Natural Fatty Alcohols Market-Industry Analysis, Market Size, Share, Trends, Growth And Forecast 2024 - 2030

Natural Fatty Alcohols Market Overview

Natural fatty alcohol market size is forecast to reach $9.2 billion by 2030, after growing at a CAGR of 4.8% during 2024-2030. Natural fatty alcohols are long-chain alcohols that are derived from sources such as tropical oils, animal fats, soft oils, and more. These long-chain alcohols are one of the most prominent aliphatic compounds, which act as non-ionic surfactants and are commonly employed in cleaning materials. Since petrochemical-based fatty alcohols have significant and harmful consequences, global demand is high for natural fatty alcohols. The rapid growth of the personal care industry has increased the demand for thickeners, emollients, and emulsifiers; thereby, fueling the market growth. Furthermore, the increasing demand for naturally derived ingredients to manufacture the household & industrial cleaning industry is also expected to drive the natural fatty alcohols market substantially during the forecast period.

With increasing environmental consciousness among consumers and regulatory pressure to mitigate the impact of industrial processes, there's a notable trend towards sustainable sourcing and production methods within the natural fatty alcohols market. Consumers are demanding products derived from responsibly sourced raw materials, leading companies to invest in eco-friendly practices like sustainable agriculture, organic farming, and fair trade partnerships. Additionally, the industry is exploring alternative sources of natural fatty alcohols, such as algae and waste vegetable oil, to reduce dependency on traditional sources like palm oil, which has raised concerns regarding deforestation and biodiversity loss.

Another significant trend driving the natural fatty alcohols market is the growing demand for clean label and natural products across various industries. Consumers are increasingly scrutinizing product labels and seeking formulations free from synthetic additives, parabens, and harsh chemicals. As a result, manufacturers are reformulating their products to incorporate natural fatty alcohols as alternatives to synthetic emollients and surfactants. This trend is particularly prominent in the personal care and cosmetics industry, where natural fatty alcohols are prized for their mildness, biodegradability, and compatibility with sensitive skin types. Moreover, the food and beverage sector is also witnessing a surge in demand for natural emulsifiers and stabilizers derived from fatty alcohols to meet clean label requirements and cater to health-conscious consumers.

Market Snapshot:

Natural Fatty Alcohols Market Report Coverage

The report: “Natural Fatty Alcohols Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the natural fatty alcohols Industry.

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: North America (U.S., Canada, and Mexico), Europe (U.K, Germany, France, Italy, Netherland, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia-Pacific dominates the natural fatty alcohol market, owing to the increasing personal care and cosmetic products industry in the region. The population growth and per capita income is a key factor in the region's rising personal care and cosmetic products industry.
• Fatty alcohols are also a cost-effective alternative for petrochemicals and are biodegradable. To prevent petrochemical dependence and reduce carbon footprint, industries move their emphasis from chemicals derived to bio-based raw materials, which is driving the market growth.
• Moreover, during the forecast period, volatile prices, and strict regulations from several government agencies associated with the adverse effects of petrochemical-based fatty alcohols on the environment are expected to increase the demand for natural fatty alcohols.

Natural Fatty Alcohols Market Segment Analysis – By Application

The household and industrial cleaning segment held the largest share in the natural fatty alcohols market in 2020 and is growing at a CAGR of 5.6% during 2024-2030, owing to the increasing usage of long-chain alcohols derived from sources such as tropical oils, animal fats, and soft oils for cleaning purposes. Due to their amphipathic nature, they act as non-ionic surfactants and are commonly employed in cleaning materials. Natural fatty alcohols are employed as thickeners, emollients, and emulsifiers, with applications in detergents. Due to their good washing efficiency and foaming properties, they serve primarily as primary surfactants in the detergent and cleaning industry and as cleaning agents. Growing natural emulsifiers and surfactants demand in the soaps & detergents industry are projected to be the major driving factor for the natural fatty alcohols-based cleaning products and detergents market during the forecast period.

Natural Fatty Alcohols Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the natural fatty alcohols market in 2023 up to 40% and is growing at a CAGR of 7.4% during 2024-2030, 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. The market size of India's skin, cosmetics and grooming market will cross $20 billion from the current $6.5 billion by 2025, according to the India Brand Equity Foundation (IBEF). Thus, with the expanding personal care industry, the demand for natural fatty alcohols will also subsequently increase, which is anticipated to drive the natural fatty alcohol market in the APAC region during the forecast period.

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Natural Fatty Alcohols Market Drivers

Increase in demand for bio-based and renewable resources-based products

To boost demand for bio-based chemicals, changing customer preferences have been observed. Over the past decade, public consciousness of the environmental effects of harmful petroleum-based goods has increased exponentially. Growing environmental issues are prompting eco-friendly goods to be used by customers. These factors force chemical manufacturers to make use of bio-based raw materials such as tropical oils, animal fats, and soft oils to produce their products. In contrast to their traditional petroleum-based substitutes, oleo-based fatty alcohols are recyclable and less toxic. They are preferred for the processing of ingredients for personal care. These fatty alcohols alleviate problems with skin irritation and breathing and are the preferred alternative in the pharmaceutical & personal care industries. These attributes of natural fatty alcohols provide the potential for high-profit margin gains for producers. The industry trend for the use of naturally derived fatty alcohols derived from sources such as tropical oils, animal fats, and soft oils is expected to be supported by legislation from government agencies, such as REACH, relating to environmental issues associated with petrochemical products.

Increasing Personal Care & Cosmetic Industries

The personal care and cosmetic sector are booming in varied regions due to the increasing demand from consumers. And they are extensively used in personal care products, mainly skin lotions, hair products, and creams, as they help create smoother creams, thicker lotions, and more stable foam products. Since the personal care and cosmetic industries are booming, the demand for natural fatty alcohol is also significantly increasing. Thus, the increasing personal care and cosmetic sector act as a driver for the natural fatty alcohol market.

Natural Fatty Alcohols Market Challenges

Fluctuating raw material prices

Palm oil, PK oil, tallow, and rapeseed oil, among others, are the main raw materials used to produce fatty alcohols. Regions such as North America and Europe import these raw materials from APAC, as they facilitate the processing of raw materials for fatty alcohols due to their geographical conditions. Because of this, rates may sometimes fluctuate between these regions depending on the trading scenario. In addition, the decline in prices of conventional petrochemical-based raw materials of long-chain alcohols made consumers switch to alternative, low-cost, synthetically-derived fatty alcohol. Therefore, the fluctuating raw material price of natural fatty alcohols is expected to act as a restraining factor for the market growth during the forecast period.

Natural Fatty Alcohols Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the natural fatty alcohol market. Major players in the natural fatty alcohols market are BASF SE, Procter & Gamble, Sasol, Ecogreen, Oleochemicals, Kao Corporation, Willmar oleo, Musim Mass, Oxiteno, and Jiahua.

Acquisitions/Technology Launches

• As environmental concerns continue to shape consumer preferences, there has been a significant surge in demand for natural and sustainable products, including natural fatty alcohols. Consumers are becoming increasingly aware of the environmental impact of conventional products and are seeking alternatives that are derived from renewable resources. This trend has prompted manufacturers to expand their production of natural fatty alcohols to meet the growing market demand.
• During this period, advancements in production processes have enhanced the efficiency and sustainability of natural fatty alcohol manufacturing. Innovations in extraction, purification, and synthesis techniques have resulted in higher yields and reduced environmental footprint in the production of natural fatty alcohols. These technological advancements have not only improved the overall quality of natural fatty alcohols but have also contributed to cost reduction, making them more competitive in the market.

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