Transparency Market Research has published a new report titled “Palm Kernel Oil and Coconut Oil Based Natural Fatty Acids Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 – 2023.” According to the report, the global palm kernel oil and coconut oil based natural fatty acids market was valued at US$5.32 bn in 2014 and is anticipated to reach US$7.98 bn by 2023, expanding at a CAGR of 4.6% between 2015 and 2023.
Palm kernel oil and coconut oil based natural fatty acids comprise medium-chain oleochemicals such as lauric acid, myristic acid, caprylic acid, and capric acid. These natural fatty acids have broad usage in detergents, personal care, plastics, rubber, and other end-user industries. Natural fatty acids act as surfactants in detergents and personal care end-user industries owing to the presence of hydrophilic and hydrophobic groups in these molecules. Availability from bio-based and renewable sources encourages industrial use of natural fatty acids as compared to their petroleum-based and animal-based counterparts. Increasing consumer awareness regarding the usage of products possessing non-toxic and environmentally sustainable ingredients has fueled demand for palm kernel oil and coconut oil based natural fatty acids in the past few years. Ambient environmental conditions in Southeast Asia favor the production of palm kernel oil and coconut oil. Furthermore, supportive governmental policies attract key players in the natural fatty acid market to strengthen their business in this region. However, volatility in raw material prices coupled with over dependency on Southeast Asia-based manufacturers is likely to hinder the market growth during the forecast period.
The global natural fatty acids market has witnessed significant growth in the past few years. Population growth coupled with rising per capita income resulted in increased consumption of detergents in developing countries in the past few years. This, in turn, generated considerable demand for natural fatty acids in the detergents industry, enabling it to be the largest end-user in 2014. Personal care is projected to be the fastest-growing end-user of the natural fatty acids market in the next few years. Heightened awareness regarding personal well-being and hygiene maintenance has propelled growth of the global personal care industry. Furthermore, several personal care products manufacturers are focused on using biocompatible and green materials to improve biosafety of products. As a result, demand for natural fatty acids is expected to increase substantially in the personal care industry during the forecast period.
Asia Pacific dominated the global market for palm kernel oil and coconut oil based natural fatty acids in 2014. The region is expected to continue witnessing a similar growth trend during the forecast period due to rising demand from major end-user industries. Increase in purchasing power parity of consumers in developing countries of Asia Pacific is projected to boost demand for natural fatty acids in the next few years. China is estimated to be the major consumer of natural fatty acids in 2023 followed by Rest of Asia Pacific and ASEAN. Europe was the second-largest consumer of natural fatty acids in 2014 followed by North America. Middle East & Africa and Latin America are anticipated to be emerging markets for natural fatty acids in the next few years. Favorable atmospheric conditions for palm and coconut cultivation in West Africa coupled with growth in the personal care industry is likely to create lucrative opportunities in the natural fatty acids market in Middle East & Africa.