Over the past few years, there has been an increase in demand for sebacic acid particularly for applications such as textiles, cosmetics, households and others. Increasing demand for textiles has escalated the growth of sebacic acid.
China is the leading producer of sebacic acid and exports around 100,000 metric tons. Owing to this, Asia-Pacific is estimated to be the largest market for Sebacic acid followed by Europe and North America.
Castor oil is one of the most multipurpose plant oils. After plant oils, castor oil is considered to be the most required oil. However, growing concerns pertaining to biofuels specially biodiesel and biopolymer across the globe is pushing castor oil to play a much larger role in the world economy.
Growth of major end-use industries (lubricants, cosmetics and pharmaceuticals) and increasing demand for sustainable products & biodegradable is anticipated to fuel the demand for castor oil derivatives market. Also regulatory support and rising prices of alternative renewable chemicals is expected to drive the global castor oil derivatives market.
However factors such as manufacturing cost is causing restraints for the castor oil derivatives market.
Mitsui Chemicals & SKC Polyurethanes Co. Ltd. (MCNS) a 50:50 joint venture of Japan’s Mitsui Chemicals and South Korea’s SKC will establish a polyurethane system house, MCNS Polyurethanes India Pvt Ltd, in Andhra Pradesh with an initial investment of $ 7.3 million (about Rs 49 crore).
The facility to be located at Nellore district will manufacture polyurethane system products and have a capacity of 13,000 tonnes per annum.
India, the market leader in production and supply of castor seed and castor oil may soon capture a major share in castor derivatives market with companies like Adani Wilmar and Royal Castor Products engaging in second- and third-generation castor seed and castor oil derivatives production and exports.
According to industry experts, high technology cost has been the major reason for India in not capturing a large share of the global derivatives market. In the derivatives segment, there is a huge potential for India and focusing more on marketing also could help India shine in castor derivatives market.
Recent market study has shown that revenue from castor oil and derivatives market could increase in the near future. Sebacic acid and dehydrated castor oil are among the major revenue generators in the global castor oil market. Large-scale adoption of sebacic acid in plasticizers, lubricants, cosmetics is catalysing its growth in the global market.
In the end user application areas, cosmetics, pharmaceuticals, surface coatings, plastics and resin industry are the largest consumers of castor oil whereas the surface coatings industry is the fastest growing end-user for the castor oil.
Asia Pacific is the largest consumer of castor oil and is expected to retain the higher growth rate during the next few years due to strong growth in surface coatings, pharmaceuticals, and cosmetics industry.
The global castor oil and derivatives market is expected to reach USD 2.30 billion by 2024. The market is estimated to witness a high growth owing to increase in demand for biodegradable products and increasing trend to reduce dependence on petrochemicals are expected to foster the market growth.
Asia Pacific dominated the overall market. Growth in end-use markets such as personal care, lubricants, and pharmaceuticals is presumed to fuel the regional demand over the next eight years.
Global undecylenic acid market size was estimated at over 170 kilo tons in 2015 and is likely to exceed 240 kilo tons by 2023, growing at a CAGR of over 4.2%. This market is was worth over USD 310 million in 2015 and is likely to be valued more than USD 520 million by 2023, growing at a CAGR of over 5.8%.
FDA approval for medical applications is likely to favor undecylenic acid market growth over the forecast period. It is also used against candida infection and also relives irritation, itching and burning sensations on skin.
EAI, the parent company of CastorOil.in, had been studying the bioplastics industry for the past few years and in the recent past we had the opportunity to look at the sector, in India and worldwide at close quarters.
Based on these, we have put together an exclusive team to provide strategic and market consulting for the global bioplastics industry.