Material Insights · Understanding the Material World

Surfactants: Feedstocks

Palm oil or petroleum: the choice behind your shampoo

What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.

Every surfactant combines a hydrophobe and a head group. Hydrophobes come from kerosene and benzene (LAB), ethylene (synthetic alcohols) or lauric oils (palm kernel, coconut). Heads use SO3 from sulphur, ethylene oxide, caustic soda and amines. Feedstock is 60-80% of cost, so the relative price of crude oil and lauric oils decides which route wins, and many formulators switch between them.

Inputs per tonne

InputQuantity per tonneRoleShare of costSource
Oil Crude oilabout 0.74 t per t LAS acid (stoichiometric)hydrophobe for LASabout 70-80% of LAS cost (indicative)lab tile
PO Palm oilabout 0.55-0.65 t fatty alcohol per t SLES active (indicative)C12-C14 hydrophobeabout 50-60% of SLES cost (indicative)indicative
Cnt Coconut oilalternative lauric source to palm kernelC12-C14 hydrophobe, CAPBswing feed (indicative)coconut tile
Gas Natural gasabout 0.6 t per t of C12 7EO ethoxylate; about 0.15-0.3 t per t SLES (stoichiometric)non-ionic head; ether link in SLESabout 30-50% of ethoxylate cost (indicative)ethylene_oxide tile; stoichiometry
S Sulfurabout 0.1 t sulphur per t LAS acid (stoichiometric)sulphonation and sulphationsmallstoichiometry
NaCl Saltabout 0.12 t NaOH per t LAS neutralised (stoichiometric)neutralisationsmallstoichiometry

Who is low-cost, and why

Integrated producers with captive LAB or EO (Reliance, Middle East, Dow, Sasol) are lowest cost on petro routes; South-East Asian oleochemical groups (Wilmar, KLK, Musim Mas, indicative) on lauric routes. Indian merchant producers such as Galaxy buy fatty alcohols and earn a processing margin of about Rs 17,500-21,700 per t EBITDA (FY25-FY26).

Raw materials on the commodity table

Oil Crude oilPO Palm oilCnt Coconut oil

What it is made into

ProductNote
LAB Linear alkylbenzeneupstream: about 98% of LAB becomes LAS
EO Ethylene oxideupstream: about 12% of EO goes to ethoxylates
FAl Fatty alcoholsupstream: main oleochemical hydrophobe
FA Fatty acidsupstream: CAPB, soaps, esterquats
Amn Specialty amines and ethanolaminesupstream: amphoterics and cationics
H2SO4 Sulphuric acidupstream: SO3 for sulphonation