Crude Tall Oil Market is Anticipated to Witness High Growth Owing to Rising Applications in Various Industries
Crude Tall Oil Market |
Crude Tall Oil (CTO) is a by-product of the pulp mill industry that is obtained from the acidification of black liquor generated during wood pulp production from pine trees. It is a yellowish or amber viscous liquid consisting predominantly of fatty and resin acids. CTO finds numerous applications as a substitute for petroleum in the production of drilling mud, metalworking fluids, concrete mixtures, oils, greases, rubbers, coatings, paper laminates, and numerous chemical intermediates.
The rising applications of Crude Tall Oil in various
end-use industries such as construction, automobile, coating, rubber and many
more is primarily driving the global Crude Tall Oil market growth.
The Global Crude Tall Oil market is estimated
to be valued at US$ 1.93 BN in 2024 and is expected to exhibit a CAGR of 4.5%
over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Crude Tall Oil market are Citec Group Oy Ab,
Ingevity Corporation, Georgia-Pacific Chemicals, Forchem Oyj, Kraton
Corporation. These players are focusing on capacity expansion and new product
development strategies to strengthen their global presence.
There are significant opportunities for Crude
Tall Oil Market Demand manufacturers in the form of increased adoption
in green binders for concrete due to its eco-friendly nature. Also, growth of
the mining industry will augment the demand for Crude Tall Oil-based drilling
mud products, thereby fueling the overall market growth.
Manufacturers are eyeing developing regions like Asia Pacific and Latin America
for tapping the untapped consumer base. Strategic partnerships with regional
players can help global Crude Tall Oil companies establish their supply chain
and distribution network in these emerging markets.
Market Drivers
Rising applications in concrete industry: CTO finds extensive usage as a
concrete additive as it enhances workability and durability of concrete. It
reduces the requirement of other organic additives. Growing infrastructural
development is expected to propel the demand for CTO in concrete industry.
Expanding end-use industries: CTO derived products like adhesives, lubricants,
greases, corrosion inhibitors, and synthetic resins finds use across industries
like transportation, mining, construction and others. The growing end-use
applications will bolster the CTO market growth.
Market Restrain
Fluctuating raw material prices: The raw material prices for Crude Tall Oil are
dependent on the pulp and paper industry. Any discontinuation in pulp
production due to economic slowdown may hamper the supply of CTO. This poses a
major restrain to market growth.
Environmental Regulations: Stringent regulations regarding disposal of
effluents from CTO processing plants along with rising environmental concerns
could hamper the market expansion to some extent over the review period.
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