Press Release

Crude Tall Oil Market is expected to grow at a CAGR of 4.1% through 2030F

The global Crude Tall Oil Market is expected to be led by North America, driven by Growth in the Pulp and Paper Industry and Technological Advancements during the forecast period 2026-2030F

According to TechSci Research report, “Crude Tall Oil Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F, The Global Crude Tall Oil Market was valued at USD 2.3 Billion in 2024 and is expected to reach USD 3.0 billion by 2030 with a CAGR of 4.1% through 2030. Industries are seeking cost-effective, renewable alternatives to petroleum-based products, positioning CTO as a valuable feedstock due to its abundant availability from the pulp and paper industry. The shift toward renewable energy sources has also propelled the demand for CTO in biofuel production. Regulatory policies, such as the Renewable Energy Directive (RED II) in the European Union, have incentivized the use of waste-based feedstocks like CTO for biodiesel production. This creates a stable growth avenue for CTO manufacturers catering to the energy sector. Additionally, the expansion of the adhesives and coatings industries, driven by urbanization and infrastructure development, has amplified the demand for Tall Oil Rosin and Tall Oil Fatty Acids derived from CTO. These derivatives provide excellent adhesion, durability, and water resistance, making them essential in high-performance industrial applications. Moreover, technological advancements in refining processes are improving the yield and quality of CTO products, enhancing their competitiveness in global markets and creating new growth opportunities for industry players.


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Based on End User, Chemicals segment dominated the Crude Tall Oil Market in 2024 and maintain its leadership throughout the forecast period, driven by the increasing utilization of CTO-derived products across a wide range of industrial applications. Tall Oil Fatty Acids (TOFA), Tall Oil Rosin (TOR), and distilled tall oil are key derivatives that cater to the chemical industry’s demand for renewable and sustainable raw materials. These derivatives are essential in producing adhesives, surfactants, lubricants, coatings, and emulsifiers, which are widely used in industries such as automotive, construction, personal care, and packaging.

One of the primary factors contributing to the dominance of the chemical segment is the shift toward bio-based and eco-friendly chemicals. With rising environmental awareness and stringent regulations on the use of fossil fuel-derived chemicals, industries are increasingly adopting renewable alternatives like CTO. TOFA, for instance, is extensively used in the production of alkyd resins, dimer acids, and oilfield chemicals due to its excellent properties such as high oxidative stability and compatibility with other chemical compounds.

The growth of the adhesives and sealants industry has further bolstered the demand for TOR, which is valued for its superior tackiness, thermal stability, and water resistance. These properties make it an ideal ingredient for pressure-sensitive adhesives, hot-melt adhesives, and industrial glues, particularly in sectors like packaging, construction, and consumer goods. Similarly, the use of distilled tall oil in the production of surfactants and emulsifiers has gained traction, driven by the growing need for efficient and sustainable cleaning agents in personal care and industrial applications.

Additionally, the chemical industry benefits from technological advancements in refining processes, enabling the extraction of high-purity CTO derivatives with enhanced performance characteristics. This has expanded the scope of applications for CTO-derived chemicals, particularly in specialty and high-value-added segments such as performance coatings, pharmaceuticals, and agrochemicals.

Emerging economies in Asia-Pacific and Latin America are playing a significant role in driving the growth of the chemical segment within the CTO market. Increasing industrialization, coupled with rising investments in bio-refinery infrastructure, is creating opportunities for regional and global players to capitalize on the growing demand for sustainable chemicals.

The dominance of the chemical segment in the CTO market can be attributed to the versatile applications of its derivatives, the global push toward sustainability, and advancements in refining technologies. As industries continue to prioritize eco-friendly solutions, the chemical segment is expected to remain a critical driver of growth in the global CTO market.

Asia Pacific is emerging as the fastest-growing region for the Crude Tall Oil Market, driven by robust industrial expansion, increasing demand for bio-based products, and growing environmental consciousness. The rising production of pulp and paper in countries like China, Indonesia, and India is creating a significant supply of CTO, which serves as a by-product of the kraft pulping process. This abundant raw material availability is enabling regional manufacturers to expand their operations and meet the increasing demand across various industries.

The adhesives and coatings sectors in Asia-Pacific are witnessing substantial growth, fueled by urbanization and infrastructure development. Tall Oil Rosin and Tall Oil Fatty Acids, derived from CTO, are widely used in these sectors for their superior adhesion properties and durability. Additionally, the biofuel industry in the region is gaining momentum as countries adopt renewable energy sources to achieve their decarbonization goals, further boosting the demand for CTO as a sustainable feedstock.

Moreover, supportive government policies promoting green industries and investments in refining technologies are accelerating market growth. Multinational companies are also entering the Asia-Pacific region, recognizing its potential as a lucrative market for CTO. With a growing focus on sustainability and increasing industrial applications, Asia-Pacific is poised to become a key driver of growth in the global CTO market.  


Key market players in the Crude Tall Oil Market are: -

  • Kraton Corporation
  • UPM-Kymmene Corporation
  • Stora Enso Oyj
  • Georgia-Pacific LLC
  • Pine Chemical Group
  • Foreverest Resources Ltd.
  • Ingevity Corporation
  • Segezha Group
  • Mercer International Inc.
  • Eastman Chemical Company

 

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“The global Crude Tall Oil market presents significant opportunities driven by the increasing focus on sustainability and the growing demand for bio-based products. Industries such as adhesives, coatings, and biofuels are shifting toward eco-friendly alternatives, positioning CTO as a preferred raw material due to its renewable and versatile nature. The rising adoption of biofuels, fueled by global decarbonization goals and supportive regulatory frameworks, offers immense potential for CTO producers to cater to this expanding segment. Additionally, advancements in refining technologies are unlocking new applications for CTO derivatives like Tall Oil Fatty Acids (TOFA) and Tall Oil Rosin (TOR), which are increasingly used in industrial lubricants, personal care products, and specialty chemicals.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

Crude Tall Oil Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Tall Oil Rosin, Tall Oil Fatty Acids, Distilled Tall Oil, all Oil Pitch, Others), By Application (Adhesive, Inks & Toners, Partings & Coatings, Hygiene Products, Others), By End User (Automotive, Chemicals, Metalworking, Electronics & Electricals, Others), By Region, By Competition, 2020-2030F has evaluated the future growth potential of Crude Tall Oil Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Crude Tall Oil Market.

 

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