The global castor oil and derivatives market demand was estimated at 813.2 kilotons in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2019 to 2025. 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.
Growing demand for derivatives, especially hydrogenated castor oil in the plastics industry, as a pressure mold 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.
Plastics and resins are the largest application segment of the castor oil and derivatives market owing to the 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 cares 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 heptanoate are few of the castor derivatives used in the cosmetics industry.
The 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 the 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 approximately 70% castor oil share in 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 have 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 an 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 the demand-supply gap along with the availability of substitutes such as palm oil, sunflower oil, rapeseed oil, sugarcane, corn, and wheat.
Castor oil and derivatives have 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 an 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 the demand-supply gap along with the availability of substitutes such as palm oil, sunflower oil, rapeseed oil, sugarcane, corn, and wheat. Some of the prominent players in the castor oil and derivatives market include:
Jayant Agro Organics
NK Proteins Limited
Adani Wilmar Limited
RPK Agrotech
ITOH Oil Chemicals Co. Ltd.
Gokul Agri International Ltd.
Report Attribute |
Details |
The market size value in 2019 |
USD 1.5 billion |
The revenue forecast in 2025 |
USD 2.0 billion |
Growth Rate |
CAGR of 6.7% from 2019 to 2025 |
The base year for estimation |
2018 |
Historical data |
2014 – 2017 |
Forecast period |
2019 – 2025 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Spain; Netherlands; China; India; Japan; South Korea; Australia; Singapore; Brazil; Argentina; South Africa; Saudi Arabia |
Key companies profiled |
Jayant Agro Organics; NK Proteins Limited; Adani Wilmar Limited; RPK Agrotech; ITOH Oil Chemicals Co. Ltd.; Gokul Agri International Ltd. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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 this study, Grand View Research has segmented the global castor oil and derivatives market report based on 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
The 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
b. The global castor oil and derivatives market size was estimated at USD 1.5 billion in 2019 and is expected to reach USD 1.6 billion in 2020.
b. The global castor oil and derivatives market is expected to grow at a compound annual growth rate of 6.7% from 2019 to 2025 to reach USD 2.0 billion by 2025.
b. Sebacic acid dominated the castor oil and derivatives market with a share of 36.6% in 2019. This is attributable to rising demand from lubricants, polymers (nylon production), cosmetics, and solvents.
b. Some key players operating in the castor oil and derivatives market include Jayant Agro Organics, NK Proteins Limited, and Adani Wilmar Limited, RPK Agrotech, ITOH Oil Chemicals Co., Ltd., and Gokul Agri International Ltd.
b. Key factors that are driving the market growth include increasing demand from bio-based plastics, lubricants, coatings, skincare, hair care, and medicinal products.
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India accounts for ~80% in the castor oil production, China and Europe being the major importers for castor oil. While the export to China has eased to some extent with recovery in the early Q2, European demand continues to fall. Lockdown measures are slated to severely impact the short term economic prospects of castor oil. Moreover, sebacic acid, a key derivative of castor oil, of which ~90% is produced in China has also witnessed a drastic drop in production due to the COVID-19 pandemic. We expect the market demand to grow post Q3 of 2020 when the impact of the pandemic in China and India resides and economic activities get back to normal. The updated report will account for COVID-19 as a key market contributor.