Malaysia Oleochemicals Market is anticipated to
grow at a significant rate in the forecast period, 2024-2028, driven by the increasing demand from the personal care industry. In
2021, the personal care segment generated revenue of USD1.19 billion in Malaysia.
Malaysia Oleochemicals Market
is expected to expand during the projected period due to increasing demand from
the personal care industry as consumers increasingly focus on natural and eco-friendly
products which help to reduce the negative effects on the skin. Oleochemicals
refer to the type of chemicals that are derived from oils and natural fats of
animals and plants. These chemicals are generally formed by separating the triglyceride
structure of oils and fat into glycerol and fatty acids. In addition to
this, the Malaysian government has been taking various initiatives to promote
the use of renewable resources and reduce the country's dependence on fossil
fuels. In order to achieve this, the government is promoting the production of
biofuels and other renewable resources. Along with this, the government is also
investing in research and development to promote the growth of the
oleochemicals industry.
For instance, the Malaysian Palm Oil Board (MPOB), a
government agency responsible for the promotion and development of the palm oil
industry in Malaysia conducted research that led to the development of new
products such as bio-lubricants, bio-plastics, and bio-based adhesives.
Moreover, the increase in
consumption of bio-based, renewable, and sustainable, chemicals in various
industries such as food & beverages, personal care & cosmetics, and
pharmaceuticals as well as the high costs of petrochemical products accelerate
the growth of the Malaysia Oleochemicals Market in the projected period.
Malaysia Oleochemicals Market
is a dynamic and competitive sector that offers opportunities for growth and
innovation. The market players are focusing on expanding their product portfolio,
enhancing their quality standards, improving their distribution network, and
increasing their market share. Along with this, mergers and acquisition
activity in the oleochemical market enhances companies' presence in the country
as these acquisitions help companies to better serve their customers and meet the
growing demand for oleochemicals in the forecast period.
Rising Demand for Oleochemicals
from Personal Care Industry
Malaysia is well-known for
its palm oil production, which serves as a key raw material for oleochemical manufacturing.
The personal care industry is one of the major end-users of oleochemicals in
Malaysia. Oleochemicals are derived from natural sources, making them
eco-friendly alternatives to petrochemical-based ingredients. Oleochemicals
such as fatty acids, glycerin, and fatty alcohol are widely used in the
production of personal care products such as soaps, shampoos, and cosmetics. Consumers
are also becoming more aware of the environmental impact of personal care
products, leading to a higher demand for eco-friendly products. The personal
care industry in Malaysia has been under increasing pressure to adopt more
sustainable and eco-friendly practices, which has led to the growing demand for
oleochemicals. Along with this, oleochemicals have a wide range of versatile properties
that make them ideal for use as emollients, surfactants, thickeners, and emulsifiers,
and they also have moisturizing properties that are beneficial for skin and
hair making them more applicable in the personal care industry for generating
products.
For instance, KL-Kepong Oleomas Sdn.
Bhd. produces DAVOSLIFE E3 DVL 503 which is used in decorative cosmetics, hair
care, and skincare.
The growing demand for
natural and organic personal care products due to increasing demand for hypoallergenic
and chemical-free components from consumers is expected to drive the demand for
oleochemicals in the personal care and cosmetic industry.
For instance, Wilmar
Ethylhexyl Palmitate is a renewable palm derivative with a variety of uses in
cosmetic formulations as a solvent, carrying agent, wetting agent, and emollient,
and used mostly in the formulation of eye/skin makeup, lipstick, and skin care
products.
Therefore, the increasing
demand from personal care sector has led to the growth of Malaysia
Oleochemicals Market in the projected period.
Growing Demand from Pharmaceutical
Industry
Oleochemicals play an
important role in the pharmaceutical industry as they are used as excipients. Excipients
are substances that are added to a drug formulation to aid in its manufacturing
process or to enhance its therapeutic effect. Oleochemicals such as glycerin,
fatty acids, and fatty alcohols are commonly used as excipients in pharmaceutical
products. Glycerin is used as a solvent, humectant, and lubricant, while fatty
acids and fatty alcohols are used as emulsifiers, binders, and coating agents.
Along with this, oleochemicals are also used as active pharmaceutical ingredients (APIs)
in the pharmaceutical industry. Oleochemicals such as tocopherols, tocotrienols,
and phytosterols have been shown to have therapeutic properties, making them
ideal as APIs. For example, tocopherols have been shown to have antioxidant properties
and can be used in the treatment of cardiovascular diseases. Moreover, oleochemicals
are also commonly used in topical applications such as creams, lotions, and
ointments. Their moisturizing and emollient properties make them ideal for use
in skincare products. Glycerin, stearic acid, and acetyl alcohol are commonly
used in these applications as these chemicals help to improve the skin's
barrier function and retain moisture, leading to healthier and more hydrated
skin.
For instance, FPG Oleochemicals
Sdn Bhd produces Superol K Glycerin USP/FCC/EP products used widely in pharmaceuticals.
Additionally, oleochemicals
such as fatty acids and glycerin are used in the production of food products
such as margarine, shortenings, and bakery products. Due to rapid urbanization,
the demand for processed food products and convenience foods increases. Moreover,
oleochemicals are rich in monounsaturated and polyunsaturated fatty acids,
which are known to reduce the risk of heart disease and improve overall health
as well as having high smoke points, making them ideal for frying and baking.
Along with this, the government of Malaysia is also actively promoting the use
of oleochemicals in the food and beverage industry.
