Natural Fatty Acid Industry to Reach $25.7 billion in 2019; Usage of Biodegradable Raw Materials on the Rise

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According to the new report from BCC Research, the global market for natural fatty acids reached nearly $17.1 billion and $18.3 billion in 2013 and 2014, respectively. This market is expected to grow at a compound annual growth rate (CAGR) of 7.1% to $25.7 billion for the period 2014-2019.

Fatty Acids
The global market for natural fatty acids is expected to grow at a compound annual growth rate (CAGR) of 7.1% to $25.7 billion for the period 2014-2019.

BCC Research (http://www.bccresearch.com) reveals in its new report on natural fatty acids, the industry has been a workhorse in the chemical industry for a number of years, but it is a shining star today, fueled by the green chemistry agenda. The reason is that the raw material consumed to produce the oleochemicals is mainly based on material that is renewable, sustainable and readily biodegradable.

The global market for natural fatty acids sourced from vegetable oils, animal fats and sulfate Kraft crude tall oil was worth about $17.1 billion in 2013. This is projected to reach more than $25.7 billion in 2019, growing at a compound annual growth rate (CAGR) of 7.1% over the five-year period from 2014 through 2019.

An important part of the profitability of the fatty acid industry is the outlets for the byproduct glycerin that is automatically generated when either fats or oils are hydrolyzed. The amount generated varies depending on the starting material, with the harder oils generating more glycerin than the majority of animal fats or softer oils.

While a global business, fatty acids have a high regional tendency due to the fact that moving fatty acids a long distance is expensive as acids are prone to air oxidation, color reversion, odor reversion, metal pick-up and partial crystallization. Factors that play a role in the selection of raw material for oleochemicals are availability, fatty acid composition, quality and price.

“The recent economic and financial weakness in Europe and North America has influenced the oleochemicals sector, but nevertheless, the sector is still growing,” says BCC Research analyst Andrew McWilliams. “An important reason for this development is the growing interest in renewables, green chemistry and sustainability in the entire world. These trends create new opportunities, especially in applications that were traditionally the area of the petrochemical-based industry, like in the production of plastics, plastic additives and packaging.”

Global Markets for Oleochemical Fatty Acids looks at the basic oleochemical business of fatty acids based on fats and oils and touches upon the impact of the biodiesel industry on the market. It presents historical demand data for 2013, estimates for 2014 and projections for 2019.

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming(at)bccresearch(dot)com.

About BCC Research
BCC Research publishes market research reports that make organizations worldwide more profitable with intelligence that drives smart business decisions. These reports cover today's major industrial and technology sectors, including emerging markets. For more than 40 years we've helped customers identify new market opportunities with accurate and reliable data and insight, including market sizing, forecasting, industry overviews, and identification of significant trends and key market participants. We partner with analysts who are experts in specific areas of industry and technology, providing unbiased measurements and assessments of global markets. Recently selected as the world’s greatest market research company, BCC Research is a unit of Eli Global, LLC. Visit our website at http://www.bccresearch.com. Contact us: (+1) 781-489-7301 (U.S. Eastern Time), or email information(at)bccresearch(dot)com.

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BCC Research
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