by Epoxidized soybean oil is derived from soybean oil by converting its double-bond structure to epoxide structures. It is used as a co-plasticizer, stabilizer, and lubricant in plastics, especially PVC, as it improves flexibility and durability. It can replace phthalate plasticizers which are known to have health hazards. The growing demand for eco-friendly, non-toxic plasticizers from the building & construction and automotive industries is a major factor driving the epoxidized soybean oil market.
The Global epoxidized soybean oil market is estimated to be valued at US$ 1.6 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the epoxidized soybean oil market are Makwell Plasticizers Pvt Ltd., Llc, Shenzen Kaiqi Chemical Co., Ltd., Arkema SA, Chs Inc., Ferro Corporation, Hairma Chemicals (Gz) Ltd., Anhui Tianyi Environmental Protection Tech. Co.,Ltd, Shandong Novista Chemicals Co.,Ltd (Novista Group), Adeka Corporation, Hallstar, American Chemical Service, Zhejiang Jiaao Enprotech Stock Co., Ltd., Fujian Zhishang Biomass Materials Co., Ltd., Chang Chun Petrochemical Co., Ltd., NAN YA Plastics Corporation, Hebei Jingu Plasticizer Co., Ltd., Puyang Chengyi Plasticizer Co. Ltd, Chaohu Xiangfeng Plastic Aids Co., Ltd.
The key opportunities in the market include growing demand for eco-friendly plasticizers from developing nations in Asia Pacific and Latin America. Emerging technologies are enabling higher yielding and cost-effective production processes.
Technological advancements such as use of enzyme catalyst technology for production instead of chemical catalysts are making the process greener and more sustainable.
Market drivers
The major market driver is the increasing demand for non-phthalate and bio-based plasticizers from various end-use industries such as building & construction, automotive, and wire & cable. Strict regulations regarding the use of phthalate plasticizers are further boosting the demand. Other factors such as growth in the plastic industry and rising disposable incomes in developing nations also contribute to the market growth.
Current challenges in the Epoxidized Soybean Oil Market:
The Epoxidized Soybean Oil Market Size is facing certain challenges that are hampering its growth potential. Major factors include price fluctuations in soybean oil and supply chain disruptions caused due to the Covid-19 pandemic. Soybean oil prices in the international markets have witnessed high volatility in recent times due to changes in crop yields and demand-supply dynamics. This directly impacts the production costs for Epoxidized Soybean Oil manufacturers. Moreover, lockdowns and restrictions imposed during the pandemic disrupted the distribution channels and logistics for this market. Transportation of raw materials and finished goods became difficult, posing operational challenges.
SWOT Analysis
Strength: Derived from renewable soybean sources; considered environment friendly. Biodegradable and non-toxic in nature.
Weakness: Prices vulnerable to fluctuations in soybean oil market. Supply chain dependent on agricultural production.
Opportunity: Growing demand from paints & coatings industry due to stringent regulations on toxic chemicals. Potential in plastic & plasticizer applications.
Threats: Threat from substitute products like Epoxidized Linseed Oil. Trade wars and geopolitical tensions impact soybean prices.
Geographical regions where market is concentrated:
North America currently dominates the Epoxidized Soybean Oil Market in terms of value, holding over 30% share. This is attributed to strong demand from various end-use industries in the US and Canada. The paints & coatings sector utilizes epoxidized soybean oil extensively in this region.
Fastest growing region:
Asia Pacific region is expected to be the fastest growing market for Epoxidized Soybean Oil during the forecast period. This is majorly due to rapid industrialization and infrastructural growth taking place in emerging economies of China and India. Increasing disposable incomes are also propelling the consumption of paints & coatings, plastics and other applications in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
