Stearyl Alcohol Market

Market Overview

Stearyl Alcohol Market Size will Predicted to Grow at a 4.7% CAGR During Forecast Period

Stearyl alcohol, also known as octadecyl alcohol or 1-octadecanol, is classified as fatty alcohol [CH₃ (CH₂)₁₆CH₂OH] that is produced from the reduction of fatty acids. It is found in plants such as coconut and palm oil and can also be produced in the laboratories. Stearyl alcohol is insoluble in water and has a shape of granules or flakes. It is extensively used as an ingredient in cosmetics, lubricants, perfumes, resins, hair conditioners, and shampoos, and as a thickener in ointments, emulsifier, and emollient.

The stearyl alcohol market is projected to witness substantial growth during the forecast period on account of its increasing applications in the end-user industries, such as personal care, cosmetics, and pharmaceutical, among others. Rising income levels in the emerging economies have increased the demand for beauty and personal care products, further bolstering the market growth. However, volatility in raw material prices and the emergence of COVID-19 pandemic restrains the market growth.

Increasing Demand for Lubricants in the Automotive Industry/ The U.S. Automotive Industry to Support the Market Growth in North America

The automotive sector is growing at a swift pace across the globe; in 2018, the U.S. automotive sector contributed 2.7% to the country’s GDP. Stearyl alcohol is used for the production of lubricants, which is further used in the automotive sector. Thus, rapidly expanding automotive sector and increasing number of vehicle ownership provide an impetus to the market growth.

Lubricants play a vital role in maintaining vehicles; for instance, they are extensively used in traditional vehicles, such as cars and motorbikes, to take care of the joints. As per the Statista, in 2017, the global demand for lubricants was around 36 million metric tons. The per capita lubricant demand is high in North America; in 2017, the U.S. lubricant market was estimated at around USD 19 billion. Thus, the expansion of the lubricant market is subsequently surging the demand for stearyl alcohol, further driving the market growth.

Regional Analysis

Cosmetic and Automotive Sectors: Largest Market Contributor/ Asia-Pacific’s Stearyl Alcohol Market to Be Driven by the Rapid Expansion of Cosmetic and Automotive Industries

Asia-Pacific is projected to exhibit the fastest growth in the stearyl alcohol market on account of the rapid expansion of cosmetic and automotive sectors in India, China, South Korea, and Japan. As per the Statista, Asia-Pacific’s cosmetic market held the highest share in the global market in 2018, which is about 40% (USD 120 billion). Increasing middle class population, rising health awareness, and debouching beauty trends drive the regional market growth as stearyl alcohol is a key ingredient used in cosmetic products.

Automotive sector is the largest consumer of lubricants, further driving the demand for stearyl alcohol. Asia-Pacific has the fastest-growing automotive industry, with China and Japan spearheading the regional market growth. In 2019, Japan produced 8.33 million passenger cars, whereas China is the biggest car manufacturer. Asia-Pacific accounts for around 40% of the global lubricant market. Thus, the increasing consumption of lubricants in the automotive sector provides an impetus to the regional market growth. 

Segmental Analysis

Cosmetic and Personal Care Segment to Hold One-Third of the Market Share/ Debouching Makeup and Grooming Trends to Drive the Cosmetic and Personal Care Segment

By Application

The stearyl alcohol market is segmented into cosmetics and personal care, pharmaceuticals, and food and beverages, among others. The cosmetics and personal care segment dominates the market and holds nearly one-third of the market share. Stearyl alcohol is extensively used in the cosmetic and personal care industries for the manufacturing of hair conditioners, eye makeup, foundations, skincare products, skin cleansers, and skin moisturizers, among others. Stearyl alcohol helps to form an emulsion and prevents the separation of oil and liquid components in the products. It reduces the tendency of finished products to generate foam when shaken, and acts as a skin lubricant and endows a glossy, smooth, and soft appearance to the skin.

The cosmetic sector is growing at a rapid pace; in 2018, the cosmetic sector grew by an estimated 5.5%. Several cosmetic products have been gaining popularity on account of the widespread acceptance of online culture and rising use of social media platforms, such as YouTube and Instagram. These channels are highly influencing teenagers, millennials, and other age groups, further creating a demand for beauty products. Thus, the influence of debouching makeup and grooming trends on millennials provides an impetus to the segment growth.