Market Overview
The Oleochemicals Market reached a size of USD 27.3 Billion in 2024. It is expected to grow to USD 45.9 Billion by 2033, reflecting a healthy CAGR of 5.46% during the forecast period from 2025 to 2033. This growth is driven by increasing environmental awareness for sustainability and rising demand for bio-based skincare products.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Oleochemicals Market Key Takeaways
- Current Market Size in 2024 is USD 27.3 Billion
- CAGR during 2025-2033 is 5.46%
- Forecast Period is 2025-2033
- The rising preference for alternatives to petroleum-based chemicals and easy availability of feedstock are key growth drivers.
- Adoption of green technologies to reduce carbon footprint is spurring the market.
- Asia Pacific dominates due to advanced manufacturing and diverse applications across personal care and pharmaceuticals.
- Volatility in raw material price and supply challenges present market risks.
- Technological advancements and sustainable farming innovations offer future growth opportunities.
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Market Growth Factors
The global oleochemicals market is growing, driven by consumer demand for bio-based alternatives to petroleum-based products, increased environmental awareness, and the demand for more sustainable products. The availability of various feedstock types also helps ensure a steady supply of oleochemicals and thus supports a global market that has constantly been expanding.
Rising awareness for environment and government regulations to reduce carbon emissions have promoted the use of green technologies in oleochemical processes. Governments across the globe are implementing various programs such as Horizon Europe, InvestEU and the USDA’s BioPreferred Program to increase the growth of this market by providing financial support and promoting renewable chemicals. Tax advantages and subsidies for domestic oil production further improve market prospects.
Because biobased raw materials feel sensitive, people likely use more oleochemicals. The oleochemicals go in cosmetics and personal care products. The products improve texture, spread easily, and moisturize well. Technical improvements via microbial metabolic engineering enable more efficient and purer production of pharmaceuticals and F&B (Food & Beverage) products from fats and oils, further driving innovation in this industry. Companies invest in R&D and sustainable agriculture. This is to improve company capabilities and applications.
Market Segmentation
By Type:
- Fatty Acids: Represent the largest segment due to their versatile use in candles, soaps, lubricants, and biofuels. Demand is boosted by sustainability trends and eco-friendly alternatives to petrochemical products.
- Fatty Alcohols
- Glycerine
- Others
By Form:
- Liquid: Constitutes majority market share, widely used in pharmaceuticals to improve drug solubility and in personal care products as humectants and emulsifiers.
- Solid: Includes flakes, pellets, beads, and others.
By Application:
- Soaps and Detergents: Largest segment driven by the use of fatty acids and glycerin in traditional formulations. Oleochemical-based surfactants enhance cleaning efficacy.
- Plastics
- Paper
- Lubricants
- Rubber
- Coatings and Resins
- Personal Care Products
- Others
By Feedstock:
- Palm: Dominates due to cost-effectiveness, abundance, and triglyceride richness used for multiple applications. Rising demand for sustainable certified palm oil supports market growth.
- Soy
- Rapeseed
- Sunflower
- Tallow
- Palm Kernel
- Coconut
- Others
Regional Insights
Asia Pacific holds the largest market share in the oleochemicals market, driven by readily available feedstocks like palm and coconut oils and a strong manufacturing base in Malaysia, Indonesia, Thailand, and the Philippines. The region benefits from established infrastructure, skilled labor, government support, and regulatory frameworks such as REACH promoting sustainable chemicals. Strategic mergers and acquisitions are expected to further boost regional growth.
Recent Developments & News
- March 2024: Arjun Munda, Indian agriculture minister, announced a mission to increase oilseed production and reduce cooking oil imports.
- February 2024: The Solvent Extractors’ Association in India urged government action to protect the domestic oleochemicals industry amid rising imports.
- February 2024: BMD secured a licensing agreement with the Dalian Commodity Exchange for pricing soybean oil futures for its upcoming Bursa Malaysia DCE Soybean Oil Futures product.
Key Players
- Emery Oleochemicals
- Evonik
- Evyap Sabun Malaysia Sdn Bhd
- IOI Oleochemical
- Kao Chemicals
- KLK OLEO
- Oleon NV
- Procter & Gamble Company
- Sulzer Ltd
- Twin Rivers Technologies, Inc.
- Wilmar International Ltd
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