NEW YORK, Nov. 28, 2017 /PRNewswire/ --
• The global market for natural fatty acids reached $12.1 billion in 2016. The market should reach $12.8 billion in 2017 and $16.8 billion by 2022, increasing at a compound annual growth rate (CAGR) of 5.6% from 2017 through 2022.
• The global market for derivatives fatty acids as a segment should reach $6.5 billion in 2017 and $9.0 billion by 2022, increasing at a CAGR of 6.7% from 2017 through 2022. • The global market for personal care, cleaning products, polymerization, vulcanization as a segment should reach $5.0 billion in 2017 and $6.3 billion by 2022, increasing at a CAGR of 4.8% from 2017 through 2022.
Chapter 1: Introduction
Study Goals and Objectives This BCC Research study is focused on the natural-based fatty acid industry, which is part of the wider oleochemical industry. Even though natural-based fatty acid has been a workhorse of the chemical industry for many years, it has a bright future, fueled by the green chemistry agenda. This is because the raw material consumed to produce the oleochemicals is mainly based on material that is renewable, sustainable and readily biodegradable.
The broad goal of the study is to review how the industry has recovered since the economic slowdown of 2008 and 2009 and how it will develop and change over the next five years through 2022. The analysis looks at the basic oleochemical business of fatty acids derived from fats and oils, and touches upon the impact of the biodiesel industry on the market. It presents historical demand data for 2016, estimates for 2017 and projections for 2022.
Specific objectives include reviewing the main markets for the major acid types from stearic acid, distilled fatty acids, polyunsaturated (including tall oil fatty acid: TOFA), fractionated fatty acids and monounsaturated oleic acid. Other objectives are to review the latest technology developments, including the patent space; provide a regional perspective; examine the changing landscape of raw material; and review the byproduct glycerin market.
Reasons for Doing This Study Developments of the fatty acid industry are of particular interest because it provides a wide range of products that are used in many industries due to the functionality they offer as a result of their molecule structure. A typical fatty acid has two reactive sites; the minor is the double bonds situated along the straight alkyl chain, while the major is a carboxylic acid group at the start of the chain.
Thus, the molecule is a starting material for a number of reactions changing the functionality and performance dependent on the fatty acid derivative formed. Fatty acids are excellent hydrophobes, a key material for very important surfactant groups. Oleochemicals will be a vital resource to meet the ingredient needs of a number of specialty chemical formulators and consumer-facing companies.
Oleochemicals service different types of markets. More industrial-oriented segments require ingredients that can achieve or even surpass the performance specification of the application at a price that is affordable, while the more wellbeing- and health-oriented markets require ingredients that are not only suitable for human contact, be that externally on the skin or internally such as orally digested, but are also sourced from renewable and natural-grown origins. In both cases, ingredients consumed must meet all safety, health and environmental regulations and legalization.
There are governmental tax break incentives for using biomass to generate energy and produce fuel products. There are also export tax incentives for major tropical oil plantation countries to use local companies to develop downstream manufacturing capabilities utilizing locally sourced materials. Combined, these incentives will have a profound effect on the industry at various points along the value chain.
The self-sufficient energy incentives will not only drive up the cost of raw material for producers, but will also tighten the supply, particularly for tallow-based economies. The export taxes will not only make it prohibitive for foreign companies—particularly those located outside Asia-Pacific—to source the high in-demand, medium-chain, fatty acid raw material, but will also mean that local producers gain an unfair monetary advantage over the competition. This is because derivatives of these fatty acids or refined acids, such as fractionated and distilled cuts, are exempt from this export tax.
The exponential growth in certain segments of the oleochemical family led to the devastation of important ecological systems that cannot be recovered. In addition, it resulted in the diversion of not only vital food ingredients, but also the arable land used to grow the crops—such was the eagerness of a number of companies to benefit from the high-value demand. The industry is now going to great lengths to not only meet the growing needs of the market, but to do this in a way that is sustainable while minimizing the impact of the food supply chain.
Scope of Report This report provides an understanding of how the composition of various fats and oils transform into the range, quality and types of acids produced and the applications for which those acids can be used. It explores the various attributes of different acid types and how these cuts compete with synthetic formed products from the petrochemical route and the major applications outlets.
This study discusses the developments and research that demonstrate the green credentials of the oleochemical family and how these credentials are changing the environmental profile of the chemicalusing industry.
Market shares provided by leading and active merchant players are profiled. The report looks at how government incentives and regulations have impacted the industry, especially with respect to selfsufficient energy resources and animal fat classification. It also assesses the impact of rising raw material prices, tight supply and demand curves for certain acid chains, the uncertainty of the economy in many of the developed countries around the world, and the impact of the Roundtable on Sustainable Palm Oil (RSPO) accreditation.
The study covers the following fatty acid types: • Stearic acid. • Distilled fatty acids. • Fractionated fatty acids. • Polyunsaturated acids, including tall oil fatty acids. • Oleic acids.
Information Sources The insights and analysis contained in this report are based on information gathered from a cross section of oleochemical manufacturers, end users and other informed sources. Primary interview data were combined with secondary information gathered through an extensive review of published literature, such as trade magazines, trade associations, company literature, conference material, patented technology, social media sites and online databases to produce the baseline market estimates contained in this report and building on the data collected in the previous review.
Methodology With 2016 as the baseline, changes within each application were discussed and projections for each segment were developed for 2017 through 2022. Key findings were summarized, as well as tested, confirmed and debated with important contacts in the industry. BCC Research understands the market drivers and their impact from a historical and analytical perspective, which enabled the extraction and discussion of major developments and the subsequent impact on the markets. The analytical methodologies used to generate market estimates are based on a projection of developments in the world economy, world trade and technology developments. All dollar projections presented in this report are based on 2016 constant dollars.
Geographic Breakdown In this report, the geographic regions considered for market analysis include: • North America. • Europe. • Asia-Pacific. • Rest of the World.
Oleochemical Fatty Acids, by Type Distilled Polyunsaturated Fractionated Stearic Oleic
Oleochemical Fatty Acids, by End Use Cosmetics and Toiletries Detergents and Cleaners Emulsion Polymerization Lubricants Ore Processing Resins Textile Softeners Vulcanization Waxes Derivatives Others
Chapter 2: Summary and Highlights The global market for natural fatty acids sourced from vegetable oils, animal fats and crude tall oil (CTO) covered by this report was valued at about $12.1 billion in 2016. The market is projected to reach more than $16.8 billion by 2022, increasing at a compound annual growth rate (CAGR) of 5.6% over the fiveyear period from 2017 through 2022. These figures are based on BCC Research's best estimates of industry capacity, volumes consumed and prices.
Nearly half of these fatty acids were used for derivative production in 2016, a percentage that is expected to increase to REDACTED by 2022. Other important fatty acid applications include personal careproducts, cleaning products, rubber processing and emulsion polymerization. These applications account for some REDACTED of the value of the fatty acids consumed outside of the derivative market.
The technology involved in producing oleochemicals has remained basically unchanged for more than 30 years. Considerable research has gone into developing an oleochemical refinery platform as a green alternative to the conventional fossil fuel oil refinery platform. Producing oleochemicals from algae, an oleo chemical biorefinery, has been investigated for a number of years.
Most innovation in oleochemicals outside of biorefining is being driven by the end-user application companies such as Croda, Evonik, BASF, Dow Chemicals or Fuchs Lubricants rather than the merchant oleochemical producers themselves. For example, the increased volume of glycerin entering the market recently has led to a spurt of research into new applications, with one or two of those now commercially viable.
The new applications include the production of epichlorohydrin, propylene glycol and aromatic solvents. The global nature of the oleochemical industry is shown by the manufacturing capacity largely residing in Asia-Pacific, while the regions of highest demand are Europe (West, Central, East) and the Americas (North, Central, South) accounting for the bulk of the sales value at the manufacturing level.
The dynamics of each region are very different, with many industrial application production platforms having migrated from west to east, changing the pattern of consumption and product flow in each region.
Read the full report: https://www.reportlinker.com/p05222522
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