Global Tall Oil Fatty Acid Market: Snapshot 

Tall oil fatty acid is a byproduct obtained from the manufacturing process of paper and pulp. The increasing use of this product in several industries is estimated to stimulate the growth of the market in the next few years. Moreover, the increasing emphasis of players on the development of new and effective products is estimated to act as a major opportunity, which is likely to boost the demand for tall oil fatty acids over the forecast period. 

As per the research study by Transparency Market Research, in 2013, the global market for tall oil fatty acids was worth US$ 725.1 mn and is likely to reach a value of US$ 1,050.0 mn by the end of 2022. The market is anticipated to exhibit a strong 4.20% CAGR between 2014 and 2022. 

Expansion of Application Base to Offer Promising Growth Opportunities 

The increasing demand for oleic acid in North America is one of the key factors estimated to fuel the growth of the global tall oil fatty acid market throughout the forecast period. The increasing crude oil production in several regions worldwide and the increasing demand for tall oil fatty acids from coatings and soaps and detergents industries are anticipated to accelerate the growth of the overall market in the coming years. Furthermore, the rising number of applications is estimated to contribute towards the development of the market in the near future. 

On the flip side, the low rate of penetration of the tall oil fatty acid market in several developing economies, particularly in Asia Pacific is considered to curtail the growth of the global market in the next few years. Nevertheless, the production of biodiesel using the tall oil fatty acid that are based on feedstock is estimated to provide several growth opportunities for the market leaders in the forecast period. In addition to this, the preferential shift of consumers from tallow oil fatty acid to tall oil fatty acid in developed economies is likely to propel the global market in the near future. 

Abundance of Raw Materials to Encourage Growth in Europe and North America 

Europe and North America are considered as the leading producers of tall oil fatty acids. According to the research study, at present, these two regions account for a share of around 75% of the overall market. The healthy growth of these regions can be attributed to the easy and high availability of raw materials. The increasing demand from the U.S. is estimated to bolster North America market in the near future. In addition to this, the increasing production capacity of paper and pulp industry is expected to accelerate the growth of the tall oil fatty acid market in Europe and North America. Furthermore, the tall oil fatty acid market in Asia Pacific is estimated to witness promising growth over the next few years. The growing contribution in terms of demand from Japan, China, and India is expected to supplement the growth of the Asia Pacific market in the coming years. 

At present, the global market for tall oil fatty acid market is considered to be extremely concentrated in nature. The expected entry of new players is projected to enhance the competitive level of the market and generate lucrative opportunities for the key players in the next few years. Some of the prominent players operating in the tall oil fatty acid market across the globe are Forchem Oy, Harima Chemicals Group, Inc., MeadWestvaco Corporation, Arizona Chemical Company, LLC, and Georgia Pacific LLC. 

This report covers the analysis and forecast of the Tall Oil Fatty Acid (TOFA) on a global and regional level. The study provides historic data of 2013 along with forecast for the period between 2014 and 2022 based on volume (kilo tons) and revenue (US$ Mn). 
The study provides a decisive view of the TOFA market by segmenting it based on product types, applications, end-users, and regional demand. Application segments and end-user segments have been analyzed based on current trends and future potential, and the market has been estimated from 2014 to 2022 in terms of volume (kilo tons) and revenue (US$ Mn). Regional segmentation includes the current and forecast demand for North America, Europe, Rest of Asia Pacific, Latin America, and the Middle East and Africa. These have been further sub-segmented into countries and regions in terms of relevance to the market. Segmentation also includes demand for individual applications and end-users in all the regions.
The study covers drivers and restraints governing the dynamics of the market along with their impact on demand during the forecast period. Additionally, the report includes potential opportunities in the TOFA market on the global and regional level.
We have included a detailed value chain analysis to provide comprehensive view of the TOFA market. Analysis of Porter’s Five Forces model has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications have been benchmarked based on their market size, growth rate, and general attractiveness for future growth.
The market has been forecast based on constant currency rates. Prices of TOFA vary in each region and are a result of the demand-supply scenario of the region. Hence, a similar volume-to-revenue ratio does not follow for each individual region. Individual pricing of TOFA for each application has been taken into account while estimating and forecasting market revenue on a global basis. Regional average price has been considered while breaking down the market by application segments in each region. 
The report provides the size of the TOFA market for 2013 and the forecast for the next nine years up to 2022. The size of the global TOFA market is provided in terms of both volume and revenue. Market volume is defined in kilo tons, while market revenue for regions is in US$ Mn. The market size and forecast for each product segment is provided in the context of global and regional markets. Numbers provided in this report are derived based on demand generated from different applications and types of raw materials. Market dynamics prevailing in North America and Europe have been taken into account for estimating the growth of the global market.
Market estimates for this study have been based on volumes, with revenues being derived through regional pricing trends. The price for commonly utilized grades of TOFA in each application has been considered, and the customized product pricing has not been included. Demand for TOFA has been derived by analyzing the global and regional demand for TOFA in each application and end-user segment. The global TOFA market has been analyzed based on expected demand. Market data for each segment is based on volume and corresponding revenues. Prices considered for calculation of revenue are average regional prices obtained through primary quotes from numerous regional suppliers, distributors, and direct selling regional producers, based on manufacturer feedback and application requirement. Forecasts have been based on the expected demand from TOFA application and end-user segments. We have used the top-down approach by considering global demand for TOFA. Global demand was further segmented by regions and end-use markets. Application segments were derived through the bottom-up approach, integrating regional demand from end-users. Product segment analysis is based on the composition of TOFA in various regions. The composition of TOFA derived from pine trees is anticipated to be the same over time. Market forecasts are also based on comparative demand for oleic and linoleic acids. Companies were considered for market share analysis based on their product portfolio, revenue, and manufacturing capacities. In the absence of specific data related to the sales of TOFA of several privately held companies, calculated assumptions have been made in view of the company’s product portfolio and regional presence along with the demand for products in its portfolio. Additionally the report includes the manufacturing process of TOFA’s application segments
The report covers a detailed competitive outlook which includes the market share and company profiles of key participants operating in the global market. Key players profiled in the report include Arizona Chemical Company, LLC, MeadWestvaco Corporation, Forchem Oy, Georgia Pacific LLC, and Harima Chemicals Group, Inc. The study also includes company profiles of players involved in the end-user segment of tall oil fatty acid. Company profiles include attributes such as company overview, brand overview, financial overview (in terms of financial year), business strategies, and recent/key developments.
Tall Oil Fatty Acid Market - Product Segment Analysis
  • Oleic acid
  • Linoleic acid
  • Others (Including linoleic acid, maleic acid, and stearic acid)
Tall Oil Fatty Acid Market - Application Analysis
  • Dimer acid
  • Alkyd resin
  • Fatty acid ester
  • Others (Including dimer acid and fatty acid soaps)
Tall Oil Fatty Acid Market - End-user Analysis
  • Soap & detergents
  • Coatings
  • Lubricants
  • Plastics
  • Fuel additives
  • Metal working fluid
  • Others (Including adhesives, asphalt additives, and biofuel)
Tall Oil Fatty Acid Market - Regional Analysis
  • North America
    • U.S.
    • Rest of North America
  • Europe
    • Sweden
    • Finland
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • ASEAN
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East and Africa
    • GCC Countries
    • South Africa
    • Rest of MEA