H1 2023: The top Stearic Acid production companies in H1 2023 were PT Duakuda Indonesia, Yihai Kerry, VVF (India) Limited, and PT Cambridge Olien. However, PT Duakuda Indonesia had the largest production capacity of Stearic Acid in H1 2023. Geographically, Asia Pacific was one of the leading consumers of stearic acid. Although, stearic acid prices remained bearish in H1 2023. This was attributable to stockpiling and average demand from the downstream cosmetic, soap, and rubber industry sectors. Also, upstream palm oil prices trended south. The Chinese economy also played a role in the weak domestic market, as consumer enthusiasm remained muted due to slow conditions throughout H1 2023. Furthermore, limited offshore trading activity pushed Stearic Acid prices lower. In response to the unfavorable market conditions, manufacturers decided to reduce their production rates in China. Furthermore, export demand fell, and high-interest rates harmed the region's rubber and cosmetics industries. A similar scenario was observed in the US market. Sluggish procurement from the end-use cosmetic and soap & detergent industries resulted in a negative market trend in the US market for Stearic Acid during H1 2023. Input cost pressures were at ease and there was ample product in the market. Market trades were likewise average. The difficult economic conditions caused by the failure of two banks exacerbated the detergent sector in March 2023. Also, the shipping charges from the Asian markets to the United States fell dramatically. The Stearic acid prices remained hazy in America for the remaining months of H1 2023 as well.
The global stearic acid market is witnessing a steady rise at a CAGR of 4.01% from 2023 to 2032 and is expected to reach 4391 Thousand Tons by 2032. The market has been characterized by its versatile applications across industries, such as personal care, cosmetics, industrial processes, and more. Factors driving its demand included the growth of personal grooming trends, industrial expansion, sustainability preferences, and emerging markets.
Stearic acid is a versatile white waxy substance derived from fats. It is used for emulsifying, thickening, and lubricating in cosmetics, industrial processes, candles, and more. It acts as a stabilizer in personal care products and even serves as a food additive. Sourced from animal fats or plant oils, it is valued for its multifunctional properties.
Market Drivers
Demand in Personal Care and Cosmetics
Stearic acid plays a vital role in the personal care and cosmetics industry. Its ability to emulsify and thicken formulations makes it a valuable ingredient in products like creams, lotions, shampoos, and cosmetics. When mixed with water-based and oil-based ingredients, stearic acid helps maintain the stability of these products, ensuring a consistent texture and appearance. This is particularly important in cosmetics where consumers expect products to have a smooth and pleasant feel.
Moreover, stearic acid's stabilizing properties contribute to the extended shelf life of personal care items. This makes it an essential component for manufacturers aiming to provide effective and long-lasting products to consumers.
The increasing emphasis on self-care and grooming, driven by changing beauty standards and growing awareness of personal appearance, fuels the demand for cosmetics and personal care products. As consumers seek products with appealing textures and lasting effects, the inclusion of stearic acid to achieve these attributes becomes essential, driving its demand in this market segment.
Rising Industrial Applications
Stearic acid's applications extend beyond cosmetics into various industrial sectors. Its role as a lubricant and mold-release agent makes it valuable in industries such as rubber manufacturing, metalworking, and plastics production. In rubber processing, stearic acid helps prevent the rubber from sticking to machinery and molds during shaping and curing processes. This enhances efficiency, reduces production downtime, and ensures the quality of the final products. Similarly, in metalworking, stearic acid serves as a lubricant, reducing friction and wear during machining processes. This not only improves the efficiency of manufacturing but also contributes to extending the lifespan of tools and machinery.
As industries expand and manufacturing processes become more sophisticated, the demand for stearic acid to enhance efficiency, reduce production costs, and ensure product quality continues to grow. This driver is particularly significant in sectors where precision, quality, and cost-effectiveness are paramount.
Market Restraints
Sustainability Concerns and Environmental Impact
The stearic acid market faces challenges related to the environmental impact of its production, especially when sourced from certain feedstocks like palm oil. Unsustainable practices, such as deforestation and habitat destruction, associated with palm oil production have raised environmental concerns. This has led to increased scrutiny and calls for more responsible and sustainable sourcing practices, impacting the market's growth.
Price Volatility and Feedstock Dependence
The stearic acid market is susceptible to price volatility due to fluctuations in feedstock prices, particularly in the case of plant-based oils. Prices of palm oil and coconut oil, commonly used sources for stearic acid production, can be influenced by factors, such as weather conditions, geopolitical events, and market supply and demand imbalances. This volatility can disrupt supply chains and affect the cost structure for manufacturers, posing challenges to market stability.
Trends & Opportunities
Shift Towards Renewable and Sustainable Sources
A significant trend in the stearic acid market is the increasing emphasis on sourcing from renewable and sustainable feedstocks. As environmental awareness grows, industries are seeking alternatives to traditional sources like palm oil that may be associated with deforestation and environmental degradation. This trend aligns with the broader movement toward green and responsible practices. Manufacturers are exploring feedstocks such as non-edible vegetable oils, waste fats, and even algae as potential sources for stearic acid production. This shift not only addresses sustainability concerns but also aligns with consumer preferences for environmentally friendly products.
Diversification of Applications in Bio-Based Plastics
As the demand for sustainable materials increases, there is an opportunity to expand stearic acid's application in the production of bio-based plastics. Stearic acid can serve as a natural and renewable additive that improves the mechanical properties and stability of bio-based plastics. These plastics are being adopted as alternatives to traditional petroleum-based plastics due to their reduced environmental impact. By leveraging stearic acid's properties, manufacturers can enhance the performance of bio-based plastics, opening up new markets and contributing to the reduction of plastic waste.
End-Use Analysis
Based on end-use, the global stearic acid market is segmented into soaps & detergents, personal care & cosmetics, rubber processing, textiles, and others (intermediates, plastics, etc.). With more than 30% demand share, the soaps & detergents segment led the global market in 2022 and is expected to remain doing so over the next few years. Stearic acid is a crucial part of soap and detergent manufacturing, as it hardens soap bars, improves texture, and aids lathering. In liquid detergents, it serves as an emulsifier, stabilizer, and viscosity controller, while also enhancing fabric softeners for effective softness.
Regional Analysis
The global stearic acid market reports its presence across North America, Europe, Asia Pacific, South America, and the Middle East and Africa. Among these, Asia Pacific has been leading the global market, followed closely by Europe. Driven by its robust industrial growth and rising demand for personal care and cosmetic products, Asia Pacific is likely to retain its dominance over the market in the near future.
Competitive Landscape
PT Duakuda Indonesia, Wilmar International, IOL Group, Yihai Kerry, PT Cambridge Olien, Rugao Shuangma Chemicals Co. Ltd., VVF (India) Limited, Dongma Palm Industries Zhangjiagang Co. Ltd., PT Cisadane Raya Chemicals, and EVYAP-OLEO are some of the key players in the global stearic acid market.
Years considered for this report:
Historical Period: 2015-2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
This report will be delivered on an online digital platform with one-year subscription and quarterly update.
The objective of the Study:
• To assess the demand-supply scenario of stearic acid which covers the production, demand, and supply of the global stearic acid market.
• To analyze and forecast the size of the global stearic acid market.
• To classify and forecast the global stearic acid market based on end-use and regional distribution.
• To examine competitive developments, such as expansions, mergers & acquisitions, and partnerships, of the global stearic acid market.
To extract data for the global stearic acid market, primary research surveys were conducted with stearic acid 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 the global stearic acid market over the coming years.
ChemAnalyst calculated the demand for stearic acid in the world by analyzing the historical data and demand forecast which was carried out considering the demand for stearic acid by end-use industries across the world. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources, such as company websites, association reports, annual reports, were also studied by ChemAnalyst.
Key Target Audience:
• Stearic acid manufacturers and other stakeholders
• Organizations, forums, and alliances related to stearic acid distribution
• Government bodies, such as regulating authorities and policymakers
• 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 stearic acid manufacturers, customers, and policymakers. 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, the global stearic acid market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:
Attribute
Details
Market size Volume in 2022
2980 Thousand Tons
Market size Volume by 2032
4391 Thousand Tons
Growth Rate
CAGR of 4.01% from 2023 to 2032
Base year for estimation
2023
Historical Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in Thousand Tons and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End-Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process, and Policy and Regulatory Landscape
Segments covered
By End-Use: Soaps & Detergents, Personal Care & Cosmetics, Rubber Processing, Textiles, and Others (Intermediates, Plastics, etc.)
By Sales Channel: Direct Sales and Indirect Sales
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
Disruption Tracker
Disruption Tracker reflect the major shutdown on monthly basis which will help you in
tracking the inventory management and smooth functioning of business. Unforeseen shutdowns and disruptions
resulting in a loss of production capacity to impact the bottom line. The capacity tracker provides industries
with a global view of production and consumption capacity loss that reflects the corresponding conversion factors.
It also highlights the immediate impact on supply due to planned and unplanned outages as well as upcoming start-up
of new capacities. Additionally, it emphasizes how each shutdown—whether due to a maintenance turnaround or a case
of force majeure, affects the plant's operating rate for the given duration. Disruption tracker gives a clear insight
into the worldwide outages affecting the commodity of interest. With every shutdown, it also reflects the impact on
supply of the product in the market at a Global level.
What was the global stearic acid market volume in 2022?
Ans:
The global stearic acid market reached a volume of 2980 Thousand Tons in 2022.
Q2.
What is the projected growth rate of the global stearic acid market from 2023 to 2032?
Ans:
The global stearic acid market is anticipated to experience a CAGR of 4.01% during the period from 2023 to 2032.
Q3.
Which end-use segment is leading the global stearic acid market?
Ans:
The soaps & detergents segment is leading the global stearic acid market.
Q4.
Which region is likely to dominate the global stearic acid market?
Ans:
Asia Pacific is likely to dominate the global stearic acid market.
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