Tall Oil Fatty Acids Market

The article provides a comprehensive overview of the tall oil fatty acids market, with detailed insights into consumption, production, imports, and exports from 2012 to 2022. Projections indicate an upward trend in consumption and value growth, with key countries such as Sweden, Finland, the United States, and the Netherlands leading the market. The data reflects fluctuations in prices and volume, as well as the fastest-growing importers and exporters in the industry. Overall, the tall oil fatty acids market is set to experience steady growth in the coming years.

Market Forecast

Driven by rising demand for tall oil fatty acids worldwide, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +3.8% for the period from 2022 to 2030, which is projected to bring the market volume to 324K tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +6.3% for the period from 2022 to 2030, which is projected to bring the market value to $638M (in nominal prices) by the end of 2030.

Consumption

World Consumption of Industrial Tall Oil Fatty Acids

In 2022, consumption of industrial tall oil fatty acids decreased by -4.4% to 241K tons, falling for the fifth consecutive year after three years of growth. In general, consumption saw a noticeable downturn. The most prominent rate of growth was recorded in 2017 with an increase of 7.2% against the previous year. As a result, consumption attained the peak volume of 345K tons. From 2018 to 2022, the growth of the global consumption remained at a somewhat lower figure.

The global tall oil fatty acids market size surged to $391M in 2022, jumping by 17% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption saw a relatively flat trend pattern. Global consumption peaked at $420M in 2013; however, from 2014 to 2022, consumption failed to regain momentum.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were Sweden (25K tons), the United States (23K tons) and the Netherlands (21K tons), with a combined 29% share of global consumption. Finland, Italy, Australia, Germany, the UK, Japan, Belgium, Turkey, Mexico and Singapore lagged somewhat behind, together comprising a further 37%.

From 2012 to 2022, the biggest increases were recorded for Australia (with a CAGR of +22.9%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest tall oil fatty acids markets worldwide were Sweden ($32M), Finland ($28M) and the Netherlands ($28M), together accounting for 23% of the global market. The United States, Australia, Germany, Italy, the UK, Japan, Belgium, Singapore, Turkey and Mexico lagged somewhat behind, together comprising a further 40%.

Australia, with a CAGR of +27.9%, recorded the highest rates of growth with regard to market size in terms of the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of tall oil fatty acids per capita consumption in 2022 were Finland (3,143 kg per 1000 persons), Sweden (2,426 kg per 1000 persons) and the Netherlands (1,194 kg per 1000 persons).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Australia (with a CAGR of +21.3%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Industrial Tall Oil Fatty Acids

After two years of growth, production of industrial tall oil fatty acids decreased by -13.9% to 232K tons in 2022. In general, production showed a noticeable curtailment. The growth pace was the most rapid in 2015 with an increase of 8% against the previous year. Global production peaked at 296K tons in 2013; however, from 2014 to 2022, production remained at a lower figure.

In value terms, tall oil fatty acids production expanded sharply to $296M in 2022 estimated in export price. Over the period under review, production recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 9.2%. As a result, production reached the peak level of $350M. From 2014 to 2022, global production growth remained at a lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were the United States (83K tons), Sweden (52K tons) and Finland (42K tons), together comprising 76% of global production. France, the Netherlands, Austria and Japan lagged somewhat behind, together comprising a further 17%.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the main producing countries, was attained by the Netherlands (with a CAGR of +15.4%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Industrial Tall Oil Fatty Acids

In 2022, overseas purchases of industrial tall oil fatty acids increased by 2.8% to 209K tons, rising for the second consecutive year after three years of decline. Overall, imports, however, continue to indicate a mild shrinkage. The pace of growth appeared the most rapid in 2017 when imports increased by 13% against the previous year. As a result, imports attained the peak of 245K tons. From 2018 to 2022, the growth of global imports remained at a lower figure.

