Fatty Alcohols Market Procurement Research – Market Trends and Spend Analysis by SpendEdge

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Global procurement intelligence advisory firm, SpendEdge, has announced the release of their ‘Fatty Alcohols Market Procurement Research Report.’ The insights and data in this report provide a strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape, and an analysis of the supplier capability matrix for the chemicals industry. This report breaks down the data and analysis behind the procurement of fatty alcohols and acts as an all-inclusive guide for making smart purchasing decisions.

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Global Fatty Alcohols Procurement Market Intelligence Report (Graphic: Business Wire)

Global Fatty Alcohols Procurement Market Intelligence Report (Graphic: Business Wire)

“Increasing demand from the detergent and personal care sectors drive the growth of the global fatty alcohols market, this can be attributed to the increased consumption of fatty alcohols due to the changing lifestyles of end-consumers in emerging economies such as APAC and MEA,” says SpendEdge procurement analyst A Kowshik. “APAC is the largest supplier of fatty alcohols due to the availability of raw materials and upstream integration by major oleochemical manufacturers,” added Kowshik.

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Procurement analysts at SpendEdge highlight the following top three market trends that are contributing to the growth of the Global Fatty Alcohols Market:

  • Vertical integration by plantation owners
  • Shifting preference from powdered detergents to liquid detergents
  • Exit of traditional players from the fatty alcohol business

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Vertical integration by plantation owners:

Plantation owners that produce crops for extracting vegetable oils such as coconut oil and palm kernel oil are increasingly investing in setting up fatty alcohol manufacturing units; this trend is expected to accelerate significantly leading the efficient production of fatty alcohols. Vertical integration by plantation owners gives them a robust raw material integration, leading to a more efficient supply chain network. Moreover, it also helps in increasing the profit margins of suppliers and reduces the prices of fatty alcohols.

Shifting preference from powdered detergents to liquid detergents:

Globally, there is a higher preference for liquid detergents when compared with powdered detergents, especially in more mature markets such as North America and Europe. The reason for this high demand can be attributed to the higher concentration of surfactants in liquid detergents. The growing preference for liquid detergents will result in a higher demand for fatty alcohols as liquid detergents require a higher level of surfactants.

The exit of traditional players from the fatty alcohol business:

Low profitability and the extensive capital requirements for a world scale operation have compelled the old conventional fatty alcohol players to divest from the business and limit their activities in this market space. The increasing competition from players in APAC is a significant factor leading to this exit. The exit of traditional players implies high competition in the industry, which will benefit buyers due to price wars among suppliers.

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SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred procurement market intelligence partner for Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence that helps sourcing and procurement professionals make informed decisions. These innovative procurement solutions help enterprises transform structural capabilities, improve execution efficiency, and fast-track time to savings.

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Business Wire: 20:15 GMT Friday 12th January 2018

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