The value of the global oleochemicals market is forecast to grow at a CAGR of 6.5% from US$27.3M in 2021 to US$39.8M in 2027, according to research by India-based analytics and advisory company Astute Analytica, reported by PR Newswire.

In terms of volume, the market was expected to grow at a CAGR of 6.2% during the forecast period, the study said.

The global oleochemicals market is driven by the growing adoption of oleochemicals in the pharmaceutical and cosmetic industries, increasing demand for sustainable and biodegradable products and increasing government regulation regarding the use of environmentally friendly products, according to the study.

With a 42.2% share, the fatty acids segment dominated the market last year, the 2 March PR Newswire report said, driven by increasing demand from pharmaceutical and personal care product companies for the manufacture of soaps and detergents, lubricants, surfactants and other products.

Asia-Pacific is projected to have the largest market share in the global oleochemicals market, according to the study, due to the positive outlook for the pharmaceutical and personal care sectors in China, India and Indonesia. Europe is estimated to have the next largest share of the market in the period.

Against this backdrop, Malaysia-based JJ Lurgi, the life sciences joint venture of diversified industrial conglomerate Jebsen & Jessen Group and industrial gases and technology provider Air Liquide, announced a new global strategy to expand its market presence beyond South East Asia, with a five-year goal to have 50% of its business growth to come from beyond the region.

“This new strategy will allow JJ-Lurgi to tap into opportunities in the global market as we enter our next stage of growth,” JJ-Lurgi CEO Jakob Helms said.

South Asia and North and South America would be the company’s initial priority markets for expansion, JJ Lurgi said in the 25 April statement.

The company said it had delivered orders worth more than US$15.8M in recent years from countries outside the South East Asia region, including Brazil, Pakistan, Paraguay and the USA.

JJ Lurgi said it would also be strengthening its research & development (R&D) capabilities, with planned investments going towards a new R&D department.

The company offers technology for the oilseed extraction, edible oil refining, fats modification, oleochemicals and methyl ester (biodiesel) sectors.