Major players such as Wilmar, KLK Oleo, Musim Mas and Kao are all set to see an expansion in their production capacities. A total capacity of approximately 600 KT/year has flooded the market in 2013. According to IndustryARC analysis, demand for fatty alcohols is budding in the Asian region because of a wide range of applications such as key ingredients for surfactants infused in cleaners for industrial use, and as constituents for plastic-processing agents, along with applications such as use in shampoo and detergent for consumer use. Fatty acids, fatty alcohols and Glycerine together accounted for a share of 78% during 2015. Fatty acids are the most necessitated oleochemicals primarily due to their inevitable usage in manufacturing derivatives which eventually are processed into end products. As of last year, the share of synthetic alcohols was 32%, when compared to the 68% from oleochemical-based alcohols. A deluge of new fatty alcohol capacity is foreseen to further help the oleochemical based fatty alcohols to grow by 6% till the end of 2016. Palm plantation owners, such as Wilmar and KLK have been moving beyond fatty acid production and into downstream businesses, such as fatty alcohols and surfactants to increase their margins. The global market for oleochemicals is dominated by APAC, which is poised to display the fastest growth due to growing markets and factors like product portfolio expansion in order to cater the disparate needs across countries.
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