Fatty Alcohols Market: Production to Surge Owing to High Consumption in Cosmetic Industry, TMR

The growing accessibility of raw materials such as corn, rapeseed, and soy in Indonesia, Malaysia, and China, manufacturers of fatty alcohols are focus on Asia Pacific instead of North America and Europe, states Transparency Market Research (TMR) in a research report. Manufacturers are thus motivated towards expanding their production divisions in the Asia Pacific region. Companies operating in the global fatty alcohols market can benefit from the opportunities arising from the escalating sales of beauty products and cosmetics in BRICS countries. The chief participants in the market include Wilmar International Ltd., Musim Mas Holdings, VVF L.L.C., Procter & Gamble Emery Oleochemicals, Ecogreen Oleochemicals, Kuala Lumpur Kepong Berhad, Kao Corporation, Royal Dutch Shell plc., and Sasol Limited.

The global fatty alcohols market is expected to expand at a 5.1% CAGR from 2015 to 2023. The market is projected to rise to US$5.48 bn by the end of 2023 from a valuation of US$3.52 bn in 2014.

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Consumption of C11-C14 to Intensify across Several End-Use Industries

On the basis of volume, the C11-C14 fatty alcohols surfaced as the leading product segment in the global market for fatty alcohols. In 2014, it accounted for a share of almost 50%. It is predicted to hold on to a lead until 2023. The chief cause behind the dominance of C11-C14 fatty alcohols is its wide-ranging application. C11-C14 is also projected to lead the market based on growth until 2023 closely trailed by C15-C22 fatty alcohols owing to its growing demand from various end-use industries. Among the applications, the detergents and soaps segment headed the market in 2014 with a share of around 60%. Nevertheless, personal care is expected to emerge as the leading segment in terms of growth.

Geography-wise, the market has been classified into the Middle East and Africa, Latin America, Asia Pacific, Europe, and North America. Due to the rising disposable income of consumers, refining lifestyle, and rising population, the global fatty alcohols market is likely to be dominated by emerging economies in the near future. Outstanding to high consumption of fatty alcohols in India and China because of the burgeoning industrial sector, Asia Pacific has been projected to lead the market until 2023 closely trailed by North America owing implementation of stringent regulations. According to a TMR analyst, “The development of the Asia Pacific fatty alcohols market can be attributed to the rising consumption of beauty products, soaps and detergents, and abundance of raw materials. The European fatty alcohols market is likely to observe significant share loss to regions such as Central and South America and Asia Pacific.”

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Personal Care to Contribute towards Market Growth Extensively

The fields of application of fatty alcohols include metal working fluids, fragrances, flavors, plasticizers, cosmetics and personal care, and soaps and detergents. The global market for fatty alcohols is projected to upsurge in a substantial rate owing to the rising consumption of fragrances, cosmetics, beauty products, and other personal care products. The growth of the petrochemical industry is also one of the chief reasons behind the progress of the global market for fatty alcohols. Yet, the market is vulnerable to the shifting prices of raw materials and surplus production in the coming years. As synthetic fatty alcohols are factory-made using petrochemicals and petrochemicals are byproducts of crude oil, the fluctuating prices of oil are likely to unfavorably impact the sales fatty alcohols. Unsold stocks are also one of the key concerns of fatty alcohols manufacturers.

The report segments the global fatty alcohols market as follows:

Fatty Alcohols Market - Product Analysis

C6-C10 Fatty Alcohols
C11-C14 Fatty Alcohols
C15-C22 Fatty Alcohols
Others (Including C23 fatty alcohols and above)

Fatty Alcohols Market - Application Analysis

Detergents & Soaps
Personal Care
Plasticizers
Lubricants
Others (Including flavors and fragrances, etc.)

This review is based on a Transparency Market Research report titled, “Fatty Alcohols Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”

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