As people ofbiodegradableand renewablegrowingdemand for our products,oleochemicalsshowinggreater marketgrowth opportunities,particularly inpolymers,lubricantsand bio-surfactantapplications,replacepetroleum-basedproducts becomeabigtrend.2013globaloleochemicalsmarket size of about14 million tonsover the next fiveyearswill average6%of themarketcontinues to grow,fiveyearswill reach18 million tons.
Pursuit of "natural"expansion of demand

As peopleincreasingly prefer touseproductsderived from naturalraw materials, coupled withthe global demandfor renewableand biodegradableproductscontinues torise,the conceptof sustainable developmenthasbeen more and moreaccepted bychemical companies, oilrapidgrowth in demand forchemicals,oleochemicalsthusentered a rapid developmentperiod.

Manychemical companiesbegantoproduceraw materials foroleochemicalslubricants,polymersand surfactants,and exploreportfoliodiversification.The greatest benefitof this is that, not only cancontinue to servetheir core business, but also cansignificantlyreduceinvestment riskand carbon emissions.

Three major areas ofapplicationincrease

For decades,has been dominated bypetroleum-basedlubricantsmarket.However, suchproducts are noteasily degradable,disposalafter useis facingthe risk ofimproper disposalcould causeharm tohealth and the environment,properdisposal of highcost.Because of this, bio-lubricantsgreat market potential.Currently, the worldoil marketsize of38 million tons,whichaccounts for about3%biologicallubricant,up to1.2 million tons.According to a conservativeforecast,the2020Worldlubricants andbio-lubricantdemand willincrease to45 million tons, respectively,and 400million tons.At present, somerelated chemicalcompanies havefocused their attentiononthis marketopportunity,are working to developbio-lubricantsrelevant market.Such asCargillhas developed acompletelysoybean oilas rawelectrical insulationfluid.

Bio-basedpolymersdue to theirbetterbiodegradability,are becomingan alternative totraditionalpetroleum feedstockpolymer.Biopolymerscurrentlystill in its infancy,in 2012the demandis estimated at around1.3 million tons,180 million tonsof polymerin the globalshare ofconsumption ofless than1%.According to the relevantcompany expectsthe next few years, the globalbio-based polymersmarketwill average40 percentgrowth rateof these productstothe marketin 2020will reach20 million tons, accounting forpolymermarketsharewill rise to7%.Becauseoptimistic about the marketoutlook, the currentBASF,Solvay,DuPont, DSM,ArkemaandLanxesslayoutand other largecompanies havestartedto developvegetable oil asraw material to producepolymersmarket.

Surfactantindustries,methylether sulfonate(MES)arean alternative tolinear alkylbenzenesulfonates(LAB)oleochemicals.MEShas excellent characteristics,such as highpurity and highactivity level,and does not containany volatileorganic compounds,a mildnon-irritating tothe skin, the color iswhite ornearly white,and the powderis particularly suitablefor liquiddetergentapplications.2011,ChinaJiangSu Haiqingbiotechnology companyhas builta100,000 tons/ yearMESplant.With the growth ofthe marketof theliquid and powderdetergents, MESalternativelinearalkylbenzene sulfonateto acceleratethe pace ofapplication,will further increasethe demandof the MES.LABcurrent globalmarket size ofabout 300tons, is expectedto2020is expected to replacethirdLABMESdemand, the marketis expected to reach1.2 million tons.

Asiawill become the mainbattlefield

Asiais amajor consumer ofoleochemicalsandrelated productsareaand productionarea, accounting for68 percentof global consumption, accounting for60%of world production.Malaysiaand Indonesia arethe twomajorproducers ofbasicoleochemicalsfatty acids andfatty alcohols,andhas attractedseveral majorcompanies to investin this area,wishful慕利oleochemicalcompanies,WilmarInternational,BASFCorporation.

Mostoleochemicalsdevices arebuilt inAsia,and continuesto add newcapacity.Due tothe rapidincrease in production capacityresulting indecreasedprofitability of the industry, some companies haveexpandedto downstreamareas,thus further strengtheningtheAsianhubasoleochemicalsand downstreamproducts.

Foroleochemicalsbusiness,the most important issueis to ensurea continuous supplyof raw materials.According torelevant statistics,at present12%to 14% of worldvegetable oil productionisused to produceoleochemicals,to2020oleochemicalsemerging applicationswill requirean increaseof8 million tonsof vegetable oils,vegetable oil productionis expectedwhen theworldwillsynchronousincreaseto meetthis need.