Castor Oil and Derivatives Market Report 2025

The castor oil and derivatives market size has grown strongly in recent years. It will grow from $1.38 billion in 2024 to $1.46 billion in 2025 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to increased industrial applications of castor oil, pharmaceutical and cosmetic uses, increasing demand in textile industry, globalization of agriculture, emergence of specialty chemicals.

The castor oil and derivatives market size is expected to see strong growth in the next few years. It will grow to $1.84 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to growth in cosmetic and personal care industry, increasing demand for bio-based plastics, adoption of castor oil in agriculture, expanding pharmaceutical applications, focus on renewable resources. Major trends in the forecast period include demand for bio-based products, technological innovations in extraction, biodiesel production, research and development in castor cultivation, demand in the textile industry.

The increasing demand for cosmetic products is anticipated to drive the growth of the castor oil and its derivatives market in the future. Cosmetics encompass any products designed to maintain, enhance, or alter the appearance of skin, hair, nails, or teeth, including beauty preparations and grooming aids. Castor oil and its derivatives are commonly utilized in the formulation of cosmetic products such as lotions, makeup, and cleansers due to their moisturizing properties. Consequently, the rising demand for cosmetics significantly boosts the market for castor oil and its derivatives. For example, according to the CTPA's 2022 Annual Report published by The Cosmetic, Toiletry, and Perfumery Association, sales of fragrance in the UK reached 71,544,000 units in 2022, up from 70,766,000 units in 2021. Additionally, color cosmetics sales increased to 118,172,000 units in 2022, compared to 112,257,000 units in 2021. Therefore, the rising demand for cosmetic products is driving the growth of the castor oil and derivatives market.

The expanding aerospace sector is poised to contribute to the growth of the castor oil and its derivatives market. Encompassing the design, development, manufacturing, testing, and operation of aircraft and spacecraft, the aerospace sector relies on castor oil and its derivatives as lubricants in various applications. These derivatives boast a high viscosity index, excellent oxidation resistance, and a low pour point, making them ideal for lubricating moving components in aircraft engines, spacecraft, and other aerospace systems. Notably, Airbus SE, a Netherlands-based aerospace corporation, reported a significant increase in gross and net orders for commercial aircraft in 2022 compared to the previous year. With 1,078 gross orders and 820 net orders, up from 771 and 507, respectively, in 2021, the growing aerospace sector is identified as a key driver for the castor oil and its derivatives market.

The increase in healthcare expenditure is anticipated to drive the growth of the castor oil and derivatives market in the coming years. Healthcare expenditure encompasses costs associated with the provision of health services, family planning, nutrition, and emergency medical assistance. In the healthcare sector, castor oil is utilized as a natural remedy for conditions such as arthritis pain, inflammation, and joint discomfort. Additionally, it aids in digestion and helps relieve temporary constipation. For example, in the fiscal year 2023-24, the Ministry of Health and Family Welfare in India allocated Rs 89,155 crore ($10.6 billion) for healthcare, marking a 13% increase over the revised estimates for 2022-23. Thus, the rising healthcare expenditure is driving the growth of the castor oil and derivatives market.

Product innovations are emerging as a significant trend in the castor oil and derivatives market. Leading companies in this sector are concentrating on developing innovative products to maintain their competitive edge. For example, in July 2024, BASF Corporation, a Germany-based chemicals company, formed a partnership with Pragat, an Indian supplier of castor beans. This collaboration aims to establish certified traceability for bio-based solutions in the footwear industry, specifically focusing on sustainable castor oil through the SuCCESS code. As the demand for eco-friendly footwear solutions increases, this initiative positions BASF to cater to consumer needs while minimizing fossil resource consumption and enhancing sustainability. EVO, a key component, is a completely renewable resource that does not deplete fertile land designated for food production and does not require significant amounts of water.

Major players in the castor oil and its derivatives market are strategically engaging in partnerships to enhance their geographical presence and gain a competitive advantage. These collaborations enable companies to harness synergies in technology, distribution networks, and research and development (R&D) capabilities, fostering innovation to meet the increasing demand for castor oil and its derivatives. A notable example is the partnership between Casterra Ag Ltd., an Israel-based castor seed technology developer, and Titan Castor Farms Limited, a Zambia-based cultivator, manufacturer, and distributor of castor oil. Formed in November 2022, this partnership focuses on castor oil sales in South-Eastern Africa. Casterra, leveraging its technology, supports Titan by covering processing equipment costs, providing expertise, technical assistance, and enhanced castor seeds for cultivation. Titan gains end-to-end capabilities, from development to castor oil production, while Casterra receives royalties from Titan on castor oil product sales. This strategic alliance marks a significant move for Casterra in entering the growing global castor oil market in Africa, contributing to Titan's goal of maintaining its position as a leading producer in the region.

Major companies operating in the castor oil and derivatives market include Rpk Agrotech Exports Pvt Ltd., Adani Wilmar Limited, Hokoku Corporation, Taj Agro Products Limited, Girnar Industries, Kanak Castor Products Pvt. Ltd., N.K. Proteins Pvt. Limited, Jayant Agro Organics Limited, Gokul Agri International Ltd., ITOH Oil Chemicals Co. Ltd., Ambuja Intermediates Pvt. Ltd., Krishna Antioxidants Pvt. Ltd., Thai Castor Oil Industries Co. Ltd., Arvalli Castor Derivatives Private Limited, Xingtai Lantian Fine Chemical Co. Ltd., Kokura Gosei Kogyo Ltd., Arkema S.A., Alberdingk Boley GmbH, Vrundavan Agro International, Tongliao Meihua United Biotech Co. Ltd., Bom Brazil, Hangzhou Dayangchem Co. Ltd., YNK Castor Products, Liaoning Xinhe Chemical Co. Ltd., Hengshui Shanzhi Health Minerals Co. Ltd., Gwalior Chemical Industries Ltd., Tonghua Castor Chemical Co. Ltd., Swan Isopropyls Ltd., Biotor Industries Ltd., Sapthagiri Agro Oil Mill, Tongliao Tys Chemical Co. Ltd., Lasons India Pvt. Ltd., La International.

Asia-Pacific was the largest region in the castor oil and derivatives market in 2024. The regions covered in the castor oil and derivatives market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the castor oil and derivatives market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Castor oil and its derivatives are versatile chemicals utilized across various industries, predominantly in the production of surfactants, beauty and personal care items, medications, perfumes, greases, and assorted products. They serve as crucial raw materials for manufacturing a wide array of chemicals.

Key products in the realm of castor oil derivatives include 12-HAS, dehydrated castor oil, hydrogenated castor oil, ricinoleic acid, sebacic acid, and undecylenic acid. Ricinoleic acid, constituting 90% of castor oil's triglyceride content, is an unsaturated fatty acid derived from this oil. These derivatives come in several grades such as pale pressed grade, first special grade (FSG), commercial grade, first pressed degummed grade castor oil, British pharma grade (BPG), among others. They find application in diverse sectors such as lubricants, cosmetics, pharmaceuticals, biodiesel, plastics, resins, and more. These products cater to various industries including healthcare, cosmetics, food, aerospace and defense, automotive, electrical and electronics, and others.

The castor oil and derivatives market research report is one of a series of new reports that provides castor oil and derivatives market statistics, including castor oil and derivatives industry global market size, regional shares, competitors with a castor oil and derivatives market share, detailed castor oil and derivatives market segments, market trends and opportunities, and any further data you may need to thrive in the castor oil and derivatives industry. This castor oil and derivatives market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The castor oil and derivatives market consist of the sale of blown castor oil and ethoxylated castor oil. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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