Tall Oil Fatty Acid (TOFA) Market Size, Share, Opportunities, 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 2025 To 2030

The global tall oil fatty acid (TOFA) market is expected to grow at a CAGR of 5.67%, reaching a market size of US$852.423 million in 2030 from US$646.858 million in 2025.

Tall oil fatty acid, or TOFA, is a low-cost unsaturated fatty acid, mainly sourced from crude tall oil, the byproduct of the kraft process of paper manufacture. Because TOFA is a viscous, yellow-black liquid, it contains mostly oleic and linoleic acids and has many industrial applications, including in soaps, lubricants, alkyd resins, emulsifiers, and corrosion inhibitors. A carboxyl group and long carbon chain are the typical features of its chemical structure, along with the esterification and epoxidation characteristics for further modifications.

The tall oil fatty acid is a prime raw material for many chemical reactions and intermediates. It is a pure fatty acid with a low level of rosin acids and a low level of unsaponifiable through the distillation process. It is considered to be biodegradable and versatile, thus serving as an eco-friendly substitute for tallow fatty acids in various formulations. Its use also encompasses metalworking fluids, printing inks, and plasticizers, indicating the importance of TOFA in the chemical industry. The CAS number of TOFA is 61790-12-3, and it is known for exhibiting functional properties that enhance the performances of products in all its end-user industries.

What are the Global Tall Oil Fatty Acid (TOFA) Market Drivers?

• The expanding oil and gas industry is anticipated to boost the global tall oil fatty acid (TOFA) market

The oil and gas industry holds a predominant role in furnishing fuel to the entire world for power as well as other purposes in terms of utilization. According to the International Energy Agency, in 2023, the quantity of crude oils and natural gas liquids produced was 4,200,000 kt and 450,000 kt, respectively. The industries that absorbed the highest oil consumption include transport, with 2,800,000 ktoe in 2023. Non-energy use has a total consumption of 700,000 ktoe, while residential consumption is 250,000 ktoe. Companies are also increasing their drilling operations to increase the energy demand. For instance, in January 2024, Norway significantly increased oil drilling activities by approving 62 new drilling licenses for oil and gas companies. This is a sharp rise from the 47 licenses issued in 2022. This is expected to take production levels to a 15-year high and is likely to peak in 2025. In total, 27 new oil and gas projects are being developed on the Norwegian shelf, besides 34 exploration wells spudded in 2023. Exploration is concentrated in the Barents Sea, where the government is urging companies to explore the area more. Norway’s Minister of Energy, Terje Aasland, underlined that such breakthroughs are of great importance both for employment and value creation of stable energy suppliers to Europe.

• Rising demand for lubricants owing to the expansion of the automotive industry is anticipated to boost the global tall oil fatty acid (TOFA) market

The main market drivers for tall oil fatty acids are the increasing demand for lubricants, which is mainly related to the automobile industry. These are linked to the steady growth in vehicle production as a result of increasing demand. Tall oil fatty acids are essential to lubricants because of their superior inherent properties, such as high biodegradability and thermal stability. This improves with rising disposable income, urbanization, and a move toward electric vehicles (EVs). Manufacturers are working to upgrade their vehicle performance and efficiency. Toward this, they require advanced lubricant formulations with sustainable ingredients. An alternative oil fatty acid appears to be a promising, renewable alternative for both performance and the environment.

This is also in sync with the trend of the automobile sector, which is looking for sustainability and low-carbon footprinting. As more companies begin researching eco-friendly products, TOFA are extremely attractive to lubricant manufacturers who try to achieve regulatory compliance and consumer preference. The growth in the automobile industry thus increases the demand for tall oil fatty acids in formulations in lubricants, making it one of the key players in the changing landscape of this market.

Global Tall Oil Fatty Acid (TOFA) Market Restraints:

• Easy availability of substitutes is anticipated to hamper the market growth

The easy availability of substitutes poses a significant restraint on the tall oil fatty acid market. Several alternative products with functional properties similar to the products derived from tall oil-based fatty acids are palm oil-based fatty acids, coconut oil derivatives, and synthetic fatty acids. These are easier to access, besides costing less to produce from some other more readily available raw material, thus offering appealing choices for manufacturers that desire cost savings.

This preference is also leading to the emergence of more competition for TOFA from other bio-based products. With growing consumer awareness about sustainability, firms may prefer alternatives that align more with their green or cost-saving strategies. Even the existence of other well-established petrochemical products designed to replicate the performance properties of TOFA creates competition for this product.

Geographical Outlook of the Global Tall Oil Fatty Acid (TOFA) Market:

• Asia Pacific is witnessing exponential growth during the forecast period.

The Asia Pacific region is expected to hold a significant market share due to the presence of major players coupled with established paint and coating industries in countries like China and India.

The demand for TOFA 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 home to countries like China, Vietnam, and India, which are also characterized by expanding manufacturing facilities and are expected to drive market growth 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.

Key Launches in the Global Tall Oil Fatty Acid (TOFA) Market:

• In November 2024, Kraton Chemical LLC selected Redox Limited as its channel partner to distribute Tall Oil Fatty Acids and Ink Polyamides in Australia and New Zealand. The cooperation allowed Redox's robust logistics and sales networks to improve the accessibility of Kraton's sustainable products to clients within that region. Kraton's Senior Director, Girish Udas, stressed that this collaboration would properly fulfill client needs as it widens the presence in markets. Additional products added to the agreement include Unidyme Dimer Acids and Sylvaros Tall Oil Rosins, expanding even more product options available through Redox.

The Global tall oil fatty acid (TOFA) market is segmented and analyzed as follows:

• By Product
  • Oleic acid
  • Linoleic acid
  • Others
• By Application
  • Dimer acid
  • Alkyd resins
  • Others
• By End User
  • Soaps and detergents
  • Coatings and lubricants
  • Plastics
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

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

4.5. Analyst View 

5. GLOBAL TALL OIL FATTY ACID (TOFA) MARKET BY PRODUCT

5.1. Introduction

5.2. Oleic acid

5.3. Linoleic acid

5.4. Others

6. GLOBAL TALL OIL FATTY ACID (TOFA) MARKET BY APPLICATION

6.1. Introduction

6.2. Dimer acid

6.3. Alkyd resins

6.4. Others

7. GLOBAL TALL OIL FATTY ACID (TOFA) MARKET BY END-USER 

7.1. Introduction

7.2. Soaps and detergents

7.3. Coatings and lubricants

7.4. Plastics

7.5. Others

8. GLOBAL TALL OIL FATTY ACID (TOFA) 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

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. Italy

8.4.4.5. Spain

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

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

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

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Taiwan

8.6.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. KRATON CORPORATION

10.2. HARIMA CHEMICALS GROUP, INC.,

10.3. FORCHEM

10.4. UNIVAR SOLUTIONS

10.5. EASTMAN CHEMICAL COMPANY

10.6. SEGEZHA PULP AND PAPER MILL

10.7. INGEVITY

10.8. FOREVEREST RESOURCES LTD.

10.9. CHEMCEED LLC

10.10. SILVER FERN CHEMICALS INC.

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.