H1 2023: During H1 2023, the top producers of CTO were Ingevity Corporation, Kraton Corporation, and Sunpine ABC. In June 2023, HEAD Engineering AB, one of the leading engineering companies of Sweden, signed an agreement with Vallviks Bruk AB, to construct the PINOLA TOPP 3000, a revolutionary tall oil plant based on separators. The facility will produce 12 thousand tonnes of crude tall oil (CTO) and will be installed in 2024. The plant will produce Crude Tall Oil from kraft soap using the robust and continuous PINOLA TOPP process, that results in the best yield and CTO quality. Based on region, Europe consumed the majority of CTO in H1 2023. However, North America and Asia Pacific were also the prominent consumers of CTO. Ingevity Corporation was the CTO's leading producer in H1 2023 based on volume. Tall Oil Rosin is one of the products formed by the distillation of CTO. However, due to low demand and adequate supplies, Tall Oil Rosin prices in the German market marginally decreased in H1 2023. Economic factors like inflationary pressure and high loan rates made it difficult for Tall Oil Rosin to expand its market in Germany. The price of Tall Oil Rosin in Europe decreased as a result of the decline in demand for Tall Oil Rosin in the German market by the downstream industry.
H1 2022: In 2022, the global demand of Crude Tall Oil (CTO) market reached around 1942 thousand tonnes with a growth of 3.56% in comparison to 2021. During H1 2022, the total production has reached 970 thousand tonnes with Ingevity Corporation, Kraton Corporation, Sunpine ABC, and Metsä Fibre being the leading producers. In H1 2022, Europe held a market share of approximately 40%. However, North America and Asia Pacific collectively consumed approximately 45% of the market. Based on volume, Ingevity Corporation held the position of the CTO leading producer in H1 2022. In H1 2022, Ingevity Corporation and Kraton Corporation collectively produced roughly 28% of Crude Tall Oil. However, Ingevity Corporation held the position of the top producer of CTO across the globe in H1 2022. In May 2022, Kraton corporation announced a general price increase of up to 20% on CTO refined products and their chemical derivatives. The price was applicable to contracts and was in effective from July 2022. Fintoil Copropration matched knots with Neste Engineering Solution for their automation software and technologies for their latest CTO biorefinery situated at the port of Hamina-Kotka, located in Finland. Regionally, Europe produced the majority of Crude tall oil, with Finland leading the way, followed by Sweden. It was supported by the fact that these nations had an excess of the raw material, i.e., pine trees.
H2 2022: During H2 2022, production reached around 1040 thousand tonnes, comparatively higher than H1 2022. The market sentiments have improved in H2 compared to H1 2022. In September 2022, Fintoil Oy, one of the leading CTO refineries in Finland, began operating their latest CTO biorefinery in the Port of Hamina Kotka. The refinery's manufacturing process is based on fractional distillation, which uses heat energy and negative pressure to break down raw materials into their component parts and separate the desired fractions. This plant displayed a production capacity of 200 thousand tonnes per year capacity for crude tall oil feed, as the CTO refinery began operations in H2 2022. Fintoil gained the rank of the third-largest refiner of crude tall oil across the globe. The production was split into two thirds renewable fuels and one third towards other sustainable and renewable items. Regionally, Europe maintain the position of the biggest producer of Crude tall oil. Fintoil’s biorefinery started shipping its products in the last few months of 2022 that further added to the overall CTO production capacity of Europe. Due to China’s robust paper and pulp industries, China had a significant demand in the crude tall oil market in H2 2022. In H2 2022, Asia Pacific consumed approximately 20% of the global crude tall oil market.
The global Crude Tall Oil (CTO) market has reached around 1900 thousand tonnes in 2022 and is expected to grow at a CAGR of 4.81% during the forecast period until 2035. Currently, Finland is the highest producer of CTO. Fintoil Oy, one of the leading CTO refineries in Finland, has announced an investment of around EUR 100 million to construct the latest CTO biorefinery in the Port of HaminaKotka. This refinery has been granted environmental and construction permits. It is estimated that in the summer of 2022, this 200-thousand tonnes-per-annum plant will be the third largest CTO biorefinery in the world.
