Behenyl Alcohol Market Presents Lucrative Growth Opportunities for Manufacturers in Asia Pacific

Behenyl alcohol, also called docosanol, is a mixture of saturated fatty alcohol that is mainly used for stabilizing and thickening formulations, and a nutritional supplement. For its industrial use, behenyl alcohol is categorized on the basis of its level of purity. Behenyl alcohol with 70% purity is most commonly used in industrial applications. In 2014, behenyl alcohol had a nominal 1.4% share in the overall market for fatty alcohols, and nearly 14% in the overall market of C16+ fatty alcohols. However, the market is expected to see increased demand over the future owing to increased demand from its two key end-use industries: cosmetics and pharmaceuticals. By the end of 2015, the market is expected to reach a valuation of 54,200.9 metric tons.

Europe - A Major Regional Market of Behenyl Alcohol

The traditional sources of behenyl alcohol were mostly vegetable oils, such as rapeseed or mustard oil, and these have remained the key feedstock for the global behenyl alcohol market. Europe, being the leading producer of rapeseed on a global front, emerges as a crucial participant of the global market. Volume-wise, Europe accounts for more than 35% of the overall rapeseed produced across the globe. Thus, major behenyl alcohol producers in this region can procure raw materials at comparatively lower prices than their competitors in Asia Pacific and North America. Europe also houses more than 400 small-, medium-, and large-scale cosmetic companies and thus, is a leading consumer of behenyl alcohol. The flourishing market for cosmetic products, especially focusing on the popular segment of anti-ageing, is expected to boost the overall market for behenyl alcohol in Europe. However, the market’s growth may get hampered to a certain extent owing to the oversupply of fatty alcohols.

Asia Pacific to Lead the Global Market

However, a recent market research report published by the company Persistence Market Research states that the Asia Pacific behenyl alcohol market will dominate the global market till 2021. Asia Pacific behenyl alcohol market is flourishing chiefly owing to the availability of low cost raw materials and labor, as well as the rising demand for organic cosmetics in the region. India and Japan are two of the major global exporters and South Korea is one of the key importers of the substance in the region. India, the largest producer of rapeseed and behenyl alcohol in the region, is a major supplier to cosmetic and pharmaceutical industries across Europe, North America, and other parts of Asia.

The Asia Pacific market presents a high demand for sun care products. In 2014, the market for sun care products in this region had a valuation of US$2.2 bn. The rising demand for these products in the region, along with the flourishing market for other cosmetic products, is expected to drive the demand for behenyl alcohol from Asia Pacific over the near future. Though the behenyl alcohol market is strengthening its position in Asia Pacific, low presence of Chinese companies in the market has significantly reduced the price competitiveness among companies based in India, Japan, and Europe. Behenyl alcohol manufacturers in the region therefore, are likely to see high profit margins.