Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market - Forecast(2024 - 2030)

Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market Overview

The palm kernel oil and coconut oil based natural fatty acids market size is estimated to reach USD7.7 billion by 2027, growing at a CAGR of around 4.2% from 2022 to 2027. The natural fatty acids from palm kernel oil and coconut oil belong to the saturated and medium aliphatic chain oleochemical group and have low levels of unsaturated fats. The palm kernel oil and coconut oil based natural fatty acids have low alpha-linolenic acid. It offers major applications such as surfactants, cosmetic products, plasticizers, and others. The palm kernel oil and coconut oil based natural fatty acids industry experiences a major surge owing to its growing demand in the home & personal care sector. Furthermore, the preference for bio-based products in personal care industry will boost growth prospects for the global palm kernel oil and coconut oil based natural fatty acids during the forecast period.

COVID-19 Impact

The palm kernel oil and coconut oil based natural fatty acids industry was hampered by the covid-19 pandemic. The palm kernel oil and coconut oil based natural fatty acids are used in home & personal care, plastics, and other sectors. The worldwide disruptions such as manufacturing halt, supply and demand gap, and logistics disturbances created a negative impact on the market. The home and personal care sector experienced fall in the growth during initial pandemic phase. The production of various cosmetic items, skincare, and others were slowed due to lockdown restrictions, supply chain disruption, workforce shortages, and unavailability of the raw materials. The supply for home cleaning and personal care products did not fulfill the demand arising due to hygiene and cleanliness, thereby leading to fall in the applications for fatty acids such as soaps, detergents, and others. However, the home and personal care industry recovered during late pandemic phase, with the recovering personal care, detergents, and home cleaning product sales. The high demand for surfactants, cosmetic products, soaps, and others was fulfilled with rising production and distribution in various retail platforms. According to the Cosmetic, Toiletry and Perfume Association (CTPA), the sales for the bar soaps increased by around 160% in March 2020 compared to the same month in the previous year. Thus, with recovering supply and production for the home and personal care sector, the demand for palm kernel oil and coconut oil based natural fatty acids also increased during and post pandemic.

Report Coverage

The “Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market Report – Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the palm kernel oil and coconut oil based natural fatty acids industry.

By Type: Saturated and Unsaturated

By Components: Palm Kernel Oil Based Natural Fatty Acids( Lauric Acid, Myristic Acid, Oleic Acid, and Others), Coconut Oil Based Natural Fatty Acids (Caprylic Acid, Lauric Acid, Oleic Acid, Stearic Acid, and Others)

By Application: Plasticizers, Antimicrobial Agents, Detergents, Rubber, and Others

By End-Use Industry: Home & Personal Care Industry (Detergents, Skin Moisturizers, Soaps, and Others), Pharmaceutical Industry (Dietary Supplements, Alpha-Tocotrienols, and Others), Food Industry (Bakery/ Salad Oil, Cooking Oil, Chocolates, and Others), Plastics Industry (Lubricants, Mold Release Agent), and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa)

Key Takeaways

• The market for palm kernel oil and coconut oil based natural fatty acids is growing due to wide applications such as surfactants, cleaning agents, rubber, plastics, and others during the  forecast period.
• The Asia Pacific region holds the largest share and is offering high demand for the palm kernel oil and coconut oil based natural fatty acids market due to growing demand for home and personal care cleaning products and food sector in countries such as China, India, and others.
• The demand for saturated natural fatty acids derived from palm kernel oil and coconut oil is rising owing to its major applications in home and personal care, plastics, pharmaceuticals, and others during the forecast period.
  

Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market Segment Analysis – By Components

By component, the lauric acid segment holds the largest palm kernel oil and coconut oil based natural fatty acids market share of over 22% in 2021. The lauric acid has aliphatic chain of around 4-12 carbon atoms. It constitutes a major composition share in palm kernel oil of around 48% and around 50% composition in the coconut oil. There is low or no alpha-linolenic acid content in kernel oil and coconut oil. The beta-oxidation process breaks the fatty acid and transforms into useful products or energy. The demand of lauric acid is high for home and personal care sector such as soaps, detergents, and others. The growing application of lauric acid such as skin cleansers, shampoos, body wash, and others is driving the growth prospects for the largest palm kernel oil and coconut oil based natural fatty acids market. The ability to get uniform distribution in the phospholipid bilayer barrier of membranes makes it better antioxidants. Furthermore, the demand for lauric acid is also high in pharmaceuticals, food, plastics, and other sector, thereby leading to high growth opportunities for the global palm kernel oil and coconut oil based natural fatty acids market in the coming years.

Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market Segment Analysis – By Application

By application, the detergents segment held the largest share of 27% in 2021 and will continue to dominate the palm kernel oil and coconut oil based natural fatty acids market in the coming years. The applications of detergent for home and personal care sector are propelling major growth in the palm kernel oil and coconut oil based natural fatty acids industry. The palm kernel oil and coconut oil based natural fatty acids are used in the detergents for residential as well as industrial cleaning applications. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the value for the detergents and soaps accounted for around 8% of the total domestic consumption. Furthermore, the natural fatty acids are proffered due to their biocompatibility and biosafety in the home and personal care industry. The excellent emulsifying, cleaning, and wetting, features of the natural fatty acids used in the detergents or cleaners is leading to high demand for the palm kernel oil and coconut oil based natural fatty acids market. Thus, with growing hygiene and cleanliness applications of detergents in residential, household & personal care, as well as industrial sector, the palm kernel oil and coconut oil based natural fatty acids will experience growth in the coming years.

Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market Segment Analysis- By End-Use Industry

By end-use industry, the home & personal care segment accounted for the largest palm kernel oil and coconut oil based natural fatty acids market share of more than 32% in 2021. The demand for palm kernel oil and coconut oil based natural fatty acids is high for various household cleaning & personal care applications. This is owing to its antibacterial, long shelf life, cleansing, and opacity features in the home & personal care segment. The high awareness for cleanliness and hygiene is driving the growth for the palm kernel oil and coconut oil based natural fatty acids industry. According to the India Brand Equity Foundation (IBEF), the personal care sector is estimated to reach around USD 200 billion in 2020.Thus, with increasing production in personal care and home cleaning sector, the demand for the palm kernel oil and coconut oil based natural fatty acids will grow during the forecast period.

Palm Kernel Oil and Coconut Oil Based Natural Fatty Acids Market Segment Analysis – By Geography

By geographical analysis, the Asia pacific holds the largest share of more than 29.0% in the palm kernel oil and coconut oil based natural fatty acids market for the year 2021. The growing applications of the natural fatty acids such as cosmetics, home & personal care products, rubber, plastics, surfactants, and others is influencing the growth for palm kernel oil and coconut oil based natural fatty acids in this region. The increase in usage for the personal care products such as soaps, skincare, surfactants, and others is propelling the application demand of the natural fatty acids in the APAC region. According to the data from International Trade Organization, the market spending for personal care products, home cleaning, and others increased by 150% from year 2012 to 2020 in China.  Furthermore, the growing food industry is boosting the kernel oil and coconut oil based natural fatty acids market in the Asia Pacific, as it offers high shelf life, high cleansing features, and non-toxicity. The fatty acids undergoes beta-oxidation process in order to break down and convert into energy. Thus, with rising industrial base for the natural fatty acids for wide range of applications in food, home and personal care, plastics, and others, the palm kernel oil and coconut oil based natural fatty acids industry will grow during the forecast period.

Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market– Drivers

Rising Demand from Home & Personal Care sector

The home cleaning and personal care segment is growing rapidly. The growth in home & personal care industry is offering major contribution in the global palm kernel oil and coconut oil based natural fatty acids market size. Moreover, the preference towards natural skin care products is creating a drive for the natural fatty acids market. The palm kernel oil and coconut oil based natural fatty acids are non-toxic, biodegradable, offers longer shelf life, and maintains the pH of the skin. The application of fatty acids derived from coconut oil and palm kernel oil is increasing, which is boosting the growth for the market. According to the Bangladesh Bureau of Statistics (BBS), the detergent and soap manufacturing grew by around 12% in January to August period in year 2020. Furthermore, the use of unsaturated fats as well as saturated fatty acids for home cleaning applications is also rising. The demand for detergents is high in residential as well as industrial units, which is thereby offering high growth rate for the global palm kernel oil and coconut oil based natural fatty acids industry.

Increasing demand for bio-based cleansing and hygiene products

The palm kernel oil and coconut oil based natural fatty acids have major cleaning applications in industries, home, hospitals, and other sectors. There is a rise in awareness for cleanliness and hygiene due to rising health concerns during the covid-19 pandemic. This has boosted the demand for sanitizers, disinfecting soaps, detergents, shower gels, and other products made from bio-based or natural fatty acids. The preference for natural and environment friendly options for personal care, home cleaning, and other sector is driving the global palm kernel oil and coconut oil based natural fatty acids market as it is non-toxic, renewable, biodegradable, and friendly to the environment. Thus, with limited side effects and superior safety and biocompatibility, the palm kernel oil and coconut oil based natural fatty acids industry is growing.

Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market– Challenges

High fluctuation in raw material prices

The kernel oil and coconut oil based natural fatty acids have high demand in the market. However, the pricing for raw materials used for manufacturing the fatty acids is volatile, which creates fluctuation in the fatty acid prices as well. The prices for the palm oil and distillate palm fatty acid (PFAD) continue to rise, showing an increase by 40-50% on a year on year basis. According to the World Bank report, the prices for the palm kernel oil increased from USD 1,427 per ton in September 2021 to USD 1,807 per ton in October 2021 and continued to rise for coming months as well. This rise is affecting the final prices for the fatty acids as well due to high manufacturing; thereby restricting the growth for global palm kernel oil and coconut oil based natural fatty acids industry.

Global Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Industry Outlook

The global palm kernel oil and coconut oil based natural fatty acids top 10 companies include:

1. Chemical Associates, Inc
2. Emery Oleochemicals
3. Wilmar International Ltd
4. VVF LLC
5. OLEON N.V.
6. Pacific Oleochemicals
7. Twin Rivers Technologies
8. Philippine International Dev., Inc.
9. Timur Oleochemicals
10. United Coconut Chemicals, Inc.

Recent Developments

• In January 2020, Indorama Ventures Public Ltd. Company made an acquisition of the surfactant business of the Huntsman in order to strengthen the specialty chemical sector.
• In May 2019, KAO Group completed the construction project for factory of PT Apical Chemicals. The new factory is involved with the production for the fatty acids in Indonesia with the aim to boost the demand and production of the oleochemical products.

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