Oleochemicals Procurement Intelligence: Insights for Businesses
The global oleochemicals category is anticipated to grow at a CAGR of 7.1% from 2023 to 2030. Growth of the category can be attributed to high cost of petrochemicals, growing consumption of sustainable, bio-based, and renewable chemicals, and rising demand by end-user sectors such as food processing, pharmaceuticals, textiles, personal care & cosmetics, etc. Petrochemicals, which are made from petroleum, can be substituted with oleochemicals. Oleochemicals are produced using variety of chemical processes, including hydrogenation, alcohol-based alcoholysis, and water-based hydrolysis. In addition, it is a substitute to synthetic chemicals due to the presence of low to non-existent amount of carcinogens. High input costs are a common barrier for the category. This is particularly true for the fatty acid manufacturing process, which is necessary for the synthesis of oleochemicals. Future pricing for these chemicals is difficult to anticipate because crude oil prices are typically un