Global Market For Natural Fatty Acids To Reach $13 Billion In 2017

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  • (1888PressRelease) February 01, 2013 - Wellesley, Mass. - According to a new technical market research report GLOBAL MARKETS FOR OLEOCHEMICAL FATTY ACIDS (CHM062A), from BCC Research (www.bccresearch.com), the naturally fatty acid market was valued at $7.2 billion in 2011 and should reach nearly $6.9 billion in 2012. Total market value is expected to reach $13 billion in 2017 after increasing at a five-year compound annual growth rate (CAGR) of 13.6%.

    The global natural fatty acid market can be broken down into three main applications: derivatives; Personal Care, Soap, Household, I&I, Polymerization, Vulcanization (PCSHIIPV); and all other applications.

    The derivatives applications are expected to have a value of nearly $3.3 billion in 2012 and $6.5 billion in 2017, a CAGR of 15%.

    PCSHIIPV is expected to reach nearly $2.9 billion in 2012 and nearly $5.2 billion in 2017, a CAGR of 12.7%.

    As a segment, all other applications should total nearly $759 million in 2012 and nearly $1.3 billion in 2017, a CAGR of 11.2%

    Margins and prices vary by grade, region, and acid cut. For example, a standard stearic acid margin in Europe is between $150 and $190 per ton while, for a distilled fatty acid, the margin is lower, between $95 and $125 per ton. A typical rubber stearic grade is between $125 and $200 cheaper than the standard stearic grade. Of course, rubber stearic is packed while standards are mainly bulk, so the real difference is bigger. A C18 oleic grade at the start of 2012 was between $50 and $150 more expensive in Eastern Asia than the equivalent offering in the North American market.

    The demand for greener technology will reduce impact on the environment in both processing and consumption of products; this trend favors the oleochemical industry, as it is built on naturally grown and farmed feedstock. The consumption of all types of vegetable-based material will increase during the forecast period, rising from less than 60% in 2008 to almost 70% by 2017. The main beneficiary will be the tropical oils of palm (palm oil and palm kernel oil) and coconut (coconut oil) as formulators seek the properties associated with the medium-chain fatty acids known as the Lauric oils.

    The study is divided into a number of sections and covers the following fatty acid types:
    • Stearic acid
    • Distilled fatty acids
    • Fractionated fatty acids
    • Polyunsaturated acids, including tall oil fatty acids
    • Oleic acids.

    The study will be useful for the following:

    • Marketing managers
    • Senior oleochemical executives
    • Decision-makers from international governments
    • Traders and distributors of chemical products
    • Plant and operations directors
    • Engineering and technology manufacturers and providers
    • Process and technology support advisers
    • Plantation owners and renders managers
    • Logistical, supply chain and e-business specialists
    • Corporate, project and trade finance specialists
    • Strategic planners and forecasters
    • New product and business developers
    • Decision-makers from the chemical and energy industries/end users (oil, gas, petrochemical, fertilizer and chemical companies)
    • Trade associations
    • Environmental consultants
    • Equipment manufacturers and process designers
    • Venture capitalists, those involved in research and development work, and academic institutions.

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