizers market. Fatty alcohols are found to be biodegradable and sustainable, and that’s the reason they are preferred over their petrochemical counterparts. The bio-based plasticizers trend coupled with an augmented demand from the end-use industries is creating fatty alcohols market revenue sources.

· Fatty Alcohols and their Application As Lubricants Supporting the Market –

The growth prospects in the lubricants market is quite evident in the fact that the industry experienced a valuation of $123 billion as of 2018, and the demand for lubricants is poised to accelerate at a CAGR of 2.8% during the forecast period 2019-2025. While the industry is going to observe gainful growth in a gamut of end-use industries such as manufacturing, construction, and others; there is a disruptive trend of bio-based lubricants application, which is altering the modus operandi of the vendors. Therefore, fatty alcohols are preferred by the lubricants suppliers. This is creating a definite demand influx in the fatty alcohol market.

· The Food & Nutrition Sector Supporting the Fatty Alcohols Market Vendors with Opportunities Galore –

Fatty alcohols are found to ameliorate the issues of high plasma cholesterol, which can cause a gamut of diseases such as cardiovascular (CDVs) and coronary heart diseases. According to the World Health Organization (WHO), CDVs cause maximum deaths worldwide. In 2016, 17.9 million deaths were attributed to CDVs – 31% of global deaths. These disquieting figures are leading to dire need for reducing cholesterols, which is giving rise to a definite demand for food products that can serve the purpose. The perils of high cholesterol is leading to opportunities in abundance for the fatty alcohols market players.

· The Global Personal Care Industry Creating Revenue Avenue for the Fatty Alcohols Market Players –

The personal care products market is booming owing to the progressive economies worldwide that is allowing people to splurge on skin care lotions and cream in which fatty alcohols find applications. Furthermore, fatty alcohols are also found to be aiding curing process of acne without causing irritation or harm to the skin. According to the American Academy of Dermatology, acne affect 50 million Americans annually. Additionally, skin diseases are the most common of all ailments and affect almost 900 million people in the world today, according to WHO. Therefore, skin care products market are gaining robust growth; and therefore, the fatty alcohols market players are witnessing growth prospects.

Fatty Alcohols Market – Competitive Landscape:

The major fatty alcohols market players striving to increase their revenues are BASF SE, Emery Oleochemicals Sdn Bhd, Croda International plc, Oleon NV, Eastman Chemical Company, Kuala Lumpur Kepong Berhad, Ecogreen Energy, Kao Chemicals, Sasol Limited, The Procter & Gamble Company, and VVF Limited.


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