Global Tall Oil Fatty Acid Market: Snapshot
Tall oil fatty acid is a byproduct obtained from the manufacturing process of paper and pulp. The increasing use of this product in several industries is estimated to stimulate the growth of the market in the next few years. Moreover, the increasing emphasis of players on the development of new and effective products is estimated to act as a major opportunity, which is likely to boost the demand for tall oil fatty acids over the forecast period.
As per the research study by Transparency Market Research, in 2013, the global market for tall oil fatty acids was worth US$ 725.1 mn and is likely to reach a value of US$ 1,050.0 mn by the end of 2022. The market is anticipated to exhibit a strong 4.20% CAGR between 2014 and 2022.
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Expansion of Application Base to Offer Promising Growth Opportunities
The increasing demand for oleic acid in North America is one of the key factors estimated to fuel the growth of the global tall oil fatty acid market throughout the forecast period. The increasing crude oil production in several regions worldwide and the increasing demand for tall oil fatty acids from coatings and soaps and detergents industries are anticipated to accelerate the growth of the overall market in the coming years. Furthermore, the rising number of applications is estimated to contribute towards the development of the market in the near future.
On the flip side, the low rate of penetration of the tall oil fatty acid market in several developing economies, particularly in Asia Pacific is considered to curtail the growth of the global market in the next few years. Nevertheless, the production of biodiesel using the tall oil fatty acid that are based on feedstock is estimated to provide several growth opportunities for the market leaders in the forecast period. In addition to this, the preferential shift of consumers from tallow oil fatty acid to tall oil fatty acid in developed economies is likely to propel the global market in the near future.
Abundance of Raw Materials to Encourage Growth in Europe and North America
Europe and North America are considered as the leading producers of tall oil fatty acids. According to the research study, at present, these two regions account for a share of around 75% of the overall market. The healthy growth of these regions can be attributed to the easy and high availability of raw materials. The increasing demand from the U.S. is estimated to bolster North America market in the near future. In addition to this, the increasing production capacity of paper and pulp industry is expected to accelerate the growth of the tall oil fatty acid market in Europe and North America. Furthermore, the tall oil fatty acid market in Asia Pacific is estimated to witness promising growth over the next few years. The growing contribution in terms of demand from Japan, China, and India is expected to supplement the growth of the Asia Pacific market in the coming years.
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At present, the global market for tall oil fatty acid market is considered to be extremely concentrated in nature. The expected entry of new players is projected to enhance the competitive level of the market and generate lucrative opportunities for the key players in the next few years. Some of the prominent players operating in the tall oil fatty acid market across the globe are Forchem Oy, Harima Chemicals Group, Inc., MeadWestvaco Corporation, Arizona Chemical Company, LLC, and Georgia Pacific LLC.