Tall Oil & Fatty Acid Derivatives Market to Record an Exponential CAGR by 2017 – 2025

Over the last two decades, the pulping process has been producing huge amounts of tall oil as a byproduct. At the same time, there has been an exponential growth in the demand for tall oil and fatty acid derivatives. Tall oil is major derivative and co-product of kraft pulping and is a valuable, renewable and versatile substance; fractions of which are upgraded into a wide range of products all over the world. Pulp and paper mill industries are major suppliers for these products. After distillation, tall oil remains the main derivative while fatty acids are obtained as by products; the latter has an overwhelming number of applications. Fatty acids mainly comprise fats and possess a simple structure with a long hydrocarbonate chain and one or more carboxylic groups. They are also referred to as saturated fatty acids and most of them are obtained from the hydrolysis of hard animal fats, coconut oil and soya bean oil. Tall oil and fatty acid derivatives are also known as TOFA derivatives. Nearly 20% to 30% yield of tall oil and fatty acid is derived from fractional distillation. Tall oil and fatty acid derivatives are the primary varieties of natural fatty acids and are expected to witness significant market growth in terms of value and volume. Tall oil and fatty acid derivatives are rich sources of acids, such as linoleic acid and oleic acid. Demand for tall oil and fatty acid derivatives is expected to surge significantly in the near future owing to its numerous applications in a multitude of end user industries. The demand for kraft pulping process is forecasted to indirectly fuel demand for the tall oil and fatty acid derivative market in the coming future.

The consumption of tall oil and fatty acid derivative products all over the world is increasing, but due to stringent government regulations and rules, there has been a ban on their use in the application of paint and coating in the industrial and commercial sector owing to their harmful and toxic nature.

Market Dynamics

The tall oil and fatty acid derivatives market is expected to grow at a healthy CAGR, in terms of value and volume in the forecast period. The factor expected to drive the market is the increasing demand for tall oil and fatty acid derivatives from end user industries. Among these, industries expected to contribute significantly are paint and coating industries, followed by rubber.

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Geographically, North America and Europe are forecasted to drive demand for the tall oil and fatty acid derivatives market. Small manufacturers rarely opt for tall oil and fatty acid derivatives in industrial applications owing to the fluctuation in their prices. This is anticipated to act as restraint in market growth. Growing demand from paint and coating manufacturers is expected to significantly boost demand for the tall oil and fatty acid derivatives market over the next decade. Burgeoning growth of the market has created an opportunity for manufacturers to enter the tall oil and fatty acid derivatives business. Globally, there is a tremendous opportunity for manufacturers to invest in the tall oil and fatty acid derivative market and capture the market share. Use of tall oil and fatty acid derivatives for PVC stabilizers and lubricants is the current trend of tall oil and fatty acid derivatives market.

Segmentation

The tall oil and fatty acid derivative market can be segmented on the basis of derivatives and application.

On the basis of derivatives, the tall oil & fatty acid derivatives market can be segmented as: Dimers Alkyds PVC Stabilizers Synthetic Lubricants Polyamides Others

On the basis of application, the tall oil & fatty acid derivatives market can be segmented as: Emulsifier Rubber Processing Asphalt Additives Paint & Coating Epoxy Additives Others

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Market Participants

Examples of some key market players of the tall oil & fatty acid derivatives market are: Georgia-Pacific Chemicals LLC UNIVAR Kraton Corporation. Katalizer India Reagens SPA Amfine Chemical Corporation Galata Chemicals

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