Palm kernel oil and coconut oil based natural fatty acids market to be majorly driven by Asia Pacific over 2016-2024, rapid development of the oleochemical industry in the region to stimulate the demand
Publisher : Fractovia | Published Date : 2017-04-21Request Sample
Palm kernel oil and coconut oil based natural fatty acids market has always attracted a huge consumer base subject to the widespread product usage in soaps and detergents. Despite the recent inflow of a wide range of hydrophobes in the market, these natural oil based oleochemicals are gaining popularity over their counterparts. Versatility, reliable supply, and natural origin are the three major factors driving the product demand. The rising trend of using lauric based natural acids in surfactants is reflecting a positive influence on global palm kernel oil and coconut oil based natural fatty acids industry. As per Global Market Insights Inc., “Palm kernel oil and coconut oil based natural fatty acids market is poised to surpass a revenue of USD 8 billion with a substantial annual growth rate of 4.5% over the period of 2016-2024.” Furthermore, the increasing number of departmental stores, concept retail stores, and showrooms exhibiting natural beauty products is expected to drive the market in the years ahead.
Geographically, Asia Pacific is the dominating player in global palm kernel oil and coconut oil based natural fatty acids market. The enormous production base of coconut and palm kernel oil across the APAC belt is the key factor boosting the regional industry share. In addition, the presence of a large number of oleochemical manufacturers has also catered to the manufacturing of detergents, soaps, and personal care products. As per estimates, 75% of the global palm kernel and coconut oil production is concentrated in this belt. APAC palm kernel oil and coconut oil based natural fatty acids industry accounted for over 50% of the overall industry share in 2015, and will depict a lucrative growth curve in the years ahead with an estimated CAGR of 5% over the period of 2016-2024.
Germany Palm Kernel Oil And Coconut Oil Based Natural Fatty Acids Market size, by end-user, 2013 - 2024 (USD Million)
Palm kernel oil and coconut oil based natural fatty acids market encompasses personal care sector as one of the most potential end-user segments. A paradigm shift in the consumer trend of preferring natural beauty products over artificial chemical counterparts is promoting the product demand in personal care industries. The increasing awareness about the benefits of using natural oil based fatty acids in skin and hair products has positively influenced the market from the growth perspective. Palm kernel oil and coconut oil based natural fatty acids industry from personal care segment had already collected a billion-dollar industry share (USD 1 billion) in 2015, and is slated to grow considerably at an annual rate of 5% over the coming seven years. The economically privileged population pool with increasing spending capacities is expected to majorly drive the market.
The massive usage of natural fatty acids in soaps and detergents is also allowing palm kernel oil and coconut oil based natural fatty acids market to collect substantial revenue from this sector. The high demand for natural oil fatty acid based cleaners in domestic and industrial arenas has led the detergents application to gain remarkable popularity. Palm kernel oil and coconut oil based natural fatty acids industry from this sector covered more than 30% of the total volume in 2015, and is anticipated to remain one of the prominent applications stimulating the overall industry share. Furthermore, strict governmental norms related to industrial cleanliness is expected to increase palm kernel oil and coconut oil based natural fatty acids market demand significantly in the detergent sector.
Europe also holds a lucrative palm kernel oil and coconut oil based natural fatty acids market. The regional industry share in terms of revenue was over USD 1 billion in 2015, and is forecast to grow at a CAGR of 4% over 2016-2024. The growth projection of Europe market can be credited to the rising adoption of natural oil based personal care products in the region.
The highly fluctuating prices of raw materials may act as a roadblock in the growth trajectory of palm kernel oil and coconut oil based natural fatty acids market in the years ahead. Most of the palm kernel and coconut oil production in the Asia Pacific region is expected to negatively influence the other regional markets in terms of raw material cost. However, growing global awareness regarding the cleanliness factor in both – professional working environments and the domestic front will stimulate the market dynamics in the coming timeframe.
Prominent participants of palm kernel oil and coconut oil based natural fatty acids market include Musim Mas Holdings, Wilmar International, KLK Oleo, Kao Corporation, P&G, and Pacific Oleochemicals.
