Material Insights · Understanding the Material World

Fatty alcohols: Production

Indonesia's new wave of plants and where capacity heads

Indonesia's new wave of plants and where capacity heads 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.
MeasureFigureDetailSource
World capacityabout 5.1 Mt (2024, derived) rising to 6.2 Mt by 2027GlobalData presentation, Fedepalma International Conference, Aug 2025 (2024 derived as 6.2 Mt less 1.1 Mt new capacity)
World outputabout 4-4.5 Mt (indicative)indicative; not published
Capacity utilisationabout 80-85% (indicative)The fatty alcohol market recovered in 2024 after a weak 2023, but eight new projects in 2025 add supply (GlobalData).GlobalData presentation, Fedepalma International Conference, Aug 2025
Concentrationtop five companies about 50% of capacity (Sasol 14, Shell 11, Wilmar 9, Musim Mas 8, Ecogreen 8) (2024)More concentrated than fatty acids because hydrogenation needs high-pressure plants and hydrogen.GlobalData presentation, Fedepalma International Conference, Aug 2025
New capacityabout 1.1 Mt of new capacity in 2024-2027Unilever Sei Mangkei 120 kt, Apical Dumai 130 kt and Permata Pelintung 100 kt in Indonesia, and Zhuoyue New Energy 50 kt in China, all 2025 (GlobalData); Godrej doubling to about 70 kt (2025 announcement).GlobalData presentation, Fedepalma International Conference, Aug 2025; Godrej Industries release, 3 Jul 2025

Top producing countries

  • Indonesia: largest exporter: 0.84 Mt, $1.28 billion (HS 382370, 2024); Ecogreen, Musim Mas, Wilmar, Apical, Unilever
  • Malaysia: 0.53 Mt exports, $0.82 billion (2024); KLK, Emery, IOI
  • United States: Sasol Lake Charles (Ziegler), Shell Geismar (oxo), P&G (oleo)
  • Germany and Netherlands: BASF, Sasol Germany, KLK Emmerich; Germany 0.19 Mt and Netherlands 0.29 Mt exports (2024)
  • China: largest importer (0.65 Mt, $1.07 billion, 2024); Zhejiang Jiahua and Shengtai producers
  • Thailand and Japan: PTT Global Chemical, Kao
UN Comtrade 2024; GlobalData presentation, Fedepalma International Conference, Aug 2025; UN Comtrade 2024; GlobalData presentation, Fedepalma International Conference, Aug 2025 (company list); locations indicative; GlobalData presentation, Fedepalma International Conference, Aug 2025

Largest producers: global

CompanyCountryVolumeYearSource
Sasol Ziegler, oxo and oleo alcohols South Africa / US / Germany0.71 Mt capacity (derived: 14% of about 5.1 Mt) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
Shell Chemicals oxo detergent alcohols (Neodol) UK / US0.56 Mt capacity (derived: 11%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
Wilmar InternationalSingapore / Indonesia0.46 Mt capacity (derived: 9%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
Musim MasSingapore / Indonesia0.41 Mt capacity (derived: 8%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
Ecogreen OleochemicalsIndonesia0.41 Mt capacity (derived: 8%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
BASFGermany0.36 Mt capacity (derived: 7%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
Kao integrated with its consumer brands Japan0.36 Mt capacity (derived: 7%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
KLK OleoMalaysia0.31 Mt capacity (derived: 6%) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025

Largest producers: India

CompanyCountryVolumeYearSource
VVF fatty alcohols, fatty acids, glycerine India0.1 Mt capacity (derived: 2% of world) 2024GlobalData presentation, Fedepalma International Conference, Aug 2025
Godrej Industries (Chemicals) part of a Rs 750 crore expansion; also +30 kt primary surfactants India70 kt a year after expansion (derived: capacity doubled by adding 35 kt) 2025-2030Godrej Industries release, 3 Jul 2025

India has two main producers, VVF and Godrej, and imports the balance: 118 kt ($202 million) of HS 382370 in 2024 against exports of 41 kt ($94 million) (UN Comtrade). Surfactant makers such as Galaxy buy imported and domestic alcohols.

Position by region

RegionPosition
USHosts Sasol and Shell synthetic capacity; imports oleo alcohols from South-East Asia ($0.30 billion, 2024).
EUBASF, Sasol and KLK plants; imports from Indonesia and Malaysia; EUDR applies to palm derivatives.
IndiaNet importer of about 77 kt (2024, derived); domestic expansion by Godrej.
ChinaLargest importer (27% of import value, 2024).
JapanKao is a major integrated producer.
Middle EastNot material (indicative).