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Concern for the Environment by Consumers Expands North American Market for Oleochemicals Finds Frost & Sullivan - The efficiency and biodegradability of these bio-based chemicals give them an edge over petrochemical counterparts - Chemicals.Frost.com
Concern for the Environment by Consumers Expands North American Market for Oleochemicals Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2013/01/16 - The efficiency and biodegradability of these bio-based chemicals give them an edge over petrochemical counterparts - Chemicals.Frost.com.

   
 
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The oleochemicals market in North America, in terms of volume, has been static for the past 10 years, but increased consumer awareness for natural derivatives has significantly widened their usage. For instance, refined glycerin’s stable and non-toxic nature has made it the best alternative carbohydrate source to sugar in sports and health drinks.

New analysis from Frost & Sullivan (chemicals.frost.com), Analysis of the North American Oleochemicals Market, finds that the market earned revenue of $3.53 billion in 2011 and estimates this to reach $3.91 billion in 2018.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Sustainable biochemical alternatives are nudging out petrochemical products, as manufacturers are striving to reduce their carbon footprint. However, like any other commodity product, the price of substitutes determines the demand for oleochemicals. Petrochemical derivatives are currently the substitutes for oleochemicals, which are generally less expensive.

"Globally, feedstock prices hit a record high from 2009 to 2011, which rippled into the oleochemicals market," said Frost & Sullivan Senior Research Analyst Dr. Nandhini Rajagopal. "Further, the reinstated biodiesel policy in the U.S. has caused tallow’s prices to fluctuate."

From 2009 to 2010, palm oil, palm kernel oil and coconut oil experienced wild price fluctuations. The price for palm kernel oil shot up from $702 per ton in 2009 to $1,184 per ton in 2010. Coconut oil also suffered similarly during this period, with its price increasing from $725 per ton to $1,124 per ton.

As of yet, producers of fatty acids have been gaining considerable margin by selling the by-product, glycerin. However, the reinstated biodiesel policy has augmented the global biodiesel production capacity. This has resulted in the oversupply of glycerin, which is expected to constrict the margins of the fatty acid market, affecting its overall profitability.

The market is also held back by competition from low-cost Chinese imports. They can stave off this competition by setting up local manufacturing facilities. Furthermore, developing and implementing relevant regulations will eliminate the threat from counterfeit and smuggled personal care products.

"Upward integration with plantation or agri-business groups and downward integration with end-user product manufacturing companies should help to synergize oleochemical manufacturers’ strengths to overcome the price fluctuations and remain stable," said Frost & Sullivan Chemicals Vice President Shomik Majumdar. "Such alliances have been successful for the largest companies operating in this segment and could be replicated by other players."

Analysis of the North American Oleochemicals Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: Southeast Asian Oleochemicals Market, Strategic Analysis of APAC Green Surfactants Market, and Analysis of the Natural Fatty Alcohol Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
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Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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Analysis of the North American Oleochemicals Market / NB4D-39

 
 
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Concern for the Environment by Consumers Expands North American Market for Oleochemicals Finds Frost & Sullivan

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