Fatty acids: Production
Why South-East Asia keeps adding plants faster than demand
What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.| Measure | Figure | Detail | Source |
|---|---|---|---|
| World capacity | about 14 Mt (2024, derived) rising to 18.1 Mt by 2027 | GlobalData presentation, Fedepalma International Conference, Aug 2025 (2024 derived from 18.1 Mt less about 4 Mt of new plants and expansions) | |
| World output | 11.7 Mt demand (2024) | GlobalData presentation, Fedepalma International Conference, Aug 2025 | |
| Capacity utilisation | about 83% (2024, derived: 11.7 of about 14.1 Mt) | Seven new plants (1.4 Mt) started or will start in 2024-2026, plus 0.8 Mt of expansions and 1.8 Mt more by 2027, so utilisation is likely to fall (GlobalData). | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Concentration | South-East Asia more than half of supply; top four companies (Wilmar, KLK, Musim Mas, Apical) 34% of capacity (2024) | Integrated palm groups own plantations, refineries and oleochemical plants, so they capture the margin between CPO and derivatives. | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| New capacity | about 4 Mt of new capacity by 2027 (GlobalData) | KLK Indonesia 450 kt (2025); Permata Hijau 2 x 200 kt (2024); First Resources 200 kt and PT Sheel Oil 165 kt (2025, under construction); Guangxi Zhongde 100 kt (2025); KPN Corp 100 kt (2026). | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
Top producing countries
South America 3% · 3% of world supply- Indonesia: largest producer and exporter: 3.24 Mt HS 382319 exports and 0.66 Mt stearic acid exports (2024)
- Malaysia: second-largest exporter: $1.55 billion HS 382319 (2024)
- China: about a third of world demand; largest importer (1.91 Mt HS 382319, 2024); Zanyu and Nantong Kangqiao among top producers
- Europe (Netherlands, Germany): Oleon, Emery, KLK Emmerich; Netherlands $0.63 billion exports (2024)
- India: net importer: 567 kt imports and 183 kt exports of HS 382319 (2024)
Largest producers: global
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Wilmar International largest producer | Singapore / Indonesia | 1.83 Mt capacity (derived: 13% of about 14.1 Mt) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| KLK Oleo 450 kt Indonesian plant added in 2025 | Malaysia | 1.13 Mt capacity (derived: 8%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Musim Mas | Singapore / Indonesia | 0.99 Mt capacity (derived: 7%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Apical (incl. Peak Oleo, China) Peak Oleo China 315 kt (2023) | Indonesia / China | 0.85 Mt capacity (derived: 6%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| IOI Oleochemicals | Malaysia | 0.71 Mt capacity (derived: 5%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Permata Hijau two 200 kt phases in 2024 | Indonesia | 0.56 Mt capacity (derived: 4%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Zhejiang Zanyu | China | 0.56 Mt capacity (derived: 4%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Oleon (Avril) largest European producer | Belgium / France | 0.28 Mt capacity (derived: 2%) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
Largest producers: India
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| VVF fatty acids, fatty alcohols and glycerine; also contract manufacturer for personal care | India | 0.28 Mt capacity (derived: 2% of world) | 2024 | GlobalData presentation, Fedepalma International Conference, Aug 2025 |
| Godrej Industries (Chemicals) Rs 750 crore expansion; fatty acid capacity not disclosed; four plants in Maharashtra, Gujarat and Goa | India | not published | 2025 | Godrej Industries release, 3 Jul 2025 |
| 3F Industries capacity not published | India | not published | 2026 | Nexdigm (Apr 2026) lists it as a major player |
India's oleochemicals market is about $1.7 billion (Nexdigm, Apr 2026). India imports more fatty acids than it exports (567 kt against 183 kt of HS 382319 in 2024, UN Comtrade) because it has little lauric oil and imports most palm oil (about 9.2 Mt in 2023-24).
Position by region
| Region | Position |
|---|---|
| US | Imports from South-East Asia; 2025 reciprocal tariffs of 32% on Indonesia and 25% on Malaysia raised landed costs (GlobalData). |
| EU | Oleon, KLK Emmerich and Emery run plants on imported oils; the EU Deforestation Regulation covers palm derivatives. |
| India | Net importer; VVF and Godrej are the main producers; 2025 Godrej expansion of Rs 750 crore. |
| China | About a third of demand and the largest importer; domestic producers are growing. |
| Japan | Kao and NOF are integrated users (indicative). |
| Middle East | Not material. |