Global Crude Tall Oil Market Size, Share, and COVID-19 Impact Analysis, By Product (Tall Oil Rosin, Tall Oil Fatty Acids, Distilled Tall Oil, Tall Oil Pitch, and Others), By Application (Adhesive, Inks & Toners, Partings & Coatings, Hygiene Products, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global Crude Tall Oil Market Insights Forecasts to 2035

• The Global Crude Tall Oil Market Size Was Estimated at USD 1.81 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.74% from 2025 to 2035
• The Worldwide Crude Tall Oil Market Size is Expected to Reach USD 3.71 Billion by 2035
• Asia Pacific is expected to grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, The Global Crude Tall Oil Market Size Was Valued At USD 1.81 Billion in 2024 And Is Predicted To Grow To Around USD 3.71 Billion By 2035 With a Compound Annual Growth Rate (CAGR) of 6.74% From 2025 to 2035. Opportunities in sustainable bio-based chemicals, renewable energy production, green adhesives, and oleo chemical applications are presented by the crude tall oil market, which is fueled by the rising demand for environmentally friendly products and industrial advancements.   

Market Overview

Crude Tall Oil (CTO) Size, the third-largest chemical output in kraft mills after lignin and hemicellulose, is a viscous, odorous, yellow-black liquid byproduct of the kr aft pulping process of coniferous wood. CTO, which contains rosin acids, fatty acids, sterols, and hydrocarbons, is produced by acidifying sodium soaps scraped from concentrated black liquor and yields 30–50 kg per ton of pulp. The market includes the extraction, processing, and distribution of CTO to other industries, such as chemicals, biofuels, adhesives, soaps, and lubricants. For Instance, in May 2025, Res in all, a subsidiary of Ergon, Inc., launched R-6000, a soy-based alternative to Crude Tall Oil Fatty Acid (TOFA), offering sustainable, high-performance solutions for metalworking fluids with superior lubrication and corrosion protection. The market for crude tall oil is expected to expand due to the robust global policies that favor biofuels. The market is expected to be driven by the fact that biofuel offers an alternative to fossil fuels and that burning it poses no environmental risks.  

Report Coverage  

This research report categorizes the Crude Tall Oil Market Size based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the crude tall oil market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyzes their core competencies in each sub-segment of the Crude Tall Oil Market.       

Driving Factors  

Growing environmental restrictions, growing consumer demand for sustainable and renewable products, and improvements in refining technology have all been major factor drives the Crude Tall Oil Market. Compared to similar fossil alternative products, CTO derivatives have a carbon footprint that is up to 90% lower. Thus, the market will be brightened by the growing concern about enormous carbon emissions and the rising use of environmentally friendly fuels. Due to the growing use of crude tall oil in the manufacturing of biofuels and bio chemicals, the market for crude tall oil is anticipated to increase significantly.  

Restraining Factors  

The availability of raw materials, high production costs, strict environmental laws, and competition from synthetic alternatives are some of the constraining factors facing the Crude Tall Oil Market. These obstacles could limit market expansion and have an impact on the global acceptance of tall oil-derived products.

Market Segmentation      

The Crude Tall Oil Market share is classified into product and application. 

• The Tall oil fatty acids segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.        

Based on the product type, The Crude Tall Oil Market Size is divided into tall oil rosin, tall oil fatty acids, distilled tall oil, tall oil pitch, and others. Among these, the tall oil fatty acids segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The market for tall oil fatty acids (TOFA) is fueled by its many industrial uses and adaptable characteristics. Adhesives, rubber processing chemicals, surfactants, coatings, and chemical intermediates are all produced using TOFA as a crucial raw material. Additionally, TOFA's market position has been reinforced by the rising demand for bio-based and sustainable products.  

• The adhesive segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period.        

Based on the application, The Crude Tall Oil Market Size is divided into adhesive, inks & toners, partings & coatings, hygiene products, and others. Among these, the adhesive segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The increasing need for bio-based and sustainable adhesive solutions across various sectors is driving the adhesive market. due to their superior binding qualities, stability, and performance improvements, crude tall oil derivatives, in particular, tall oil fatty acids and rosin, are widely utilized in adhesives.

Regional Segment Analysis of the Crude Tall Oil Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the crude tall oil market over the predicted timeframe.     

North America is anticipated to hold the largest share of The Crude Tall Oil Market Size over the predicted timeframe. The North American region benefits from large investments in research and development with an emphasis on sustainable and bio-based chemical alternatives. The demand for bio-based products is rapidly growing in North America as a result of stringent environmental regulations implemented by regulatory bodies such as the Environmental Protection Agency. This has increased the region's use of goods derived from crude tall oil. Over 300,000 metric tons of CTO are expected to be redirected yearly toward renewable diesel blends as a result of the U.S. Environmental Protection Agency's June 2025 announcement of a 56% biodiesel mandate escalation for 2026, strengthening market resilience.   

Asia Pacific is expected to grow at a rapid CAGR in The Crude Tall Oil Market Size during the forecast period. Rapid industrialization, growing pulp and paper production, and rising consumer awareness of sustainable products are driving the Asia Pacific area. The region's market has grown thanks in large part to the booming construction sector, which uses crude tall oil and its derivatives extensively as concrete additives. In order to reduce oil imports by 10 million tons per year, India's National Biofuel Policy, which was strengthened in 2025, requires 20% ethanol blending and allots INR 10,000 crore in subsidies, including 30% capital grants for biodiesel refineries. It may also incorporate CTO derivatives from non-edible feedstocks.

Competitive Analysis:    

The report offers the appropriate analysis of the key organizations/companies involved within the crude tall oil market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.  

List of Key Companies

• Citec Group Oy Ab
• Eastman Chemical Company
• Foreverest Resources Ltd.
• Forchem Oyj
• Georgia-Pacific Chemicals
• Ingevity Corporation
• Kraton Corporation
• Mercer International Inc.
• Segezha Group
• Stora Enso
• SunPine
• The Chemical Company
• UPM – The Biofore Company

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In April 2025, UPM Biofuels launched renewable fuel production at its Lappeenranta Biorefinery, using crude tall oil as feedstock, producing UPM BioVerno™ diesel and naphtha, advancing sustainable transport and decarbonization efforts.

• In January 2024, Kraton Corporation announced a USD 35 million investment to upgrade its crude tall oil biorefinery towers in Panama City, Florida, reinforcing sustainable innovation and enhancing operational efficiency.

• In August 2023, The Pine Chemical Group introduced a new production site in Kotka, Finland, producing crude tall oil, tall oil pitch, and pitch fuel, all fully certified under REACH and ISCC standards.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the crude tall oil market based on the below-mentioned segments: 

Global Crude Tall Oil Market, By Product

• Tall Oil Rosin
• Tall Oil Fatty Acids
• Distilled Tall Oil
• Tall Oil Pitch
• Others

Global Crude Tall Oil Market, By Application

• Adhesive
• Inks & Toners
• Partings & Coatings
• Hygiene Products
• Others

Global Crude Tall Oil Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa