Tall oil fatty acids market in Finland

Earlier Report Observations

The Finnish tall oil fatty acids market began the period at 84.9 thousand tons in 2018, bolstered by government tax incentives promoting bio-based materials and active involvement from key producers like Forchem. This supportive environment was disrupted in 2019 when the implementation of stricter EU sustainability and certification regulations contributed to a market contraction to 76.5 thousand tons. Further pressure came in 2020 as global crude oil price fluctuations reduced the cost-competitiveness of tall oil derivatives, leading to another slight decline in volume to 74.6 thousand tons.

A recovery to 80.4 thousand tons occurred in 2021, primarily driven by the adoption of advanced production technologies like ultrasound-assisted extraction, which enhanced efficiency, coupled with rising investments in green chemistry initiatives. However, this growth was short-lived; in 2022, widespread global supply chain disruptions impeded raw material access, causing the market volume to recede to 78.8 thousand tons even as its monetary value rose significantly due to higher prices.

The market underwent a sharp correction in 2023, with volume plummeting to 63.5 thousand tons, before stabilizing near 63.2 thousand tons in 2024. This represented a substantial structural reduction in physical market size, while the market value remained elevated above USD 110 million throughout these final two years.

Production tall oil fatty acids in Finland

In value, 2017-2020, M $ US

Finland's tall oil fatty acids production experienced a two-year decline before rebounding. In 2020, output reached 94.6 million US dollars, marking a 4.3% increase from the previous year. Over the 2017-2020 period, production fell by 13.3%, with a compound annual growth rate of -4.6%. The lowest value was recorded in 2019 at 90.7 million US dollars, which also saw the largest annual decline of 13.5%.

Annual dynamics of production in Finland in value, 2017-2020, M $ US

In kind, 2017-2020, t

Finland's tall oil fatty acids production declined for the third consecutive year. In 2020, the country produced 74 592 tonnes, showing a slight decrease of 2.2% from the previous year. Over the 2017-2020 period, production decreased by 21.2%, with a compound annual growth rate of -7.6%.

Annual dynamics of production in Finland in kind, 2017-2020, t

Exports tall oil fatty acids from Finland

According to market research, Finland did not export any tall oil fatty acids between 2017 and 2020.

Imports tall oil fatty acids to Finland

Imports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Imports reached their lowest point in 2020 at approximately 22.7 tonnes, representing a 91.1% drop compared to 2019. The highest volume was recorded in 2019 at 255.6 tonnes, creating an 11.2-fold gap between these two years. The largest annual increase occurred in 2019 at 75.2%.

Annual dynamics of product's imports to Finland in kind, 2017-2020, t

From 2017 to 2020, Finland's imports in kind were strongly concentrated on France, which accounted for 72.9% of total flows, with other partners making up the remaining volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Finland in kind, 2017-2020

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Import value reached its lowest point in 2020 at 59.3 thousand US dollars, reflecting an 82.2% decline from the previous year. The highest value was recorded in 2019 at 333.1 thousand US dollars, creating a peak-to-trough ratio of 5.6 times. The largest annual increase occurred in 2019 at 66.7%.

Annual dynamics of product's imports to Finland in value, 2017-2020, K $ US

Throughout 2017-2020, France and the Netherlands were the core markets for Finland's imports in value terms, jointly accounting for 84.2% of total flows, while other destinations had comparatively modest shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Finland in value, 2017-2020