In value terms, tall oil fatty acids imports soared to $407M in 2022. In general, total imports indicated a modest expansion from 2012 to 2022: its value increased at an average annual rate of +1.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +75.6% against 2020 indices. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports By Country

In 2022, the Netherlands (36K tons), distantly followed by the UK (11K tons), Italy (11K tons), Australia (11K tons) and Germany (11K tons) represented the key importers of industrial tall oil fatty acids, together constituting 39% of total imports. The following importers - Sweden (9K tons), Belgium (8K tons), Spain (7.8K tons), France (7.2K tons), Singapore (6.1K tons), the United States (5.5K tons), the United Arab Emirates (5.4K tons) and Turkey (5.2K tons) - together made up 26% of total imports.

From 2012 to 2022, average annual rates of growth with regard to tall oil fatty acids imports into the Netherlands stood at +12.7%. At the same time, the United Arab Emirates (+30.4%), Sweden (+23.6%), Australia (+19.9%), Spain (+10.7%), the United States (+7.4%) and Italy (+5.8%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing importer imported in the world, with a CAGR of +30.4% from 2012-2022. Turkey and Singapore experienced a relatively flat trend pattern. By contrast, Germany (-1.3%), Belgium (-9.2%), the UK (-10.6%) and France (-13.6%) illustrated a downward trend over the same period. While the share of the Netherlands (+13 p.p.), Australia (+4.6 p.p.), Sweden (+3.8 p.p.), Italy (+2.6 p.p.), Spain (+2.5 p.p.) and the United Arab Emirates (+2.4 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of Belgium (-5.2 p.p.), the UK (-9.7 p.p.) and France (-9.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the Netherlands ($49M) constitutes the largest market for imported industrial tall oil fatty acids worldwide, comprising 12% of global imports. The second position in the ranking was held by Australia ($24M), with a 6% share of global imports. It was followed by the UK, with a 5.9% share.

In the Netherlands, tall oil fatty acids imports expanded at an average annual rate of +10.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Australia (+26.4% per year) and the UK (-4.1% per year).

Import Prices By Country

The average tall oil fatty acids import price stood at $1,945 per ton in 2022, picking up by 32% against the previous year. In general, import price indicated a noticeable expansion from 2012 to 2022: its price increased at an average annual rate of +2.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, tall oil fatty acids import price increased by +71.8% against 2017 indices. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was the United Arab Emirates ($2,500 per ton), while the Netherlands ($1,349 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the UK (+7.3%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Industrial Tall Oil Fatty Acids

After two years of growth, shipments abroad of industrial tall oil fatty acids decreased by -9.4% to 201K tons in 2022. Overall, exports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2020 when exports increased by 21%. Over the period under review, the global exports attained the maximum at 222K tons in 2021, and then dropped in the following year.

In value terms, tall oil fatty acids exports soared to $439M in 2022. In general, exports, however, showed a measured increase. The growth pace was the most rapid in 2020 when exports increased by 58% against the previous year. The global exports peaked in 2022 and are likely to continue growth in years to come.

Exports By Country

In 2022, the United States (66K tons), distantly followed by Sweden (36K tons), the Netherlands (29K tons), Finland (26K tons) and France (21K tons) were the largest exporters of industrial tall oil fatty acids, together achieving 88% of total exports. The following exporters - Austria (4.2K tons) and Spain (3.4K tons) - each reached a 3.8% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Spain (with a CAGR of +26.1%), while the other global leaders experienced more modest paces of growth.

In value terms, Finland ($138M), the United States ($91M) and Sweden ($65M) were the countries with the highest levels of exports in 2022, with a combined 67% share of global exports. The Netherlands, France, Austria and Spain lagged somewhat behind, together accounting for a further 26%.

Among the main exporting countries, Spain, with a CAGR of +33.7%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average tall oil fatty acids export price amounted to $2,185 per ton, with an increase of 40% against the previous year. In general, export price indicated a tangible expansion from 2012 to 2022: its price increased at an average annual rate of +4.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, tall oil fatty acids export price increased by +110.4% against 2019 indices. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Finland ($5,235 per ton), while the United States ($1,384 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Finland (+13.3%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform