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CHINA/OLEOCHEMICALS
Demand for personal care products is rising in China, due to increasing disposable incomes and product innovation
Growth in personal care China is a signficant global producer of oleochemicals and also imports large volumes of raw materials for oleochemical production. The growth of the personal care market and increasing consumer demand for ‘natural’ products will drive further development of this market Lim Teck Chaii, Desmond Ng China is both a significant producer and user of oleochemicals worldwide. In 2020, the country produced 1.7M tonnes of fatty acid, 307,000M tonnes of fatty alcohol, 193,000M tonnes of fatty amines, 724,300M tonnes of glycerine and 190,000M tonnes of soap noodles. China also imported a large volume of these oleochemicals products (see Table 1, p26). The key factors driving oleochemicals growth are end-use industries such as personal care, food and beverages, soaps and detergents, paints and plastics. These industries will continue to develop in the coming years, along with China’s economy, propelling the oleochemicals industry. Growing concerns about the use of petroleum feedstocks in chemicals has 24 OFI – MARCH/APRIL 2022
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also contributed to higher usage of oleochemical products. In China, the raw material used for oleochemical production is mainly palm oil and its derivatives. Manufacturers are likely to increase their production of basic oleochemical products such as fatty acids, fatty alcohols, fatty amines and glycerine to meet rising demand.
Growth of industry
Oleochemical production began as a backyard industry with numerous smallscale and inefficient plants. When China undertook the initiative to liberalise its economy and joined the World Trade Organization (WTO) in 2001, various oleochemical companies invested in the country and transformed the industry. Currently, there are more
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23/03/2022 11:16:14
