The global isostearic acid market was valued at $290.7 million in 2014, and it is expected to grow with a CAGR of 7.3% during the period 2015 – 2020. The factors driving the growth of the global isostearic acid market include growing cosmetics products market, and increasing lubricants and greases industry. Based on end-user, the chemical esters segment accounted for largest share in the global isostearic acid market during 2014; however, the lubricants and greases segment is expected to witness fastest growth with a CAGR of 8.4% during the period 2015 – 2020, in terms of revenue.
Geographically, the European isostearic acid market accounted for the largest share in the global isostearic acid market during 2014. The isostearic acid market in Europe is growing mainly due to increasing demand from personal care and cosmetic industries. The growing per capita consumption and increasing export of cosmetic products is fueling the demand for isostearic acid in the region. However, in terms of future growth, the Asia-Pacific isostearic acid market is poised to upsurge at a fast pace (CAGR 8.9%), which is led by increasing exports of cosmetic and personal care products from China, Japan, and South Korea. The Asia-Pacific region is providing huge growth opportunities for the isostearic acid market, due to high demand for lubricants and greases. The growing automobile production, along with increasing industrial development is the key catalyzing factor for the up surging demand of lubricants and greases, which in turn is driving the growth of the isostearic acid market in Asia-Pacific.
The growing demand of cosmetic product is driving the growth of the global isostearic acid market. Isostearic acid is used in the manufacture of personal care products, including cosmetics such as lipsticks, lip gloss, and sunscreen creams; and toiletries products such as liquid soaps. The market for beauty products is driven by increasing aging population, and growing disposable income. The leading cosmetic companies such as L’Oreal Group (France), Avon Products Inc. (the U.S.), The Estée Lauder Companies Inc. (the U.S.), and Oriflame Cosmetics (Luxembourg) are continuously introducing new variants, which are increasing the market penetration of the cosmetics industry. It is also expected to provide ample opportunities for the growth of the global isostearic acid market. In the beauty products segment, premium cosmetics are growing at the fastest pace. This in turn, is expected to drive the growth of global isostearic acid market.
A shift in consumer preference towards bio-ingredient-based products from petrochemical derivatives is expected to create strong growth opportunities for the global isostearic acid market. Volatility in the prices of petrochemical derivatives, in conjunction with increasing health concerns due to the presence of volatile organic compounds and toxicity, are the key factors restraining growth of petrochemical derivatives, and hence providing strong growth opportunities for the global isostearic acid market.
However, isostearic acid is highly priced, which limits its usage in the end-user industries. There are various substitutes for isostearic acids (such as lauric acid, myristic acid, palmitic acid, stearic acid, ricinoleic acid, oleic acid, behenic acid, erucic acid, and coconut fatty acid), which are readily available in the market at lower prices.
The key companies operating in the global isostearic acid market include Oleon NV, Croda International Plc, Jarchem Industries Inc., Arizona Chemical Company LLC, Nissan Chemical America Corporation, and Emery Oleochemicals (M) Sdn Bhd.
News Courtesy: P&S Market Research