Rising lanolin demand from the personal care & cosmetics industry owing to its ability to act as an emollient is touted to positively impact market dynamics over the next eight years. The product finds use in the preparation of beauty products such as perfume, oral, hair care, and skincare. It finds wide application scope in various other key end-use industries such as pharmaceutical and baby care products.
Lanolin is a key ingredient used for treating dry skin, reducing scaling, abrasions, and itching. Growing pharmaceutical and healthcare industries specifically in the BRIC nations coupled with the need for improved skin treatment is anticipated to drive market growth. Mature economies of North America and Europe are expected to witness exponential demand for the product on account of its increasing use as an emollient in skin treatment in the pharmaceutical sector.
Lanolin also finds use in additives that help modify characteristics and consistency of protective films. The product can be used on ferrous metals such as on corroded ships, tanks, and automobile parts that require rust protection with low viscous grease products. It is also helpful in protecting items such as roofing tiles, machinery sheets, pipelines, and fabrics.
Global lanolin industry is fragmented in nature with operations of major manufacturers dominant across wool production hubs. Some of the prominent market players include Amerchol Corp., Barentz, Fanning Corp., Croda Chemicals, NKC Chemicals, Lanolin Products Ltd. and Finchem, BlueCo BrandsRolex.
Companies are investing significantly in the product by increasing their production capacity to serve the rising consumer demand. Multinational corporations are adopting diverse strategies including merger & acquisitions, product portfolio expansion, and capacity increase among others.
In April 2013, NKC Chemicals and Barentz signed a strategic alliance agreement that will help Barentz in expanding its product portfolio. The company primarily focuses on personal care and cosmetics industry in Europe and the U.S. The strategic partnership is also expected to aid both the companies to concentrate on the Middle East & Africa which is expected to witness increasing personal care products and cosmetics industry growth over the forecast period.
In-depth report on global lanolin market by Grand View Research: