Oleochemicals Category Overview

The global oleochemicals market size is expected to reach USD 39.08 billion by 2030, expanding at 6.9% CAGR from 2024 to 2030, according to a new report by Grand View Research, Inc. The growth is majorly driven by the increasing demand in the global markets for biopolymers.

The global oleochemical industry remains robust and is largely dependent on the movement of application markets. Personal care and cosmetics take up a majority share of the market on a global scale due to increasing consumer awareness about the benefits of using personal care products and increased expenditure on cosmetic products. Seeking the opportunity, globally, several multinational brands have emerged with premium cosmetic and personal care products to capture a significant share of the market.

Additionally, the fluctuating petrochemical prices are one of the major factors driving the shift in the trend toward sustainable chemicals. Moreover, the consumption of oleochemicals is expected to rise significantly in the coming years as a consequence of increasing demand for personal care products, pharmaceuticals, and food items.

Major firms that are vertically integrated throughout the value chain continue to define the market dynamics. The oil palm plantation, which includes independent farmers or plantation businesses, is where the value chain originates. Large worldwide firms with extensive presences across the value chain, like Vantage Specialty Chemicals; Emery Oleochemicals; Ecogreen Oleochemicals; and Kao Corporation, hold a sizeable share of the global oleochemicals industry.

Vegetable and animal oils & fats are utilized as common raw materials in the production of oleochemicals. They come from petrochemical feedstock as well. Rapeseed oil is a significant vegetable oil, as are those made from palm, castor, sunflower, soybean, peanut, and corn. Any fluctuations in the prices and availability of these raw materials affect the overall cost of production and as a result, increase the end cost of the product

Order your copy of the Oleochemicals Procurement Intelligence Report, 2024 - 2030 , published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Oleochemicals Procurement Intelligence Report Scope

The Oleochemicals category is expected to have pricing growth outlook of 5% - 10% increase (Annually) from 2023 to 2030, with below pricing models.

• Cost-plus pricing
• Competition-based pricing

Supplier Selection Scope of Report

• Cost and pricing
• Past engagements
• Productivity
• Geographical presence

Supplier Selection Criteria of Report

• Industries served
• years in service
• geographic service provision
• range of products on offer
• type of packaging
• quality assurance
• logistics & warehousing capability
• regulatory compliance
• lead time
• others

Oleochemicals Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape
• Market estimates and forecasts from 2023 to 2030
• Growth opportunities, trends, and driver analysis
• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
• Porter’s 5 forces
• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
• Engagement and operating models, KPI, and SLA elements
• LCC/BCC analysis and negotiation strategies
• Peer benchmarking and product analysis
• Market report in PDF, Excel, and PPT and online dashboard versions 

Oleochemicals Procurement Cost and Supplier Intelligence

Raw materials (oils and naturally occurring fats derived from plants and animals), labor, energy, equipment & machinery, and packaging & transportation constitutes the key cost components in this category. Over 65.9% of the overall production cost is attributed to raw materials, making them the primary cost driver. Prices of raw materials / feedstocks in the category are complex, and there are always variables that will raise them up and / or move them downward. For instance, the price of palm oil is influenced by the yield of trees (which are typically weather dependent), stock holding by the producers, and prices of fuel. Similarly, ‘Tallow’ (a by-product of beef processing), is ought to be inexpensive unless it is more valuable than its primary product. Until November 2023, the average price of palm oil over the year had been MYR 3,760 per tonne. The price of tallow fat ranges between USD 2.90 - USD 7.80, in the U.S.

Asia-Pacific region dominates the global oleochemicals category, holding over 40.9% of global market share. The region witnesses the presence of significant number of producers, particularly in Indonesia and Malaysia. Its sizable captive market and wealth of raw materials, like palm oil and palm kernel oil, have also prompted firms to increase their production capacity. The availability and affordability of inexpensive labor are the main reasons for the extensive offshore of manufacturing operations from Europe and North America to Asia-Pacific nations. Ensuring that a supplier is sustainable & reliable by examining its supply chain and understanding its sourcing methodology, assessing if a supplier prioritizes green processes, evaluating a supplier’s customization capabilities, and focusing on cost-effectiveness while selecting a supplier in terms of favorable contractual terms and prices are some of the best sourcing practices considered in this category.

List of Key Suppliers

• Berg + Schmidt GmbH & Co. KG.
• Corbion NV
• Croda International Plc
• Ecogreen Oleochemicals (Singapore) Pte. Ltd.
• Emery Oleochemicals
• Evonik Industries AG
• IOI Oleochemical Industries Bhd
• JNJ Oleochemicals Industries, Inc.
• Kao Corporation
• Oleon NV
• Vantage Group
• Wilmar International Ltd.

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Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions