Castor oil is considered as one of the most unique and rarely found substances. It is derived from the seeds of the castor plant and has a distinctive chemical structure. Castor oil finds application in a variety of end-user products. Castor oil derivatives have experienced a rise in global demand from many sectors across the globe, especially India and Brazil.
There are various growth opportunities present for the castor oil market across a variety of industrial sectors such as greases and lubricants, pharmaceuticals, polymers, food ingredients, and many more.
Business Growth of Castor Oil Market
● India has been identified as the world’s largest producer of castor oil. The country invests in supplying a significant amount of castor oil to the globe. The value of castor oil is expected to increase in the coming years due to the rise in global population and a rise in the demand for cosmetic oils. Engineering plastics, polyamides (nylon), deodorants, polyurethane foam, castor based cosmetics, as well as perfumes are key sectors which are emerging and growing as a result of the growth in the castor oil industry.
● In addition to this, there are a number of specialized chemicals which are getting introduced in the manufacture of castor oil. An expansive and innovative base of feed stock is helping castor oil prices drop across the globe.
● There is an apparent increase in the demand for bio plastics and bio polymers which are proving to have a direct impact on the castor oil market. Since castor oil is an important ingredient in the manufacture of bio materials, the oil’s global influence is increasing.
Industrial Applications of Castor Oil
Castor oil is being recognized as one of the most popular non-edible oils across the globe. It is used as a raw material in the manufacturing and production of various cosmetic and industrial products. It also finds key application in the formulation of polymers, bio plastics, surfactants, plasticizers, as well as specialty rubbers. Castor oil also finds applications in hydraulics, primers, brake fluids, and low-point lubricants which are used in cold weather.
The by-products of castor oil are used in agricultural fertilizers as they substantially catalyze crop growth. Their use as fertilizers is expected to grow in the coming decade because of an increase in the demand for agricultural produce. Due to wide applications in chemical, personal as well as cosmetic care industries, castor oil is a popular industrial choice in developing as well as developed nations.
Rising Trends In The Castor Oil Market
1. Aims Of Achieving A Low Carbon Footprint
There is growing awareness about environmental issues such as Green House Gas (GHG) emissions and deforestation. These issues are urging castor oil manufacturers to look for alternate feed stock. According to experts, the constant availability and renew-ability of castor oil are expected to cause negative ecological repercussions in the near future. The extensive production of castor oil across the globe is favoring the expansion of the bio-diesel market.
Chemical and industrial innovations are one of the major trends driving the castor oil industry. Further, a rise in competition between major players such as Taj Agro Products, Kanak Castor Products Pvt. Ltd., and Enovel is causing a technological paradigm shift in how castor oil is treated, manufactured and used in various products.
2. Rise In Disposable Income and Other Socio-Economic Factors
The rising demand for castor oil is a result of rapid urbanization, an expanding middle-class population, and an increase in the demand for sustainable products. The rise in the ease of purchasing power, global economic prosperity as well as a rise in the affordability of castor oil products is expected to positively increase the end-user demands. Further, an expansion of the end-user target audience in South-Asian countries is predicted to boost the demand for castor oil.
3. Expansion of the Pharmaceutical and Healthcare Sectors
The landscape of the healthcare and pharmaceuticals sectors is rapidly changing. A large number of factors, such as a shift in food habits, growing number of cases reported of sleeping disorders, as well as improvement in the general lifestyle, are contributing to a rise in demand for castor oil products. People across the globe are becoming more conscious and vigilant about their health and general wellbeing and are, hence, demanding medicines which actively use castor oil. Large consumption of castor oil-based solvents is being used in the pharmaceutical and healthcare industries which are directly impacting castor oil market.
4. Demand For Cosmetic Products Having Natural Ingredients
The young audience which uses cosmetics and healthcare products are being observed to opt for products which have natural ingredients. The rise in demand for natural cosmetics as well as natural personal care products has been resulting in speedy innovations in the cosmetics sector across the globe. This is additionally predicted to surge the demand for castor oil derivatives in the coming decade. In regions such as North America, France, US, Germany and Canada, the demand for bio-based cosmetics is rising and is causing a rise in the number of industrial manufacturing plants for the manufacture of castor oil.
The castor oil market is affected by the dynamics of governmental inclusions, as well as changes in global demand. According to experts, the prices of castor oil seeds have gone up, and many national governmental subsidiaries which supported the agriculture of castor oil being used in bio diesel has reduced. Global warming has caused unpredictable weather conditions which have further negatively impacted the farming of the castor plant. These factors have caused a dip in the popularity of castor oil among manufacturers. There is pressure on scientists and technocrats to come up with innovative industrial alternatives of castor oil.
