The Global Crude Tall Oil Market is estimated to Driven by Renewable Material Demand
Tall oil is a by-product of the pulp and paper manufacturing process where crude tall oil is obtained through alkaline extraction. It has several applications as a precursor to various derivatives such as biodiesel, detergents, emulsifiers, and specialty fluids. Crude tall oil contains fatty and resin acids that make it a sustainable and renewable material.
The Global Crude Tall Oil Market is estimated to be valued at US$ 1.93 billion in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players in the crude tall oil market: Key players operating in the crude tall oil market are Citec Group Oy Ab, Ingevity Corporation, Georgia-Pacific Chemicals, Forchem Oyj, and Kraton Corporation.
Growing demand: There is growing Global Crude Tall Oil Market Demand from various end-use industries such as construction, automotive, oilfield, and mining due to its eco-friendly nature and bio-based material attributes.
Global expansion: Leading crude tall oil manufacturers are expanding their production facilities globally to cater to the growing need for sustainable raw materials from different regions.
Market Drivers
The growing demand for renewable raw materials from end-use industries is a major driver for the crude tall oil market. Crude tall oil being a residual product from the pulp industry makes it a sustainable material obtained without destroying additional forest resources. Furthermore, stringent government regulations regarding the use of non-renewable resources have prompted industry players to increase the utilization of bio-based materials like crude tall oil.
Current geopolitical developments are impacting the growth of the crude tall oil market. The ongoing Russia-Ukraine conflict is disrupting supply chains and export of crude tall oil from the region. Russia and Ukraine collectively account for approximately 30% of global crude tall oil production. The conflict has led to sanctions on Russia affecting trade. This is adversely impacting the availability of crude tall oil from the major producing region.
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