Castor Oil Derivatives Market

Castor Oil Derivatives Market Overview

The global castor oil derivatives market was worth US$ 1,220.4 Million in 2021 and is expected to be worth US$ 1,630.7 Million by 2032, growing at a CAGR of 3% over the forecast period.

Castor oil and its derivatives are multifunctional chemicals that are widely used in the production of paints, lubricants, coatings, cosmetics, pharmaceuticals, and other goods. These derivatives are gaining popularity due to their superior chemical properties. Leading ingredient manufacturers are introducing castor oil-based ingredients to capitalize on opportunities in the green chemicals market.

For example, BASF SE launched Lamesoft Balance, a hydrogenated castor oil-based product to stabilize ingredients in hair and skin cleansing formulations, in August 2020. It aids in the provision of homogeneous rheology in cleansing formulations, which is often difficult to achieve. Such activities are fueling the growth of the castor oil derivatives market.

Which are Some Prominent Drivers Spearheading Castor Oil Derivatives Market Growth?

 Growth in major end-use industries (including lubricants, cosmetics, and pharmaceuticals) and rising demand for sustainable and biodegradable products as a result of reduced reliance on petrochemicals are expected to drive demand for castor oil derivatives. The global castor oil derivatives market is also expected to be driven by regulatory support and rising prices of alternative renewable chemicals.

Castor oil and its derivatives have significant advantages over other vegetable oils due to their unique fatty acid structure. Cotton, coconut, soy, corn, and rapeseed oil applications are mostly limited to edible purposes.

In terms of physicochemical properties, castor oil derivatives are renewable, natural, and versatile. As a result, these products are preferred as a key raw material in a variety of applications, including lubricants, oleo-chemicals, medical, cosmetics, pharmaceuticals, and bio-energy. Because of the growing importance of green chemicals around the world, the market is expected to grow steadily in the coming years.

What are the Challenges Faced by the Castor Oil Derivatives Industry?

Factors influencing its manufacturing cost include raw material availability, weather uncertainties, a lack of working capital, extraction techniques and methods, and the availability of substitute oil, all of which are causing restraints in the castor oil derivative market.

Why is Asia-Pacific Emerging as an Opportunistic Castor Oil Derivatives Market?

In 2021, Asia Pacific accounted for a sizable share of the market. In terms of value, the region is also expected to have the fastest CAGR of 5.4%. With a capacity of more than 211 kilo tonnes, China is the global leader in the production and export of sebacic acid.

 India has become a producer and exporter of castor oil and castor oil derivatives such as 12-hydroxy stearic acid, castor wax, dehydrated castor oil, and undecylenic acid as a result of the abundance of castor seeds. India's top export destinations are China, the United States, and the European Union. According to The Solvent Extractors Association of India, China accounts for approximately 41 percent of India's castor oil exports.

Nikhil Kaitwade

Principal Consultant

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How is Europe Contributing to Growth of the Castor Oil Derivatives Market?

Europe is likely to be the second-largest consumer of castor oil derivatives. In the near future, the market is expected to grow due to increased adoption and favorable government regulations regarding the use of bio-based chemicals.

The European Commission launched a "Green Deal" in 2019 to make Europe carbon-neutral by 2050. This agreement is supported by policy reforms and the adoption of green technologies by European chemical industries. As a result, both manufacturers and consumers in Europe are shifting their preference for bio-based chemicals. As a result, such government initiatives are expected to drive demand for these oil derivatives in Europe in the near future.

Market Competition

Some of the key participants present in the global chloromethane market include

• Hengshui Jinghua Chemical Co., Ltd. (China)
• N.K. Proteins Pvt. Ltd. (India)
• Thai Castor Oil Industries Co. Ltd. (Thailand)
• Sebacic India Pvt. Ltd. (India)
• HOKOKU Co. Ltd. (Japan)
• Adani Wilmar Ltd. (India)
• Gokul Agri International Ltd. (India)
• RPK Agrotech (India)
• Arvalli Castor Derivatives Pvt Ltd. (India)
• Krishna Antioxidants Pvt. Ltd. (India)

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Scope Of Report

Key Segments Covered in the Castor Oil Derivatives Market Study

Product Type:

• Undecylenic Acid
• Sebacic Acid
• Castor Wax
• Dehydrated Castor Oil
• Others

Application:

• Lubricants
• Cosmetics & Pharmaceuticals
• Biodiesel
• Plastics & Resins
• Others

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East & Africa