Fatty Alcohols Market to Reach USD 9.63 Billion by 2032, Driven by Rising Demand for Plastic Additives and Lubricants | Report by SNS Insider

Growing demand for eco-friendly cosmetics and rising industrial applications boost fatty alcohols market expansion worldwide.

Austin, June 02, 2025 (GLOBE NEWSWIRE) — The Fatty Alcohols Market Size was valued at USD 6.05 billion in 2024 and is expected to reach USD 9.63 billion by 2032, growing at a CAGR of 5.97% over the forecast period of 2025-2032.

Rising Preference for Sustainable Ingredients and Regulatory Support Accelerate Growth in Natural Cosmetic Additives

The fatty alcohols market is experiencing significant growth, fueled by a growing consumer preference for natural and sustainable ingredients in personal care and cosmetics. Advances in science have demonstrated the versatile benefits of fatty alcohols, such as moisturizing and emulsifying effects, which drive their widespread use in skincare and haircare products. Regulatory agencies like the U.S. FDA have eased approvals for renewable-source fatty alcohols, encouraging green chemistry innovations. The American Cleaning Institute reported a 12% rise in demand for fatty alcohols in biodegradable detergents in 2023, reflecting increased environmental consciousness. Industry leaders such as BASF and Kao Corporation have expanded production capacities from 2022 to 2024 to satisfy rising demand in emerging markets and premium segments. Moreover, the ongoing shift towards plant-based raw materials in North America and Europe aligns with global sustainability objectives, broadening fatty alcohols’ industrial appeal.

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The US Fatty Alcohols Market had the largest market share of 74% in 2024, growing at a CAGR of 6.95% over the forecast period of 2025-2032.

The US Fatty Alcohols Market is expanding rapidly due to rising consumer demand for natural personal care products and stringent environmental regulations encouraging bio-based ingredients. Organizations like the U.S. Environmental Protection Agency (EPA) endorse greener chemical processes, encouraging manufacturers to adopt sustainable fatty alcohols. Companies such as Stepan Company have reported increased investments in renewable feedstock fatty alcohol production, underpinning the market’s strong growth trajectory.

Key Companies:

• Wilmar International Ltd.
• Kuala Lumpur Kepong Berhad (KLK Oleo)
• Sasol Limited
• BASF SE
• Kao Corporation
• Procter & Gamble Chemicals (P&G Chemicals)
• Emery Oleochemicals
• Godrej Industries Limited
• Musim Mas Holdings
• VVF L.L.C.

Fatty Alcohols Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 6.05 Billion
Market Size by 2032	USD 9.63 Billion
CAGR	CAGR of 5.97% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Drivers	• Rising Demand in Personal Care and Cosmetics Drives the Market Growth.

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By Type, the Long Chain Segment Dominated the Fatty Alcohols Market in 2023 with a 39% Market Share

This growth is led by extensive use across industries like detergents, personal care, and lubricants, supporting their leadership. These fatty alcohols provide superior emulsification and moisturizing properties critical for premium cosmetics and skincare formulations, contributing to heightened demand. For instance, Cargill’s expansion of long-chain fatty alcohol production in 2023 targeted the personal care and pharmaceutical sectors, reflecting the segment’s robust growth potential. Additionally, long-chain variants derived from sustainable sources have gained traction amid rising environmental concerns, further solidifying their market position. Their stability and compatibility with various formulations make them a preferred choice over short-chain or higher-chain types in many applications.

By Application, Soaps & Detergents Dominated the Fatty Alcohols Market in 2023 with a 32% Market Share

The dominance is driven by the increasing demand for eco-friendly cleaning products. Fatty alcohols act as key intermediates in producing biodegradable surfactants, meeting stringent environmental regulations and consumer preferences. For example, Procter & Gamble’s launch of a new line of biodegradable detergents incorporating fatty alcohol derivatives in 2023 boosted segment growth. The rising consumer focus on hygiene and sustainability globally also supports this segment’s expansion. This segment’s reliance on fatty alcohols for foam stabilization, emulsification, and thickening contributes to steady demand across both industrial and household cleaning products.

Asia Pacific dominated the Fatty Alcohols Market in 2023, Holding a 41% Market Share

Rapid urbanization, increasing disposable incomes, and a burgeoning middle class fuel demand for personal care and detergent products, major end-uses of fatty alcohols. Countries like China and India are investing heavily in cosmetic and hygiene product manufacturing, supported by local raw material availability such as palm and coconut oil. For instance, Indonesia’s palm oil production growth has directly benefited fatty alcohol manufacturers in the region. The expanding pharmaceutical and lubricant sectors also contribute to sustained fatty alcohol demand, supported by government incentives promoting chemical manufacturing. Asia Pacific’s status as a manufacturing hub, combined with growing export activities, consolidates its dominance in the global market.

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