• Oleochemicals Market Intelligence | Price, Forecast, Cost Models, Market Analysis

Oleochemicals Market Description

The global market for oleochemical products is oversupplied with 3 MMT of alcohols and fatty acids. The growing preference for natural oleochemicals due to increasing focus on sustainability factors will drive the demand for oleochemicals from natural oils. The end-consumer market is gradually shifting towards eco-friendly products. To stay competitive, the primary and downstream oleochemical manufacturers are now shifting from synthetics to natural feedstock like PKO, CNO, and tallow. In addition to this, the growing environmental and regulatory pressure on surfactant manufacturers are driving the demand for naturally produced oleochemicals.

PKO is the most commonly traded commodity in the oleochemical feedstock due to its ample availability and the premium quality of end products. Southeast Asia is the major exporter of PKO (50-55 percent), followed by the U.S., and the EU (35-60 percent). China also exports a significant amount of PKO (23 percent), particularly for soap production. The report also provides a supply-demand analysis of fatty alcohols, alongwith demand analysis and trade dynamics of the global oleochemical market. It also discusses the impact of trade regulations and tariffs on the oleochemical production and supply, and provides a comprehensive overview of the market in regions such as APAC, EU, and North America.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Value Chain Analysis –Oleochemicals
Fatty Alcohol –Production Methodologies
CNO–Supply–Demand Dynamics
PKO –Supply–Demand Dynamics

Oleochemicals Market Trend, Analysis & Forecast

Category Intelligence on Oleochemicals covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Oleochemicals Executive Summary

1.1 Key Highlights
1.2 Global Market Analysis
1.3 Contract Structures
1.4 Procurement Insights

2. Oleochemicals Value Chain Analysis

2.1 Value Chain Analysis
2.2 Profit Margins and Turnover
2.3 Best Cost Production Methods

3. Oleochemicals Feedstock Market Analysis

3.1 Natural vs. Synthetic Production
3.2 Vegetable vs. Tallow as Feedstock
3.3 Supply–Demand Analysis
3.4 Trade Analysis

4. Oleochemicals Oleochemicals –Market Analysis

4.1 Supply Analysis
4.2 Demand Analysis
4.3 Trade Analysis

5. Oleochemicals Regional Market Analysis

5.1 APAC
5.2 EU
5.3 North America

6. Oleochemicals Industry Analysis

6.1 Porter’s Five Forces Analysis
6.2 Emerging Trends in the End-use Industry

Global Market Outlook on Oleochemicals

The global oleochemicals market is oversupplied with 3 MMT of fatty acids and alcohols. Economic slowdown and a drop in trade volume by 23 percent during 2011–2016, and bio-diesel demand are the key drivers.Trade volume has been increasing since 2017
Preference for natural oleochemicals (75 percent market share in 2017), due to the increasing focus on sustainability factors, is expected to drive the oleochemcials demand from natural oils

oleochemicals-global-market-size

Contract structure

Personal care companies contribute to 26 percent of the oleochemicals demand and have a better buying power
–This provides them the opportunity to revise the contract prices frequently, based on the price trend

Food & beverages and pharmaceutical industries predominately procure light-cut fatty acids, which is of the less-supplied groups
–This limits their negotiation power and frequency of price revisions

Buyers Negotitiation Power

The light-cut fatty acids follow the demand trends. However, light-cut buyers may have an opportunity to negotiate during the harvest season and weak demand period
Medium cut aligns with the feedstock prices, and it offers better price visibility and negotiation opportunity
Scope for excess supply provides a better negotiation opportunity for heavy-cut buyers

Fatty Acid –Feedstock Preference

Palm and tallow have major composition (more than 40 percent) of heavy-cut fatty acids and negligible light cut and lauric acids. On the other hand, PKO and CNO have a wide mix of all the fatty acids. This has positioned PKO and CNO as the preferred feedstock in the industry.

Fatty Alcohol –Production Methodologies

Catalyst consumption is lesser in the Lurgi process/Wax ester route compared with the other two processes, namely Davy process/Acid route and Ester route. Thus, the catalyst cost, and thereby, the overall production cost is reduced by around 50 $/MT at the same fatty alcohol yield rate of 48 percent

Feedstock Trade Analysis –PKO and CNO

PKO is the most traded commodity (3 MMT) among the oleochemical feedstock, due to its ample availability and premium quality of the end products. Southeast Asia is the major exporter (50–55 percent), and the US and the EU (35–60 percent) are the major importers of both PKO and CNO. China also imports a significant amount of PKO (23 percent), majorly for soap production

Global Fatty Acid –Supply–Demand Analysis

The global fatty acid market is expected to remain oversupplied for the next 3 –5 years, due to a rapid increase in production capacity of fatty acids in the past few years and sluggish demand growth rates in China.

Market Outlook (2018)

Generally, heavy cut, mid cut, and light cut accounts for 65 – 70 percent, 17 – 20 percent, and 6 – 10 percent, respectively.
Expected increase in palm production levels by 2017– 2018 Y-o-Y is likely to support fatty acids supply in the market
High CNO prices vs. PKO in 2017 is likely to intensify scarcity in the short chain fatty acids (C8-C10) and glut supply in long chain fatty acids (C16- C18) market
Switch to PKO and lower CNO production in the Philippines has largely impacted the light cut fatty acid market by 0.04 MMT
Demand in the emerging markets, like India and Thailand, is likely to witness an increase in the pcoming years, due to increasing awareness and per capita income