Castor Oil & Derivatives Market by Application (Lubricants, Surface Coatings, Biodiesel, Cosmetics & Pharmaceuticals, Plastic & Resins, and Others), By Products (Sebacic Acid, 12-HSA, Ricinoleic Acid, Hydrogenated Castor Oil, Undecylenic acid, Dehydrated Castor Oil, and Others) and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2030
Industry Perspective
The global Castor Oil & Derivatives Market size was worth around USD 1.21 billion in 2021 and is predicted to grow around USD 1.93 billion by 2030 with a compound annual growth rate of roughly 5.24% between 2022 and 2030. Demand for the product is expected to increase as the product is used more frequently as a biodiesel source.
Biofuels are used as additional fuels for many different types of combustion engines that run on gasoline, kerosene, and diesel as well as in passenger vehicles like ships, airplanes, and trucks.
Biodiesel is created either from vegetable or animal fats for use in diesel engines, or it is blended with diesel fuel. Castor oil is used as a bio-based raw material for the production of biodiesel despite being inedible and having a distinctive chemical composition.
Market Overview
Castor beans, which are naturally found in stifling regions of Asia and, Africa are used to make castor oil, a multipurpose vegetable oil. It is an active component with a mild odor and a translucent, pale yellow color. Castor oil is safe for skin and hair because of its antibacterial, anti-inflammatory, and moisturizing characteristics. Due to this, castor oil continues to be a well-liked option among consumers seeking a natural remedy for ailments including constipation and skin issues. In addition, it has several important uses in the industrial sector for processing a wide range of items.
Due to rising healthcare costs, growing individual awareness of self-management and preventative care, and expanding consumer demand for cosmetics and pharmaceuticals, castor oil is expected to experience strong demand from the cosmetics and pharmaceutical sectors over the forecast period. Due to its expanding utilization in the production of skincare goods, cosmetics, and soaps, it is also projected that demand for the product would increase.
Key Insights
- As per the analysis shared by our analyst team, the global Castor Oil & Derivatives Market is estimated to grow annually at a CAGR of around 5.24% over the forecast period (2022-2030) and is projected to reach USD 1.93 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
- Based on application segmentation, the plastic & resin were predicted to show maximum market share in the year 2021
- Based on products segmentation, the ricinoleic acid segment was the leading revenue-generating Service in 2021
- On the basis of region, Asia Pacific was the leading revenue generator in 2021
Applicable in Different Industries is Driving the Growth of Castor Oil
Castor oil and its derivatives offer many benefits over other vegetable oils due to their distinct fatty acid composition. The majority of the uses for oils made from corn, cotton, soy, coconut, and rapeseed are food-related. Castor oil derivatives have a wide range of physicochemical qualities and are renewable and natural. As a result, these products are selected as primary raw materials in a variety of applications, such as lubricants, oleo-chemicals, medicinal, cosmetic, pharmaceutical, and bio-energy, among others.
Due to the increasing demand for green chemicals on a global scale, the market is anticipated to show steady expansion over the next years. It is predicted that the product will increasingly be used to ease constipation symptoms, ease feelings of incomplete bowel movements, and ensure less strain when defecating. It is anticipated that the expansion of the pharmaceutical industry in various North American, European, and Asian economies will increase demand for the good.
Demand for Castor Oil Increases Due to Increased Demand in Cosmetics Sector
The increasing disposable income of consumers will likely raise the demand for creams and moisturizers, which will subsequently fuel the growth of the cosmetics industry and the demand for castor oil derivatives. The demand for castor oil derivatives is expected to increase because of widespread awareness and changing lifestyles caused by personal grooming in emerging nations. Weather uncertainties, the availability of raw materials, extraction processes and technologies, the accessibility of substitute oils, and a lack of working capital are all factors that affect the cost of manufacturing castor oil and its derivatives.
