Tall Oil Fatty Acid (TOFA) Market Size & Forecast [2033]

Tall Oil Fatty Acid (TOFA) market Overview

The Tall Oil Fatty Acid (TOFA) Market size was valued at USD 626.4 million in 2024 and is expected to reach USD 846.8 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

Tall Oil Fatty Acid (TOFA) is a viscous, amber‑yellow liquid derived as a kraft pulping by‑product. In 2024, global industrial TOFA output reached approximately 287,000 tonnes, marking the first rise since 2021. European producers—particularly Finland—continue to lead, with Finland dominating crude tall oil output at 1.84 million tonnes of CTO in 2024. Meanwhile, average TOFA prices hovered near €1,700 per tonne in early 2025, following a 2023 peak above €2,000. In 2022, liquid TOFA constituted around 43.2% of global tall oil derivatives, with linoleic acid leading that share.

North America held the largest regional market share in 2022, followed by Asia‑Pacific and Europe. The U.S. domestic TOFA industry was estimated at USD 387.5 million in 2023 and rose to USD 412.5 million in 2024, with the oleic acid segment alone valued at USD 150 million in 2024. In 2023, U.S. tall‑oil exports to Finland and Sweden were valued near USD 250 million. These figures position TOFA as a strategic renewable feedstock, increasingly essential in sectors like lubricants, detergents, coatings, inks, rubber additives and biofuel feedstocks.

Key Findings

Driver: Rising demand for bio-based industrial chemicals and eco-friendly alternatives to petrochemical derivatives.

Top Country/Region: Finland remains the top-producing country, contributing approximately 1.84 million tonnes of crude tall oil annually in 2024.

Top Segment: The Fuel and Fuel Additives segment accounted for the largest share of global TOFA applications in 2024, supported by increasing use in biodiesel production.

Tall Oil Fatty Acid (TOFA) Market Trends

The TOFA market saw a 4.4% increase in industrial consumption in 2024, bringing total usage to 298,000 tonnes, following two consecutive years of decline. Of that total, North America, Europe and Asia-Pacific accounted for over 90% of global demand, with the United States alone consuming approximately 58,000 tonnes and Finland consuming around 47,000 tonnes in 2024. This rebound underscore renewed growth momentum after reaching a high of 409,000 tonnes in 2021. Production mirrored consumption trends: global TOFA output reached 287,000 tonnes in 2024, reversing a decline that began in 2022. This rebound is notable considering output peaked at 314,000 tonnes in 2021. Value of the production climbed by nearly 57% between 2019 and 2024, with export value around USD 528 million in 2024. Meanwhile, exports dwindled to 160,000 tonnes, down 18.6% year-over-year, and imports declined to 171,000 tonnes, a 13.6% decrease.

Regionally, North America retained a dominant 35% share of the TOFA market in 2023, driven by chemical and automotive demand. Europe followed closely, largely due to Finland’s production capacity contributing to about 46% of Europe’s output. In 2024, Finland led per-capita consumption at 8.5 kg, versus Sweden 2.5 kg, Austria 0.8 kg, and France 0.6 kg; global average hovered below 0.1 kg per person. Product innovation trends have accelerated: by 2024, TOFA formulations had penetrated bio‑based polymers, detergents, paints and coatings, and high-performance lubricants. New TOFA-derived emulsifiers delivered wetting efficiency enhancements of up to 12%, according to industrial trials reported in mid‑2024. Additionally, packaging and bioplastics sectors began using TOFA in formulations, accounting for nearly 7% of global usage by late 2023, reflecting growing sustainability trends. Market supply-side shifts also emerged: crude tall oil distillation upgraded in 72 pulp mills worldwide by 2024, increasing TOFA recovery yields by an average of 4.3% per facility.

Tall Oil Fatty Acid (TOFA) Market Dynamics

DRIVER

Rising demand for sustainable bio-based industrial chemicals

Global demand for TOFA-based applications increased consumption by 4.4% to 298,000 tonnes and supported export values totaling USD 528 million in 2024. A USD 782 million market value was recorded in early 2025, with bio-based segments such as surfactants, coatings, inks, and fuel additives driving volume growth. In addition, crude tall oil distillation upgrades at 72 pulp mills globally boosted TOFA recovery yields by 4.3% per facility in 2024, enabling increased output.

RESTRAINT

Competition from alternative plant-based fatty acids

Asia-Pacific adoption remains limited by alternatives such as palm oil‑derived fatty acids, which account for over 60% of regional population yet result in a low domestic TOFA share. TOFA producers in China remain few, and Asia‑Pacific TOFA imports represent significantly higher costs compared to locally sourced palm-based feedstock. Consequently, high dependency on imports impedes cost-competitive penetration.

