Castor Oil and Derivatives Market Overview
The castor oil and derivatives market size is estimated to reach US$1.8 billion by 2027 after growing at a CAGR of around 6.3% from 2022 to 2027. Castor oil is a plant oil that is produced by castor beans and contains high amounts of ricinoleic acid, an omega-9 fatty acid that show excellent properties like anti-inflammatory, antimicrobial, and antioxidant. Owing to such properties they are used in healthcare, cosmetics, food, and others. The increasing demand for organic and natural cosmetic products will create new growth opportunities in the castor oil market. Castor oil is used as the starting material for producing a wide range of end-products like polyamides, polyurethane, and others because of the unique chemical structure. Castor oils and their derivatives like Hydrogenated castor oil are used as lubricants and greases. The growth of lubricants and greases in aircrafts, automobiles will drive the castor oil industry. Castor oil is also used extensively in making good moisturizers and conditioners because of its skin-soothing properties. Castor oil has an excellent property that its structure remains unchanged even at extremely high or low temperatures. Even when exposed to changing climates, the presence of castor oil in cosmetics helps maintain its smooth texture. Thus, castor oil and its derivates are widely being used in the cosmetic industry
COVID-19 Impact
The COVID-19 pandemic has positively impacted the Castor oil and derivatives market. Due to its high use in cosmetic applications, the growth of demand for castor oil has increased in the last year. During covid, the world’s population was stuck at home, which has increased the demand for cosmetic products such as skincare and others. Additionally, in recent years, skincare products and ointments had an increase in demand. The global Natural and Organic Personal Care Products market was valued at US$17.97 billion USD in 2020. The excellent properties of castor oil in treating skin infections and patching have driven the growth of the castor oil market. Additionally, companies like Lavera, USA based cosmetic company, use zinc ricinoleate as one of the ingredients in their deodorant and body lotion. It uses hydrogenated castor oil in its sunscreen lotion production. The derivatives of castor oil like ricinoleate are used bathing products owing to its excellent property of getting absorbed into the skin. Ricinoleate is also used in some personal care products which include deodorants and lotions.
Castor oil and derivatives Market Segment Analysis – By Grade
Pharmaceutical-grade castor oil held the largest share in the market in 2021 and is expected to grow at a CAGR of 6.8% between 2022-2027. Pharmaceutical grade castor oil contains ricinoleic acid and omega- 6 fatty acid which has excellent properties like high emulsification and solubilizes water-insoluble substances like oil. Pharma grade castor oil is used in pharma products, including intravenous injections, ophthalmic emulsions, oral capsules drugs, and others; as a stiffening agent, laxatives, and tablet-capsule lubricant. Due to its anti-inflammatory properties, pharmaceutical-grade castor oil is also used orally as a laxative for gastrointestinal disorders. Further, FDA has given GRAS approval to castor oil and thus promotes its use in laxatives in pharmaceutical preparations. Ambuja Solvex Pvt. Ltd, a significant manufacturer of Pharma grade castor oil is used to treat skin disorders, burns, abrasions, headaches, muscle pains, and others. They are also producing other oils like Castor Oil EP (European Pharmacopeia) Grade, Castor Oil BP (British pharma) Grade, and Castor Oil USP (United States Pharmacopoeia) Grade used for pharmaceutical purposes.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=503640
Report Price: $ 4500 (Single User License)
Castor oil and derivatives Market Segment Analysis – By Derivative
By derivative, Sebacic acid is expected to account for the largest share in the global market in 2021 due to its wide application in the synthesis of polyamide, a dominant engineering plastic with its wide applications in industries like automotive, electronics, and others. For instance, BASF uses bio-based sebacic acid to produce Ultramid Balance, which is a high-performance polyamide that can be used in automotive components due to its heat and solvent-resistant properties. Sebacic acid is made by cleavage of ricinoleic acid and thus shows significant properties such as durability, hydrophobicity, flexibility, and low melting points, which will drive the market growth Arkema; produces a high purity Sebacic acid called Oleris, which is produced in granular and powdered form. This is used in a variety of applications like producing plasticizers, lubricants, and others.
