Tall Oil Fatty Acid Market to cross the billion-dollar mark by 2024, North America to be a major contributor toward global revenue
Publisher : Fractovia | Published Date : 2017-05-10Request Sample
The surging usage of petroleum products by the day will positively influence Tall Oil Fatty Acid Market, subject to the varying usage of these fatty acids as lubricants, fuel additives, viscosity modifiers, and corrosion inhibitors in the petroleum, petrochemical, and oil & gas industries. These products also find applications in the flourishing aerospace and automobile sectors, owing to which tall oil fatty acid market will register a profitable growth rate over the years ahead. As per the report by Global Market Insights, Inc., “Worldwide Tall Oil Fatty Acid market generated a revenue of USD 800 million in 2015, and is slated to register an annual growth rate of 4% over the period of 2017 to 2024.”
The availability of raw material and the product’s usage in numerous end-use sectors are the prominent factors influencing tall oil fatty acid industry. Surging need of plant based material will lead to the requirement of raw material from coniferous and pine trees. More often than not, the growth of tall oil fatty acid market is hampered owing to the lack of raw material or the delay in procuring the same. To maintain the global business position and supply products to the end-use sectors, some of the industry giants have adopted the strategy of establishing their own plantations to ensure an uninterrupted supply of raw material. The noteworthy participants in tall oil fatty acid market are Lintech International, Forchem, Georgia-Pacific, Arizona Chemical Company, LLC., Harima Chemicals, Inc., Chemical Associates Inc., Segezha Pulp and Paper Mill, Kraton Corporation, Industrial Oleochemical Products, Pasand Speciality Chemical, Eastman Chemical Company, BASF SE, Florachem Corporation, Shaxian Lixin Resin Co. Ltd., and OOO Torgoviy Dom Lesokhimik.
U.S. Tall Oil Fatty Acid Market size, by end-user, 2013 - 2024 (USD Million)
Tall oil fatty acids are utilized in various end-use sectors such as fuel additives, plastics, metalworking fluid, lubricants, and soaps & detergents. Tall oil fatty acids market share from lubricants and fuel additives combined together was USD 150 million in 2016, and is expected to grow at an annual growth rate of more than 4.5% over 2017-2024. The high preference of this of this product over animal derived oil products as an oilfield chemical will augment its demand from the oil & gas and petroleum sectors, which will favorably influence tall oil fatty acid industry share.
These fatty acids find applications in dimer acids that are extensively used in the oil fields as fuel additives and lubricants. Tall oil fatty acid market size from dimer acids was worth US 200 million in 2016 and will record substantial growth rate over the coming seven years. The emerging oilfield sector across North America will favorably impact the industry size over the coming timeframe.
North America tall oil fatty acid market covered over 40% of the regional revenue share in 2016. U.S. will be the prominent revenue contributor of this region, subject to the easy availability of raw material. The increasing shale gas exploration activities across U.S. will also account for the regional tall oil fatty acids market to flourish at an attractive growth rate.
Of late, North America has been observing a relatively high demand for oleic acid. Tall oil fatty acids market size from oleic acid was USD 350 million in 2016 and it will exhibit an annual growth rate of around 4.5% over the period of 2017 to 2024. This product is primarily used as an oilfield and oleochemical chemical.
Linoleic acids covered over 40% of the total revenue contribution in the product landscape of tall oil fatty acid industry and will generate noticeable revenue over the coming seven years. The surging use of this product across the various end-use sectors such as adhesives, coatings, paints, and sealants will stimulate tall oil fatty acid market size. In the near future, these chemicals will also be used in the personal care products sector, pertaining to the rising R & D activities.
Asia Pacific tall oil fatty acid industry will record a CAGR of 5% over the coming timeframe of 2017 to 2024. The growth can be attributed to the rising awareness among users regarding the myriad uses of the product.
Key players are enhancing their product portfolio to sustain their position, as tall oil fatty acid market is highly competitive. These players have also been collaborating with leading plantations to fulfill the requirement for raw material. In fact, some of them even plan to establish their own plantation that’ll serve as a direct raw material source, which is bound to consolidate their position in tall oil fatty acid market.