Crude Tall Oil is a by-product of a process known as the kraft pulping process. It is a blend of fatty acids, some neutral compounds, and rosin. The acids include abietic acid, oleic acid, and linoleic acid. The word “tall “means pine trees in Swedish, from which this oil is extracted. The process of extraction involves taking chips of pine wood and boiling them to synthesize an alkaline solution to create a black liquor along with the pulp. The black liquor is concentrated, the black liquor soap layer is skimmed from the top, and the remaining liquid is acidified to produce CTO. Since CTO is extracted from wood, it is a renewable ingredient for making environmental-friendly fuel and biofuel. It is used for various industrial applications such as detergents, adhesives, soaps, lubricants, paints, varnish, linoleum, coatings, etc.
CTO is distilled to create different products such as Tall Oil Fatty Acids (TOFA), Tall Oil Rosins (TOR), Distilled Tall Oil (DTO), Tall Oil Head (TOH), and pitch. Pitch is a mixture of various sterols. These components are useful for different industries, such as TOFA is used in textile chemicals, liquid cleaners, oilfield chemicals, metalworking fluids, metallic stabilizers, and for ore flotation. Similarly, DTO is an amazing combination of rosin acids along with fatty acids and is used in oil field chemicals, alkyd resins, soaps, and metalworking fluids.
The rising demand for CTO will be because of the call for an environment-friendly oil that can replace conventional fossil fuels. This attracts the buyers to invest in renewable fuel sources, such as CTO, in the upcoming years. In the future, the demand for biodiesel will certainly increase, grasping the attention of companies to use a by-product as an energy source. CTO is expected to see a far stretch in its applications in the energy sector in the forecast years. The global CTO market is anticipated to reach approximately 3500 thousand tonnes by 2035.
On a global level, the top requirement to produce CTO is the availability of pine trees. The dominating regions with an abundance of pine trees include Europe, Russia, and North America. Pine trees are generally found in cold areas. Presently, Europe is the top pine chemical producer. Almost half of the Crude Tall Oil is produced by the European countries. In Europe, Finland is the highest producer of CTO owning more than ten pine chem biorefineries.
Based on the end-user industry, the CTO market is segmented into different sectors that include distillation, drilling fluid, direct energy, biofuel, and others. However, distillation is the biggest end-user market of CTO, holding a share of approximately 71% in the year 2022 and expected to dominate the market in the forthcoming years. CTO is distilled to create different products such as Tall Oil Fatty Acids (TOFA), Tall Oil Rosins (TOR), Distilled Tall Oil (DTO), Tall Oil Head (TOH), and pitch. All these distilled products have various applications in the industry. Another leading part of CTO is biodiesel. Moreover, drilling fuels for phosphate mining also hold noticeable shares of the CTO market.
Major companies for Global CTO are UPM Lappeenranta Biorefinery, Fintoil, Södra, Ingevity Corporation
Kraton Corporation, Forchem Respole Group, Metsä Fibre, ILIM Group, Segezha Group, Mainstream Pine Products, LLC, DRT (Dérivés Résiniques et Terpéniques), Mercer International Inc., Sunpine ABC, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Crude Tall Oil which covers production, demand and supply of Crude Tall Oil market in the globe.
• To analyse and forecast the market size of Crude Tall Oil.
• To classify and forecast Global Crude Tall Oil market based on end-use and regional distribution.
• To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., of Crude Tall Oil market in the globe.
To extract data for Global Crude Tall Oil (CTO) market, primary research surveys were conducted with Crude Tall Oil manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Crude Tall Oil market over the coming years.
ChemAnalyst calculated Crude Tall Oil demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of black liquor (raw material) to produce Crude Tall Oil. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Crude Tall Oil manufacturers and other stakeholders
• Organizations, forums and alliances related to Crude Tall Oil distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Crude Tall Oil manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Tall Oil Resin (TOR) market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
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Attribute
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Details
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Market size Volume in 2022
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1900 thousand tonnes
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Market size Volume by 2032
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3500 thousand tonnes
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Growth Rate
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CAGR of 4.81% from 2023 to 2032
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Base year for estimation
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2023
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Historic Data
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2015 – 2022
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Forecast period
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2024 – 2032
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Quantitative units
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Demand in thousand tonnes and CAGR from 2023 to 2032
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Report coverage
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Industry Market Size, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Manufacturing Process
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Segments covered
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By Type: Tall Oil Fatty Acids (TOFA), Tall Oil Rosins (TOR), Distilled Tall Oil (DTO), Tall Oil Head (TOH), and pitch
By End-use: distillation, drilling fluid, direct energy, biofuel, and others
By Sales Channel: (Direct Sale and Indirect Sale)
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Regional scope
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North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Pricing and purchase options
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Available Customizations:
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.
In case you do not find what, you are looking for, please get in touch with our custom research team at sales@chemanalyst.com
