Epoxidized Soybean Oil Market Size, Share, Industry, Forecast and outlook (2024-2031)

Epoxidized Soybean Oil Market is segmented by raw material (Soy Bean, Formic Acid, Acetic Acid, Hydrogen Peroxide), by application (Plasticizer, Fuel Additive, Flavor and Fragrances, Lubricants, Coatings, Agricultural Chemicals, Others (Cutting Fluids, Functional Fluids)), by End-user (Food and Beverages, Adhesives and sealants, Automotive, Healthcare), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

The "Epoxidized Soybean Oil Market" is predicted to reach a high CAGR during the forecast period (2024-2031). 

Epoxidized Soybean oil is an organic oil derived from soybean by a process known as epoxidation. It is widely used as a plasticizing & stabilizing agent in PVC plastics. Its major application also includes usage as a fuel additive in the automobile sector and cutting fluid and functional fluid in various industrial applications.

Market Summary

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Market Dynamics

Increasing demand for Epoxidized Soybean Oil from the food and beverage packaging industries, the widespread use of Epoxidized Soybean Oil as a fuel additive in the automotive industry, and the rising healthcare and pharma applications sector is expected to drive the market in the forecast period. It can also be used as a high-temperature lubricant owing to the low pour point.

The increasing use of Epoxidized Soybean Oil in the food and beverage packaging industry is crucial in boosting the global Epoxidized Soybean Oil market. According to the World Bank statistics, the World population increased from 7.46 billion in 2016 to 7.9 billion in 2021, reaching 8.4 billion in 2028. A considerable shift in consumers' lifestyles and diets in emerging economies have led to increased demand for packaged foods. Urbanization in developing countries is further expected to boost this phenomenon. For instance, the Urban population in India has been increasing constantly at 2-2.5% per annum since 2000 and is expected to reach 600 Mn by 2030, which is 38% of the total population.  Hectic lifestyles in urbanized areas have led to an increase in demand for healthy, convenient food prepared with minimal effort. Thus, increasing sales of packaged and processed foods are witnessing robust sales. Epoxidized Soybean Oil’s application as a plasticizer is a major ingredient used in the food and beverage packaging industry. This is expected to drive the market at a healthy rate in the forecast period.

However, the global Epoxidized Soybean Oil market's growth is impacted by fluctuating raw material prices and Epoxidized soybean oil's toxicity. The specific migration limit for ESBO is 60 mg kg-1 food simulant which corresponds to the overall migration limit. The European Commission lowered the ESBO migration limit to 30 mg kg-1 for infant food, since the tolerable daily intake (TDI) for 1 mg kg-1 body weight was often exceeded. However, the animal data support the conclusion that ESBO does not fit the designation of acutely toxic under the FHSA following single oral or dermal exposures, based on recent research conducted by the University of Cincinnati.

Covid-19 Impact Analysis on Epoxidized Soybean Oil Market

While the global trade came to halt during the lockdowns imposed to control the spread of novel coronavirus, the food industry has been impacted by severe freight challenges. Most of the food categories witnessed a decline in sales volume due to lack of demand and supply chain disruptions. The sales declined in the food industry, particularly in food service and HoReCa. As food and beverage is one of the dominant industries for the Epoxidized Soybean Market, the decline has a huge negative impact. The closure of food industries and lack of exports severely impacted the packages foods in turn impacting the epoxidized soybean market. Fuel consumption also declined to owe to the lockdowns and the work from home scenarios, which impacted the usage of ESBO as a fuel additive. 

Market Segmentation Analysis

Based on the end-user, the market is segmented as food and beverages, adhesives and sealants, automotive, and healthcare.

Food and beverages lead the market owing to the increasingly extensive use of packaged foods. However, the automotive segment is expected to witness the highest growth rate in the forecast period owing to widespread applications of Epoxidized Soybean Oil as fuel additives coupled with increasing mandates on fuel emissions. According to the Euro 5b tier, which was approved in September 2011 by the European emission standards, the permissible NOx emissions levels for diesel vehicles were 0.180 g/kg, and particulate matter was 0.005 g/kg. Due to increasing environmental pollution levels, it has recently launched the Euro 6d mandated, approved in January 2020. According to the Euro 6d emission mandates, the allowable limit for NOx emissions is 0.080g/kg and particulate matter emissions are 0.0045 g/kg. Epoxidized Soybean oil has a high flash point, thermal stability, low volatility & toxicity, and is biodegradable & non-corrosive. These fuel additives help minimize the vehicle's emissions, thereby improving the vehicle's performance, which is anticipated to drive the market in the foreseeable future.

Market Geographical Share

The Global Epoxidized Soybean Oil Market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

The European region is anticipated to dominate the global Epoxidized Soybean Oil market in the forecast period owing to the emission mandates imposed upon automotive emissions and regulations imposed on the use of non-phthalate plasticizers in food and beverage packaging. The flourishing automotive industry with well-established players in countries such as Germany, Spain, and Italy have contributed to the market's growth in developing innovative technologies in developing fuel additives that can curb environmental pollution.

Furthermore, REACH, the EU’s major regulation for chemicals involving the registration and evaluation of the thousands of chemicals, have imposed many regulations upon the registering and usage of plasticizers in the region, which include the elimination of non-phthalate plasticizers in food and beverages packaging and encourage the usage of safe plasticizers. Thus, companies have been focusing on developing plasticizers derived from soybean, which have been proven to be safe in the food and beverage packaging industry and are anticipated to augment the market's growth in the forecast period.

Market Companies and Competitive Landscape

The epoxidized soybean market is highly competitive in terms of new product launches, expansion of facilities, mergers and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to their growth and improve their market growth rate. The companies have been working to improve their products to meet government regulations and demand. Some key players include Arkema Corporation, CHS Inc., Hallstar Industrial, Hebei plasticizers co., LTD, KH Chemicals Ltd, The Chemical Company, Galata Chemicals, Maxwell Plasticizers, Shandong Longkou Longda Chemical Industry Co., Ltd., Harima Chemicals Ltd.

Arkema Corporation:

Arkema S.A. is a specialty chemicals and advanced materials company headquartered in Colombes, near Paris, France. With a turnover of 7.9 billion €, Arkema has 20,500 employees in more than 55 countries, 13 research centers worldwide, and a total of 144 production plants across the globe

Product Portfolio of Arkema Corporation:

• High-Performance Materials
  • Specialty polyamides
  • Fluoropolymers (PVDF)
  • molecular sieves for filtration
  • adsorption and organic peroxides
• Industrial specialties
  • thiochemicals
  • fluorochemicals
  • PMMA
  • hydrogen peroxide
• Coating Solutions

Key Developments:

• In May 2019, Arkema has announced the acquisition of ArrMaz, a US-based leader in specialty surfactants. This acquisition is expected to strengthen Arkema’s performance additives business, one of the three strong pillars within the High-Performance Materials division, along with Adhesives and Technical Polymers.
• In May 2021, Bostik expands its offerings in high-performance adhesives in the United States with the planned acquisition of Edge Adhesives Texas, a complementary asset in hot-melt adhesives and pressure-sensitive adhesive tapes for residential construction. This project is in line with Arkema’s strategy of bolt-on acquisitions to develop greater breadth in adhesives and deliver new products to meet expanding demand.
• Arkema plans to acquire Agiplast, a company specialized in the regeneration of high-performance polymers, and its historical partner in recycling operations. The company, with annual sales of around €15 million, operates a plant in Italy and has 32 employees. The deal is expected to close in the second half of 2021.