The Global Fatty Alcohols Market size is expected to reach USD7.5 billion by 2031, rising at a market growth of 5.5% CAGR during the forecast period. In the year 2023, the market attained a volume of 3,352.8 kilo tonnes, experiencing a growth of 22.9% (2020-2023).
Fatty alcohols such as cetyl alcohol, stearyl alcohol, and cetostearyl alcohol possess emollient properties that help moisturize, soften, and condition the skin. Therefore, the personal care segment procured 21% revenue share in the market in 2023. In terms of volume, 1,034.5 kilo tonnes of fatty alcohol is expected to be utilized in personal care by the year 2031. These fatty alcohols form a protective barrier on the skin's surface, preventing moisture loss and improving skin texture. Consumers increasingly prioritize hydration and skin health, so the demand for personal care products containing fatty alcohols has risen.
The pharmaceutical industry's adoption of fatty alcohols for various applications, such as excipients, emulsifiers, and penetration enhancers, leads to an increased demand for these compounds as pharmaceutical companies develop new drug formulations and delivery systems, the need for fatty alcohols as key ingredients grow, driving market demand. As the pharmaceutical sector expands globally and introduces novel therapies and treatments, the demand for fatty alcohols as essential ingredients in pharmaceutical formulations is expected to persist, contributing to the sustained growth of the fatty alcohols market. Thus, emerging applications in the pharmaceutical industry are propelling the market's growth.
Additionally, Fatty alcohols, such as glycerol monostearate (GMS) and sorbitan esters, act as emulsifiers and stabilizers in food and beverage formulations. They help to create stable emulsions, prevent separation of ingredients, and improve the texture and mouthfeel of products such as dairy, bakery, confectionery, and processed foods. Fatty alcohols contribute to the texture and consistency of food products, especially in applications where smoothness, creaminess, or viscosity are desired. They are used in ice creams, margarines, spreads, and sauces to enhance their sensory properties and consumer appeal. Therefore, expansion of the food and beverage industry is driving the growth of the market.
However, Fatty alcohols are primarily derived from natural sources such as palm, coconut, and other vegetable oils. These sources are subject to price fluctuations due to various factors, including weather conditions, agricultural yields, geopolitical stability, and supply chain disruptions. Adverse weather conditions can drastically reduce crop yields, leading to supply shortages and increased prices for these raw materials. Any disruptions in transportation networks can lead to delays and increased costs, further contributing to price volatility. Thus, raw material price volatility is hampering the growth of the market.
Fatty alcohols possess lubricating properties that make them suitable additives in lubricant formulations. They help reduce friction between moving surfaces, preventing wear and tear and extending the lifespan of machinery and equipment. Fatty alcohols improve the lubricity of oils and greases, enhancing their performance in various industrial applications.
Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia Pacific region attained 40% revenue share in the market in 2023. In terms of volume, 2,076.5 kilo tonnes of fatty alcohols is expected to be utilized by thi9s region in 2031. The Asia-Pacific region is home to some of the world's largest personal care industries, including China, Japan, South Korea, and India. The demand for skincare, haircare, and cosmetic products is fueled by a growing population, increasing urbanization, and changing beauty trends.
Fatty alcohols such as cetyl alcohol, stearyl alcohol, and cetostearyl alcohol possess emollient properties that help moisturize, soften, and condition the skin. Therefore, the personal care segment procured 21% revenue share in the market in 2023. In terms of volume, 1,034.5 kilo tonnes of fatty alcohol is expected to be utilized in personal care by the year 2031. These fatty alcohols form a protective barrier on the skin's surface, preventing moisture loss and improving skin texture. Consumers increasingly prioritize hydration and skin health, so the demand for personal care products containing fatty alcohols has risen.
The pharmaceutical industry's adoption of fatty alcohols for various applications, such as excipients, emulsifiers, and penetration enhancers, leads to an increased demand for these compounds as pharmaceutical companies develop new drug formulations and delivery systems, the need for fatty alcohols as key ingredients grow, driving market demand. As the pharmaceutical sector expands globally and introduces novel therapies and treatments, the demand for fatty alcohols as essential ingredients in pharmaceutical formulations is expected to persist, contributing to the sustained growth of the fatty alcohols market. Thus, emerging applications in the pharmaceutical industry are propelling the market's growth.
Additionally, Fatty alcohols, such as glycerol monostearate (GMS) and sorbitan esters, act as emulsifiers and stabilizers in food and beverage formulations. They help to create stable emulsions, prevent separation of ingredients, and improve the texture and mouthfeel of products such as dairy, bakery, confectionery, and processed foods. Fatty alcohols contribute to the texture and consistency of food products, especially in applications where smoothness, creaminess, or viscosity are desired. They are used in ice creams, margarines, spreads, and sauces to enhance their sensory properties and consumer appeal. Therefore, expansion of the food and beverage industry is driving the growth of the market.
However, Fatty alcohols are primarily derived from natural sources such as palm, coconut, and other vegetable oils. These sources are subject to price fluctuations due to various factors, including weather conditions, agricultural yields, geopolitical stability, and supply chain disruptions. Adverse weather conditions can drastically reduce crop yields, leading to supply shortages and increased prices for these raw materials. Any disruptions in transportation networks can lead to delays and increased costs, further contributing to price volatility. Thus, raw material price volatility is hampering the growth of the market.
Driving and Restraining Factors
Drivers
- Emerging Applications in Pharmaceutical Industry
- Expansion of Food and Beverage Industry
- Expansion of the Cosmetics & Personal Care Industry
Restraints
- Raw Material Price Volatility
- Complexity of Certification Processes
Opportunities
- Growing Demand for Specialty Fatty Alcohols
- Regulatory Support for Sustainable Chemicals
Challenges
- Competition from Synthetic Alternatives
- Health and Safety Considerations
Type Outlook
Based on type, the market is divided into short chain, pure & mid cut, long chain, and higher chain. In 2023, the long chain segment held 51% revenue share in the market. In terms of volume, 2,157.5 kilo tonnes of Long-chain fatty alcohols is expected to be utilized by the year 2031. Long-chain fatty alcohols, typically those with carbon chain lengths of C16 and above, offer enhanced performance compared to their shorter-chain counterparts. They exhibit superior emollient, moisturizing, and conditioning properties, making them ideal ingredients for personal care products such as creams, lotions, and hair care formulations.
Application Outlook
On the basis of application, the market is segmented into soaps & detergents, personal care, plasticizers, lubricants, pharmaceutical formulation, and amines. In 2023, the lubricants segment acquired 11% revenue share in the fatty alcohols market. In terms of volume, 541.1 kilo tonnes of Fatty alcohols is expected to be utilized in lubricants by the year 2031.Fatty alcohols possess lubricating properties that make them suitable additives in lubricant formulations. They help reduce friction between moving surfaces, preventing wear and tear and extending the lifespan of machinery and equipment. Fatty alcohols improve the lubricity of oils and greases, enhancing their performance in various industrial applications.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia Pacific region attained 40% revenue share in the market in 2023. In terms of volume, 2,076.5 kilo tonnes of fatty alcohols is expected to be utilized by thi9s region in 2031. The Asia-Pacific region is home to some of the world's largest personal care industries, including China, Japan, South Korea, and India. The demand for skincare, haircare, and cosmetic products is fueled by a growing population, increasing urbanization, and changing beauty trends.
List of Key Companies Profiled
- Wilmar International Limited
- Kao Corporation
- Kuala Lumpur Kepong Berhad (Davos Life Science)
- Arkema S.A.
- The Procter & Gamble Company
- Sasol Limited
- Emery Oleochemicals LLC
- BASF SE
- Univar Solutions, Inc.
- Saudi Basic Industries Corporation (SABIC)
Market Report Segmentation
By Type (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Long Chain
- Pure & Mid Cut
- Short Chain
- Higher Chain
By Application (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Soaps & Detergents
- Personal Care
- Plasticizers
- Lubricants
- Pharmaceutical Formulation
- Amines
- Other Applications
By Geography (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Global Fatty Alcohols Market by Type
Chapter 5. Global Fatty Alcohols Market by Application
Chapter 6. Global Fatty Alcohols Market by Region
Chapter 7. Company Profiles
Companies Mentioned
Some of the key companies in the Fatty Alcohols Market include:- Wilmar International Limited
- Kao Corporation
- Kuala Lumpur Kepong Berhad (Davos Life Science)
- Arkema S.A.
- The Procter & Gamble Company
- Sasol Limited
- Emery Oleochemicals LLC
- BASF SE
- Univar Solutions, Inc.
- Saudi Basic Industries Corporation (SABIC)
Methodology
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