The Fatty Alcohol Market is projected to register a CAGR of 6% during the forecast period (2021-2026).
Currently, due to the COVID-19 pandemic, the cosmetic and personal care industry is negatively impacted in both the process of supply chain and value chain. Due to the lockdown, the import-export channels between the countries were closed, due to which, the supply of cosmetic ingredients were closed, and thus, it has negatively impacted the production side of cosmetic products. Such factors have highly impacted the market of cosmetic ingredients and thus tends to constrain the growth of fatty alcohol.
- In short term, one of the major factors driving the market studied the growing surfactants industry in the Asia-Pacific region.
- However, high volatility in raw material price, likely to constrain the growth of the fatty alcohol market.
- Asia-Pacific dominated the market across the world with the largest consumption from countries, such as China and India.
Key Market Trends
Growing Demand for Surfactants
- Fatty alcohols are among the most used ingredients in surfactant formulations. Surfactants are used in a variety of personal care products, such as shampoo, conditioner, shower gel, antiperspirant, and lipsticks as emollients and thickeners, owing to their amphipathic and non-ionic surfactant nature.
- Additionally, they are used in skincare products as a solvent, emulsifier, antiseptic, buffer, and penetration enhancer (improves delivery of an ingredient into the skin).
- The global market for personal care products is expected to witness substantial growth over the coming years, owing to the growing disposable income of consumers and awareness of consumers for natural as well as organic products, thus enabling them to spend on luxury personal care products. Constant innovations and improvisations in products have also led to the demand for multifunctional and cosmeceutical products.
- Hence, owing to the above-mentioned factors, the application of fatty alcohol in beauty and personal care products is likely to dominate during the forecast period.
- However, during the COVID-19 pandemic, the rising awareness regarding personal hygiene have somehow created a balanced growth even during the pandemic, the shutdown of manufacturing facilities have negatively impacted production. The demand for personal care products was higher during the pandemic, but due to retail closure, the demand was not able to get fulfilled, which was also reducing its demand, and thus constraining the growth of the market over the short term.
Asia-Pacific Region to Dominate the Market
- Increasing demand for surfactants in the manufacturing of personal care products in major economies, such as China, India, and Japan is estimated to boost the market studied during the forecast period.
- The growing consciousness toward maintaining an individual's appearance and a considerable increase in disposable incomes are the factors majorly driving the cosmetics products market in the Asia-Pacific region, which, in turn, increases the demand for fatty alcohol in this region.
- Rising consumer expenditure on green products and increasing awareness regarding the harmful effects of chemicals used in cosmetic products have resulted in a rise in the oleochemicals market in the region, especially over the past few years.
- Asia-Pacific is the largest oil and fat producer and raw material base for oleochemicals globally, followed by Europe. Thus, Asia-Pacific as a consumer has better control of the production and distribution of oleochemicals.
- Owing to the above-mentioned factors, the market for fatty alcohol in the region is projected to grow significantly during the study period.
- However, toxicity, biodegradability, eutrophication, and lifecycle analysis are only a few of the key concerns addressed by environmental problems. The extent of the environmental impact generated by the use of surfactants' different goods, such as detergents, is one of the industry's greatest challenges. This is expected to stifle industry expansion. Besides, for the short term, the COVID-19 pandemic has become the reason, constraining the growth of the market, as the production facility was shut down, and the production was almost negligible.
The fatty alcohol acid market is partially fragmented in nature with only a few major players dominating the market. Some of the major companies are SASOL, Air Liquide, Emery Oleochemicals, Croda International Plc, and Arkema SA, among others.
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