Oleochemicals: The Eco-Friendly Alternative for Petrochemicals

Key Takeaways

• Introduction
• Role of oleochemicals in the beauty and personal care
•  Shifting consumer preferences that are transforming the industry
• Strategic decisions by top entities

The production of bio-based, sustainable chemicals has increased as consumers are becoming more aware of the environmental and cost benefits associated with oleochemicals. Manufacturers are seeking oleochemicals as a sustainable and renewable option in the chemical sourcing sector. Bio-based chemical manufacturing plays an important role in industries that prioritize both functionality and sustainability. The need for sustainable sourcing is increasing with the surging global population. As the shift toward eco-friendly products has gained momentum, the demand for oleochemicals is anticipated to grow significantly.

This surge in demand for oleochemicals in industrial applications, which are utilized to manufacture plasticizers, lubricants, and surfactants, has developed the oleochemical market revenue among different industries. A report published by Allied Market Research states that the industry is predicted to register an impressive CAGR of 6.5% by 2032. Oleochemicals are key ingredients in surfactants used in agricultural chemicals, detergents, and personal care products, providing safer and biodegradable alternatives to petrochemicals. This rise in preference for sustainable surfactants has contributed to the growth of the industry.

Importance of oleochemicals in the personal care and beauty industry

Oleochemicals are integrated into personal care products like skincare and hair care essentials. They have gained momentum since they are free from allergens and merely contain carcinogens. Glycerin or glycerol is extracted from vegetable fats and is primarily utilized for offering moisturizing properties.

On the other hand, the cosmetic sector depends on oleochemicals to formulate safe products for users. Polyhexanide, a type of oleochemical, antibacterial chemical, and aqua-based preservative, is widely utilized in makeup products. Another popular oleochemical is Octyl stearate which is used in eyeshadows and lipstick. 

Changing consumer shift influencing the oleochemicals industry

The rise in environmental awareness among customers has led to a notable surge in the demand for sustainable products. Consequently, there is an upsurge in the oleochemical popularity due to their eco-friendly credentials. In addition, oleochemicals play a key role in sustainable lubricants, which are becoming popular for their potential to disintegrate naturally and have a lower impact on the ecosystem. Also, biobased lubricants are more sustainable than traditional petroleum-based products as they are derived from renewable resources. 

Oleochemicals are also an essential part of biofuels manufacturing. One of the latest advancements in this section is the reuse of waste cooking oil to make biodiesel. This innovation provides a sustainable fuel source and lowers the environmental effects. Moreover, these bio-based chemicals are being utilized in the manufacturing of biogas and bioethanol. 

There is a rising need for oleochemicals as natural and sustainable substitutes for chemical components due to a shift toward organic personal care products. Furthermore, they are known for their emollient and moisturizing properties in comparison with other petrochemical-based alternatives.

In green chemistry, plant-based chemicals are gaining significance and replacing petrochemicals with vegetable oil. This oil has a lower ecological footprint than petrochemicals, which has resulted in new oleochemical products like biodegradable surfactants and plastics. 

Oleon acquired the Brazilian oleochemicals company in October 2024

A global leader in organic oleochemicals and a subsidiary of Avril, Oleon, acquired major stakes in a leading oleochemical company in Brazil, A. Azevedo Óleos. This acquisition has strengthened Oleon’s presence in the evolving South American industry and supported its goal of sustainable growth. Oleon has improved its ability to cater to its global customers by combining A. Azevedo Óleos with its global network.

Emery Oleochemicals inaugurated a green polymer additives lab

Another leading manufacturer of specialty chemicals, Emery Oleochemicals, expanded its product development abilities with the inauguration of its advanced application laboratory in Thailand. This latest facility is situated at the PTT technology and innovation center, developed in collaboration with PTT Global Chemical Public Company Limited, a major stakeholder and one of the largest refining and petrochemical companies. The lab is anticipated to supply renewable and innovative polymer additive solutions among multiple industries, comprising toys and sports equipment, packaging, electronics, building and construction, and automotive.

Final words

Summing up, the increasing preference for sustainable, eco-friendly products across various industries is fueling the demand for oleochemicals due to their non-toxic, biodegradable, and renewable nature.  These versatile applications of oleochemicals in personal care, industrial lubricants, and biofuels highlight their importance in the green chemistry sector.  With increasing consumer awareness and environmental concern, oleochemicals are estimated to replace petrochemicals, thereby sustaining innovation and growth.

For more details about investment opportunities in the oleochemicals market, reach out to our experts today!

Related Post