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| Global Crude Tall Oil Market Size |
Crude tall oil (CTO) is a by-product of the pulp mill industry that is obtained
from the acidification of black liquor generated during wood pulp production
from pine trees. It is a yellowish or amber viscous liquid consisting
predominantly of fatty and resin acids. CTO finds numerous applications as a
substitute for petroleum in the production of drilling mud, metalworking
fluids, concrete mixtures, oils, greases, rubbers, coatings, paper laminates,
and numerous chemical intermediates. The rising applications of crude tall oil
in various end-use industries such as construction, automobile, coating, rubber
and many more is primarily driving the global crude tall oil market growth.
The Global
Crude Tall Oil Market Size 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 operating in the crude tall oil market are Citec Group Oy Ab,
Ingevity Corporation, Georgia-Pacific Chemicals, Forchem Oyj, Kraton
Corporation. These players are focusing on capacity expansion and new product
development strategies to strengthen their global presence.
There are significant opportunities for crude tall oil manufacturers in the
form of increased adoption in green binders for concrete due to its
eco-friendly nature. Also, growth of the mining industry will augment the
demand for crude tall oil-based drilling mud products, thereby fueling the
overall market growth.
Manufacturers are eyeing developing regions like Asia Pacific and Latin America
for tapping the untapped consumer base. Strategic partnerships with regional
players can help global crude tall oil companies establish their supply chain
and distribution network in these emerging markets.
Market Drivers
Rising applications in concrete industry: CTO finds extensive usage as a concrete
additive as it enhances workability and durability of concrete. It reduces the
requirement of other organic additives. Growing infrastructural development is
expected to propel the demand for CTO in concrete industry.
Expanding end-use industries: CTO derived products like adhesives, lubricants,
greases, corrosion inhibitors, and synthetic resins finds use across industries
like transportation, mining, construction and others. The growing end-use
applications will bolster the CTO market growth.
Market Restrain
Fluctuating raw material prices: The raw material prices for crude tall oil are
dependent on the pulp and paper industry. Any discontinuation in pulp
production due to economic slowdown may hamper the supply of CTO. This poses a
major restrain to market growth.
Environmental Regulations: Stringent regulations regarding disposal of
effluents from CTO processing plants along with rising environmental concerns
could hamper the market expansion to some extent over the review period.
Segment Analysis
The crude tall oil market is segmented based on derivatives and application.
Among derivatives, tall oil fatty acids holds the largest market share of
around 55% owing to its widespread use in soap and ink manufacturing
industries. It is dominating the market as fatty acids are highly demanded for
various end-use industries like soaps, lubricants, metalworking fluids etc.
Global Analysis:
Regionally, Europe accounted for the largest share of around 35% in the global
crude tall oil market owing to developed end-use industries like paints &
coatings, rubber, construction etc. in countries like Germany, UK, France etc.
The market in Europe is anticipated to witness steady growth due to robust
demand from the construction sector in the region. Asia Pacific region is
poised to be the fastest growing market during the forecast period. Rising
paint industry and increasing infrastructural activities in developing
countries like China and India are fueling the market growth. Moreover,
construction sectors in countries like Japan, South Korea are spurring the
demand for crude tall oil and its derivatives in the region.
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Tall Oil Market