Castor Oil & Derivatives Market Size, Share & Trends Analysis Report By Product (Sebacic Acid, 12 HSA, Ricinoleic Acid, Castor Wax, Undecylenic Acid), By Application, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global castor oil and derivatives market demand was estimated at 813.2 kilotons in 2018. It is estimated to develop at a volume-based CAGR of 4.1% from 2019 to 2025. The growth is attributed to the mounting consumption of the product in biodiesel feedstock. The product is synthesized by the homogeneous alkaline transesterification process to form biodiesel additives.

Increasing global consumption of castor oil and derivatives by end-use industries for the manufacturing of bio based plastics, lubricants, coatings, skincare, hair care, and medicinal products is expected to trigger the market growth over the forecast period. The use of castor oil and derivatives in traditional medicines owing to its ability to treat skin disorders, stools, headaches, and inflammatory problems is rising. Growing consumer inclination toward using biodiesel, plastics, and resins is anticipated to drive the market for castor oil and derivatives over the forecast period.

The U.S., on an average, imports 76 kilo metric tons of the product mainly from India, which is used for the production of fatty acids, paints, varnishes, soaps, lubricants, and cosmetics products. The country imports the product from India, Mexico, and Brazil for its domestic needs. The seeds are grown on a small-scale in the U.S., majorly in the regions having loamy soil of medium texture. It is best adapted to Missouri, Southern Indiana, Southeastern Kansas, Southern Illinois, Kentucky, Tennessee, and parts of Texas and Oklahoma with irrigation.

The product is used as a raw material in the production of chemicals, which are further used to produce specialty soaps, surfactants, cosmetics and personal care products, surface coatings, pharmaceuticals, greases and lubricants, specialty rubber, and plasticizers. Mounting demand for organic and natural personal care and cosmetic products is projected to positively influence the production of organic castor oil, thus, contributing to the market growth over the forecast period.

Product Insights

Growing demand for derivatives, especially hydrogenated castor oil in the plastics industry, as a pressure mould releasing component is expected to contribute to the market growth. Castor wax is used in the manufacture of cosmetics and soaps, production of high-quality aviation grease, and multipurpose Calcium/Lithium grease. The product is used as an element of specialty wax blends such as crayons, pencils, anti-deodorant sticks, and lipsticks. It is also used as a mold releasing component in the manufacture of rubbers and plastics and the manufacture of sealants and hot-melt coatings requiring resistance to water. This, in turn, is projected to further boost the market for castor oil and derivatives.

12-hydroxy stearic acid (12-HSA) emerged as the prominent product segment in 2018 owing to its negligible solubility in organic solvents and insolubility in water. Growing consumption of 12-HSA in the manufacture of acrylic polymers and calcium and lithium greases, as an internal lubricant in plastic molding, and non-aqueous and aqueous coatings for equipment, automotive, architecture, and appliances is anticipated to drive the product demand over the forecast period.

Application Insights

Plastics and resins is the largest application segment of the castor oil and derivatives market owing to growing preference for biodegradable plastics across the globe. It is converted into polyamide 11, a form of polymer, which when mixed with other polymer blends is used extensively in household plastics such as polypropylene. Polyamide 11, since it is derived from castor oil, is a green material that reduces the carbon footprint. Therefore, one of the important applications of castor oil and derivatives is in the production of bioplastics or biodegradable plastics. At present, the product has emerged as an efficient raw material for plastics manufacturing compared to crude oil. Further, it is a substitute for recycled plastics in the textile industry. Maleated castor oil (MACO) is produced by reacting castor oil with maleic anhydride.

The product is used in the production of several personal care and cosmetic products such as soaps, deodorants, body lotions, haircare, and skincare products. It is commonly used as an ingredient in cosmetics by the name of Ricinus communis oil. Ricinoleic acid and its esters and salts function predominantly as surfactants, emulsion stabilizers, and skin-conditioning agents in the personal care and cosmetics industry. Castor wax, heptaldehyde, zinc ricinoleate, undecylenic acid, heptanoic acid, heptyl alcohol, heptyl acetate, and ethyl heptoate are few of the castor derivatives used in the cosmetics industry.

Regional Insights

Asia Pacific emerged as the largest producer and consumer of castor oil and derivatives in 2018 owing to the high availability of castor seeds and increasing domestic consumption, respectively. China emerged as the largest importer of the product from India and the largest producer of sebacic acid in 2018. The growth of developing economies in Asia Pacific can be attributed to the rising domestic consumption along with increasing inclusion of castor oil in resins used in paint, plastic, rubber, perfumery, and cosmetic industries.

According to National Commodity and Derivatives Exchange Limited (NCDEX), India exports a majority of the product to the international market and the country comprises of approximately 70% castor oil share in the international trade. Market participants supply their products through various modes of distribution such as direct supply, third-party supply agreements, and online portals. The prominent producers of castor oil and derivatives in India are exploring and manufacturing all the product grades and types excluding sebacic acid, which is manufactured only by a few players. China emerged as the prominent producer of sebacic acid in 2018 across the globe, with production capacities higher than that of India.

Castor Oil and Derivatives Market Share Insights

Castor oil and derivatives has an established global market with major applications in the plastics and resins industry. It is obtained by the mechanical crushing of castor seeds, which is further processed to manufacturer bioplastics, diesel, lubricants, drugs, and various other products. In recent years, the market has witnessed an upsurge in the demand for castor oil and derivatives. Hence, manufacturers and suppliers in the industry have substantial opportunities to supply quality and uniform products by the means of auditable supply chain.

China accounted for the highest consumption of castor oil and derivatives in 2018 mainly due to the gradual expansion of its downstream industries. Sebacic acid dominates the overall industrial usage in China. It is used for the production of a variety of industrial products such as plasticizers, candles, lubricants, hydraulic fluids, and resins. Challenges faced by the industry include demand-supply gap along with availability of substitutes such as palm oil, sunflower oil, rapeseed oil, sugarcane, corn, and wheat.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global castor oil and derivatives market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Sebacic acid

  • 12HSA

  • Ricinoleic Acid

  • Hydrogenated Castor oil (Castor wax)

  • Undecylenic acid

  • Dehydrated Castor Oil

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Lubricants

  • Surface Coatings

  • Biodiesel

  • Cosmetics and Pharmaceuticals

  • Plastics and Resins

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Singapore

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia