What Has Been the Growth of the Tall Oil Fatty Acid Market So Far?
The tall oil fatty acid market has seen considerable growth due to a variety of factors.
• In recent years, the market size of tall oil fatty acid has seen substantial growth. It is projected to increase from $1.11 billion in 2024 to $1.18 billion in 2025, with a compound annual growth rate (CAGR) of 6.1%.
The significant growth observed in the historic period can be credited to various sectors such as the pulp and paper industry, soap and detergent manufacturing, chemical industry, industrial lubricants, and the rise in renewable and bio-based product demand.
What Are the Future Growth Projections for the Tall Oil Fatty Acid Market?
The tall oil fatty acid market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size for tall oil fatty acid is anticipated to experience robust growth, projected to reach $1.6 billion by 2029, with a compound annual growth rate (CAGR) of 7.9%.
The growth seen in the forecasted period is due to factors such as the use of sustainable sourcing, the rise of green chemistry, expansion of bio-based products, emphasis on recycling and circular economy, and the increased production of biodegradable and eco-friendly products. The key trends expected during this period are the implementation of green chemistry, innovative specialty chemicals, advancements in tall oil extraction, broadening applications in personal care and cosmetics, and increased industry collaborations and partnerships.
What Factors Are Driving Growth In The Tall Oil Fatty Acid Market?
Anticipated growth in the tall oil fatty acid market is predicted to be driven by a surge in demand for tall oil-based biofuels in the coming years. Tall oil, a byproduct of the pulp and paper sector, is frequently utilized in biofuel production. This type of biofuel offers extensive applications, including its use in pharmaceuticals, paints and coatings, lubricants, soap and detergents, and as additives, to curb the emissions of greenhouse gases and promote the reusability of materials. In September 2024, the International Energy Agency (IEA), an autonomous intergovernmental organization based out of France, projected an increase in tall oil demand, predicting a jump to 900 kb/d in 2024 from 2.1 mb/d the previous year. This will take total demand nearly to 103 mb/d, with an additional rise of 950 kb/d expected in 2025, although growth is set to remain relatively modest. As such, the growing demand for tall oil-based biofuel stands to stimulate the expansion of the tall oil fatty acid market.
What Are The Main Segments Of The Global Tall Oil Fatty Acid Market?
The tall oil fatty acid market covered in this report is segmented –
1) By Product: Oleic Acid, Linoleic Acid, Other Products
2) By Application: Dimer Acid, Alkyd Resin, Fatty Acid Ester, Other Applications
3) By End User: Soaps And Detergents, Plastic Additives, Coatings, Lubricants, Fuel Additives, Other End Users
Subsegments:
1) By Oleic Acid: Industrial Applications, Personal Care Products, Food Industry
2) By Linoleic Acid: Nutritional Supplements, Cosmetics And Skincare, Food Industry
3) By Other Products: Stearic Acid, Unsaturated Fatty Acids, Fatty Alcohols
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What Emerging Trends Are Influencing The Growth Of The Tall Oil Fatty Acid Market?
Advances in technology are playing a critical role in the expansion of the tall oil fatty acid market. Industry leaders in this sector are keenly developing technological strategies specific to tall oil fatty acids. Tech UK, a trade organization that represents the UK's technology sector, reported in June 2024 that the UK tech market, which encompasses 171 unicorns, is valued at $1.1 trillion. This identifies it as the premier tech ecosystem within Europe. A year earlier in 2023, tech startups in the UK raised $21.3 billion in funding, with the majority of the investments being made in Greater London, trailed by the East of England and the South-East region.
Who Are the Key Players in the Tall Oil Fatty Acid Market?
Major companies operating in the tall oil fatty acid market include:
• Forchem Oy
• Harima Chemicals Group Inc.
• Georgia-Pacific LLC
• Eastman Chemical Company
• Lascaray S.A.
• Chemical Associates Inc.
• Univar Solutions Inc.
• Claremont Chemical Company Limited
• Pasand Speciality Chemicals Limited
• Pine Chemical Group Oy
• Aditya Birla Chemicals (Thailand) Limited
• DIC Corporation
• Allnex Belgium SA
• WestRock Company
• Segezha Pulp and Paper Mill
• BASF SE
• Reichhold LLC
• Sinopec Baling Company Limited
• Eternal Materials Co. Ltd.
• Ingevity Corporation
• Arizona Chemical Ltd.
• Ataman Kimya AS
• Foreverest Resources Ltd.
• G.C. Rutteman & Co. B.V.
• Imperial Industrial Minerals Company
• Kraton Corporation
What Is The Most Dominant Region In The Tall Oil Fatty Acid Market?
North America was the largest region in the tall oil fatty acid market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tall oil fatty acid market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
