Tall Oil Fatty Acid (TOFA) Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Oleic Acid, Linoleic Acid, Others), By Application (Dimer acid, Alkyd Resins, Others), By End-User Industry (Soaps & detergents, Coatings and lubricants, Plastics, Others), And By Geography - Forecasts From 2022 To 2027

The global tall oil fatty acid (TOFA) market is anticipated to reach a market value of US$729.084 million by 2027 from US$441.293 million in 2020 at a CAGR of 7.44%.

The tall oil fatty acid (TOFA) is considered an ideal raw material for many chemical reactions and intermediates and is also a pure fatty acid with a low level of rosin acids and a low level of unsaponifiable through the distillation process. Some of the most common applications for TOFA are paints and coatings, fuel additives, performance polymers, and bio-lubricants. The growing production of crude oil around the globe is considered one of the key factors that are accelerating the growth of the market during the forecast period.

Expanding oil and gas industry

The oil and gas industry plays a major role in providing energy and fuel to the world for the facilitation of various purposes and caters to various applications. According to the data provided by the International Energy Association (IEA) in 2017, the amount of crude oil and natural gas liquid that was produced was 3,893,589 kt and 422,162 kt respectively. The industries which consumed the most oil included transport, leading the race with 2,588,508 ktoe in 2017.  Non-energy use accumulated a total consumption of 633,505 ktoe and residential consumption was 214,757 ktoe. Moreover, some companies are expanding drilling operations to meet the increasing energy demands. For instance, in November 2019, ADNOC Drilling announced that they had expanded their onshore and offshore rigs for accelerating the facilitation of oilfield drilling operations, and similarly, Panoro Energy, announced in February 2020, that they had increased their drilling activities in Tunisia. Thus, these product offerings by the market players and the expansion activities being conducted are also leading to a surge in the demand for tall oil fatty acids and providing a push to the market’s growth.

Application insights

By application, the market is segmented into dimer acid, and alkyd resins, among others. The alkyd resins application segment is projected to witness significant market growth during the forecast period on account of favorable government policies and measures to boost both automotive production and sales, coupled with stringent environmental regulations to reduce greenhouse gas emissions. For example, according to the new trade agreement USMCA, it is mandatory for automakers to manufacture 40% of their motor vehicles in facilities where assembly workers earn a minimum of US$16 per hour. Furthermore, under the new agreement, automakers are required to use 75 percent of North-American parts in their automobiles to be imported duty-free by 2023, which will incentivize automakers to increase the amount of other region's auto parts in their cars and light trucks.  Furthermore, paint and coatings producers have added significant production capacity in recent years globally, and there are currently a number of ongoing expansion activities in the paint and coatings sector by major producers, which are also opening up growth opportunities for TOFA manufacturers and vendors in the coming years.

The Asia Pacific holds a significant share of the market

By geography, the tall oil fatty acid (TOFA) market is segmented as follows: North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The Asia Pacific region is expected to hold a significant share of the market owing to the presence of major players coupled with established paint and coating industries in countries like China and India. The demand for tall oil fatty acid is primarily derived from its applications in coatings and adhesives among others. As a result of the growing demand from end customers, the region has been witnessing a steady increase in investment to expand the production of resins and coatings. The region is also the home of countries like China, Vietnam, and India which are also characterized by expanding manufacturing facilities and are expected to drive the growth of the market during the forecast period. In addition, rising construction spending, by both public and private players, is expected to boost demand for polyamide resins in construction materials, thereby boosting TOFA market growth. Favorable government policies in the oil and gas industry are also attracting major market players; for example, the government of India recently allowed 100% FDI in many segments of the oil and gas industry, including petroleum products and refineries, among others.

Competitive Insights

Prominent key market players in the tall oil fatty acid (TOFA) market include Kraton Corporation, Harima Chemicals Group, Inc., Forchem, Chemical Associates Inc., Eastman Chemical Company, Segezha Pulp and Paper Mill, Torgoviy Dom Lesokhimik. The number of players in the tall oil fatty acid (TOFA) market is large and growing, with the opportunity to generate significant revenues as a result of growing demand. Few large market players hold a significant share in the market, and key players in the market are seen to adopt similar strategies and are either looking to expand their market portfolio with investments in the development of the new product line, or some companies are opting for mergers, acquisitions, and strategic partnerships to expand their market presence. Major market players in the global tall oil fatty acid (TOFA) market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments by different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the global tall oil fatty acid (TOFA) market.

