The caprylic acid market size was USD 2.7 million in 2014. The market is expected to witness significant growth on account of the growing cosmetic industry. This is further attributed to the profound usage of the compound as a cleansing agent, masking, and perfume agent.
Coconut and palm oils are the key raw materials used for caprylic acid manufacturing and its application in various end-use industries. Coconut oil contains about 5-8% of caprylic acid, whereas the content in palm oil is about 3% to 5%. This naturally derived compound is expected to drive the organic personal care demand, on account of its anti-oxidant, anti-microbial, and anti-fungal properties. The compound has extensive usage in the medical & dietary application on account of approval by the U.S. Food and Drug Administration (FDA) for its usage in nutritional supplements in the food industry.
Growing environmental concerns and increasing government support regarding the use of naturally derived products in industrial application is likely to propel demand. Furthermore, R&D related to the use of potential and low-cost raw material for the production of caprylic acid is expected to drive the market over the forecast period.
Growing demand for personal care goods in emerging economies such as Thailand, India, and Brazil is expected to have a positive impact on demand. Caprylic acid is used in the preparation of esters which are used in skincare, haircare, color cosmetics, perfumes, soaps, and other personal care goods. Increasing use of the compound in luxurious items, medicines, lubricants, and surfactants is expected to drive the market demand over the next seven years. Furthermore, growing usage in the surfactant segment can be attributed to its hydrophobic property. The compound also has extensive usage in commercial applications as fat reducing agent, anti-microbial pesticide, and fragrance enhancing component.
Caprylic acid used in personal care was valued at over USD 0.9 million in 2014. Increasing use of the compound in the manufacturing of skincare creams, hair care products, and cosmetics is expected to propel demand over the forecast period. Furthermore, the personal care segment is expected to witness significant growth on account of extensive usage of these products by working population. In addition, the profound usage of these compounds owing to extensive use by the working population is expected to contribute to market growth in personal care applications.
The growing pharmaceutical industry is expected to drive market growth over the forecast period. Pharmaceutical application is expected to witness steady growth among other applications, growing at a CAGR of over 5.0% of the overall volume market share from 2015 to 2022 on account of the increasing technological advancements, aging population, as well as the rising awareness regarding generic medicines.
Caprylic acid has profound usage in medical applications which includes treatment of children with epilepsy as well as Crohn's disease is also expected to boost the market demand over the next seven years. Furthermore, it also helps in the treatment of oral gingivitis, urinary tract infections, candida virus, bladder infections, and also to maintain the pH balance of the body.
North America is expected to witness significant growth over the forecast period on account of the growing food & beverage and personal care segment. It is used as a food contact surface sanitizer on account of its antimicrobial properties and antifungal properties, which thereby propels the product demand in breweries, wineries & dairies.
Europe's demand for the product was valued at over USD 0.6 million and is expected to witness substantial growth owing to rising demand from the personal care sector. This can be attributed to benefits offered by the product such as reduction of wrinkles, cellulite, and age spots, which is expected to favorably impact market growth.
Asia Pacific accounted for over 25% of the global volume share in 2014. Growing industrialization in the Asia Pacific region coupled with rising pharmaceutical research by companies is likely to open new avenues for caprylic acid demand, which in turn is expected to propel production over the next seven years.
Solazyme Inc. has developed a new technology for caprylic acid production which uses algal oil as a raw material. The algal oil has the potential to produce lost cost caprylic acid and meet the rising consumer demand. Key market participants include Evergreen Oleochemicals, KLK Oleo, Oleon, Wilmar International Vantage Oleochemicals, and Pacific Oleochemicals Sdn Bhd.
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The COVID-19 pandemic and subsequent halt in manufacturing activities shall have an impact on the supply availability of a variety of renewable chemicals. Furthermore, current disruption in trade shall also gravely impact the availability of chemical stocks in import-dependent countries. The report will account for Covid19 as a key market contributor.