London - REACH regulations are playing a major role in driving the otherwise mature European oleochemicals market, according to a new study from Frost & Sullivan.
The report 'Analysis of the European Oleochemicals Market' finds that the market for these "bio-compatible" petrochemical equivalents earned revenues of $3.9 billion in 2011. This is projected to top $4.5 billion by 2018, an average annual growth of 1.9 percent.
"The need to replace petrochemical derivatives with natural alternatives is expected to keep growth rates positive throughout the forecast period," noted Frost & Sullivan chemicals & materials senior research analyst Nandhini Rajagopal.
Oleochemicals, such as soya bean oil, palm and palm kernel oil, are helping customer product manufacturers adhere to REACH regulations and reduce their carbon footprint, the report says.
"Backward integration with plantation or agribusiness groups and vertical integration in the value chain across customer product manufacturing companies will help to synergise oleochemical manufacturer's strengths, enabling them to overcome price fluctuations and remain stable," said Rajagopal.
UTI has not seen this report and cannot comment on the accuracy of its conclusions