Product offerings by the market players in the tall oil fatty acid market

In the competitive landscape of the Tall Oil Fatty Acids Market, major companies are actively offering various offerings by integrating their innovative technology. Some of the products offered are:

• Harima Chemicals Group, Inc: Harima's resins and tall oil products business drew on its wealth of cutting-edge technology and know-how to meet the many functional and performance-related requirements of printing inks, paints, adhesives, synthetic rubbers, and various other consumer goods. For instance, the firm has developed new rosin-modified phenolic resins by integrating rosin's excellent pigment dispersing attribute with phenolic resin's adhesive attribute via its innovatively designed technology. The resins in this series have attributes including stable printing emulsion, simple solubility, rapid setting, stable printing ink emulsion, and environmental friendliness, capable of printing at lower cost and higher speed. 
• Univar: The whole range of tall oil fatty acids is available from Univar. To satisfy a customer's request, we can alter one of our conventional items. As a diesel fuel additive, we provide low sulfur tall oil fatty acid that is made exclusively for the fuel industry. Their product portfolio is comprised of tall oil fatty acids with 1.5%, 2%, 4%, and 6% rosins. The firm also offers tall oil of vegetable origin with less than 2 and 6 percent rosin. 

COVID-19 Insights:

COVID-19 had a negative impact on the Tall Oil Fatty acids market. The surge in active cases and mandated lockdown led to the closure of multiple production facilities across the globe, decreasing the productivity of many key players. Furthermore, the restrictions of travel restrictions affected the imports and exports in several countries, creating a gap in the supply and demand chain of the market.

Tall Oil Fatty Acid (TOFA) Market Scope:

 

Report Metric	Details
Market Size Value in 2020	US$441.293 million
Market Size Value in 2027	US$729.084 million
Growth Rate	CAGR of 7.44% from 2020 to 2027
Base Year	2020
Forecast Period	2022–2027
Forecast Unit (Value)	USD Million
Segments Covered	Product, Application, End-User Industry, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Kraton Corporation, Harima Chemicals Group, Inc., Forchem, Univar Solutions, Eastman Chemical Company, Segezha Pulp And Paper Mill, Ingevity, Foreverest Resources Ltd., Chemceed Llc, Silver Fern Chemicals Inc.
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• By Product
  • Oleic Acid
  • Linoleic Acid
  • Others
• By Application
  • Dimer acid
  • Alkyd Resins
  • Others
• By End-user Industry
  • Soaps & detergents
  • Coatings and lubricants
  • Plastics
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others

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1. INTRODUCTION

1.1. MARKET OVERVIEW

1.2. COVID-19 SCENARIO

1.3. MARKET DEFINITION

1.4. SCOPE OF THE STUDY

1.5. CURRENCY

1.6. SEGMENTATION

1.7. ASSUMPTIONS

1.8. BASE, AND FORECAST YEARS TIMELINE

2. RESEARCH METHODOLOGY

2.1. RESEARCH DESIGN

2.2. SECONDARY SOURCES

2.3. VALIDATION

3. KEY FINDINGS

4. MARKET DYNAMICS

4.1. DRIVERS

4.1.1. RISING DEMAND FOR LUBRICANTS OWING TO THE EXPANSION OF THE AUTOMOTIVE INDUSTRY

4.1.2. INCREASED CONSTRUCTION ACTIVITIES

4.2. RESTRAINTS

4.2.1. DIFFICULTY IN THE CULTIVATION OF PINE TREES

4.2.2. EASY AVAILABILITY OF SUBSTITUTES

4.3. PORTER’S FIVE FORCES ANALYSIS

4.3.1. BARGAINING POWER OF SUPPLIERS

4.3.2. BARGAINING POWER OF BUYERS

4.3.3. THREAT OF NEW ENTRANTS

4.3.4. THREAT OF SUBSTITUTES

4.3.5. COMPETITIVE RIVALRY IN THE INDUSTRY

4.4. INDUSTRY VALUE CHAIN ANALYSIS

5. TALL OIL FATTY ACID MARKET BY PRODUCT

5.1. INTRODUCTION

5.2. OLEIC ACID

5.3. LINOLEIC ACID

5.4. OTHERS

6. TALL OIL FATTY ACID MARKET BY APPLICATION

6.1. INTRODUCTION

6.2. DIMER ACID

6.3. ALKYD RESINS

6.4. OTHERS

7. TALL OIL FATTY ACID MARKET BY END-USER INDUSTRY

7.1. INTRODUCTION

7.2. SOAPS AND DETERGENTS

7.3. COATINGS AND LUBRICANTS

7.4. PLASTICS

7.5. OTHERS

8. TALL OIL FATTY ACID MARKET BY GEOGRAPHY

8.1. INTRODUCTION

8.2.  NORTH AMERICA

8.2.1. BY PRODUCT

8.2.2. BY APPLICATION

8.2.3. BY END-USER INDUSTRY

8.2.4. BY COUNTRY

8.2.4.1. USA

8.2.4.2. CANADA

8.2.4.3. MEXICO

8.3. SOUTH AMERICA

8.3.1. BY PRODUCT

8.3.2. BY APPLICATION

8.3.3. BY END USER

8.3.4. BY COUNTRY

8.3.4.1. BRAZIL

8.3.4.2. ARGENTINA

8.3.4.3. OTHERS

8.4. EUROPE

8.4.1. BY PRODUCT

8.4.2. BY APPLICATION

8.4.3. BY END USER

8.4.4. BY COUNTRY

8.4.4.1. UNITED KINGDOM

8.4.4.2. GERMANY

8.4.4.3. FRANCE

8.4.4.4. SPAIN

8.4.4.5. ITALY

8.4.4.6. OTHERS

8.5. MIDDLE EAST AND AFRICA

8.5.1. BY PRODUCT

8.5.2. BY APPLICATION

8.5.3. BY END-USER INDUSTRY

8.5.4. BY COUNTRY

8.5.4.1. SAUDI ARABIA

8.5.4.2. SOUTH AFRICA

8.5.4.3. OTHERS

8.6. ASIA PACIFIC

8.6.1. BY PRODUCT

8.6.2. BY APPLICATION

8.6.3. BY END-USER INDUSTRY

8.6.4. BY COUNTRY

8.6.4.1. JAPAN

8.6.4.2. CHINA

8.6.4.3. INDIA

8.6.4.4. SOUTH KOREA

8.6.4.5. INDONESIA

8.6.4.6. THAILAND

8.6.4.7. TAIWAN

8.6.4.8. OTHERS

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. MAJOR PLAYERS AND STRATEGY ANALYSIS

9.2. EMERGING PLAYERS AND MARKET LUCRATIVENESS

9.3. MERGERS, ACQUISITIONS, AGREEMENTS, AND COLLABORATIONS

9.4. VENDOR COMPETITIVENESS MATRIX

10. COMPANY PROFILES

10.1. KRATON CORPORATION

10.1.1. OVERVIEW

10.1.2. PRODUCTS AND SERVICES

10.1.3. FINANCIALS

10.1.4. KEY DEVELOPMENTS

10.2. HARIMA CHEMICALS GROUP, INC.,

10.2.1. OVERVIEW

10.2.2. PRODUCTS AND SERVICES

10.2.3. FINANCIALS

10.2.4. KEY DEVELOPMENTS

10.3. FORCHEM

10.3.1. OVERVIEW

10.3.2. PRODUCTS AND SERVICES

10.3.3. KEY DEVELOPMENTS

10.4. UNIVAR SOLUTIONS

10.4.1. OVERVIEW

10.4.2. PRODUCTS AND SERVICES

10.4.3. FINANCIALS

10.4.4. KEY DEVELOPMENTS

10.5. EASTMAN CHEMICAL COMPANY

10.5.1. OVERVIEW

10.5.2. PRODUCTS AND SERVICES

10.5.3. FINANCIALS

10.5.4. KEY DEVELOPMENTS

10.6. SEGEZHA PULP AND PAPER MILL

10.6.1. OVERVIEW

10.6.2. PRODUCTS AND SERVICES

10.6.3. FINANCIALS

10.6.4. KEY DEVELOPMENTS

10.7. INGEVITY

10.7.1. OVERVIEW

10.7.2. PRODUCTS AND SERVICES

10.7.3. FINANCIALS

10.7.4. KEY DEVELOPMENTS

10.8. FOREVEREST RESOURCES LTD.

10.8.1. OVERVIEW

10.8.2. PRODUCTS AND SERVICES

10.8.3. KEY DEVELOPMENTS

10.9. CHEMCEED LLC

10.9.1. OVERVIEW

10.9.2. PRODUCTS AND SERVICES

10.9.3. KEY DEVELOPMENTS

10.10. SILVER FERN CHEMICALS INC.

10.10.1. OVERVIEW

10.10.2. PRODUCTS AND SERVICES

KRATON CORPORATION

HARIMA CHEMICALS GROUP, INC.,

FORCHEM

UNIVAR SOLUTIONS

EASTMAN CHEMICAL COMPANY

SEGEZHA PULP AND PAPER MILL

INGEVITY

FOREVEREST RESOURCES LTD.

CHEMCEED LLC

SILVER FERN CHEMICALS INC.