Oleic Acid Market Size Share Growth Trends Consumption Revenue Company Analysis And Forecast 2020 2027 Research Report
Based on value, the global oleic acid market is expected to grow at a CAGR of 3.1% from 2020 to 2027 and cross value of US$ 370 Mn by 2027. In terms of production and consumption, Asia Pacific led the global oleic acid market in 2019. This trend is expected to continue from 2020 to 2027. Rise in global consumption of palm-based oleochemical products and increase in demand for oleic acid in processed food and demand for oleic acid in personal care products are estimated to boost the overall demand for oleic acid during the forecast period.
Overview
Key Drivers and Restraints
Consumer acceptance for high oleic oil has been rising across the globe. In November 2018, the U.S. Food and Drug Administration (FDA) approved qualified health claims for oleic acid, which suggests that consuming oleic acid in edible oils, such as canola oil sunflower oil or olive oil, may reduce the risk of coronary heart disease. This is likely to significantly boost the adoption of oleic acid in the food & beverages industry in the near future.
Fortification of processed food with oleic acid provides lucrative opportunities to industry participants in the oleic acid market. The rise in demand for functional food and dietary supplements is projected to propel the demand for oleic acid in the food & beverages industry in the near future. Overcapacity is likely to remain an issue in the oleic acid market. This is expected to restrain the oleic acid market during the forecast period, as new user base for oleic acid is anticipated to expand at a moderate pace over the next few years.
Major Segments
Based on end use, the global oleic acid market has been classified into cosmetics & personal care, pharmaceuticals, paints & coatings, textiles & leather, automotive, chemical intermediates, food & beverages, and others. The cosmetics & personal care industry is likely to be the prime end user of oleic acid by 2027. Oleic acid is widely employed in the manufacture of lotions, lipsticks, creams, and moisturizers. Significant rise in expenditure on cosmetics by women and increase in consumption of grooming products for men are anticipated to propel the demand for oleic acid in the personal care industry. The demand for oleic acid as emulsifying agent and surfactant is expected to be high in cosmetics and personal care products in the near future. Oleic acid is found to regulate insulin secretion and minimize blood sugar spikes. The increase in amount of olive oil in the diet can reduce the risk of developing type-2 diabetes. The benefit of oleic acid in promoting insulin sensitivity is estimated to drive the demand for oleic acid in food & beverages and pharmaceutical industries in the near future.
FMCG Products Offer Growth Opportunities for Stable Revenue Streams
FMCG products such as detergents, soaps, and liquid hand washes are creating stable revenue streams for manufacturers in the oleic acid market. Companies are further broadening their revenue streams by unlocking growth opportunities in maintenance products, printing inks, and cosmetics. As such, oleic acids function as intermediates for the synthesis of salts, esters, and dimer acids. In terms of production and consumption, Asia Pacific holds the lion’s share among all regions in the oleic acid market.
Significant increase in the global consumption of palm-based oleochemical products has catalyzed the demand for oleic acid. Fuels, lubricants, and petrochemicals hold lucrative growth opportunities for producers of fatty acids. As such, there is growing demand for naturally derived fatty acids sourced from vegetable origin such as palm, sunflower, and canola. Oleic acids resistant to oxidation and rancidity are being highly preferred by end users.
USP/NF Standards Set Benchmark for Oleic Acids Used in Pharmaceuticals
Companies in the oleic acid market are improving their distribution chains to offer halal-certified, and United States Pharmacopeia (USP) and the National Formulary (NF)-accredited ingredients to end users. For instance, Univar Solutions is offering a broad range of oleic acids made from a variety of feedstock that complies with the USP/NF standards. Manufacturers in the oleic acid market are tapping into incremental opportunities in therapeutics and the pharmaceutical industry to broaden their revenue streams.
Manufacturers are increasing the availability of oleic acids with varying iodine values to boost product uptake in the market. They are improving their production capabilities to offer private label oleic acids that meet specific requirements of end users. Companies are partnering with world-class suppliers and fleet owners to maintain stable supply chains with customers.
Asia Pacific to be Highly Lucrative Region of Oleic Acid Market
In terms of value, Asia Pacific held more than 50% share of the global oleic acid market in 2019. The preference for specialty products over commodity products has increased in Asia Pacific, due to the rise in awareness about the use of specialty products in the region. The personal care industry in Asia Pacific is estimated to surpass market value of US$ 120 Bn by 2025. The global demand for oleic acid in the cosmetics & personal care segment is likely to rise at a CAGR of more than 4% from 2020 to 2027. China’s early containment of the pandemic is projected to support the overall recovery of demand for oleic acid in the immediate future.
Competition Landscape
The global oleic acid was fragmented in 2019. This trend is likely to continue during the forecast period. Major manufacturers of oleic acid include Emery Oleochemicals (M) Sdn Bhd., VVF L.L.C., Klk Oleo Sdn. Bhd., Wilmar International Limited, Godrej Industries (Chemicals), and Oleon NV.
Global Oleic Acid Market: Segmentation
Oleic Acid Market, by Origin
Oleic Acid Market, by Grade
Oleic Acid Market, by End Use
Oleic Acid Market, by Region
Scope of the Report
A new study on the global oleic acid market was published by Vision Research Reports. It presents a wealth of information on key market dynamics, including drivers, trends, and challenges, as well as structure of the global oleic acid market. VRR’s study offers valuable information on the global oleic acid market in order to illustrate how growth would discern during the forecast period of 2020 to 2027.
Key indicators of market growth, which include value chain analysis as well as supply chain analysis and compounded annual growth rate (CAGR) have been elucidated in VRR’s study in a comprehensive manner. This data can help readers interpret quantitative growth prospects of the global oleic acid market during the forecast period.
An extensive analysis of leading market players’ business strategies has also been featured in the VRR’s study on the global oleic acid market. This can help readers understand principal factors responsible for growth of the global oleic acid market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global oleic acid market, which would guide market players in making apt decisions in the near future.
Key Questions Answered
Research Methodology
A unique research methodology has been utilized by VRR to conduct a comprehensive research on the global oleic acid market and arrive at conclusions on the growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.
Secondary sources referred to by analysts during the production of the report on the global oleic acid market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of VRR’s study on the global oleic acid market as a primary source.
These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global oleic acid market. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global oleic acid market with accuracy. The study also uses a top-down approach to assess numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making VRR’s estimates on future prospects for the global oleic acid market more reliable and accurate.