The global oleochemicals market is estimated at $25.9 billion and is expected to grow in double-digits in the medium term.
With growing demand for environmental friendly alternatives to petrochemicals, several industries such as coatings, surfactants, plasticisers, lubricant additives, cosmetics, soaps, detergents, textiles, plastics and organic pesticides - are looking at oleochemicals.
Oleochemicals producers cater to consumer industries like Galaxy Surfactants that produces surfactants used by end user companies such as Unilever, Colgate, P&G, Dabur, Reckitt Benckiser, and L’Oreal for their personal care and household cleaning products. Another players - Fine Organics caters to plastic, packaging and petrochemical industries as well as food additives (emulsifiers, preservatives) and other end-user markets such as personal care and feed nutrition.
Both the companies are expanding their capacities. Galaxy Surfactants plans to increase its capacity by around 20% by the 2nd quarter of 2019 through a brownfield expansion at a cost of Rs 100 crore. On the other hand, Fine Organics targets to double its capacity in almost 1.5 years’ time and plans to focus on food additives, cosmetics additives, feed nutrition and bakery pre-mixes.
Fine Organics is one of the world’s top six companies making plastic additives and specialty food emulsifier sub-segments, while Galaxy holds around 15% market share in phenoxyethanol – a key preservative in the personal care industry.
Fine Organics sources its raw materials such as a range of vegetable oils domestically, while raw materials derived from palm and palm kernel oil are imported. Galaxy depends on palm oil, palm kernel oil and coconut oil for its feedstocks. It imports lauryl alcohol from Southeast Asia.
Find out about oleochemicals production and market at CMT’s 7th Oleochemicals Outlook on 25-26 September, 2019 in Singapore.
Email Ms. Grace at
grace@cmtsp.com.sg or call +65 6346 9147 for more information on this conference.
