Global Castor Oil Derivatives Market Size by Product (Sebacic acid, 12HSA, Ricinoleic Acid, Undecylenic acid, Dehydrated Castor Oil, Hydrogenated Castor oil (Castor wax), and Others) and Application (Lubricants, Surface Coatings, Cosmetics & Pharmaceuticals, Biodiesel, Plastics & Resins, and Others), Regions, Segmentation, and Projection till 2028.
CAGR: 6.2%Current Market Size: USD 1.6 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2021-2028Base Year: 2020
Global Castor Oil Derivatives Market- Market Overview
The global castor oil derivatives market is expected to grow from USD 1.6 Billion in 2020 to USD 2.6 Billion by 2028, at a CAGR of 6.2% during the Projection period 2021-2028. This growth of the castor oil derivatives market is mainly driven by an upsurge in demand and consumption of castor oil derivatives by end-use industries for manufacturing bio-based coatings, plastics, lubricants, hair care, skincare, and medicinal products.
Castor oil is obtained from castor seeds also known as Ricinus communis. Castor seeds comprise more than 50% oil and produce over 140 gallons of castor oil per acre. It is the plant oil with multipurpose usage.
Diverse applications of castor oil are a key trend
Castor oil derivatives have distinctive chemical structure as well as enriching properties which fuel their usage in several industries such as pharmaceuticals, cosmetics, food, plastics & rubber, inks & adhesives, lubricants, electronics & telecommunications, agriculture, paints, and perfumeries. In addition to this, it has anti-inflammatory and antioxidant properties which makes it useful for a number of therapeutic applications. On the other hand, it has a consistent viscosity and does not freeze at lesser temperatures. This property has made castor oil a perfect substitute for synthetic lubricants in commercial manufacturing processes. Further, castor oil derivatives have a number of applications such as food additives & flavorings, cosmetic ingredients, and mold inhibitors.
Market Dynamics
Drivers:
- Rising awareness about castor oil and its derivatives
Rising awareness about numerous advantages of castor oil as well as its derivatives as compared with other traditional oil significantly fueling the growth of the market. This has led to a rising shift from oils derived from cotton, corn, soy, coconut, and rapeseed to castor oil derivatives due to their versatile and natural physicochemical properties. In addition to this, the usage of castor oil derivatives in medicines due to their ability to treat skin disorders, headaches, stools, and inflammatory problems is fueling the growth of the market.
- Increasing usage of castor oil derivatives in production of bio-diesel
Castor oil can be synthesized to produce bio-diesel. The biodiesel obtained from castor oil has a very low cloud as well as pour points which makes it a good substitute in winter conditions. In addition to this, ricinoleic acid is the main fatty acid in castor oil with nearly 80-90% of total fatty acid content. This gives characteristics such as high viscosity, low iodine content, high miscibility, and low freezing point. The aforementioned factors make castor oil derivatives an appropriate raw material to produce biodiesel, fueling the growth of the market.
Restraints:
- Weather uncertainties and availability of substitute oil
Castor oil is derived from the castor plant which predominantly grows in tropical and subtropical regions. For instance, India produces 75% of the castor seeds, followed by China and Brazil. However, weather uncertainties are common in these countries, which may hamper the production of castor seeds, hindering the growth of the global market. In addition, the specific alternatives for castor oil include sunflower oil and soybean oil. The aforementioned factors may hamper the growth of the market to some extent.
Opportunities:
- Favorable government regulations
By Food and Drug Administration (FDA), castor oil is generally recognized as effective and safe for use as a stimulant laxative. In addition to this, there is favorable regulatory support for castor oil derivatives from developed economies of Europe and North America, due to the purpose of reducing environmental hazards associated with petrochemicals and conventional sources.
Challenges:
- Declined production during COVID-19 pandemic
Owing to the unprecedented crisis of COVID-19, a number of countries have employed nationwide lockdowns. However, as they are reopening, safety measures such as social distancing are still being applied. This has caused significant economic downturns across the globe. Due to a slowdown in industrial activities, the production of castor oil derivatives had been hampered. Hence, the emergence of the COVID-19 pandemic has posed challenges such as the halt on manufacturing sites and inadequate feedstock, and manpower to the global castor oil derivatives market.
Segmentation Analysis
The global castor oil derivatives market has been segmented based on product, application, and regions.
By Product
2-hydroxy stearic acid (12-HSA) segment accounted for the largest revenue share of the castor oil derivatives market
- The product segment includes sebacic acid, 12HSA, ricinoleic acid, undecylenic acid, dehydrated castor oil, hydrogenated castor oil (Castor wax), and others. The 12-hydroxy stearic acid (12-HSA) segment led the castor oil derivatives market with a market share of around 26.1 % in 2020. Growth of the segment is mainly attributed to the property of 12-HSA of insolubility in water and negligible solubility in organic solvents. In addition to this, there is significant growth in the consumption of 12-HSA to manufacture acrylic polymers and greases of lithium & calcium, which works as an internal lubricant for plastic molding. In addition, it is being used in aqueous and non-aqueous coatings for equipment, architecture, automotive, and appliances. Such applications further drive growth of the segment.
By Application
The plastics & resins segment to hold the major share of the global Castor oil derivatives Market
- The application segment includes lubricants, surface coatings, cosmetics & pharmaceuticals, biodiesel, plastics & resins, and others. The plastics & resins segment held the largest market share of 32.2% in 2020. Rising preference and demand for biodegradable plastics primarily drive the growth of this segment. Presently, castor oil derivatives have emerged as an efficient raw material for plastics manufacturing as compared with crude oil. However, the biodiesel segment is expected to witness the highest growth rate during the Projection period.
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By Regional Analysis
The regions analyzed for the castor oil derivatives market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The Asia-Pacific region dominated the castor oil derivatives market and held the 59% share of the market revenue in 2020.
- The growth of the Asia-Pacific castor oil derivatives market is mainly driven by a number of factors such as an upsurge in the production and consumption of castor oil derivatives. China is the largest importer of castor oil and derivatives from India and the leading producer of sebacic acid. For instance, according to National Commodity and Derivatives Exchange Limited (NCDEX), an Indian online commodity and derivative exchange based in India, India exports a majority of the castor oil and derivatives to the international market with about 70% castor oil share in international trade.
- The European region is likely to register significant growth during the Projection period. The growth of the market in this region is attributed to the growing adoption of castor oil derivatives and favorable government regulations associated with the usage of bio-based chemicals.
Key Industry Players Analysis
Leading players are focusing on sustainable feedstock to meet the growing demand
The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global castor oil derivatives industry.
For instance, in June 2020, Rioconn Interactive, creative communications, and digital marketing agency have won the contract for a digital mandate for N.K. Proteins Pvt. Ltd., one of the leading market players. The mandate comprises working on digital marketing strategies, overall social media, and influencer outreach requirements of all sub-brands.
In May 2016, Adani Wilmar Ltd, a joint venture between Wilmar International Ltd. and Adani Enterprises Ltd (AEL), collaborated to join hands with Ruchi Soya to create one of India’s leading consumer goods companies.
- Hengshui Jinghua Chemical Co., Ltd.
- K. Proteins Pvt. Ltd.
- HOKOKU Co. Ltd.
- Adani Wilmar Ltd.
- Gokul Agri International Ltd.
- RPK Agrotech
- Thai Castor Oil Industries Co. Ltd.
- Sebacic India Pvt. Ltd.
- Arvalli Castor Derivatives Pvt Ltd.
- Krishna Antioxidants Pvt. Ltd.
Latest Development
August 2021- One of the leading market players namely Adani Wilmar, filed draft papers with Sebi which a top market regulator to launch its initial public offer (IPO) for funding its expansion by raising up to Rs 45,000 million.
Report Metrics
|
Report Attribute |
Details |
|
Projection period |
2021-2028 |
|
Base year considered |
2020 |
|
CAGR (%) |
6.2% |
|
Market Size |
1.6 Billion in 2020 |
|
Projection unit |
Value (USD) |
|
Segments covered |
Product, Application, and Regions |
|
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
|
Companies covered |
Hengshui Jinghua Chemical Co., Ltd., N.K. Proteins Pvt. Ltd., HOKOKU Co. Ltd., Adani Wilmar Ltd., Gokul Agri International Ltd., RPK Agrotech, Thai Castor Oil Industries Co. Ltd., Sebacic India Pvt. Ltd., Arvalli Castor Derivatives Pvt Ltd., and Krishna Antioxidants Pvt. Ltd among others. |
|
By Product |
|
|
By Application |
|
|
Regional scope |
|
Scope of the Report
Global Castor oil derivatives Market by Product:
- Sebacic acid
- 12HSA
- Ricinoleic Acid
- Undecylenic acid
- Dehydrated Castor Oil
- Hydrogenated Castor oil (Castor wax)
- Others
Global Castor oil derivatives Market by Application:
- Lubricants
- Surface Coatings
- Cosmetics & Pharmaceuticals
- Biodiesel
- Plastics & Resins
- Others
Global Castor oil derivatives Market by Region:
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Russia
- Asia-Pacific
- Japan
- China
- India
- Korea
- Southeast Asia
- South America
- Brazil
- Peru
- Middle East and Africa
- UAE
- South Africa
- Saudi Arabia
Frequently Asked Questions
What is the market value of the castor oil derivatives market in 2020?
The market value of the castor oil derivatives market in 2020 is $1.6 Billion.
Which region has the highest market share in the castor oil derivatives market?
Asia-Pacific held the major share in the market over the Projection period 2021- 2028.
Which is the most influencing segment growing in the castor oil derivatives report?
12HSA segment is the most influencing segment in the castor oil derivatives market.
Which are the top players active in the castor oil derivatives market?
The leading market players active in the global castor oil derivatives market are Hengshui Jinghua Chemical Co., Ltd., N.K. Proteins Pvt. Ltd., HOKOKU Co. Ltd., Adani Wilmar Ltd., Gokul Agri International Ltd., RPK Agrotech, Thai Castor Oil Industries Co. Ltd., Sebacic India Pvt. Ltd., Aravalli Castor Derivatives Pvt Ltd., Krishna Antioxidants Pvt. Ltd among others.
What are the segment considered in the global castor oil derivatives market?
Product, Application, and Regions are the three segments of the report.
Does this report include the impact of COVID-19 on the castor oil derivatives market?
Yes, the market includes qualitative and quantitative insights for COVID-19 impact on the castor oil derivatives market.
What is the study period of this market?
The castor oil derivatives market is studied from 2020 - 2028.
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