For instance, KL-Kepong Oleomas
Sdn. Bhd. produces DAVOSLIFE Biocarotene PMC30 SFO which is used as a dietary supplement,
animal nutrition, functional food, and beverages.
All these factors dominate
the growth of the Malaysia Oleochemicals market in the upcoming years.
Increasing Demand for Sustainable
Feedstocks
Oleochemicals are produced
from plant and animal feedstocks which are used as an alternative to
petroleum-based compounds. Surface active agents (Biosurfactants) are made from
compounds derived from trans-esterification, epoxidation, and sulfonation of
waste vegetable oils. They have a wide range of uses in petroleum applications.
For example, Palm oil is a popular raw resource due to its low cost, high
efficiency, and productivity. Palms are perennial plants that use less
fertilizer, insecticides, and energy than other plants.
For instance, IOI Corporation
Berhad produces and export crude palm oil and crude palm kernel oil for various
applications.
However, the oleochemicals heavily
rely on vegetable oils and animal fats as raw materials and the prices of these
raw materials are subject to significant fluctuations due to various factors such
as weather conditions, supply and demand, and government policies. The
production of oleochemicals has been linked to environmental issues such as
deforestation, greenhouse gas emissions, and water pollution. In addition to this,
the production of these chemicals comes with environmental and health issues as
Volatile Organic Compounds (VOC) are released during the glycerin processing.
Exposure to these VOCs harms human organs, including the throat, eyes, and
nose. Additionally, VOC vapors can cause nausea, damage to the liver and kidney,
and permanent damage to the central nervous system resulting in restraining the growth of the
market. Moreover, the majority of oleochemicals products are exported
to countries such as China, the United States, and the European Union and the
industry faces various trade barriers such as tariffs, quotas, and non-tariff barriers,
which make it challenging to compete in international markets. Along with this,
Indonesia, Thailand, and the Philippines also have significant reserves of
vegetable oils and animal fats, making them attractive markets for oleochemical
production which creates significant competition to Malaysia’s Oleochemicals
market resulting in slowingdown the market growth.
Recent Development
- In 2023, KLK OLEO acquired
Italy-based Temix Oleo. This acquisition will expand KLK OLEOs’ product
offerings for oleochemicals.
- In 2022, Emery Oleochemicals
received the EcoVadis Silver award due to sustainability reporting and the
development of sustainable products.
- In 2017, Evyap Sabun
Malaysia exported oleochemicals and opened new consumer markets for
Turkish personal care brands in Asia.
Download Free Sample Report
Market Segmentation
Malaysia Oleochemicals Market is segmented based on type, application, region and competitive landscape. Based on the type, the
market is divided into fatty acids, fatty alcohols, methyl esters, glycerin,
and others. Based on application,
the market is categorized into pharmaceutical, personal care, food &
beverages, soaps & detergents, polymers, chemicals, and others.
Company Profiles
KL-Kepong Oleomas Sdn. Bhd., FPG
Oleochemicals Sdn Bhd, IOI Oleochemical Industries Bhd, Edenor Technology Sdn
Bhd, Evyap Sabun Malaysia Sdn Bhd, Pacific Oleochemicals Sdn Bhd., Southern
Acids (M) Berhad, Natural Oleochemicals Sdn Bhd, Suriachem Sdn. Bhd., Apical
(Malaysia) Sdn Bhd are some of the key players in Malaysia Oleochemicals
Market.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018 – 2021
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024 – 2028
|
|
Quantitative Units
|
Revenue in USD Million, Volume in Units, and CAGR for 2018-2022 and 2023-2028
|
|
Report coverage
|
Revenue forecast,
volume forecast, Company shares, competitive landscape, growth factors, and trends
|
|
Segments covered
|
Type
Application
|
|
Region scope
|
East Malaysia,
West Malaysia
|
|
Key companies profiled
|
KL-Kepong
Oleomas Sdn. Bhd., FPG Oleochemicals Sdn Bhd, IOI Oleochemical Industries
Bhd, Edenor Technology Sdn Bhd, Evyap Sabun Malaysia Sdn Bhd, Pacific
Oleochemicals Sdn Bhd., Southern Acids (M) Berhad, Natural Oleochemicals Sdn
Bhd, Suriachem Sdn. Bhd., Apical (Malaysia) Sdn Bhd
|
|
Customization scope
|
10% free report customization with purchase. Addition
or alteration to country, regional & segment scope.
|
|
Pricing and purchase
options
|
Avail customized
purchase options to meet your exact research needs.
|
|
Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the report
in PPT/Word format on special request)
|
Report Scope:
In this report, Malaysia Oleochemicals Market has been segmented
into the following categories, in addition to the industry trends, which have
also been detailed below:
- Malaysia
Oleochemicals Market, By Type:
- Fatty Acids
- Fatty Alcohols
- Methyl Esters
- Glycerin
- Others
- Malaysia Oleochemicals Market, By Application:
- Pharmaceutical
- Personal Care
- Food & Beverages
- Soaps & Detergents
- Polymers
- Chemicals
- Others
- Malaysia Oleochemicals Market, By Region:
- East Malaysia
- West Malaysia
Competitive landscape
Company Profiles: Detailed analysis of the major companies in Malaysia
Oleochemicals Market.
Available Customizations:
With the given market data, TechSci Research offers customizations
according to a company’s specific needs. The following customization options
are available for the report:
Company
Information
- Detailed analysis
and profiling of additional market players (up to five).
Malaysia Oleochemicals
Market is an upcoming report to be released soon. If you wish early delivery of
this report or want to confirm the date of release, please contact us at [email protected]