Fatty Alcohol Market

• Growing Demand for Surfactants

The increasing demand for surfactants in personal care products, conditioners, lipsticks, shower gel, and antiperspirants is recognized to be a salient cause that can grow the market significantly during the forecast period. They are cost-effective and as well as biodegradable in nature, Which is expected to boost the market during the review tenure.

• Increasing Demand for Bio-Based Products

The growing awareness among consumers regarding the benefits of bio-based products owing to the toxicities caused by petrochemical-based substitutes is likely to encourage consumers to adopt natural products that can enhance the significant opportunities for market growth.

November 2023

The chemical corporation Dow, which is located in the United States, introduced three new bio-based and biodegradable personal care components during the in-cosmetics Asia 2023 event with the intention of reshaping the beauty business in accordance with a philosophy of sustainability.

At the "2023 in-cosmetics Asia" event, which was held in Asia-Pacific, Dow presented its revolutionary personal care solutions to attendees. Additionally, the company emphasized the importance of preserving the natural beauty of the environment. The exhibition over three days was held in Bangkok, and it came to a close on November 9th.

EcoSenseTM APP-5000 Formulation Aid, which is an oil-in-water emulsifier, is derived from sugars and fatty alcohol in a natural way.

It satisfies the desire of consumers for natural formulations that have a natural index of one hundred percent in accordance with ISO 16128 and a carbon content of one hundred percent renewable. The product is able to emulsify high oil phase content up to forty percent and is appropriate for use in systems that do not include PEG.

The Global Fatty Alcohol Market Industry is projected to experience robust growth, with estimates indicating a market value of 6.27 USD Billion in 2024 and a potential increase to 9.37 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 3.72% from 2025 to 2035. Such projections highlight the increasing relevance of fatty alcohols across various sectors, driven by rising consumer demand for sustainable and effective products. The market's expansion is likely to be supported by ongoing innovations and the growing emphasis on eco-friendly manufacturing practices, which could further enhance the industry's competitive landscape.

Sustainability trends are reshaping the Global Fatty Alcohol Market Industry as manufacturers increasingly adopt eco-friendly practices. The production of fatty alcohols from renewable resources, such as palm oil and coconut oil, aligns with global sustainability goals. This shift not only meets consumer demand for greener products but also adheres to regulatory frameworks aimed at reducing environmental impact. As a result, companies are investing in sustainable sourcing and production methods, which could enhance their competitive advantage. The emphasis on sustainability is likely to drive market growth, as consumers gravitate towards products that reflect their values, thereby fostering a more responsible industry.

The Global Fatty Alcohol Market Industry experiences a notable surge in demand driven by the personal care sector. Fatty alcohols serve as emollients and emulsifiers in various cosmetics and skincare products. As consumers increasingly prioritize personal grooming and hygiene, the market is projected to reach 6.27 USD Billion in 2024. This growth is indicative of a broader trend where the personal care industry is expected to expand significantly, thereby bolstering the fatty alcohol market. The shift towards natural and organic products further enhances the appeal of fatty alcohols, which are derived from renewable sources, aligning with consumer preferences for sustainable ingredients.

The Global Fatty Alcohol Market Industry is witnessing an expansion in applications across various industrial sectors, including plastics, textiles, and lubricants. Fatty alcohols serve as key intermediates in the production of surfactants and plasticizers, which are essential for enhancing product performance. As industries seek to improve product quality and functionality, the demand for fatty alcohols is likely to increase. This trend is particularly evident in the plastics industry, where fatty alcohols contribute to improved processing and end-product characteristics. The diversification of applications is expected to bolster market growth, reflecting the versatility and importance of fatty alcohols in industrial formulations.

The Global Fatty Alcohol Market Industry is significantly influenced by the increasing utilization of fatty alcohols in detergents and surfactants. These compounds are essential in formulating effective cleaning agents due to their ability to lower surface tension and enhance cleaning efficiency. As urbanization and population growth drive higher demand for household cleaning products, the market is anticipated to expand. The projected growth trajectory indicates a market value of 9.37 USD Billion by 2035, reflecting the essential role of fatty alcohols in this sector. Furthermore, the shift towards biodegradable surfactants aligns with environmental regulations, further propelling market growth.

Technological advancements are playing a pivotal role in the Global Fatty Alcohol Market Industry by enhancing production efficiency and reducing costs. Innovations in catalytic processes and biotechnological methods are enabling manufacturers to produce fatty alcohols more sustainably and economically. These advancements not only improve yield but also minimize waste, aligning with the industry's sustainability goals. As production becomes more efficient, it is expected that the market will witness a compound annual growth rate (CAGR) of 3.72% from 2025 to 2035. This growth is indicative of the industry's adaptability and responsiveness to technological changes, which could further solidify its market position.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific region has the largest share of the market. The market in this region is driven by the growing demand for fatty alcohol in the cosmetics and personal care industry. Asia Pacific is the largest producer of fatty alcohol, and the demand for these products is expected to continue to grow in the future. The region is also home to the largest number of consumers of fatty alcohol.

Figure 3: FATTY ALCOHOL MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The European market is anticipated to grow at the fastest CAGR during the assessment period, gaining the second-largest market share. Due to the severe laws that are now in place prohibiting the use of chemicals in detergents, there will likely be an increase in demand for natural fatty alcohols, which will improve regional commerce.                                    

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Fatty Alcohol industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Fatty Alcohol industry to benefit customers and expand the market sector. Major market players, including Kao Corporation, P & G Chemicals, Sasol Limited, Royal Dutch Shell, Berg+ Schmidt GmbH & Co, and others, are attempting to increase market demand by funding R&D initiatives.

Procter & Gamble (P&G) sells consumer goods including pet food, cleaning supplies, and personal care items. It focuses on a variety of topics, including child care, family care, personal care, grooming, and hair care. Many brands are run by the corporation, including Pampers, Ariel, Tide, Gillette, Pantene, Oral-B, and so on.

Sasol is a chemical and energy company that constructs and runs facilities for the production of liquid fuels, chemicals, and low-carbon power. It is organized into three business units: Chemicals, Energy, and ecoFT. The Chemicals division provides both specialty and commodity chemicals. The Energy division sells petroleum products to customers. The ecoFT section specializes in the development and implementation of Fischer-Tropsch (FT) technology for the production of sustainable fuels and chemicals from green hydrogen and sustainable carbon sources through the Power-to-Liquids (PtL) process.