Castor Oil & Derivatives Market Report Scope & Overview:

The Castor Oil & Derivatives Market size was valued at USD 1.42 billion in 2024 and is expected to reach USD 2.14 billion by 2032, growing at a CAGR of 5.28% over the forecast period of 2025-2032.

The castor oil & derivatives market is growing due to the trend of natural oil-­based chemicals and sustainable raw materials are increasing in various industries. Increasing trend towards the use of bio-based castor oil products in cosmetics, lubricants, and polymers is fueling the demand for castor oil & derivatives. The use of green options is being encouraged by government pressures, such as the U.S. BioPreferred Program. Major players operating in the market, including Jayant Agro-Organics and Vertellus, are enhancing their production capacities.

India is the major producer of the castor seed in the world, contributing over 75% of the total world's production, thus dominating the castor oil & derivatives market share (ICAR-Directorate of Groundnut Research). Stability in global oilseed production is reported by the USDA, which may provide a strong basis for the projection of the castor oil & derivatives market. With increasing industry uptake, the castor oil & derivatives market size is expected to register substantial growth over key regions, applications.

Castor Oil & Derivatives Market Dynamics:

Drivers:

• Rising Adoption of Bio-based Castor Oil Products in Sustainable Personal Care Formulations

Increasing consumer inclination towards natural and sustainable ingredients in cosmetics and personal care is one of the major factors driving demand for castor oil & derivatives. Eco-friendly castor oil products, which are rich in moisture and have anti-inflammatory effects, are being applied increasingly to skincare/haircare formulations, promoting more sustainable product lineups. Bio-based products minimize the environmental impact, and society is certainly encouraging manufacturers to utilise natural oil-based chemicals, like their castor derivatives. Firms like Jayant Agro-Organics and Vertellus have expanded their castor oil derivatives to meet this demand. Also, India, being the largest castor seed producing player of the world, contributing to over 75% of the global market, augments the share of the castor oil & derivatives market in the world (ICAR-Directorate of Groundnut Research). This demand-driven practice underpins the continued growth of the castor oil & derivatives market, and places the sector in good stead with green chemistry developments.

• Increasing industrial use of castor oil derivatives in biodegradable lubricants and polymers

Castor oil-based derivatives are gaining popularity, especially in industrial applications for the synthesis of biodegradable lubricants and engineering polymers, due to the universally strict environmental regulations. The United States Environmental Protection Agency encourages the use of biodegradable products in place of petroleum-based lubricants, driving many industries to turn to natural oil-based chemicals. The specific chemical configuration of castor oil also allows for the production of high-performing sebacic acid and 12-hydroxy stearic acid, which are vital in the production of bio-lubricants and bioplastics. These esters have good lubricity and are biodegradable, and they help to minimize ecological impact. As a result, leading castor oil & derivatives players such as Arkema and Hokoku Corporation have been increasing their production capabilities to cater to this demand. USDA data also supports consistent oilseed crop production and raw material supplies. This process migration is consistent with changes in the castor oil derivatives market and long-term market trends for sustainable manufacturing alternatives.

Restraints:

• Price volatility of castor seeds impacts profit margins in the castor oil & derivatives market

Castor seeds price volatility, significantly on account of seasonality, pest infestations, and geopolitical aspects, is a profound restraint for the castor oil & derivatives market. Since India leads in production with more than 75% share, any inclement weather or export regulations have its effect on world prices (ICAR-Directorate of Groundnut Research). Price fluctuations lead to cost uncertainty for castor oil & derivatives players, which impacts investment and profitability. Extreme weather also has the potential to disrupt oilseed harvests, exacerbating supply-demand imbalances, the U.S. Department of Agriculture notes. This instability results in the inability to have a steady flow of feedstock for the production of valuable derivatives such as sebacic acid and ricinoleic acid, and hampers future potential market growth. As a result, while there is a strong demand and exponentially expanding applications, the market growth of castor oil & derivatives is stonewalled due to the inability to sustain healthy pricing, which then would have implications for end-use industries relying on economically viable natural oil-based chemicals.

Castor Oil & Derivatives Market Segmentation Analysis:

By Derivative Type

Sebacic acid segment led the market of castor oil & derivatives in 2024 with a share of 44.5% of the overall market. This supremacy is mainly attributed to the increasing usage of sebacic acid in biopolyamides, lubricants, and plasticizers. It has industrial applications in the automotive and aerospace sectors where temperature stability is required, as well as in environmentally friendly (green) materials. Being the largest producer of castor seeds in the world, accounting for over 75%, India ensures a stable raw material supply, as per the Indian Council of Agricultural Research (ICAR). Most famous castor oil & derivatives brands like Jayant Agro-Organics have scaled their sebacic acid output to meet this demand from around the world.

The ricinoleic acid segment is the fastest growing in the castor oil & derivatives market in 2024, with an estimated CAGR of 6.42%. Castor oil in the changing world. Ricinoleic acid, one of the major components of castor oil, is gaining importance in cosmetics and pharmaceuticals, owing to its anti-inflammatory and moisturizing properties. Growth here is consistent with the fastest-growing end use, cosmetics and pharmaceuticals. Bio-based castor oil products are favored due to the increasing trend toward natural oil-based chemicals, as quoted by the US EPA (Environmental Protection Agency). Players, such as Vertellus and Arkema, are increasing their production capacities to meet the increasing demand of the market.

By End-use

The plastics and resins segment dominated the castor oil & derivatives market in 2024 with an estimated 27.0% market share. This growth can be credited to increasing utilization of castor oil-derived polyamides and polyurethane resins in lightweight automotive parts and eco-friendly packaging products. Based Polymers News Communications Bio-based polymers from castor oil are fast replacing petrochemical-based materials in a variety of uses, such as in office furniture, file holders, chairs, and plastic tables. Significant castor oil & derivatives market companies, including Arkema, are increasing production of high-performance resins from sebacic acid & other derivatives to cope with increasing global demand for eco-friendly plastics.

The cosmetics and pharmaceuticals segment is the fastest-growing end-use in the castor oil & derivatives market in 2024, with an estimated CAGR of 5.91%. The growth in this area is due to an increasing demand for chemicals produced from natural oils in personal care products. Both ricinoleic acid and hydrogenated castor oil are ingredients in many moisturizers, lip balms, and ointments. Castor oil is FDA-approved for use as a laxative. Castor oil & derivatives manufacturers, including Vertellus and IOI Oleo, are adjusting their product offerings in response to the clean-label trend in cosmetics.

Castor Oil & Derivatives Market Regional Outlook:

North America is expected to grow at the highest CAGR of 5.91% during the forecast period from 2025 to 2032 in the castor oil & derivatives market, and the United States is the key contributor to the market with the USD 176.07 million of market size and growing at 61% of market share in 2024. The rising consumer demand for bio-based products such as castor oil in cosmetics and pharmaceuticals contributes to this trend, supported by government incentives for the use of renewable materials. The United States witnessed high demand in bio-lubricants and biodiesel applications, supported by the U.S. Department of Energy for burgeoning renewable fuels. Mexico also plays its part, harvesting an increasing amount of castor oil, which it can use for industrial and cosmetic purposes. The emphasis on environmental conservation in this region helps boost the growth of the castor oil derivatives market.

Europe has the second biggest market for castor oil & derivatives, accounting for around 22%, and is driven by countries like France and Germany. The European Union’s tight environmental policies and “green deal” policy promote the use of bio-based chemicals, and that is fuelling the demand for natural oil-based chemicals such as castor oil derivatives. France’s LifeScience and cosmetics sectors are increasing the consumption of bio-based products made from castor oil. Germany’s industrial coatings industry is also a growth driver. Collectively, they form the backbone of Europe’s formidable market. Strengthening the product development of the castor oil derivatives market is a preferred strategy by government agencies, owing to its optimistic prospects in the region.

Asia Pacific dominated the castor oil & derivatives market in 2024, holding over 43% of the market share, and India is the world’s foremost castor oil producer and exporter. India provides about 90 percent of the world’s castor oil, which is driving demand in China, the leading consumer of the oil. About 41% of total output is sold to China, underlining a strong trading relationship, according to the Solvent Extractors Association of India. Rapid industrialization and an increase in sales of cosmetics, pharmaceuticals, and bio-based chemicals in China, India, Japan, and other countries account for the market share. The presence of raw material on a large scale in the region leads the castor oil derivatives market.

LAMEA is a developing region in the castor oil & derivatives market, with Brazil, Saudi Arabia, Argentina, and South Africa being the key contributing countries. Brazil’s strong agribusiness and emphasis on bio-based products stimulate demand in lubricants, cosmetics, and plastics, aided by government policies toward sustainable agriculture. Saudi Arabia is diversifying the bio-based castor oil derivatives for the pharmaceutical and personal care industries as part of Vision 2030. The market for natural oil-based chemicals in South Africa is growing rapidly for use in cosmetics and lubricants. Collectively, the investments made by these two countries in green technologies and sustainable manufacturing will drive the growth of the overall castor oil derivatives market in LAMEA during the projected period.

Key Players:

The major competitors in the castor oil & derivatives market include Jayant Agro Organics Limited, Adani Wilmar Ltd., Thai Castor Oil Industries Co., Ltd., Hokoku Corporation, Kanak Castor Products Pvt. Ltd., ITOH Oil Chemicals Co., Ltd., Vertellus, BOM Brasil Óleo de Mamona Ltda, Liaoyang Huaxing Chemical Co., Ltd., and Gokul Agri International Ltd.

Recent Developments:

• In February 2025, BASF and partners published 2024 results for the world’s first sustainable castor bean program, Pragati: over 9,000 ha under cultivation, 100,000 tons of certified seeds, and 8,000+ farmers certified

• In February 2024, Jayant Agro-Organics Limited, Arkema, and BASF committed to the third phase of Project Pragati, certifying over 7,000 farmers and cultivating 74,500 tons of certified castor seed, boosting sustainable supply chains