May 23, 2024
Crude Tall Oil Market

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

Crude Tall Oil, which is a by-product of the kraft pulping process used in the production of wood-based lumber and paper, contains fatty and resin acids that are emulsified in the water phase. It finds wide application as an emulsifier and dispersant agent in various industrial products such as concrete additives, drilling fluids, metalworking fluids, rubber products, and others owing to its chemical properties.

The global Crude Tall Oil market size was valued at US$ 1.93 billion in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period of 2024-2031.

Key Takeaways

Key players operating in the Crude Tall Oil market are Citec Group Oy Ab, Ingevity Corporation, Georgia-Pacific Chemicals, Forchem Oyj, and Kraton Corporation. The key opportunities in the market include expanding application scope and growing use as a green alternative. With the growing demand from various end-use industries globally, major players are focusing on capacity expansion through strategic partnerships, especially in the Asia Pacific and Latin American regions.

Market drivers

One of the major drivers for the Crude Tall Oil Market Demand is the growing application scope across various industries such as construction, automotive, oil & gas, and others. Crude Tall Oil derivatives such as tall oil fatty acid and tall oil rosin find wide application in concrete admixture, lubricant production, adhesives, sealants, and other industrial goods manufacturing owing to their chemical properties. This increasing demand from the growing end-use industries is expected to drive the demand for Crude Tall Oil over the forecast period.

PEST Analysis

Political: There are certain government regulations regarding the production and usage of Crude Tall Oil. Any changes in these regulations may impact the market positively or negatively.

Economic: The global economy has a significant influence on the demand for products made from Crude Tall Oil. Changes in GDP, disposable income can affect market trends.

Social: Growing awareness about environmental protection and sustainability is increasing the adoption of bio-based products including Crude Tall Oil derivatives.

Technological: Advances in extraction and refining technologies help improve yields and produce high quality Crude Tall Oil. New applications in industries like adhesives, tires are boosting demand.

Geographical Regions with High Concentration

The North American region accounts for the largest share of the global Crude Tall Oil market in terms of value. Major producers and consumers like the United States and Canada drive high demand from industries such as construction, automotive and oilfield in this region.

Fastest Growing Geographical Region

The Asia Pacific region is projected to be the fastest growing market for Crude Tall Oil during the forecast period. Rapid industrialization, growing population and improving economic conditions in countries like China and India are increasing consumption. Establishment of production facilities by leading companies is positively impacting the APAC Crude Tall Oil market.

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