The global Crude Tall Oil (CTO) market has reached around 2050 thousand tonnes in 2023 and is expected to grow at a CAGR of 4.84% during the forecast period until 2035. Currently, Finland is the highest producer of CTO on a global level.
Crude Tall Oil is a by-product of a process known as the kraft pulping process. It is a blend of fatty acids, some neutral compounds, and rosin. The acids include abietic acid, oleic acid, and linoleic acid. The word “tall “means pine trees in Swedish, from which this oil is extracted. The process of extraction involves taking chips of pine wood and boiling them to synthesize an alkaline solution to create a black liquor along with the pulp. The black liquor is concentrated, the black liquor soap layer is skimmed from the top, and the remaining liquid is acidified to produce CTO. Since CTO is extracted from wood, it is a renewable ingredient for making environmental-friendly fuel and biofuel. It is used for various industrial applications such as detergents, adhesives, soaps, lubricants, paints, varnish, linoleum, coatings, etc.
CTO is distilled to create different products such as Tall Oil Fatty Acids (TOFA), Tall Oil Rosins (TOR), Distilled Tall Oil (DTO), Tall Oil Head (TOH), and pitch. Pitch is a mixture of various sterols. These components are useful for different industries, such as TOFA is used in textile chemicals, liquid cleaners, oilfield chemicals, metalworking fluids, metallic stabilizers, and for ore flotation. Similarly, DTO is an amazing combination of rosin acids along with fatty acids and is used in oil field chemicals, alkyd resins, soaps, and metalworking fluids.
The rising demand for CTO will be because of the call for an environment-friendly oil that can replace conventional fossil fuels. This attracts the buyers to invest in renewable fuel sources, such as CTO, in the upcoming years. In the future, the demand for biodiesel will certainly increase, grasping the attention of companies to use a by-product as an energy source. CTO is expected to see a far stretch in its applications in the energy sector in the forecast years. The global CTO market is anticipated to reach approximately 3500 thousand tonnes by 2035.
On a global level, the production of CTO is dependent on the availability of pine trees. The dominating regions with an abundance of pine trees include Europe, Russia, and North America. Pine trees are generally found in cold areas. Presently, Europe is the top pine chemical producer. Almost half of the Crude Tall Oil is produced by European countries. In Europe, Finland is the highest producer of CTO owning more than ten pine chem biorefineries. Also, Europe is the largest consumer with a market share of about 42% in the year 2023.
Based on the end-user industry, the CTO market is segmented into different sectors that include Distillation, Biofuel, Oil Drilling, Energy, and Others. However, Distillation is the biggest end-user market of CTO, holding a share of approximately 70% in the year 2023 and expected to dominate the market in the forthcoming years. CTO is distilled to create different products such as Tall Oil Fatty Acids (TOFA), Tall Oil Rosins (TOR), Distilled Tall Oil (DTO), Tall Oil Head (TOH), and pitch. All these distilled products have various applications in the industry. Another leading part of CTO is biodiesel. Moreover, drilling fuels for phosphate mining also holds noticeable shares of the CTO market.
Major companies for Global CTO are UPM Lappeenranta Biorefinery, Fintoil, Södra, Ingevity Corporation
Kraton Corporation, Forchem Respole Group, Metsä Fibre, ILIM Group, Segezha Group, Mainstream Pine Products, LLC, DRT (Dérivés Résiniques et Terpéniques), Mercer International Inc., Sunpine ABC, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2023
Estimated Year: 2024
Forecast Period: 2025-2035
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Objective of the Study:
• To assess the demand-supply scenario of Crude Tall Oil which covers production, demand and supply of Crude Tall Oil market in the globe.
• To analyse and forecast the market size of Crude Tall Oil.
• To classify and forecast Global Crude Tall Oil market based on end-use and regional distribution.
• To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., of Crude Tall Oil market in the globe.
To extract data for Global Crude Tall Oil (CTO) market, primary research surveys were conducted with Crude Tall Oil manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Crude Tall Oil market over the coming years.
ChemAnalyst calculated Crude Tall Oil demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of black liquor (raw material) to produce Crude Tall Oil. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Crude Tall Oil manufacturers and other stakeholders
• Organizations, forums and alliances related to Crude Tall Oil distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Crude Tall Oil manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Tall Oil Resin (TOR) market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2023
2050 thousand tonnes
Market size Volume in 2034
3500 thousand tonnes
Growth Rate
CAGR of 4.84% from 2024 to 2034
Base year
2023
Estimated year
2024
Historical Data
2015 – 2022
Forecast period
2025 – 2034
Quantitative units
Demand in thousand tonnes and CAGR from 2024 to 2034
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by Type, Demand by End-Use, Demand by Region, Demand by Distribution Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Foreign Trade.
Segments covered
By End-Use: (Distillation, Biofuel, Oil Drilling, Energy, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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What was the net market size of Crude Tall Oil (CTO) in terms of volume in 2023?
Ans:
The global market size of Crude Tall Oil (CTO) had reached approximately 2050 thousand tonnes in 2023.
Q2.
Which end-use industry is the largest shareholder of Crude Tall Oil (CTO)?
Ans:
Distillation industry is the largest shareholder of Crude Tall Oil (CTO) globally.
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