PUBLISHER: IMARC | PRODUCT CODE: 1753949
PUBLISHER: IMARC | PRODUCT CODE: 1753949
The global crude tall oil derivative market size reached USD 2.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.0 Billion by 2033, exhibiting a growth rate (CAGR) of 3.62% during 2025-2033. Increased usage of chemical intermediates is primarily driving the market.
Growing Use of Renewable Raw Materials
The increasing focus on sustainability is leading to a higher demand for renewable raw materials in various industries, including chemicals, adhesives, and lubricants. Crude tall oil derivatives, extracted from renewable sources, are becoming preferred alternatives to traditional petrochemicals, which is escalating the crude tall oil derivative market demand. For example, in February 2024, Kraton Corporation launched SYLVASOLV biobased oils derived from crude tall oil, enhancing sustainability and performance in adhesives and lubricants.
Increasing Adoption in Biofuel Production
Crude tall oil derivatives are becoming a key component in biodiesel production with the global push towards reducing carbon emissions and increasing adoption of biofuels. This trend is particularly strong in regions with stringent environmental regulations, where there is a significant drive to replace fossil fuels with renewable energy sources. For instance, in May 2024, the EU amended its rule to include crude tall oil as a feedstock for advanced biofuels, helping to increase the use of renewable energy and support sustainability goals. This is positively impacting the crude tall oil derivative market forecast report.
Global Benchmarking of Crude Derivatives
As global markets evolve, there is a growing trend towards benchmarking various crude derivatives, including crude tall oil derivatives, owing to recognized environmental standards. This shift is primarily driven by the need for consistency and transparency in pricing, which is essential for fostering trust and facilitating trade on an international scale. For instance, in March 2024, Bloomberg launched the Commodity Murban Crude Oil Index, signaling a growing trend in global benchmarking that could influence pricing strategies for crude tall oil derivatives.
Tall oil fatty acid dominates the crude tall oil derivative market share
Tall oil fatty acid dominates the market due to its widespread use in producing soaps, detergents, and emulsifiers. Leading companies are developing TOFA-derived surfactants, emulsifiers, and additives designed for enhanced performance in industrial applications.
Fuel and fuel additives acid dominates the crude tall oil derivative market
Fuel and fuel additives acid leads the market because of their significant use in improving fuel performance and lowering emissions. It is a key component in producing biodiesel, which is increasingly in demand. This is positively influencing the crude tall oil derivative market outlook.
Crude tall oil derivatives find applications across automotive, construction, specialty chemicals, petrochemicals, oil and gas, and other industries due to their versatility in enhancing product performance, sustainability, and efficiency, driving demand in these diverse sectors.
North America dominates the market
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
According to the crude tall oil derivative market outlook report, North America dominates the market due to its well-established pulp and paper industry, which produces significant amounts of crude tall oil. In addition to this, the region's advanced refining capabilities and high demand across industries, such as adhesives, biofuels, and lubricants, reinforce its leading position. For instance, in February 2024, Aramco started trading a U.S. crude oil grade that underpins the global Brent benchmark in a process run by oil-index publisher S&P Global Commodity Insights.