United Kingdom (UK) Oleochemical Market Overview, 2029

The oleochemical market in the United Kingdom is a dynamic and rapidly evolving sector, characterized by the production and utilization of chemicals derived from natural fats and oils. As a response to growing consumer demand for sustainable and biodegradable products, the UK oleochemical market has witnessed a significant shift towards renewable feedstocks, aligning with broader environmental initiatives and regulatory frameworks aimed at reducing carbon footprints. COVID-19 led to a shift in the demand for oleochemicals from industries such as automotive, and polymer to the pharmaceutical and personal care industries.

A significant rise in demand for personal care and hygiene products, such as cleaning products, disinfectants, and sanitizers, led to a surge in demand for oleochemicals in 2020. In the UK, the oleochemical sector benefits from a robust regulatory framework that encourages the use of renewable resources and promotes safety standards. The UK REACH Regulation, which came into effect in January 2021, aims to ensure that chemicals placed on the UK market are safe for human health and the environment. The Chemicals (Health and Safety) and Genetically Modified Organisms (Contained Use) (Amendment etc.) (EU Exit) Regulations 2020 ensure that the UK has a robust regulatory framework for chemicals and genetically modified organisms after Brexit.

The Environmental Protection Act 1990 provides a framework for controlling emissions and discharges from industrial processes, including those in the chemical industry. The Pollution Prevention and Control Act 1999 provides a framework for regulating industrial activities to prevent and control pollution. CREMER OLEO has been operating in the UK for many years.

They are one of the largest suppliers of glycerine in the UK, operate own warehouse and have a dedicated market contact in Tom Behrens. Oleochemicals also play an important role in the manufacturing of biofuels. One recent advance in this area involves using waste cooking oil to create biodiesel. This breakthrough not only lessens the environmental effects but also offers a sustainable fuel source.

According to the research report "United Kingdom Oleochemical Market Overview, 2029" the United Kingdom Oleochemical market was valued at more than USD 1.00 billion in 2023. In UK, the rise in demand for specialty esters in end-use industries such as personal care and cosmetics is anticipated to fuel the growth of the oleochemicals market during the forecast period. Oleochemicals are employed in the cosmetics industry to create consumer-safe products. Polyhexanide is a preservative and antibacterial chemical found in numerous cosmetics. Octyl stearate, a palm-derived emollient, is used in cosmetics and eyeshadow. Natural cosmetic ingredients are good for the user and more effective.

As consumer awareness of the environmental and cost benefits of oleochemicals has increased, so has the production of sustainable, bio-based chemicals These factors are anticipated to drive the UK market growth during the forecast period. This market is mainly due to increased demand for bio-based products utilized in the production of detergents and personal care products. The Cleaning Products Industry Association is the key factor for the increased use of industrial detergents in the region, further fueling market growth. The basic oleochemicals are fatty acids, fatty alcohols, glycerin and methyl esters. Many companies are investing in research and development to innovate new formulations.

Many countries are taking active part in developing new formulations that can help to cater to specific requirement from the end user industries. The companies are shifting their focus on the usage of bio-diesel. Due to the stringent rules and regulations in chemical industry, there has been rise in oil prices, this will further decrease the demand for the chemicals. With ongoing research and development efforts focused on innovation and sustainability, the oleochemical market in the UK is poised for significant growth, reflecting the increasing global shift towards greener, more sustainable industrial practices.

Amongst others, the palm oil and palm kernel oil category is expected to be significantly on the rise in the UK oleochemical market. One of the major uses of palm oil is in food processing, cosmetics, and pharmaceuticals and it continues to increase in demand. It is extremely versatile oil whose economics of production, in terms of yield per hectare, makes it very competitive as compared to other vegetable oils. Meanwhile, palm kernel oil extracted from the seeds of the palm fruit itself is enjoying its own success in industrial and personal care products applications that add further growth to the overall segment.

Coconut oil retains its popularity for personal care products and health foods on the basis of its unique composition of fatty acids and the growth of its market is relatively flat compared to the rapidly growing palm oil sector. Soybean oil has its fair share in the cooking oil marketplace and as a feedstock for biodiesel and this demand is expected to maintain a steady pace. However, competition from other oils and environmental concerns over soybean production hamper the growth of the soybean oil market. With its high healthy properties, given the low levels of saturated fat and large presence of omega-3 fatty acids, rapeseed oil will continue to drive the market.

