Oleochemicals Market Report 2026

The oleochemicals market size has grown rapidly in recent years. It will grow from $31.69 billion in 2025 to $35.27 billion in 2026 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to availability of natural oils and fats, growth of soap and detergent industry, expansion of personal care sector, increasing industrial lubricant demand, preference for renewable raw materials.

The oleochemicals market size is expected to see rapid growth in the next few years. It will grow to $53.64 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to growth in biodegradable product demand, increasing environmental regulations, rising use in bio lubricants, expansion of pharmaceutical applications, innovation in oleochemical processing. Major trends in the forecast period include rising demand for bio based chemicals, growing use of oleochemicals in personal care, expansion of oleochemicals in industrial lubricants, increasing adoption in food and pharmaceutical applications, focus on sustainable feedstock sourcing.

The increased demand for sustainable plastics is expected to propel the oleochemical market. The use of plastic and other non-biodegradable materials has caused several environmental issues forcing industries and customers to adapt to sustainable plastics. The use of sustainable plastic is intended to reduce inefficiencies that contribute to environmental harm and aid in the optimization of business operations. This surge in consumer demand for environmentally friendly plastic opens up new markets, particularly in the cosmetics, pharmaceutical, fashion, and food industries for oleochemicals. For instance, in April 2023, according to a report from the European Bioplastics E.V., a Germany-based association that advocates for the bioplastics industry across Europe, global bioplastics production capacity is expected to increase significantly, rising from around 2.2 million tons in 2022 to roughly 6.3 million tons by 2027. Therefore, the increased demand for sustainable plastics is expected to boost the oleochemicals market during the forecast period.

Major companies operating in the oleochemicals market are focusing on developing sustainable, high-performance biobased solutions that improve energy efficiency and reduce environmental impact across industrial applications. For instance, in November 2024, Oleon GmbH, a Belgium-based chemical company, introduced Qloe, a new brand of biobased immersion cooling liquids designed for next-generation data center cooling. Created in response to increasing data consumption and the limitations of traditional air-cooling methods, Qloe fluids provide higher energy efficiency, better heat management, and reduced environmental impact. Made from plant-based, biodegradable, and non-toxic materials with zero global warming potential, the liquids offer strong dielectric performance, low viscosity, and high safety standards. Thoroughly tested for thermal efficiency and equipment protection, Qloe aims to deliver a sustainable, high-performance alternative to conventional cooling solutions for data centers.

In October 2024, Oleon, a Belgium-based manufacturer of natural-based oleochemicals, acquired A. Azevedo Óleos for an undisclosed amount. This acquisition enables Oleon to strengthen its presence in the rapidly growing South American market, particularly in Brazil, while expanding its product line to include castor oil derivatives. This strategic move aligns with Oleon’s long-term sustainability objectives and underscores its commitment to local sourcing of vital raw materials, promoting environmentally responsible agricultural practices. A. Azevedo Óleos is a Brazil-based oleochemical company that specializes in castor oil and its derivatives.

Major companies operating in the oleochemicals market are Wilmar International Limited, Kuala Lumpur Kepong Berhad, IOI Group, BASF SE, Evonik Industries AG, Kao Corporation, Emery Oleochemicals, Godrej Industries Limited, Oleon NV, Eastman Chemical Company, PTT Global Chemical, Oxiteno, PCC Group, Croda International Plc, KLK Oleo, Ecogreen Oleochemicals, Evyap Oleo, Cremer Oleo, Hangzhou Zanyu Oleochemical Co., Ltd., Jiangsu Meiaisi Chemical Co., Ltd., Taiko Palm-Oleo Co., Ltd., Tristar Group.

Asia-Pacific was the largest region in the oleochemicals market in 2025, and it is also expected to be the fastest-growing region in the forecast period. The regions covered in the oleochemicals market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the oleochemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The oleochemicals market consists of sales of alkoxylates and palm 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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