Oleochemicals Market

Oleochemicals Market Overview

The global Oleochemicals Market size was valued at USD 33.44 billion in 2024 and is predicted to reach USD 48.93 billion by 2030 with a CAGR of 6.6% from 2025-2030. 

Oleochemical-based compounds are widely used to enhance the quality and shelf life of food and beverages, even in products containing chemical additives. The market is experiencing significant growth due to the expansion of the food and beverage industry, increased applications in personal care products, and overall growth in the chemical sector. However, stringent regulations on certain propellants have posed challenges to market expansion. On the other hand, emerging applications for oleochemicals present new opportunities for future growth. Moreover, top companies such as Emery Oleochemicals and BASF SE are implementing various strategies such as product launch and acquisition to expand their market presence and product offerings. Additionally, the growing demand for cleaner energy sources is expected to drive the use of oleochemicals in the production of biodiesel and other eco-friendly products, shaping future market trends.

Expanding Food and Beverage Industry Fuels the Oleochemicals Market Growth

Growing demand for oleochemicals from the food and beverage sector drives industry growth as the chemicals are utilized as stabilizers and emulsifiers to improve the inherent stability, texture, and shelf life of the product. Growing customer demand for natural and clean-label products result in growing use of fatty acid-derived chemicals in food, further driving industry growth. As per the Food & Drink Federation (FDF) report, 2023, the UK food and beverage industry generates around USD 48.13 billion to the economy per year. As per the Federal Reserve Economic Data report, America's food and beverage sales turnover during the second quarter was around USD 150 million. Such business growth is a sign of the growing use of fatty acid-based materials in driving the industry's growing demand for natural, high-quality ingredients.

Growing Demand for Personal Care Items Fuels the Oleochemicals Market Trends

The demand for personal care products, such as cosmetics by consumers who are increasingly in need of natural and sustainable materials for their skincare products drives the oleochemical market. Oleochemicals supply some of the necessary ingredients such as emulsifiers, moisturizers, and stabilizers that add performance and quality to personal care products. Based on a report released by McKinsey & Company, the global sale revenue of beauty products was worth about USD 430 billion in 2022 and will be USD 580 billion in 2027 with a growth rate of 6% annually. Sales growth in beauty products induces demand for these types of chemicals to supply natural ingredients and formulas to meet consumers' needs for sustainable and green cosmetics.

Expansion of Chemical Industry Fuels the Oleochemicals Market Demand

As the chemical industry expands, there is even more need for renewable and sustainable feedstocks to replace traditional petrochemicals. Oleochemicals, obtained from natural fats and oils, are better sustainable solution. According to reports published by, UN Environment Programme the global chemical industry is valued at around USD 5 trillion today and is expected to double in the coming decade. This growth will engage more companies to use renewable raw materials, addressing consumer pressure and regulatory needs while incorporating more fat-based molecules into their product offerings.

Regulatory Challenges Hinders the Growth of the Market

The existence of regulatory obstacles impedes market growth since they enforce tighter compliance standards that raise operational expenses and delay production processes.

Advancement in Application Area Creates Future Opportunity

The developments in application areas such as the production of biodiesels through waste cooking oils are set to generate potential opportunities for the development of markets in the coming years. With demands for renewable energy sources on the rise, demands for eco-friendly feedstocks such as waste oils will propel the use of biodiesel, and consequently, propel demand for oleochemicals for the production of biodiesel as well as other green products.

Market Segmentations and Scope of the Study 

The oleochemicals market report is segmented on the basis of type, raw material, system type, application, and region. On the basis of type, the market is classified into fatty acids, glycerine, fatty alcohols and fatty esters. Further fatty alcohol is segmented into ethoxylate and others. Based on system type the market is classified into gravity-based and pressure-driven. On the basis of application, the market is divided into pharmaceuticals, polymers, food & beverages, chemicals, animal feed, soap & detergents, personal care & cosmetic, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific region dominates the oleochemical market share and is expected to maintain this position during the forecast period. The rising demand for eco-friendly products, including organic fertilizers and pesticides, is driving a shift toward sustainable farming practices aimed at boosting crop yields. This growing emphasis on green agriculture increased the need for environmentally friendly farm solutions. According to the National Bureau of Statistics, China produced 687 million tons of grains in 2022. With such high production, more farmers are using green agricultural inputs like fatty acid-based compounds. These help plants grow and are a safer, eco-friendly option.

Moreover, expanding chemical industry within the region pushes the natural chemicals market since manufacturers focus on utilizing renewable and eco-friendly raw materials. The sustainability impulse results in using fatty acid-based compounds in trying to make products such as detergent surfactants lubricants and plastics thereby contributing to the expansion of the market. According to the report published by the Ministry of Commerce and Industry, India was the 6th biggest producers worldwide in chemicals and 3rd in Asia and accounted for 7% of the country's gross domestic product (GDP), in 2023. The growth of the chemical industry is attributed to the increased focus laid on sustainable production practices and the increased demand for environmentally friendly products thus propelling the market growth.

On the other hand, North America shows a constant rise in the market for oleochemicals during the forecasting horizon because of increased demand for personal care products such as skincare and cosmetics products in the region. The customers increasingly require natural and organic products in personal care products, and that supports higher demand for such chemicals for the purpose of improving the texture of the beauty products. The Global Wellness Economy Monitor says that the North American market for personal care and beauty products worth USD 335.50 billion in 2022, while in 2021 the market was worth USD 306.20 billion, and that is a 9.6% increase in one year. The growth of the personal care segment indicates the rising demand for fatty acid-derived chemicals due to the desire of companies to find eco-friendly alternatives to comply with regulatory requirements and consumer demands.

Moreover, the rising demand for packaged foods in the region drives the growth of the market as consumers increasingly favour ready-to-eat meals, food manufacturers require ingredients that enhance product stability, texture, and shelf life. Oleochemicals are utilized as emulsifiers, stabilizers, and preservatives to achieve these desired qualities naturally. According to the Sapien Labs in 2023, around 59% of U.S. population consumed processed foods. This shift towards packaged foods underscores the importance of fatty acid-derived compounds in food production, further fueling the growth of the market. 

Competitive Landscape

Various market players operating in the oleochemicals industry is Emery Oleochemicals, BASF SE, Wilmar International Ltd, KLK OLEO, IOI Oleo GmbH, Oleon NV, Kao Chemicals Europe, S.L.U., Procter & Gamble Company, Evonik Industries AG, Corbion, and others. These market players are adopting various strategies such as product launch, acquisition, and business expansion to remain dominant in the market. 

For instance, in October 2024, Oleon NV acquired A.Azevedo Oleos and expanded its footprints in South American market. This strategic move enhances Oleon's global presence and focus on sustainable practices in local agriculture, important for the production of bio-based raw materials essential to the oleochemical industry. 

Additionally, in September 2024, Wilmar International Ltd launched Mega-Fat 70 aimed at enhancing milk production and improved cattle health. This product improves feed mill efficiency by maintaining pellet durability highlighting the growing role of oleochemicals for sustainable ingredients in animal feed.

Moreover, in July 2024, KLK OLEO expanded its operations in China with the launch of Kuala Lumpur Kepong Bhd's new high-purity fatty acids and glycerin plant with an annual processing capacity of 500,000 tonnes. This production facility aims to strengthen the company's position in the competitive oleochemical market as industries seek sustainable and natural alternatives for their products.

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the oleochemicals industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Oleochemicals Market Key Segments

By Type 

• Fatty Acids

• Glycerine

• Fatty Alcohols

  • Ethoxylate

  • Others

• Esters

By Raw Materials

• Animal Oil 

• Tropical Oil

By System Type

• Gravity-Based 

• Pressure-Driven

By Application

• Pharmaceuticals

• Polymers

• Food & Beverages

• Chemicals

• Animal Feed

• Soap & Detergents

• Personal Care & Cosmetics

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East 

  • Africa

Key Players

• Emery Oleochemicals

• BASF SE

• Wilmar International Ltd.

• KLK OLEO

• IOI Oleo GmbH

• Oleon NV

• Kao Chemicals Europe, S.L.U.

• Procter & Gamble Company

• Evonik Industries AG

• Godrej Industries Limited

• Cargill Incorporated

• Twin Rivers Technologies, Inc.

• Emery Oleochemicals

• ECOGREEN OLEOCHEMICALS PTE LTD

• Saudi Basic Industries Corporation

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 33.44 billion
Revenue Forecast in 2030	USD 48.93 billion
Growth Rate	CAGR of 6.6% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Growing demand for oleochemicals in food and beverage industry fuels the growth of the market. Rising demand for personal care items boosts the market growth. The growing chemical industry drives the growth of the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.