Dominance could be attributed to the versatility and relatively better nutritional profile that gave it a plus over all other oils in the UK for consumers and manufacturers alike. Sunflower oil is valued for its light flavor and high smoke point, making it a go-to staple in cooking and processing. The others category includes animal fats, waste and by-products, microbial sources, and emerging oils.

All of these are niche sectors that find diverse applications. Animal fats find use in certain specialty industrial applications and as feed ingredients. Waste and by-products are generally recycled in the industry. Sources of oils from microbial and emerging sources are still developing but hold future promise as sustainable alternatives continue to gain traction.

The personal care and cosmetics segment is rapidly growing in the UK oleochemical market because consumers are increasingly demanding natural and sustainable products. This surge in demand for organic and eco-friendly beauty and skincare has boosted the adoption of oleochemicals, as they are largely derived from renewable sources and perceived to be more ecologically friendly compared with their petroleum cousins. The food and feed segment commands a lead share of the market due to the large use of oleochemicals in food processing and animal feed. Oleochemicals, such as fatty acids and glycerol, play an important role in manufacturing food products, enhancing their shelf life, and providing functional benefits.

This sector is supported by continuous demand for processed foods and an unavoidable need for oleochemicals in the process of maintaining food quality and safety. Soaps and detergents form another significant segment that utilizes oleochemicals for their surfactant properties. Demand remains steady, driven by consumer trends toward natural and biodegradable ingredients in cleaning products that support environment sustainability. However, this segment's growth is tempered due to some competition from synthetic alternatives. Other applications, although important, are slower when compared to personal care and food sectors included these include rubber and plastics.

These industries use oleochemicals as processing aids and stabilizers, but the segment is limited by dominant synthetic materials and fluctuating raw material prices. Coatings and resins use oleochemicals because of their film-forming and binding properties. While this segment has the benefits of industrial applications, it is also hampered by the need for high-performance materials and competition from other chemical technologies. Oleochemicals also find applications in lubricants, primarily in biodegradable formulations. Growth in this sector is steady but limited compared to the surging personal care and food sectors, due to niche applications and the dominance by mineral-based lubricants.

Fatty acids take the largest oleochemical market share in the UK due to their wide range of applications and main role in many industries. The significant role that fatty acids play in the production of soaps, detergents, and cosmetics extends as far as to pharmaceuticals. Their versatility and functionality in making surfactants, emulsifiers, and many other critical components of this nature make them very important across diverse sectors, hence taking the lead in the market. The segment that follows, in terms of prominence, is that of fatty alcohols. Fatty alcohols find uses in personal care products, detergents, and industrial applications as a result of their functionality as emulsifiers and surfactants.

Their growth prospects remain good, driven by rising demand for mild and biodegradable ingredients in personal care and cleaning products. This growth, however, is not at par with the extensive uses found by fatty acids, which ultimately limits its overall lead in the market. One class of chemicals derived from fatty acids is fatty acid derivatives, which include esters, amides, and other functional compounds. This segment drives its various applications in coatings, adhesives, and lubricants. Growth in this category is driven by innovation and customization of derivatives for special industrial uses, although it is comparatively smaller than fatty acids in terms of size and market impact.

Fatty acid methyl esters are enjoying fast growth due to the fact that they are used in the production of biodiesel. With growing interests in renewable sources of energy and sustainability, FAME becomes a front-runner as cleaner fuel compared to using fossil fuels. Other uses of FAME include as industrial solvents and lubricants. The FAME growth mirrors broad trends in environmental sustainability and renewable resources, therefore becoming an important sector within the oleochemical landscape.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Oleochemical market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Source

• Palm Oil and Palm Kernel Oil
• Coconut Oil
• Soybean Oil
• Rapeseed Oil
• Sunflower Oil
• Other Oil (Animal Fats, Waste and By-Products, Microbial and Emerging Sources)

By End Users

• Personal care and Comestics
• Soaps and detergents
• Food and feed
• Rubber and plastics
• Coatings and Resins
• Lubricants
• Others

By Types

• Fatty acids
• Fatty alcohols
• Fatty acid derivatives
• Fatty acid methyl ester (FAME)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Oleochemical industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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