Oleochemicals Industry Procurement Intelligence, Best Practices, Engagement Model 2020 – 2027
Procurement Outlook
Oleochemicals are chemical compounds derived from natural fats
and oils that can be used as raw materials or as supplemental materials across
multiple industries. It can also be used as a substitute for petrochemicals. The oleochemicals industry is nowadays focusing on inexpensive
and renewable feedstocks to produce oleochemicals with high biodegradability,
low toxicity, and low environmental impact.
Oleochemicals are produced using chemical processes such as
water-based hydrolysis, alcohol-based alcoholysis, hydrogenation, etc. It
contains few carcinogens, making them a safer option than their synthetic
chemical alternatives. Some oleochemicals that are commonly used in today’s
industry include palm oil, coconut oil, and soy.
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report summary: Oleochemicals
Industry Procurement Intelligence
Demand
Outlook
The global oleochemicals market is valued at USD 19.4 billion in
2020 and it is expected to grow at a CAGR of 7.5% from 2020 to 2027 due to
rising consumption of renewable, sustainable, and bio-based chemicals in
personal care & cosmetics, food & beverages, pharmaceuticals, and other
industries. Personal care and cosmetics is the leading application segment of
global oleochemicals market with more than 25% share. APAC holds the highest
share of 40% in the global oleochemicals industry.
Countries like Indonesia and Malaysia are the major base product
producers for oleochemicals. APAC along with being the largest consumer is also
the largest producer of oleochemicals and accounts for more than 50% of the
global production. Furthermore, the high costs of petrochemical products and
shifting preference for eco-friendly products is expected to boost the demand
of oleochemicals during the forecast period.
Cost Drivers
Raw material and feedstock cost is the major cost driver of
oleochemicals production. The key materials include fatty acids,
methyl esters, fatty
alcohols, and amines. The cost of material is accounts for more than 40% of the
overall cost of oleochemicals production.
As the cost of procuring feedstock is somewhat similar across
the world, suppliers focus on outsourcing the manufacturing operations to
low-cost countries to increase profit margins by reducing labor and other
operational costs.
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Services offered with Oleochemicals Industry Procurement
Intelligence Report:
About us:
A smart and effective supply chain is essential
for growth in any organization. Pipeline division at Grand View Research
provides detailed insights on every aspect of the supply chain which helps in
efficient procurement decisions.
Our services include (not limited to):
·
Market Intelligence involving - market size and forecast, growth
factors, and driving trends
·
Price and Cost Intelligence - pricing models adopted for the category,
the total cost of ownership
·
Supplier Intelligence - rich insight on supplier landscape, and
identifies suppliers who are dominating, emerging, lounging, and specializing
·
Sourcing / Procurement Intelligence - best practices followed in the
industry, identifying standard KPIs and SLAs, peer analysis, negotiation
strategies to be utilized with the suppliers, and best-suited countries for
sourcing to minimize supply chain disruption
Our market/procurement Intelligence reports
include in-depth and actionable insights that help clients in understanding the
different aspects of the supply chain and take more effective decisions.
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