by The global crude tall oil market is a multi-billion dollar industry. Crude tall oil is a by-product of the Kraft pulping process that uses pine trees to make paper. It is composed of fatty and resin acids and possesses many favorable characteristics making it suitable for various applications. Crude tall oil acts as a surfactant, dispersant, and emulsion stabilizer and helps in lubrication and wetting. It finds widespread use as an industrial solvent, synthetic rubber additive, concrete additive, drilling fluid, and feedstock for detergents.
The Global Crude Tall Oil Market is estimated to be valued at US$ 1.93 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the crude tall oil are Citec Group Oy Ab, Ingevity Corporation, Georgia-Pacific Chemicals, Forchem Oyj, Kraton Corporation. The industry is concentrated among a few major manufacturers who have significant market share.
The Crude Tall Oil Market Demand is growing due to its expanding applications in diverse end-use industries such as construction, agriculture, automotive, and oilfields. Its use in road construction and asphalt modification has surged considerably. Further, it is widely replacing petroleum-based additives owing to environmental acceptability.
Geographically, Europe dominated the global crude tall oil industry due to high paper production. However, growth in Asia Pacific is expected to be higher during the forecast era on account of growing road construction activities in China and India. Leading manufacturers are focusing on capacity expansion strategies to cater to the growing demand.
Market Key Trends
Sustainability is one of the key trends in the Crude Tall Oil Market. With environmental regulations getting stringent globally, there is increasing adoption of bio-based and green chemicals. The tall oil derivatives reduce the carbon footprint and dependency on petrochemicals. Thus, the inherent sustainable properties of crude tall oil are driving its demand across various application sectors.
Porter’s Analysis
- Threat of new entrants: The established infrastructure and technical expertise required acts as a barrier for new players.
- Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes.
- Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternatives and suppliers.
- Threat of new substitutes: Substitutes like tall oil fatty acids present a moderate threat.
- Competitive rivalry: Intense competition exists among existing players.
Geographical Regions
North America region accounted for highest share in the global crude tall oil market due to most demanding paper and pulp industries in the region. United States is one of the largest consumers of crude tall oil owing to presence of well-established end-use industries. Asia Pacific is expected to witness highest growth during the forecast period owing to rapid growth of end-use industries such as construction, tire, and lubricant manufacturing industries especially in China and India.
According to estimates, Europe is also a prominent regional market for crude tall oil, led by countries such as Germany, Finland, Sweden and Norway. Finland accounts for nearly 12% share of global crude tall oil market due to large number of pulp, paper and chemical manufacturing facilities. Regions such as Latin America and Middle East & Africa are projected to offer lucrative opportunities for market participants over the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
