Worldwide Wool Grease Market to Witness Steady Growth with a CAGR of +2.6% from 2023 to 2030

IndexBox has just published a new report: World - Wool Grease And Fatty Substances - Market Analysis, Forecast, Size, Trends and Insights.

Driven by increasing demand for wool grease worldwide, the market is projected to see a slight performance boost with a CAGR of +2.6% in volume and +4.1% in value from 2023 to 2030, reaching 38K tons and $289M respectively by the end of the forecast period.

Market Forecast

Driven by rising demand for wool grease worldwide, the market is expected to start an upward consumption trend over the next seven years. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +2.6% for the period from 2023 to 2030, which is projected to bring the market volume to 38K tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.1% for the period from 2023 to 2030, which is projected to bring the market value to $289M (in nominal wholesale prices) by the end of 2030.

Consumption

World Consumption of Wool Grease And Fatty Substances

In 2023, consumption of wool grease and fatty substances decreased by -3.6% to 31K tons for the first time since 2020, thus ending a two-year rising trend. Overall, consumption continues to indicate a relatively flat trend pattern. As a result, consumption reached the peak volume of 35K tons. From 2017 to 2023, the growth of the global consumption failed to regain momentum.

The global wool grease market revenue contracted to $218M in 2023, with a decrease of -5.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption continues to indicate a mild slump. Over the period under review, the global market attained the maximum level at $260M in 2013; however, from 2014 to 2023, consumption stood at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2023 were Australia (5.5K tons), China (5K tons) and Germany (3.4K tons), with a combined 44% share of global consumption. The Czech Republic, Italy, the UK, Japan, Uruguay, Bulgaria and Belgium lagged somewhat behind, together comprising a further 26%.

From 2013 to 2023, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Belgium (with a CAGR of +10.5%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest wool grease markets worldwide were Germany ($29M), Australia ($28M) and China ($26M), with a combined 38% share of the global market. Italy, the Czech Republic, the UK, Bulgaria, Uruguay, Japan and Belgium lagged somewhat behind, together accounting for a further 25%.

Among the main consuming countries, Belgium, with a CAGR of +8.6%, saw the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of wool grease per capita consumption in 2023 were Uruguay (297 kg per 1000 persons), Australia (207 kg per 1000 persons) and the Czech Republic (161 kg per 1000 persons).

From 2013 to 2023, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Belgium (with a CAGR of +10.1%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Wool Grease And Fatty Substances

After three years of growth, production of wool grease and fatty substances decreased by -0.5% to 33K tons in 2023. Overall, production, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2014 with an increase of 9.7%. Global production peaked at 34K tons in 2016; however, from 2017 to 2023, production failed to regain momentum.

In value terms, wool grease production fell slightly to $191M in 2023 estimated in export price. Over the period under review, production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 with an increase of 26% against the previous year. As a result, production reached the peak level of $201M. From 2017 to 2023, global production growth remained at a somewhat lower figure.

Production By Country

China (14K tons) remains the largest wool grease producing country worldwide, comprising approx. 43% of total volume. Moreover, wool grease production in China exceeded the figures recorded by the second-largest producer, Australia (6.3K tons), twofold. The Czech Republic (2.4K tons) ranked third in terms of total production with a 7.5% share.

From 2013 to 2023, the average annual growth rate of volume in China was relatively modest. The remaining producing countries recorded the following average annual rates of production growth: Australia (+1.2% per year) and the Czech Republic (+0.2% per year).

Imports

World Imports of Wool Grease And Fatty Substances

In 2023, after two years of growth, there was significant decline in overseas purchases of wool grease and fatty substances, when their volume decreased by -23.7% to 25K tons. In general, imports recorded a perceptible descent. The pace of growth appeared the most rapid in 2017 with an increase of 9%. Over the period under review, global imports hit record highs at 38K tons in 2014; however, from 2015 to 2023, imports remained at a lower figure.