OPPORTUNITY

Biofuel mandates and renewable initiatives

EU directives requiring 10% of transport fuels to be bio-sourced have opened opportunities for TOFA-based biodiesel feedstocks. Similarly, recent U.S. proposals to increase biomass-based diesel blending to 24.02 billion gallons by 2026—an 8% increase—support feedstock demand. With vegetable oil prices up over 11% (soy) and 6% (palm) since June 2025, TOFA becomes more cost-advantageous for biofuel producers.

CHALLENGE

Export dependency and export volume decline

Global exports dropped to 160,000 tonnes, falling 18.6% from the prior year. This trend exposes both supply chains and sales strategies, as domestic consumption surpasses production by ~11,000 tonnes. Pulp mills producing base tall oil must maintain steady recovery yields—any inefficiency risks widening this shortfall further.

Tall Oil Fatty Acid (TOFA) Market Segmentation

Global TOFA markets are analyzed by type and application. By product ""type"", availability is categorized by purity: Above 90, 94, 95, 96, 97, and others. By application, segments include Fuel & Fuel Additives, Surfactants, Mining/Oilfield Chemicals, Coatings & Inks, Rubbers, and Others. Over 298,000 tonnes of TOFA were consumed industrially in 2024, with the Fuel & Fuel Additives segment leading usage (23%). Distributions by type reflect increasing demand for high-purity grades (+97%) due to specialty uses.

By Type

Above 90% TOFA: Standard-grade TOFA comprised roughly 41,000 tonnes in 2024, primarily serving soap and lubricant sectors where lower rosin levels are acceptable. Fractional distillation processes at 72 global pulp mills ensure this grade maintains an acid number between 195–200 mg KOH/g.
Above 94% TOFA: Mid-purity TOFA, totaling approximately 73,000 tonnes in 2024, supports general coatings, inks, and rubber additives. Rosin content below 6% maintains color and acid value consistency.
Above 95% TOFA: High-purity stage-one refined TOFA accounted for about 58,000 tonnes, often featuring maximum biodiesel yields of 81% in industrial esterification trials.
Above 96% TOFA: Ultra-purity TOFA (≈32,000 tonnes) is preferred in specialty lubricants and metalworking fluids owing to tighter acid number variations (±2 mg KOH/g).
Above 97% TOFA: Super-grade TOFA reached around 21,000 tonnes in 2024, tailored for performance polymers and adhesives where rosin content is below 3%.
Others: Custom grades (e.g., with rosin enrichment) comprised approximately 13,000 tonnes, typically used in niche applications like rubber plasticizers and sterol extractions.

By Application

Fuel and Fuel Additives: This leading application consumed close to 104,000 tonnes in 2024 (≈35% of total usage), driven by 81% biodiesel yields from high-purity TOFA.
Surfactants: Absorbing around 69,000 tonnes (≈23%), in detergents and emulsifiers, where TOFA provides wetting improvements of 10‑12%.
Mining and Oilfield Chemicals: Utilized roughly 45,000 tonnes, with TOFA acting as corrosion inhibitors and frothing agents during ore flotation.
Coatings and Inks: Engaged approximately 52,000 tonnes (≈17%), delivering resin binding performance for paints, printing inks, and varnishes.
Rubbers: Applied in rubber processing and tire additives, using near 28,000 tonnes in 2024 to improve flexibility and adhesion.
Others: The remaining ~—800 tonnes were used in niche sectors like adhesives, metalworking fluids, sterol extraction, and plasticizers

Tall Oil Fatty Acid (TOFA) Market Regional Outlook

North America

held around 35–40% of TOFA consumption and production in 2024. The United States alone produced roughly 84,000 tonnes and consumed about 58,000 tonnes, with the remainder supplied via intra‑North American trade. The pulp and paper industry in the U.S. and Canada supports this scale, with 40% regional share in crude tall oil products, of which TOFA is the dominant fraction.

Europe

accounts for approximately 25–30% of global TOFA production and demand. Finland produced around 69,000 tonnes and Sweden about 53,000 tonnes in 2024, collectively contributing 72% of global TOFA output alongside the U.S. High per-capita consumption—in Finland at 8.5 kg per person compared to the global average below 0.1 kg—and investments like the €100 million Hamina CTO biorefinery underscore robust regional performance.

Asia‑Pacific

represents a rising market, with China, India, and Japan as primary consumers. While exact regional tonnage isn't disclosed, China’s soap/detergent sector reached USD 63 billion in value, with annual growth of 6.5%, suggesting significant TOFA demand. Australia recorded the fastest per‑capita consumption growth between 2013–2024 (+17.1% annually), indicating expanding regional adoption.

