Global sales of Oleic Acids stood at USD 605.6 million in 2023. The industry is further projected to exhibit a y-o-y growth of 5.4% in 2024 and reach USD 638.5 million in the same year. Surging at a CAGR of 5.8% between 2024 and 2034, demand for the compound is estimated to reach USD 1,126.3 million by 2034.
Among various source of oleic acids, plant based are set to be extensively used across several industries, including food and beverages, pharmaceuticals, cosmetics and personal care, etc. As of 2024, these products hold a prominent share of about 84% in terms of volume.
Plant based source are projected to command a significant share in terms of consumption owing to versatile chemical properties, high compatibility, and chemical stability. Demand for plant based source is anticipated to rise and the compound is projected to witness a promising CAGR of 4.7% over the assessment period.
| Attributes | Description |
|---|---|
| Estimated Global Oleic Acid Size (2024E) | USD 638.5 million |
| Projected Global Oleic Acid Market Value (2034F) | USD 1,126.3 million |
| Value-based CAGR (2024 to 2034) | 5.8% |
By 2034, demand for oleic acids is expected to increase by 1.8 times from the current value. Consumption of the compound is predicted to growth global in tandem with industrial expansion. This surge in demand is driven by their flexibility and efficiency in enhancing product performance across sectors such as cosmetics, food processing, lubricants, and pharmaceuticals.
As of 2024, the food & beverages and pharmaceutical industries are expected to generate more than 78% of the total demand. However, collective demand from other industries is projected to rise at a CAGR of 4.4% during the projected period.
Oleic acids, categorized as food grade, are essential in the food industry due to their role as a fatty acid in various food products. They are commonly used as emulsifiers, stabilizers, and flavor enhancers. In food processing, oleic acids contribute to the texture and stability of products such as margarine, dressings, and spreads. Their ability to improve mouthfeel and prolong shelf life makes them valuable in the preparation of packaged foods.
The food grade segment of oleic acids is an important provider to the overall demand, driven by the constant enlargement of the food and beverages industry. As customer preferences progress towards improved and more functional food products, the demand for high-quality components like oleic acids is expected to increase. The growing trend of natural and clean-label products further boosts the need for food-grade oleic acids, which are perceived as safe and valuable for consumption.
In the pharmaceutical industry, oleic acids are used in several applications, including drug formulation and delivery systems. They serve as solvents, carriers, and emulsifiers in the production of medications. Oleic acids are crucial in creating liposomal formulations, which enhance the bioavailability of drugs and improve their therapeutic efficacy.
The pharmaceutical grade segment of oleic acids is undergoing robust growth, driven by improvements in drug delivery technologies and an increasing emphasis on innovative pharmaceutical formulations. The demand for pharmaceutical-grade oleic acids is closely tied to the expansion of the pharmaceutical sector and the continuous development of new drug formulations.
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The annual growth rates of the global oleic acid market from 2024 to 2034 are illustrated below in the table. Starting with the base year 2023 and going up to the present year 2024, the report exOleic acidd how the industry growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2). This gives stakeholders a comprehensive picture of the sector’s performance over time and insights into potential future developments.
The figures provided show the growth of the sector for each half-year between 2023 and 2024. The market was projected to increase at a CAGR of 4.9% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable increase in the growth rate.
| Particulars | Value CAGR |
|---|---|
| H1 | 4.9% (2023 to 2033) |
| H2 | 6.7% (2023 to 2033) |
| H1 | 4.7% (2024 to 2034) |
| H2 | 6.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly decrease to 4.7% in the first half and relatively increase to 6.9% in the second half. In the first half (H1), the sector saw a decrease of 10 BPS while in the second half (H2), there was a slight increase of 10 BPS.
Expanding Food and Beverage Industry Enhances the Use of Food-Grade Oleic Acid
The food and beverage industry has experienced major growth, driven by evolving consumer preferences for healthier and more natural products. As consumers become increasingly health-conscious, there is a growing demand for ingredients that align with these preferences. Oleic acid, particularly in its food-grade form, has emerged as a key component in this trend, finding applications across various segments of the food industry.
Oleic acid is a monounsaturated fatty acid commonly found in vegetable oils, such as olive oil, and is recognized for its health benefits, including its potential to reduce bad cholesterol levels and improve heart health. Food manufacturers are increasingly incorporating food-grade oleic acid into their products to meet consumer demand for healthier options.
This includes its use in the formulation of cooking oils, margarine, salad dressings, and various processed foods. The versatility of oleic acid in enhancing flavor, texture, and nutritional profiles of food products makes it a valuable ingredient in the food and beverage sector.
The growing demand for healthier food products has led to a prominent increase in the consumption of food-grade oleic acid. This trend is expected to continue as more consumers prioritize health and wellness, leading to sustained growth in the oleic acid. The increased usage of oleic acid in various food applications has also driven invention and product development in the industry, with companies investing in the production of high-oleic oils and oleic acid-rich ingredients to meet consumer demand.
In January 2023, Cargill announced a significant investment in its high-oleic canola oil production facilities in North America. This expansion is aimed at meeting the rising demand for healthier cooking oils, particularly those rich in oleic acid, as consumers shift towards products that offer better health benefits without compromising on taste or functionality.
Increasing Consumer Preference for Natural Ingredients in Cosmetics and Personal Care Products Boosts Demand for Oleic Acid
The global cosmetics and personal care industry is witnessing a significant shift toward natural and organic ingredient, driven by rising consumer awareness of health, wellness, and sustainability. Derived from plant-based sources such as olive oil, sunflower oil, and animal fats, has become increasingly popular as a key component in cosmetics and personal care products. This trend is bolstered by the growing consumer demand for products that are not only effective but also safe, environmentally friendly, and ethically produced.
Oleic acid is known for its excellent emollient properties, which make it an ideal component in moisturizers, creams, lotions, and other skincare products. It helps maintain the skin's natural barrier, preventing moisture loss and enhancing skin hydration.
Additionally, its anti-inflammatory and antioxidant properties contribute to its popularity in formulations designed for sensitive or aging skin. The increasing consumer preference for natural ingredients in cosmetics is driving manufacturers to incorporate oleic acid into a broader range of products, from high-end luxury brands to mass-market items.
The shift toward natural ingredients is further supported by regulatory trends favoring the use of safe, non-toxic components in personal care products. Governments and regulatory bodies worldwide are increasingly scrutinizing the use of synthetic chemicals in cosmetics, pushing companies to reformulate their products with natural alternatives like oleic acid.
For instance, Croda international, a leading specialty chemical company, announced in 2023 its plans to expand its production of plant-based oleic acid. This expansion aims to cater to the increasing demand from the cosmetics and personal care industry, particularly in Europe and North America.
The Availability of Substitutes, Such as Other Fatty Acids or Synthetic Alternatives, Presents Competition and Challenges the Market Share of Oleic Acid Products.
Several factors, such as cost-effectiveness, functionality, and sustainability considerations, drive the adoption of alternatives over oleic acid, intensifying the competition.
One of the primary substitutes for oleic acid is other naturally occurring fatty acids, such as linoleic acid and stearic acid. These alternatives are widely available and often offer similar properties, such as moisturizing and emollient effects in personal care products or stabilization and emulsification in food applications. In some cases, these fatty acids may be preferred due to their specific functionalities that better align with the end-use requirements, leading to a reduction in the demand for oleic acid.
Rise of synthetic alternatives, particularly in industrial applications, has created additional competitive pressures. Synthetic fatty acids and esters can be engineered to meet precise specifications and often offer enhanced performance characteristics, such as improved stability, longer shelf life, and higher purity levels.
Cost considerations also play a crucial role in the preference for substitutes. The production costs of oleic acid can fluctuate due to factors such as raw material availability and agricultural conditions.
Manufacturers are Increasingly Focusing on Sustainable Sourcing of Oleic Acid from Plant-Based Materials, Reducing Environmental Impact
The shift towards sustainability has become a significant trend in the global oleic acid, with manufacturers increasingly focusing on the sustainable sourcing of oleic acid from plant-based materials. This trend is driven by growing consumer awareness and demand for environmentally friendly products, coupled with stringent regulations on the use of animal-based raw materials and the environmental impact of industrial processes.
Plant-based oleic acid, derived from sources such as olive oil, sunflower oil, and palm oil, has become a preferred choice due to its renewable nature and lower environmental footprint. Unlike animal-based oleic acid, which involves ethical concerns and higher greenhouse gas emissions, plant-based alternatives offer a more sustainable option that aligns with the global push towards reducing carbon footprints and promoting green chemistry.
Manufacturers are investing in research and development to optimize the extraction and production processes of plant-based oleic acid. Innovations in biotechnology and sustainable agriculture practices are being leveraged to enhance the yield and quality of oleic acid from plant sources.
Principal Consultant
The global market witnessed a CAGR of 2.7% between 2019 and 2023. Total industry revenue reached about USD 605.6 million in 2023. During the forecast period, global sales are projected to fetch a CAGR of 5.8%.
During the historical period, the global oleic acid sector experienced notable fluctuations driven by various economic and geopolitical factors. Trade disputes, currency volatility, and geopolitical tensions created instability in the industry, impacting the supply and demand dynamics of oleic acid. The COVID-19 pandemic exacerbated these challenges by disrupting global supply chains and industrial operations, leading to a temporary downturn in the business.
The pandemic's impact was particularly pronounced in the early stages, causing delays in raw material procurement and manufacturing processes. However, the pandemic also underscored the importance of oleic acid in healthcare products, disinfectants, and pharmaceuticals. This led to a surge in demand for oleic acid in specific segments, partially offsetting the broader industry downturn.
Looking ahead, the global oleic acid industry is set to experience robust growth driven by several key factors. Industrial activities in emerging economies such as India, China, and Brazil are expected to expand significantly, fueling demand for oleic acid. The ongoing post-COVID recovery across various sectors is anticipated to further boost industry growth.
The sector is likely to benefit from significant plant expansions and increased online presence of major players. These developments are expected to enhance production capacities and distribution networks, contributing to accelerated industry growth. Additionally, the growing application of oleic acid in diverse sectors including personal care, food and beverages, and pharmaceuticals will support the industry's upward trajectory.
Tier 1 companies include industry leaders with annual revenues exceeding USD 1,000 - USD 1,200 million. These companies are currently capturing a significant share of 50-55% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include: BASF SE, Eastman Chemical Company, Wilmar International Limited, IOL Oleochemicals, and Kao Corporation., and among others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 100 - USD 1,000 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Vantage Specialty Chemicals, Croda International Plc., Emery Oleochemicals, Cargill Incorporated, Kuala Lumpur Kepong Berhad (KLK) , Godrej Industries Ltd., Oleon NV, and Adani Wilmar Ltd.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 50- USD 100 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 includes Tokyo Chemical Industry Co., Ltd. (TCI), Acme-Hardesty Co., PMC Biogenix, Inc., Acme Synthetic Chemicals, Obetech Pacific, Berg+Schmidt GmbH & Co. KG, and many more small and local players.
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The section below covers assessments of oleic acid sales across key countries. Countries from BENELUX and Turkiye are anticipated to exhibit promising double-digit growth over the forecast period.
| Countries | CAGR 2024 to 2034 |
|---|---|
| BENELUX | 6.6% |
| Turkiye | 6.5% |
| Poland | 6.3% |
| Canada | 6.2% |
| India | 6.0% |
The shift towards bio-based chemicals is a critical driver, with industries increasingly prioritizing eco-friendly alternatives to traditional petrochemical products. The BENELUX region's proactive stance on sustainability, supported by stringent environmental regulations and policies, reinforces this trend. Companies are actively seeking to integrate renewable and less harmful substances into their product lines, which aligns with both regulatory expectations and consumer preferences for green products.
The emphasis on sustainable practices across multiple sectors, including personal care, pharmaceuticals, and industrial applications, further accelerates demand for oleic acid. The region's advanced technological infrastructure and research capabilities facilitate innovations in the production and application of oleic acid, enhancing its appeal as a versatile and environmentally responsible ingredient.
The cosmetics industry in Turkey is undergoing a significant expansion, driven by a growing middle class and increased consumer awareness regarding skincare. Oleic acid, renowned for its moisturizing and emulsifying properties, is becoming a preferred ingredient in high-end skincare formulations. This preference is partly attributable to a heightened demand for products that align with natural and organic trends.
The rise in disposable incomes and a cultural shift towards premium, eco-friendly products are catalyzing this market dynamic. Turkish consumers are increasingly seeking skincare solutions that promise purity and efficacy, positioning oleic acid as a critical component in the formulation of organic and hypoallergenic products. Turkish government's support for the beauty and personal care sector through favorable regulations and incentives is contributing to market growth.
The section explains the growth trajectories of the leading segments in the industry. In terms of source, the plant based category will likely dominate and generate a share of around 86.9% in 2024. Based on grade, the food grade segment is projected to hold a share of 42.1% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Food Grade (Grade) |
|---|---|
| Value Share (2024) | 86.9% |
The food grade segment is forecast to experience a decent CAGR of 5.8% from 2024 to 2034. The surging demand is likely to be propelled by increased applications in Food & Beverages, Pharmaceuticals and Cosmetics & Personal Care.
This growth is driven by the increasing demand for oleic acid as a natural and healthy alternative in food products, coupled with its benefits in enhancing flavor and extending shelf life. The rising consumer awareness of health and wellness is also fueling this demand, as food manufacturers seek to incorporate healthier ingredients into their products.
| Segment | Food Grade (Grade) |
|---|---|
| Value Share (2024) | 42.1% |
In the oleic acid market, the food grade segment is projected to hold a significant value share of 42.1% in 2024. This substantial share underscores the importance of oleic acid in the food industry, where it is widely utilized due to its beneficial properties. Oleic acid, a monounsaturated fatty acid, is known for its stability and health benefits, making it a preferred choice in various food applications.
In the food sector, oleic acid is primarily used as an ingredient in cooking oils, margarine, and salad dressings. Its high stability at cooking temperatures and resistance to oxidation enhance the shelf life and quality of these products. Moreover, oleic acid's favorable impact on cardiovascular health by potentially reducing bad cholesterol levels and increasing good cholesterol makes it an attractive component for health-conscious consumers.
The rising demand for healthier food options and the increasing awareness of the benefits associated with monounsaturated fats contribute to the growing prominence of oleic acid in the food industry. Additionally, the trend towards clean-label products and natural ingredients further boosts the demand for food-grade oleic acid, solidifying its significant value share in the market.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the industry.
A few key players in the Oleic acid industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. The sector is likely to become more competitive with the emergence of start-ups through 2034.
Industry Updates
The study includes various sources of oleic acid, such as plant-based and animal-based sources.
The study categorizes grades into food grade, pharmaceutical grade, and technical grade. The food grade segment includes applications in Food & Beverages, Pharmaceuticals, and Cosmetics & Personal Care. The pharmaceutical grade segment encompasses Pharmaceuticals and Cosmetics & Personal Care. The technical grade segment covers Chemical Intermediates, Textiles & Leather, Cosmetics & Personal Care, Automotive, Paints & Coatings, and other applications.
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East and Africa.
The global market was valued at USD 605.6 million in 2023.
The global market is set to reach USD 638.5 million in 2024.
Global demand is anticipated to rise at 5.8% CAGR.
The industry is projected to reach USD 1,126.3 million by 2034.
Plant Based Source products dominate in terms of share.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Source 6.2. Grade 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source 7.1. Plant Based 7.2. Animal Based 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Grade 8.1. Food Grade 8.1.1. Food & Beverages 8.1.2. Pharmaceuticals 8.1.3. Cosmetics & Personal Care 8.2. Pharmaceutical Grade 8.2.1. Pharmaceuticals 8.2.2. Cosmetics & Personal Care 8.3. Technical Grade 8.3.1. Chemical Intermediates 8.3.2. Textiles & Leather 8.3.3. Cosmetics & Personal Care 8.3.4. Automotive 8.3.5. Paints & Coatings 8.3.6. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. South Asia 9.5. East Asia 9.6. Eastern Europe 9.7. Middle East & Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Source and Grade for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Emery Oleochemicals 19.2. BASF SE 19.3. Cargill Incorporated 19.4. Eastman Chemical Company 19.5. Kao Corporation 19.6. Wilmar International Limited 19.7. Obetech Pacific 19.8. Vantage Specialty Chemicals 19.9. Oleon NV 19.10. Croda International Plc 19.11. PMC Biogenix, Inc. 19.12. Acme-Hardesty Co 19.13. Berg+Schmidt GmbH & Co. KG 19.14. Acme Synthetic Chemicals 19.15. Kuala Lumpur Kepong Berhad (KLK) 19.16. IOL Oleochemicals 19.17. Godrej Industries Limited 19.18. Tokyo Chemical Industry Co., Ltd. (TCI) 19.19. Adani Wilmar Ltd 19.20. Other Key Players
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Oleic Acid Market