In value terms, wool grease imports declined sharply to $220M in 2023. Over the period under review, imports saw a perceptible downturn. The growth pace was the most rapid in 2021 when imports increased by 31% against the previous year. Over the period under review, global imports attained the peak figure at $341M in 2013; however, from 2014 to 2023, imports remained at a lower figure.

Imports By Country

Germany (4.8K tons), the UK (3.8K tons), Japan (2.8K tons), the United States (2.7K tons) and Belgium (2.2K tons) represented roughly 64% of total imports in 2023. The Netherlands (1,067 tons), Brazil (834 tons), India (747 tons), Uruguay (729 tons) and Italy (663 tons) held a relatively small share of total imports.

From 2013 to 2023, the biggest increases were recorded for India (with a CAGR of +9.9%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, Germany ($43M), the United States ($24M) and the UK ($24M) were the countries with the highest levels of imports in 2023, with a combined 42% share of global imports. Japan, Belgium, the Netherlands, Brazil, India, Italy and Uruguay lagged somewhat behind, together accounting for a further 31%.

India, with a CAGR of +8.0%, saw the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced a decline in the imports figures.

Import Prices By Country

In 2023, the average wool grease import price amounted to $8,633 per ton, with an increase of 10% against the previous year. In general, the import price, however, saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 an increase of 21%. Over the period under review, average import prices hit record highs at $9,277 per ton in 2013; however, from 2014 to 2023, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2023, amid the top importers, the country with the highest price was the Netherlands ($13,559 per ton), while Uruguay ($5,695 per ton) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by the United States (+2.1%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Wool Grease And Fatty Substances

After two years of growth, shipments abroad of wool grease and fatty substances decreased by -20.6% to 27K tons in 2023. Overall, exports recorded a pronounced setback. The pace of growth appeared the most rapid in 2017 with an increase of 21%. The global exports peaked at 39K tons in 2015; however, from 2016 to 2023, the exports failed to regain momentum.

In value terms, wool grease exports shrank to $234M in 2023. In general, exports showed a perceptible slump. The pace of growth was the most pronounced in 2021 with an increase of 33%. Over the period under review, the global exports hit record highs at $308M in 2013; however, from 2014 to 2023, the exports remained at a lower figure.

Exports By Country

China represented the major exporter of wool grease and fatty substances in the world, with the volume of exports recording 9.1K tons, which was near 34% of total exports in 2023. The UK (2.9K tons) ranks second in terms of the total exports with an 11% share, followed by the United States (9.7%), Belgium (7%), Japan (6.4%) and Germany (5.2%). The following exporters - Uruguay (1,126 tons), Australia (1,063 tons), Italy (839 tons) and the Czech Republic (798 tons) - together made up 14% of total exports.

From 2013 to 2023, average annual rates of growth with regard to wool grease exports from China stood at -1.5%. At the same time, Germany (+2.8%) displayed positive paces of growth. Moreover, Germany emerged as the fastest-growing exporter exported in the world, with a CAGR of +2.8% from 2013-2023. Italy experienced a relatively flat trend pattern. By contrast, Belgium (-2.0%), Japan (-2.1%), Uruguay (-2.1%), the Czech Republic (-2.2%), the United States (-2.5%), Australia (-3.2%) and the UK (-3.3%) illustrated a downward trend over the same period. While the share of China (+2.8 p.p.) and Germany (+2.1 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest wool grease supplying countries worldwide were China ($55M), the UK ($37M) and Germany ($25M), together accounting for 50% of global exports.

In terms of the main exporting countries, Germany, with a CAGR of +6.7%, recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced mixed trends in the exports figures.

Export Prices By Country

The average wool grease export price stood at $8,793 per ton in 2023, rising by 8.7% against the previous year. Over the period under review, the export price, however, saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 when the average export price increased by 25%. Over the period under review, the average export prices attained the maximum at $9,155 per ton in 2013; however, from 2014 to 2023, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($18,207 per ton), while the United States ($3,187 per ton) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by Germany (+3.9%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform