Tall Oil Fatty Acid Market Size

Tall Oil Fatty Acid Market Size

Tall Oil Fatty Acid Market size excceded USD 800 million in 2015, and will grow at a CAGR over 4%.
 

Rising product demand as lubricant, viscosity modifier, and corrosion inhibitor in the oilfield industry will boost the global tall oil fatty acid market in coming years. According to U.S. Energy Information Administration, U.S. petroleum production increased from less than 6 million barrels per day in 2011 to over 9 billion barrels per day in 2015 owing to increased consumption from automobiles, aircrafts, as well as industrial activities. Middle East countries including Saudi Arabia, UAE, Kuwait, Iran, Iraq accounted for more than a quarter of the global petroleum production and it will increase several folds in the forecast spell. Growing preference of plant derived chemicals over animal derived products will further enhance the overall market demand in the next few years.
 

Low market penetration and a considerable lack of awareness in the emerging nations of Asia Pacific detergents industry, which accounts for a significant chunk of the global tall oil fatty acid market, may hinder the industry growth in the forecast span. Prevalence of substitute products such as palm oil and coconut oil based fatty acids in the region along with the scarcity of good quality raw materials may have a negative impact on the global market.