Castor oil and derivatives Market Segment Analysis – By Application
By application, the lubricants and greases segment held the highest share in the castor oil and derivatives market in 2021 and is estimated to maintain the highest percentage even during the forecast period. Castor oils and their derivatives like Hydrogenated castor oil, 12-Hydroxystearic acid are preferred for the manufacture of greases and lubricants in jet diesel, racing engines, aircraft engines, and others. This is because they show properties like they are environment friendly, have low-temperature viscosity, and give better lubrication than synthetic and other vegetable oils. For instance, Castrol, the leading lubricant company, adds a measure of castor oils in manufacturing high-performance lubricants with weather-resistant properties to be used in cruise, airliners, and others. Additionally, Gokul Overseas, a significant player in the castor oil and derivatives market, produces hydrogenated castor oil (Castor Wax) in Flakes and Powder form, having its numerous applications in metal drawing lubricants and multipurpose industrial greases due to their properties of insolubility in water and most solvents.
Castor oil and derivatives Market Segment Analysis – By End-Use Industry
The cosmetic industry held the highest share in the castor oil and derivatives market in 2021. Castor oil contains ricinoleic acid as a primary fatty acid group and thus passes the safety test by cosmetic ingredient review expert panel. This will increase the demand for Castor oil and derivatives market because derivatives of castor oil such as Zinc ricinoleate, Heptyl Alcohol, Ethyl Heptoate, 12-Hydroxy stearic acid, and others are widely used in cosmetic products. Castor oil and derivatives show thickening, conditioning, healing, and moisturizing properties. Thus, they are in high demand in cosmetic applications like emollient, ointment, deodorant, sunscreens, shampoos, and others. For instance, Zinc ricinoleate, a derivative of castor oil- is an anticaking agent, opacifying agent, and odor neutralizer. It is found in dozens of its personal care products, mainly in deodorants, makeup, nail polish, self-tanning creams, lip balm, and others. The Cosmetics Ingredient Review has approved the Zinc ricinoleate safe for use in cosmetics. Additionally, Whole Foods has also approved it safe in both body care and cleaning product quality standards.
Castor oil and derivatives Market Segment Analysis – By Geography
Asia Pacific will be the largest and the fastest-growing region in the castor oil & derivative market in the year 2021. India has the highest availability of castor seeds and therefore is one of the largest manufacturers and consumers of castor oil & derivative products. According to the Solvent Extractors Association of India (SEA), castor seed production is estimated at around 1653 kilotons from July 2020 to June 2021. India also exports a substantial volume on a yearly basis to China, Japan, and other parts of the world. According to the Solvent Extractors Association of India (SEA), India’s Castor oil exports is estimated to have increased, from 600.76 kilotons in 2019 to 709.88 kilotons in 2020. The reason behind the high production of castor oil and its derivatives in India is that the castor seeds are well grown in rainfall, high temperature, and low humidity, which makes it suitable to grow in different parts of India with Gujarat, Andhra Pradesh, Rajasthan, Orissa being the major producers. Additionally, the automotive industry is also a driving force for Castor oil and derivatives market. According to the China Association of Automobile Manufacturers (CAAM), the total vehicle sales in China by December 2020 was around 0.00285 billion units. Thus, increasing the growth of lubricants and greases and, in turn, increasing the demand for Castor oil and derivatives. For instance, Automakers such as Daimler, Fiat, and Ford have been turning to castor oil derivatives to cut the petrochemical content of their vehicles and increase their use of renewable or recycled materials. Castor oil derivatives like hydrogenated castor oil, 12-Hydroxystearic acid find application in the automotive industry, which include fuel lines, hydraulic hoses, corrugated tubes, transmission oil cooler hoses, pneumatic tubes, coolant and degassing pipes, servo-brakes, clutch tubes, radiator end tanks. All these factors make APAC regions like India the largest segment for Castor oil and derivatives
Castor oil and derivatives Market Drivers
Increasing demand for pharmaceutical grade castor oils is driving the demand for the castor oil and derivatives market
There has been significant growth in the healthcare sector from the past few years, which has increased the demands of pharmaceuticals like it is used for injection purposes for administering lipophilic drugs that cannot be taken orally. Castor oil contains ricinoleic acid and omega- 6 fatty acid which helps in the growth of lymphocytes which are known to fight disease-causing factors naturally. It also increases white blood cells. Thus, castor oil boosts the immune system and fights infection, which is a necessity, especially in this recent pandemic. Therefore, the wide application of castor oil and derivatives in pharmaceuticals is expected to show high growth in the forecast period. For instance, pharmaceutical grade castor oil held the largest share in the market in 2020 and is expected to grow at a CAGR of 6.8% in the forecast period. Pharmaceutical grade castor oil is used in applications like oral capsules, laxatives, and others.
APAC is the most growing region for Castor oil and derivatives
Since there is a huge castor seed production in the Asia-Pacific region, it is the major producer and exporter of castor oil and products. Increased use in household consumption in the form of refined virgin castor oil, as well as the increased incorporation of castor oil in and cosmetic sectors in the form of fragrance, moisturizers, and others, is the major driver of the high demand for Castor oil and derivatives in the Asia Pacific region. For instance, according to Production Statistics by METI (Ministry of Economy, Trade, and Industry), the shipment of skincare cosmetics category accounted for around 52% among the breakdown of cosmetic products like perfumes, hair care products, and others. Due to the presence of ricinoleic acid and omega- 6 fatty acid, castor oil is mainly used for promoting hydration to the skin and thus added to skincare products like lotions, cleansers, and others. Thus, the growth of castor oil and its derivatives will increase.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=503640
Castor oil and derivatives Market Challenges
Production of Ricin- a potent toxin produced by castor beans
The biggest challenge faced by the market is the production of Ricin which is a poison found naturally in castor beans while manufacturing castor oil or any derivative. Ricin can be made from the waste material left over from processing castor beans. As defined in Section 302 of the US Emergency Planning and Community Right-to-Know Act, Ricin is classified as an extremely hazardous substance in the United States, and producers or any stores who keep it for use need strict reporting requirements. According to The Centers for Disease Control and Prevention, Ricin is found in the endosperm of the castor seeds and classified as a type 2 ribosome-inactivating protein, which highly affects several large organisms. Ricin derived from the castor beans are lectins that stop the synthesis of proteins, causing death. It also says that “it takes a deliberate act to make ricin and use it to poison people.” Ricin can take the form of a powder, pellet, mist or can be dissolved into water, making it dangerously versatile.
Castor oil and derivatives Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies that are adopted by the dominant players in this market. Castor oil and derivatives top 10 companies include:
Hokoku Corporation,
Taj Agro Products
Liaoyang Huaxing Chemical Co. Ltd.
Adani Group
Jayant Agro Organic
ITOH Oil Chemicals Co. Ltd.
Gokul Overseas
NK Industries Ltd.
RPK Agrotech
Thai Castor Oil Industries Co. Ltd.
Acquisitions/Technology Launches
In Jan 2021, Japan’s ITOH Oil Chemica; acquires a 5% stake in Jayant Agro Organics, a leader in Castor oil and derivatives. Jayant Agro, produces nearly 7% of the world's consumption of castor oil. The infusion of funds will be used for further expansion and thus setting up new projects to obtain high-performance castor oil derivatives. Thus, growing as the largest manufacturers in the castor oil and derivatives market.
In March 2020, Project Pragati- project for sustainable castor crop, whose founding members are – Arkema, BASF, Jayant Agro-Organics, recently met to initiate phase 2, which will extend the program until July 31, 2022. This project was launched in May 2016 and was driven by a survey conducted on more than 1,000 castor farmers in Gujarat, India. Gujarat, is one of the major suppliers for castor beans. This project has also led to an intensive farmer engagement and encouraged them to adopt good agricultural practices to increase the production of castor beans. The goal of the project is to increase sustainable castor production.
Key Takeaways
The increase in demand for automobiles has increased the use of polyamides due to its excellent properties like chemical resistance, strong mechanical qualities, and others. Derivatives of castor oil such as ricinoleic Acid, undecylenic acid, and special grades of castor oil are used in the preparation of bio-based polyamides, which will result in significant demand for derivatives of castor oil.
The pharma grade castor oil will drive the market in the forecast period because the demand for pharmaceuticals like medicines, injections, and drugs across the world is increasing, owing to rising health consciousness among the population. Thus, the pharma-grade castor oil will drive the market in the forecast period because of its excellent emulsifying, healing, and other properties.
Increase in demand for organic and natural cosmetic products, and this is also creating new opportunities in the castor oil market due to the natural plant-based oil derivatives such as 12-Hydroxy stearic acid.
Relevant Reports
Sebacic Acid Market
https://www.industryarc.com/Research/Sebacic-Acid-Market-Research-501574
For more Chemicals and Materials related reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/
