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.
Castor oil and derivatives market has been growing at a good pace over the past few years on account of growing demand for bio-degradable products.
Recent market study has shown that increasing application scope of castor oil and derivatives in major end-use industries including pharmaceuticals, cosmetics & personal care, plastics & resins is expected to drive the castor oil market in future.
Shift in focus towards castor oil and derivatives due to stringent regulation from government boards such as EPA and PNGRB is also likely to create opportunity for market players.
India’s castor oil exports are likely to increase and hit 570,000 tonnes this year due to an increasing demand from America, China and European Union. The rising demand could affect the availability in Indian market due to the shortage of output.
Castor seed for delivery is currently trading at the rate of Rs. 3690/quintal. In the spot market the seed is selling at the rate of Rs. 3565/quintal in Gujarat.
Owing to the rapid growth of biodiesel, lubricants and cosmetics industries, the growth of castor oil and derivatives market is expected to reach $1.81 billion by 2020. A strong shift of volatile crude oil prices towards the substitution of conventional fuels by biofuels has also a positive influence on the growth of castor oil market.
Castor wax industry is expected to reach the highest growth rate of CAGR of 5.8% from 2014 to 2020. Also, the growth of personal care industry, particularly in Asia Pacific and Latin America is expected to increase over the next 6 years.
With India dominating castor production with over 80% of the total global production, it gives rise to a number of constraints and challenges. One of them being the price and supply volatility owing to the entire world depending on one country for supplies.
Thus, one of the ways to overcome the price and supply volatility challenge is to increase the geographical diversity of cultivation.