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.
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 has 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.
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.
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.