Isostearic Acid Market Overview
The global isostearic acid market size is projected to reach $442.4 million by 2020, growing at a CAGR of 7.3% during the forecast period. Some of the major drivers behind the growth of the global market include growing cosmetics product market and increasing lubricants and greases industry.
Based on end-user, the isostearic acid market is segmented into chemical esters, personal care, lubricants & greases, and others. The others segment includes textiles, oil extraction, rubber & polymer, and industrial & institutional cleaning. Chemical esters held the largest segment during the historical period and it is projected to hold more than 35% share of the overall market by 2020. The demand for isostearic acid-derived chemical esters is driven by its multifunctional properties, such as strong dispersion and adhesion, and emollient and water repellent nature. These chemical esters are also used as pigment promoters, solubilizer, effective solvents, and plasticizers.
Geographically, North America is the second largest isostearic acid market. The North American market for isostearic acid is projected to hold over 25% of the global market share by 2020. The increasing consumer inclination towards multifunctional personal care products is one of the key factors boosting the growth of the isostearic acid market in North America. The busy lifestyle and increasing economically active population are propelling the growth of the personal care industry, which in turn is driving the demand for chemical esters, including isostearic acid. The continuous innovation in color cosmetics, along with growing disposable income are the key drivers of the cosmetics industry, which are consequently driving growth of the isostearic acid industry in North America.
Isostearic Acid Market Dynamics
One of the major factor driving the growth of the isostearic acid market is the growing cosmetic products market. Isostearic acid is used in the manufacture of personal care products, including cosmetics such as lipsticks, lip gloss & sunscreen creams and toiletries products such as liquid soaps. The global cosmetic products market is expected to reach $678.9 billion by 2020. The market for beauty products is driven by increasing aging population and increasing disposable income. The leading cosmetic companies, such as L’Oreal Group (France), Avon Products Inc. (the U.S.), The Estée Lauder Companies Inc. (the U.S.), and Oriflame Cosmetics (Luxembourg) are continuously introducing new variants, which are increasing the growth of the cosmetics industry. This is expected to drive the growth of the isostearic acid market.
Personal care and chemical esters are the prime end users for the isostearic acid industry. Isostearic acid is also used in the production of industrial and institutional cleaning chemicals, such as liquid cleaners and soaps. At present, the industrial and institutional cleaning chemical accounts for a low share in the global isostearic acid market. However, strong growth is projected in the near future. The up surging environmental safety regulations and increasing public awareness about health and hygiene are driving the growth of the industrial and institutional chemical, especially in the developing countries. This in turn, is generating growth opportunities for the isostearic acid market.
Availability of substitutes is a major restraint in the isostearic acid market all over the world. Isostearic acid is a saturated fatty acid and is highly priced, which limits its usage in end-user industries. There are various substitutes for isostearic acids, such as lauric acid, myristic acid, palmitic acid, stearic acid, ricinoleic acid, oleic acid, behenic acid, erucic acid, and coconut fatty acid, which are readily available in the market at lower prices.
The key companies operating in the global isostearic acid market include Oleon NV, Croda International Plc, Jarchem Industries Inc., Arizona Chemical Company LLC, Nissan Chemical America Corporation, and Emery Oleochemicals (M) Sdn Bhd.