Middle East & Africa

Though smaller in absolute volumes, Middle East & Africa TOFA demand is rising steadily alongside growth in bio-based coatings, adhesives, and personal care industries. The region benefits from expanding pulp exports and increasing industrialization, with several GCC countries emerging as growing industrial consumers. While no precise tonnage is reported, regional contribution is estimated at 5–7% of global usage.

List of Top Tall Oil Fatty Acid (TOFA) Companies

Arizona
Westrock
Forchem
Georgia-Pacific
Harima
Chemical Associates
Florachem
IOP
OOO Torgoviy Dom Lesokhimik
Lascaray
Segezha Group
Eastman
Pine Chemical Group
Foreverest Resources

Arizona Chemical Company LLC – Ranked among top two leading global TOFA producers, accounting for approximately 18–20% of global output and featured consistently among major players in 2024 industry reports.

Harima Chemicals Group, Inc. – Also holding a top-two position, with an estimated 15–17% share of global TOFA capacity, frequently cited alongside Arizona as a market leader.

Investment Analysis and Opportunities

Global investment trends in TOFA-focused projects have surged since 2022, with total capital expenditure for manufacturing upgrades exceeding USD 250 million by mid‑2025. Among these, approximately USD 160 million was allocated to refining capacity in pulp mill integration initiatives across North America and Europe, enabling nearly 4.3% improvement in TOFA recovery yields at 72 plants globally. These investments are supported by strong demand: industrial consumption increased by 4.4%, reaching 298,000 tonnes in 2024. Strategic opportunities have emerged in both feedstock procurement and technology licensing. For instance, a €100 million biorefinery project launched in Hamina (Finland) in late 2024 integrates CTO processing and high-purity (>97%) TOFA extraction, with capacity of 30,000 tonnes per annum, targeting polymer and adhesive sectors. Similar projects in North America are underway—with planned capacity additions totaling 25,000 tonnes across two facilities by 2026, aimed at boosting regional supply and capturing oilfield chemical and biofuel markets. Capital deployment into R&D is also playing a key role. In 2023‑2024, leading producers directed over USD 25 million toward TOFA-based product innovations—such as emulsifiers delivering 12% improved wetting and specialty lubricants with ±2 mg KOH/g acid number precision.

These efforts support market differentiation, with ultra-purity (>96%) TOFA seeing volumes reach 32,000 tonnes and super-purity (>97%) at 21,000 tonnes in 2024. Emerging markets offer additional investment avenues. Asia‑Pacific currently represents <15% of TOFA consumption despite hosting over 60% of the world’s population. Regional detergent, coatings, and biodiesel mandates—including China’s 6.5% compound growth in its USD 63 billion soap/detergent sector—present growth potential. Investments in local pulp mill distillation units—about 10–15 new systems per year—are expected to raise clean TOFA supply and relieve Asia‑Pacific's current import dependency. Moreover, US biofuel blending proposals aim to expand biomass diesel use to 24.02 billion gallons by 2026, up 8%, providing feedstock demand tailwinds. TOFA's pricing advantage over soybean and palm oil—spikes of +11% and +6% respectively since June 2025—further enhances investment viability in feedstock supply chains. In summary, TOFA investment opportunities span capacity expansions (over 85,000 tonnes planned additions by 2026), R&D funding (exceeding USD 25 million), and strategic regional entry into under-penetrated Asia‑Pacific markets. These combined factors signal strong upside potential for investors in sustainable chemical feedstocks.

New Product Development

Innovation in TOFA-based products accelerated notably between 2023 and 2025. Emulsifier formulations integrating TOFA now yield 10–12% enhanced wetting performance, validated by industrial trials involving over 50 testing protocols across three continents. These formulations have achieved adoption in cleaners and paint systems totaling shipments of 5,200 tonnes just in 2024. In lubricants and metalworking fluids, ultra-high-purity TOFA (>96%) has been tailored to maintain acid numbers within ±2 mg KOH/g. Such strict control has enabled 32,000 tonnes of this grade to enter markets for machining coolants and industrial oils in 2024, growing 14% from the previous year. New blends combining TOFA with synthetic esters deliver 20% improved lubricity compared to conventional formulations, primarily serving EU and US OEMs since late 2024. Coatings and adhesives formulations have also benefitted: specialty TOFA grades (95–97%) now appear in 48 million litres of eco-friendly coatings produced in North America and Europe during 2024, representing 7% of global TOFA usage. These products leverage TOFA’s low solvent volatility and improved adhesion profiles.

Fuel applications likewise saw refinement. High-purity TOFA (>95%) esterified into fatty acid methyl esters (FAME) have achieved 81% biodiesel yields, with 104,000 tonnes consumed in 2024—the leading application segment. Trials mixing TOFA-derived FAME with soybean biodiesel demonstrated 5% higher cold flow performance—particularly valuable in colder climates. In the polymer sector, research into TOFA-derived dimer acids yielded lightweight adhesives and lubricants with 15% lower viscosity and improved tensile strength. In 2024, approximately 8,500 tonnes of these specialty derivatives were produced, targeting electronics coatings and green plastics. New formats also emerged: TOFA-based granules and emulsions were introduced by mid-2024, supporting easier handling for small-scale processors. More than 7,000 tonnes of granulated TOFA were shipped to clients in Asia‑Pacific and Latin America. Finally, start-ups in North America and Europe launched genetically modified pulp treatments enabling 6–8% increases in CTO yields per mill. Early data from four pilot operations indicates potential to boost TOFA volumes by +2,400 tonnes per facility annually. These innovations—spanning emulsifiers, lubricants, fuels, adhesives, and processing formats—underscore TOFA’s evolving versatility and pave the way for expanded global market penetration.

Five Recent Developments

Hamina CTO Biorefinery launch – In late 2024, a €100 million coordinately-financed biorefinery in Hamina, Finland, began operations with a 30,000 tonne/year CTO-to-TOFA conversion unit and enhanced extraction of ultra-purity grades (>97%).
Global distillation upgrades—72 mills – By mid-2024, 72 kraft pulp mills across North America and Europe implemented distillation enhancements, resulting in an average 4.3% yield increase per facility, adding nearly 9,000 tonnes of TOFA recovery.
USA R&D funding—USD 25+ million – During 2023–24, leading producers invested over USD 25 million into R&D focused on TOFA-based emulsifiers (boosting wetting by 10–12%) and high-performance lubricants (±2 mg KOH/g acid precision).
Asia-Pacific pulp mill installations – From 2023 to 2024, Asia-Pacific initiated around 10–15 distillation units, adding an estimated 6,000 tonnes/year of clean TOFA capacity to reduce reliance on imports.
TOFA-Biodiesel Trials – Large-scale industrial trials in late 2024 produced 81% yield biodiesel from >95% TOFA grades, contributing to a consumption of approximately 104,000 tonnes in fuel and fuel additive applications.

Report Coverage of Tall Oil Fatty Acid (TOFA) Market

The report on the Tall Oil Fatty Acid market encompasses a comprehensive analysis of global production, consumption and trade flows spanning from 2019 to 2024. It tracks year-by-year output, with production declining from 314,000 tonnes in 2021 to 287,000 tonnes in 2024, and consumption growing to 298,000 tonnes in 2024 after an initial drop. Trade data covers exports (160,000 tonnes) and imports (171,000 tonnes) in 2024, emphasizing net deficits and supply chain implications. The scope includes segmentation by purity grade: analysis covers Above‑90% through Above‑97% TOFA, documenting annual volumes—41,000 tonnes for >90%, 73,000 tonnes for >94%, 58,000 tonnes for >95%, 32,000 tonnes for >96%, and 21,000 tonnes for >97% in 2024. The application segments are detailed: Fuel & Fuel Additives (≈104,000 tonnes), Surfactants (≈69,000 tonnes), Coating & Inks (≈52,000 tonnes), Mining/Oilfield Chemicals (≈45,000 tonnes), Rubbers (≈28,000 tonnes), and Others (<1,000 tonnes). Geographic coverage extends to North America (84,000 tonnes production, 58,000 tonnes consumption in 2024), Europe (Finland 69,000 tonnes, Sweden 53,000 tonnes, combined per-capita usage of 8.5 kg in Finland), Asia-Pacific (emerging markets like China and India; China’s USD 63 billion detergent/soap sector with 6.5% annual growth), and Middle East & Africa (estimated regional share of 5–7%).

Competitive landscape includes production capacity by company: key share percentages (Arizona at approximately 18–20%, Harima at 15–17%), and coverage of distillation upgrades at 72 mills yielding 4.3% increases per facility. Further coverage includes pricing analyses: 2023 price highs above €2,000/tonne followed by a decline to around €1,700/tonne in early 2025, indicating cost-competitive shifts. The report also features recent developments (2023–2024): Hamina plant (€100 million, 30,000 t/year), pulp mill upgrades, R&D investment (> USD 25 million), distillation additions in Asia‑Pacific (10–15 units), and biodiesel yields (~81%). Additionally, the report dedicates sections to environmental and regulatory frameworks: EU biofuel mandate (10% renewable fuel mandates), US biomass diesel blending target (24.02 billion gallons by 2026) and trends in pricing of soybean (+11%) and palm (+6%) oil compared to TOFA. Overall, the report provides exhaustive coverage of historical and current market data, segmentation, regional dynamics, supply chain structure, competitive landscape, recent innovations, policy impacts and future investment outlook—all substantiated with quantitative metrics to support strategic decision-making by stakeholders.