Crude Tall Oil Market

Crude Tall Oil Market is Estimated to Witness High Growth Owing to Increasing Application


Crude tall oil is a byproduct of the kraft pulping process used by many pulp mills to produce paper. Crude tall oil has many valuable chemical constituents such as fatty acids, resin acids and sterols. It is used in a variety of applications such as expandable polystyrene boards, oil field chemicals, mining, tires, rubber, paints, coatings and inks due to its surfactant properties. The growing construction and automotive industries have fueled the demand for resin and rubber applications, which in turn has driven the crude tall oil market.

The Global crude tall oil market is estimated to be valued at US$ 1.93 Bn 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 launches to strengthen their position in the market.

The growing demand from the construction and automotive industries has opened lucrative opportunities for crude tall oil manufacturers. Furthermore, increasing usage of crude tall oil in resin chemicals and metalworking fluids is expected to boost market growth.

Technological advancements have enabled Crude Tall Oil Market Size producers to recover more derivatives such as fatty acids, tall oil rosin and distilled tall oil. This has increased the applications of crude tall oil in biofuels, surfactants and binders.

Market Drivers

Rising infrastructure development activities across the globe are a major market driver. The resins and binders obtained from crude tall oil are used in concrete, roofing and insulation applications in residential and commercial construction. Furthermore, crude tall oil derivatives such as biodiesel, lubricants and surfactants see widespread usage in the automotive industry. Therefore, steady growth in the construction and transportation sectors will augment the demand for crude tall oil over the forecast period.

Challenges in the Crude Tall Oil Market

The Crude Tall Oil Market is facing various challenges such as price volatility of raw materials, stringent environmental regulations, and shift towards bio-based products. Raw material prices witness high fluctuations depending on the supply-demand scenario which increases the production cost for crude tall oil producers. Environmental agencies across regions have imposed stringent regulations regarding wastewater discharge and air pollution control during crude tall oil production. Also, growing awareness about sustainability has led end-use industries to shift towards bio-based and eco-friendly products over petrochemical-derived ones. This poses a major challenge for the demand of crude tall oil.

SWOT Analysis

Strength: Crude tall oil is a sustainable and renewable resource obtained as a by-product of the kraft pulping process. It serves as a viable substitute for petroleum-derived materials.

Weakness: Price volatility of raw materials leads to unstable production costs. Existing tall oil refineries require high capital investments to meet evolving emission norms.

Opportunity: Increasing adoption of bio-based materials across industries such as construction, automotive and adhesives presents major growth opportunities. Developing new applications and value-added products from crude tall oil can boost its marketability.

Threats: Availability of alternative bio-based products may limit market growth. Strict environmental regulations pertaining to wastewater discharge pose compliance challenges.

Geographical Regions

North America accounts for the largest share of the global crude tall oil market, both in terms of production and consumption. The USA and Canada are among the leading producers of crude tall oil, aided by the high presence of kraft pulping facilities. In 2024, the North American region is estimated to hold over 30% share of the overall crude tall oil market.

The Asia Pacific region is expected to witness the fastest growth in the crude tall oil market during the forecast period. Countries like China, India, Indonesia, and Malaysia are experiencing substantial growth in end-use industries such as construction, automotive and chemical, thus driving the demand for crude tall oil. Developing bio-based sectors and shifting focus towards renewable feedstock will further aid the market expansion across the Asia Pacific.

1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it