Specialty Oleochemicals Market in the US - Drivers and Forecasts by Technavio

Technavio analysts forecast the specialty oleochemicals market in the US to grow at a CAGR of almost 5% during the forecast period, according to their latest report.

This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171003006215/en/

Technavio has published a new report on the specialty oleochemicals market in the US from 2017-2021. ...

Technavio has published a new report on the specialty oleochemicals market in the US from 2017-2021. (Graphic: Business Wire)

The research study covers the present scenario and growth prospects of the specialty oleochemicals market in the US for 2017-2021. The market is segmented by product type (specialty esters, glycerol esters, alkoxylates, fatty amines, and fatty acid methyl esters) and by application (industrial, personal care and cosmetics, paints and ink, food processing, consumer goods, healthcare and pharmaceuticals, textiles, and polymers and plastics additives).

The increased awareness and concern regarding the protection of the environment is aiding the growth of the specialty oleochemicals market in the US. All the stakeholders in the business cycle such as manufacturers, customers, and the governments are encouraging the use of bio-based products and reducing the use of petroleum-based products. In terms of products, the specialty esters segment is expected to occupy a major share due to their increased application in various industries. Specialty esters are used as plasticizers to manufacture flexible polymers with unique designs.

This report is available at a USD 1,000 discount for a limited time only: View market snapshot before purchasing

Buy 1 Technavio report and get the second for 50% off. Buy 2 Technavio reports and get the third for free.

Technavio chemicals and materials research analysts highlight the following three factors that are contributing to the growth of the specialty oleochemicals market in the US:

  • Increase in the use of bio-based feedstocks in products
  • Innovative methods of biorefining technologies to produce biofuels
  • Stringent government regulation

Looking for more information on this market? Request a free sample report

Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Increase in the use of bio-based feedstocks in products

The manufacturers are shifting from petrochemical feedstock to bio-based feedstock. Palm oil is becoming the next best alternative as it requires less land for cultivation than other crops for producing a ton per hectare.

Kshama Upadhyay, a lead specialty chemical research analyst at Technavio, says, “Oleochemicals are used as an analog for petrochemicals, as they have the same functions. Consumers are becoming more aware of the health hazards regarding the use of fossil fuels and changing their attitude towards purchasing products. They prefer the use of safer and renewable ingredients in the products they use, especially the ones they consume or apply. This attitude has been driven by the adverse effects of petrochemical feedstock that contain carcinogenic substances such as 1,4-dioxane.”

Innovative methods of biorefining technologies to produce biofuels

Both oleochemicals and biofuels serve the same purpose and use the same feedstock. The biofuel market is expected to reach USD 180 billion by 2020. This will lead to the increasing need for both vegetable oil and animal fats, thus increasing the cost of the feedstock. R&D has led to certain innovative methods that will lead to less use of animal fats and vegetable oil so that more can be available for oleochemical production.

“Biofuels are divided into three generations, the focus is on the second and the third generation as they are more energy-efficient than the first generation. The possibility of developing biofuel is being assisted by improving bio-refining technologies. The downstream processing of bio-based chemicals is important as it constitutes a major part of the cost. The feedstock needs to be cleaned before it can be converted using a chemical process,” adds Kshama.

Stringent government regulation

Due to the various environmental damages caused by petroleum-based raw materials, the government and regulatory bodies such as FDA and United States Environmental Protection Agency (US EPA) have set rules and regulations regarding the raw materials used in the various production process by different companies. The US, with the introduction of the farm bill, has made the funding in terms of loans for bio-related and renewable chemicals easier.

The US EPA is adding enhancements to its renewable fuel standards (RFS) to support the market growth of ethanol and other renewable fuels. Toxic Substances Control Act (TSCA) and the pollution prevention act evaluate the risks from the new chemicals and existing ones. They try to control the impacts of these before it reaches the environment.

Top vendors:

  • Emery Oleochemicals
  • Evonik Industries
  • Kao Corporation
  • Vantage Specialty Chemicals
  • Wilmar International

Browse Related Reports:

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

If you are interested in more information, please contact our media team at media@technavio.com.