Rising Price for Raw Materials to Restrain Market Growth
Castor bean prices are unstable as a result of their shifting supply, which is a hindrance to the global market for castor oil. The Asia Pacific region's weather and a protracted castor bean harvesting procedure have a significant impact on the supply of castor beans. Due to the closure of manufacturing/refining facilities and logistical difficulties, COVID-19 had an adverse effect on the global market for castor oil and its derivatives in the short term.
- For instance, more than 85% of the product's exports go from India, which is one of the biggest manufacturers worldwide. As a result of its heavy reliance on Indian castor oil exports in 2020, the global market of the product was severely affected.
Segmentation Analysis
Based on application, the global market is segmented into lubricants, surface coatings, biodiesel, cosmetics & pharmaceuticals, plastic & resins, and others. In 2021, the application of plastics and resins accounted for the biggest revenue share. The rise in the use of biodegradable plastics is responsible for the need. Compared to crude oil, the product is far more frequently used as a raw ingredient for the production of plastics. The textile business is additionally utilized as a replacement for recovered plastics.
The notable characteristics of castor oil-based resins, such as polyamide resin, and modified epoxy can sustain at high temperatures, flexibility, toughness, chemical resistance, rigidity, strong adhesive, and formulation flexibility. Castor oil has subsequently developed into an active component in epoxy and polyamide resin compositions. The paints and coatings sector uses its modified resins extensively.
Based on products, the global market is segmented into sebacic acid, 12-HSA, dehydrated castor oil, hydrogenated castor oil, ricinoleic acid, undecylenic acid, and others. Ricinoleic acid is anticipated to grow at the quickest rate during the anticipated time. Rising demand for a number of end-use applications, such as finishing fabrics, coating inks, and producing soap, is expected to lead to increasing. Ricinoleic acid reacts with bases like ammonia, caustic, and ethanolamines to produce soap. The chemical is used in metalworking compounds and emulsifiers. It is used to make transparent bar soaps as well as non-Newtonian fluids.
Recent Development
August 2020- A hydrogenated castor oil-based product called Lamesoft Balance was launched by BASF SE to stabilize components in the skin- and hair-cleansing formulations.
March 2022- According to an article by the India Brand Equity Foundation, the consumption of pharmaceutical-grade castor oil derivatives has increased by 12% in 2020 and is mostly employed in the production of medications that contain capsules and edible oil because of its emulsifying, lubricating, and coating properties.
Regional Landscape
Asia Pacific to Dominate Market Share Being Major Castor Oil Exporter
In the upcoming years, Asia Pacific is most expected to control the global market for castor oil derivatives. India is one of the biggest markets for castor oil production worldwide, hence the market for castor oil derivatives is centralized. One of the biggest producers and exporters of castor oil in the world is India. By forming joint ventures with other market participants or by forming strategic alliances, key manufacturers intend to increase their market share. The United States, China, and the European Union are India's biggest export destinations.
According to the Solvent Extractors Association of India, 41% of India's castor oil exports go to China. By 2021, India has exported more than 685,000 tons of castor oil, up from 547,000 tons in 2018. With a more than 211 kilotons capacity, China is also the world leader in the production and distribution of sebacic acid.
Competitive Landscape
Major players contribute in the castor oil & derivatives industry Ambuja Solvex Pvt Ltd, NK Industries Limited., Royal Castor Products Limited, Arvalli Castor Derivatives Pvt. Ltd, Gokul Overseas, Jayant Agro Organics, Hokoku Corporation, Adani Group, ALBERDINGK BOLEY GmbH, Kanak Castor Products Pvt. Ltd., amongst others.
The global castor oil & derivatives Market is segmented as follows:
By Application
- Lubricants
- Surface Coatings
- Biodiesel
- Cosmetics & Pharmaceuticals
- Others
By Products
- Sebacic Acid
- 12-HSA
- Ricinoleic Acid
- Hydrogenated Castor Oil
- Undecylenic acid
- Dehydrated Castor Oil
- Others
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Castor Oil Derivatives Market by Application
- December-2022
- 148
- Global
- chemicals-and-advanced-materials
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