The Natural Fatty Alcohols Market is to Touch $9.2 Billion by 2030; Increase in demand for bio-based and renewable resources-based products and Increasing Personal Care & Cosmetic Industries propels market growth

The Natural Fatty Alcohols Market size is estimated to reach $9.2 Billion by 2030, growing at a CAGR of 4.8% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Natural Fatty Alcohols Market – By Source (Animal Fats [Tallow, Lard, and Others], Tropical Oils [Palm Oil, Palm Kernel Oil, Coconut Oil, and Others], Soft Oils [Soyabean Oil, Sunflower Oil, Rapeseed Oil, and Others], and Others [Honeybee Wax, Jojoba Oil, Whale Oil, and Others]), By Application (Adhesives & Sealants, Paint & Coatings, Food & Beverages, Household & Industrial Cleaning, Personal Care [Hair Care, Antiperspirant, Lip Care, and Others], Metalworking, Oil & Gas, Solvents & Inks, Pharmaceutical, Water Treatment, Automotive [Passenger Vehicles, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV)], Textile & Leather Processing, and Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Expansion in surfactant-based industries and Sustainable & bio-based fatty alcohol production are expected to create growth opportunities in the market during forecast period.

APAC accounted for the largest share of 40% of the Natural Fatty Alcohols Market in 2023 followed by North America and Europe, owing to the increasing usage of aliphatic compounds in various end-use applications, such as personal care and industrial & domestic cleaning application as thickeners, emollients, and emulsifiers. Growing demand for soaps & detergents is expected to drive demand for fatty alcohols, due to population growth and increased disposable income in the region.

This surge is driven by the increasing consumer preference for sustainable, eco-friendly products across various sectors, particularly in personal care, home care, and pharmaceuticals. These fatty alcohols are sourced from renewable materials like palm and coconut oils, appealing to environmentally conscious consumers. As more companies prioritize sustainable practices, the demand for naturally derived fatty alcohols continues to rise. This trend is supported by regulatory pressure for greener alternatives and innovations in bio-based production methods, offering manufacturers opportunities to cater to a growing market seeking natural and biodegradable ingredients.

The fatty alcohol market is facing significant challenges due to geopolitical tensions, particularly the ongoing Russia-Ukraine conflict, which has disrupted the global supply of palm oil. Since palm oil is a crucial raw material for the production of fatty alcohols, the disruption in its supply chain has led to price volatility. Malaysia, one of the world’s largest producers of palm oil, has also been affected by these geopolitical factors, further intensifying the market pressure. As a result, manufacturers are exploring alternative sources for fatty alcohol production, such as using animal fats or developing synthetic pathways. These shifts could help stabilize the supply chain but may come with increased production costs, thereby impacting overall market dynamics. 

• In November 2024, BASF announced a partnership with Acies Bio to develop a sustainable process for producing fatty alcohols using fermentation technology. BASF's Care Chemicals division and Acies Bio will collaborate to scale up the fermentation process and use specialized microbes to produce fatty alcohols.

• In November 2024, Sasol has introduced NACOL 18-98, a palm-free, biobased stearyl alcohol solution derived from rapeseed oil. This product addresses concerns about deforestation and the environmental impact of palm-derived products while providing the same high-quality performance.

• In 2024, Ecogreen announced the expansion of its fatty alcohol production capacity in Batam, Indonesia. This expansion will double their production capacity to 360,000 tonnes per year, making it the largest single-track fatty alcohol facility in the world.

Key companies profiled in the Natural Fatty Alcohols Market are BASF SE, Procter & Gamble, Sasol, Ecogreen, Oleochemicals, Kao Corporation, Willmar oleo, Musim Mass, Oxiteno, Jiahua, and Others.