Crude Tall Oil Market Pegged for Robust Expansion During 2019-2027

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Crude Tall Oil Market: Introduction

• The material produced during the wood pulp production process is known as crude tall oil. In Swedish, ‘tall’ means ‘pine,’ which denotes crude tall oil, which is produced while pulping of softwood pine trees.  
• Black liquor is generated while pulping of pine trees. This is available in the form of residue, which consists of valuable chemicals that are fed back into the pulping process. The remaining residue is in the form of tall oil soap, which is collected at the mills and further process is carried out to make crude tall oil.
• Crude tall oil is the mixture of rosin, fatty acid, and other neutral materials, which form water-in-oil compound and stabilizes mud systems at high bottom-hole temperature
• Crude tall oil can be further purified through the fractionation process to separate it into the components of tall oil resins, tall oil fatty acids, heads, pitch, and distilled tall oil.

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Crude Tall Oil Processing and Derived Products

• Crude tall oil can be processed through various processes such as distillation, direct energy use, refining, modifying/mixing, and direct use
• The products formed after distilling crude tall oil are tall oil fatty acid (TOFA), tall oil rosin (TOR), distilled tall oil (DTO), tall oil pitch (TOP), and  tall oil heads (TOH), which can be further used as fuel additives, adhesives, printing inks, food adhesives, dimer acids, etc.
• After refining, crude tall oil can be used as crude tall diesel and renewable diesel. It can also be used in suspension stabilizers.

Increasing Demand for Biofuel

• Demand for biofuels has been increasing in order to reduce pollution. Biofuel is an environment-friendly substitute to fossil fuel. Biofuels on combustion emit very less pollutants vis-à-vis fossil fuels. On refining of crude tall oil, crude tall diesel or renewable diesel is obtained, which can be used as biofuel in the automotive end-use industry. Furthermore, implementation of government policies to promote the use of biofuel in various countries is anticipated to boost the crude tall oil market in the near future.

Rising Demand for Bio-based Products

• Crude Tall oil is one of the special sources of bio-based products. It is a blend of rosin, neutral compounds and fatty acids, which can be further refined to different fractions such as sterols and fatty acids. These compounds can be used in large variety of products and applications in various consumer and industrial markets. Thus, rise in demand for bio-based products is likely to boost the crude tall oil market.

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Europe Expected to Hold Major Share of Global Crude Tall Oil Market

• Geographically, the crude tall oil market can be split across five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• The market in Europe is expected to expand at a significant pace during the forecast period, as the region have developed first commercial-scale crude tall oil processing facility. Furthermore, the demand for biofuel in the region is increasing due the government policies and regulations.
• The crude tall oil market North America is likely to expand at a healthy pace in the near future due the demand for bio-based products and biofuel. Asia Pacific is projected to hold moderate share of the market in the near future
• The market in Latin America and Middle East & Africa is expected to expand at a sluggish pace during the forecast period

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