Epoxidized Soybean Oil Market

Epoxidized Soybean Oil Market Size (2023-2028)

The epoxidized soybean oil market size is predicted to reach US$ 692.7 million by 2028, registering a CAGR of 10.7% during 2023-2028

Epoxidized soybean oil is a low-cost vegetable oil that is available in industrial quantities. The oxidation of soybean oil with either acetic or formic acid with hydrogen peroxide results in epoxidized soybean oil. Because of its biodegradability, ESO is recommended over phthalate plasticizers. Primarily, because of the increasing availability and development of innovative technologies for renewable resources, the market for Epoxidized soybean oil is expected to rise. Epoxy Soy Bean Oil is a colorless, viscous liquid that dissolves in organic solvents like benzene, cyclohexane, and acetone ethyl acetate. It is a plasticizer used in polyvinyl chloride polymers because it is heat and light-stable. It also extends the product's shelf life and has no odor. In addition, it works as a scavenger for hydrochloric acid that is released during the heat treatment of PVC. 

Epoxidized Soybean Oil Market Drivers:

The market for epoxidized soybean oil (ESBO) is growing due to the widespread use of organic stabilizers in the polyvinyl chloride (PVC) stabilization process.

After polyethylene and polypropylene, polyvinyl chloride is the third most widely used commodity plastic. It's commonly utilized in the building industry for sewage, drainage, and water pipelines, among other things. PVC's low heat stability, on the other hand, has limited its application in end-use industries. When PVC degrades at high temperatures, it releases hydrochloric acid (HCl), which promotes the breakdown of the material. PVC stabilization can be accomplished in various ways, the most common of which are organic and inorganic metal stabilizers. Metal soaps and lead salts are the most common inorganic stabilizers. On the other hand, inorganic stabilizers have been hampered by stringent lead regulations, associated environmental concerns, and high costs. As a result, to satisfy regulatory compliance, PVC companies worldwide are focused on using non-toxic and ecologically friendly stabilizers.

Because of its non-toxic and ecologically benign character, epoxidized soybean oil (ESBO) is an organic stabilizer gaining momentum in the PVC stabilization process. The desire for cleaner and safer lubricants has been fueled by strict rules in the vehicle sector to improve fuel economy. As a result, in the vehicle sector, mineral oil-based lubricant additives are widely employed. The hazardous nature of mineral oil-based lubricants, on the other hand, has imposed tight limits on their usage in various applications. Moreover, mineral oil-based lubricants have presented a hazard to the ecology and groundwater sources. As a result, chemical companies worldwide are focused on developing biocompatible lubricants to comply with government regulations which further propels the global epoxidized soybean oil market. Epoxidized soybean oil is a bio-based lubricant with low volatility, good lubricity, a high viscosity index, easy miscibility, and optimal solvency for lubricant additives. As a result, epoxidized soybean oil is projected to outperform mineral oil as a lubricant. The market for epoxidized soybean oil is expected to grow as a result of these characteristics. As a result, bio-based oils are becoming more popular as chemical feedstocks. In end-use industries like cosmetics & personal care, pharmaceuticals, food & beverages, and automotive & transportation, these are being employed as alternatives to petroleum-based chemicals and intermediates.

Furthermore, initiatives to reduce carbon footprints through rigorous government rules on hazardous gas emissions, the capital-intensive nature of petroleum-based chemicals, and changing crude oil prices are all driving up demand for bio-based oils as a chemical feedstock. As a result, these features further boosted the global epoxidized soybean oil market during the forecast period.

Epoxidized Soybean Oil Market Restraints:

The massive utilization of ESBO in the food and beverage industry is hazardous to one's health.ESBO is utilized in gaskets for commercial lids, laminate in drink cartons, and plastic coatings in the food and beverage business. Metal lid gaskets of glass jars used to store baby foods also contain ESBO. These gaskets come into touch with food products during sterilization and storage, potentially contaminating ESBO and resulting in harmful health effects. The highest acceptable migration level for ESBO in food, according to the Scientific Committee for Food (SCF), is 60 mg/kg. As a result, producers must ensure that ESBO ingestion volume remains substantially below the prescribed range, which hampers the global epoxidized soybean oil market.

EPOXIDIZED SOYBEAN OIL MARKET REPORT COVERAGE:

Market Segmentation:

Epoxidized Soybean Oil Market By Raw Material:

• Soybean oil

• Hydrogen peroxide

• Others

In the next six years, soybean oil is anticipated to have a significant global epoxidized soybean oil market. Soybean oil is used for frying and cooking. Margarine is a soybean oil-based substance. Soybean oil is used in salad dressings and mayonnaise. Soybean oil is used in some foods (tuna, sardines, etc.)

Epoxidized Soybean Oil Market By Application:

• UV cure applications

• Plasticizers

• Fuel additives

• Others 

Plasticizers are the dominant application for Epoxidized Soybean Oil. Plasticizers are colorless, odorless compounds, primarily phthalate esters, increasing polymers' elasticity, such as polyvinyl chloride (PVC). Plasticizers account for more than 90% of the plasticizers used in the manufacturing of PVC, often known as vinyl. Paints, rubber products, adhesives and sealants, printing inks, and other products contain plasticizers. PVC will be rigid without plasticizers and can only be utilized in limited applications such as wastewater pipelines. PVC's usage of plasticizers, on the other hand, expands its range of applications. Hexyl phthalate, dioctyl phthalate, and dibutyl phthalate are the most regularly used phthalates. However, due to its effects on the skin and other health issues, tight limitations on the use of phthalates by authorities such as the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) have reduced its use in numerous applications. As a result, plasticizer manufacturers have chosen to use renewable and safer materials. ESBO is the most recommended bio-based plasticizer versus petrochemical-based plasticizer since it is environmentally beneficial. As a result, ESBO sees a lot of potential in the PVC stabilizing process.

Epoxidized Soybean Oil Market By End-User:

• Automotive

• Food & Beverages

• Adhesives & Sealants

• Others

Food and beverages are the market leaders, owing to their widespread use in packaged meals. However, due to the widespread use of Epoxidized Soybean Oil as a gasoline additive and growing fuel emission standards, the automotive segment is predicted to develop at the fastest rate throughout the projection period. Epoxidized soybean oil is biodegradable and non-corrosive, with a high flash point, thermal stability, low volatility, and toxicity. These gasoline additives aid in reducing vehicle emissions, hence enhancing vehicle performance, which is expected to boost the global epoxidized soybean oil market in the near future. 

Epoxidized Soybean Oil Market Regional Analysis: 

• North America

• Europe 

• Asia Pacific 

• Latin America 

• The Middle East and Africa 

Due to emission restrictions placed on car emissions and regulations placed on the utilization of non-phthalate plasticizers majorly in food and beverage packaging, the European region is expected to lead the global Epoxidized Soybean Oil market during 2022 - 2027. In addition, the thriving automobile sector in countries like Germany, Spain, and Italy has aided the market's growth in generating breakthrough technologies in the development of gasoline additives that help reduce pollution.

Because of the demand for ESBO in end-use industries such as PVC stabilization and plasticization processes, the Epoxidized Soybean Oil market in North America has a lot of potentials. In North America, the United States is the largest consumer of epoxidized soybean oil.

Impact of COVID-19 on the Epoxidized Soybean Oil Market:

While worldwide trade was halted due to the quarantines implemented to combat the spread of the new coronavirus, the food industry has faced significant freight issues. Moreover, because of a lack of demand and supply chain interruptions, most food categories saw a drop in sales volume. As a result, the food industry, particularly food service and HoReCas, saw a drop in sales. The drop has a significant negative influence on the Epoxidized Soybean Market since food and beverage are critical industries. In addition, food industry closures and a lack of exports significantly impacted packaged goods, which had a considerable influence on the epoxidized soybean market. Because of the lockdowns and work-from-home circumstances, fuel consumption has decreased, affecting the use of ESBO as a fuel additive.

Recent Developments in the Global Epoxidized Soybean Oil Market

• Arkema releases vikoflex epoxidized vegetable oils. It further added that their epoxidized vegetable oils are highly released across the world.

• Cargill announced that it would acquire Arkema's epoxides business, converting soybean oil into home chemical products. 

Epoxidized Soybean Oil Market Key Players:

The companies covered in the report include:

1. Arkema

2. Ferro Corporation

3. CHS Inc.

4. The DOW Chemical Company

5. KH Chemicals

6. Harima Chemicals Limited

7. Inba Industrias Quimicas Limited

8. Galata Chemicals

9. The Chemical Company

10. Maxwell Plasticizers