Trends in industrial markets for fats and oils and derivatives

During the past decade, research by industry and government has developed numerous new chemical markets for fats and oils derivatives. Lower prices for competitive raw materials have forced some of these new products into specialty markets. Economic factors, such as the continual growth of the chemical industry, population increases, and high consumer demand, have allowed for steady growth in the fat-derivative market. New fat-type plasticizers are currently consuming about 60 million pounds of fats annually. Synthetic lubricants will probably be consuming 20 million pounds of fatty diesters annually by 1965. Animal feeds consume approximately 600 million pounds of fats and fat derivatives annually and may eventually become the leading domestic nonfood market for fats. The protective coating market as an outlet for fats continues to decline, and the continuing shift to nonfat materials and changes in pain formulas indicate that, while the demand for protective coatings may increase, the use of fats in their manufacture may not share in the increase. Nonfat chemical raw materials provide intense price competition for fatty raw materials. Fat prices are influenced by the demand for use in food, soap, paints, and possibly animal feeds rather than by the demand for use as chemical raw materials. Presented before the American Oil Chemists' Society, New York, October, 17, 1960.