News Release: July 30, 2025
Tall Oil Price, Production, Latest News and Developments in 2025
The global Tall oil market continues to evolve with increasing attention from industries linked to adhesives, inks, coatings, and biofuels. With rising demand across multiple verticals, the fluctuations in Tall oil price and supply dynamics are closely monitored by market participants and stakeholders. For a detailed understanding of the Tall oil price trend and production news, refer to Tall oil price trend and production News.
Tall Oil Price Trend in Past Five Years and Factors Impacting Price Movements
Over the last five years, the Tall oil price trend has shown significant volatility, shaped by various factors such as feedstock availability, resin and chemical industry demand, and global shipping costs.
In 2020, the average Tall oil price was around $680/MT. The market was relatively stable but faced challenges due to the COVID-19 pandemic, which disrupted both production and logistics. As economies slowed down, demand for resins, biofuels, and adhesives dipped, leading to excess supply in some regions.
In 2021, prices began to climb, reaching approximately $740/MT by Q3, primarily due to recovery in the manufacturing and chemical sectors. Furthermore, supply chain bottlenecks led to higher freight and transport costs, which further elevated the Tall oil price globally.
By 2022, the demand from the biofuel segment surged amid global commitments to decarbonization. With European refiners increasingly using Tall oil as a feedstock for renewable diesel, prices jumped to an average of $880/MT by year-end. Increased usage in alkyd resins and the surfactant industry also pushed up prices.
In 2023, the market saw sharper increases. In Q2 2023, Tall oil price touched $950/MT driven by restricted pine pulp production and constrained crude tall oil availability in the U.S. and Nordic regions. Furthermore, geopolitical uncertainties in Eastern Europe affected resin exports, creating regional scarcities and supporting bullish price movements.
By 2024, the average annual price peaked at $990/MT, though with high quarterly fluctuations. The rise in bio-based chemical demand and a surge in sustainable adhesive manufacturing further squeezed supply. However, in late 2024, moderation in biofuel demand in Europe resulted in minor corrections.
The overall Tall oil price trend between 2020 and 2024 indicated a gradual increase, from $680/MT in 2020 to an average of $990/MT by the end of 2024. The upward trend was largely due to structural increases in demand from biofuel blending mandates, resin manufacturers, and the food additive sector.
In 2025, prices continue to hover near $970–$1010/MT in major markets, with emerging pressures from freight rates, raw material shortages, and rising energy prices. Environmental regulations and pulp mill closures in North America and Europe are expected to impact production further.
Tall Oil Price Trend Quarterly Update in $/MT: (Estimated Quarterly Prices)
- Q1 2024: $960/MT
- Q2 2024: $985/MT
- Q3 2024: $1010/MT
- Q4 2024: $1005/MT
- Q1 2025: $970/MT
- Q2 2025: $995/MT (estimated)
- Q3 2025: $1015/MT (forecasted)
- Q4 2025: $1000/MT (projected)
Quarterly trends indicate stable but elevated pricing as the market maintains equilibrium amid seasonal shifts and shifting demand patterns. These prices reflect a delicate balance of supply from North America, Europe, and parts of Asia with a persistent demand base from biofuel refiners and adhesive manufacturers.
Global Tall Oil Import-Export Business Overview
The global Tall oil trade is characterized by dynamic trade routes, dominated by North America and Europe as major producers and exporters, while Asia and Latin America increasingly serve as growing demand centers.
North America remains the largest exporter of Tall oil, led by the United States and Canada. These countries benefit from abundant pine forests, which provide the raw feedstock for crude tall oil production. American producers have significantly scaled operations to meet the rising Tall oil sales volume across Asia and Europe. In 2024 alone, U.S. exports reached nearly 300,000 MT, catering primarily to the biofuel and coatings sectors.
Europe, particularly Finland and Sweden, is both a key producer and consumer of Tall oil. Export volumes from Finland have been consistent, with an annual average of 180,000 MT. The European Union’s push toward renewable feedstocks in diesel blending has made Tall oil a strategic import for refining groups in Germany, France, and the Netherlands. Germany, in particular, ramped up its imports by over 15% in 2024 to meet stringent renewable energy targets.
Asia-Pacific, led by China, Japan, and South Korea, has seen a sharp rise in imports. China’s construction and adhesives sector alone accounted for more than 60,000 MT in imports in 2024. With increasing usage of Tall oil in rubber emulsifiers, asphalt additives, and plasticizers, this region is poised to become one of the fastest-growing importers. South Korea has also begun using Tall oil derivatives in industrial lubricants and inks, pushing demand higher.
Despite not being a large producer, India has emerged as a key re-exporter of processed Tall oil derivatives. Blending and chemical transformation units in Gujarat and Maharashtra are now importing crude Tall oil and re-exporting specialty resins and surfactants to the Middle East and Southeast Asia.
South America is an emerging market with limited production but growing imports. Brazil is the leader in this segment, using Tall oil for biodiesel blending and agrochemical manufacturing. Imports increased by 18% in 2024, totaling over 40,000 MT, with the majority sourced from the U.S.
Middle Eastern countries, particularly the UAE and Saudi Arabia, have recently started exploring Tall oil for industrial use. Imports remain limited but are expected to grow, especially with new petrochemical projects aiming to diversify feedstock sources.
Meanwhile, Africa, particularly South Africa and Egypt, are in early stages of adoption. Imports are minimal, but rising interest from adhesive and detergent manufacturers indicates a growing market.
Key trade developments in 2025 include:
- Introduction of new import norms in China that emphasize low sulfur content in crude tall oil imports. This has slightly slowed imports from Europe but opened space for North American suppliers.
- Tariff changes in the European Union have made Tall oil imports from non-EU countries more competitive, especially benefiting U.S. exporters.
- Technological upgrades in Finnish refineries have improved the yield of distilled Tall oil, enabling higher-value exports in the form of resin acids and fatty acids.
- Shipping disruptions through the Panama Canal in early 2025 led to rerouting of several U.S. shipments to Asia via alternative channels, temporarily impacting delivery timelines and leading to a slight spike in Tall oil price news during Q1 2025.
- Several U.S. ports, including those in Louisiana and Florida, reported capacity expansions to accommodate growing Tall oil exports in 2025.
The global Tall oil trade ecosystem is highly responsive to environmental policy, production cycles, and the energy sector’s shift towards sustainability. The Tall oil sales volume is projected to grow 4–6% annually for the next three years, driven largely by demand from renewable chemical manufacturers and the flexible packaging sector.
As the global market matures, the focus is increasingly on derivative innovation, quality consistency, and compliance with sustainability mandates. Trade strategies are evolving to minimize cost inefficiencies while maintaining robust supply lines. Analysts expect the import-export matrix of Tall oil to be reshaped by both technological advancements and shifting geopolitical landscapes through the remainder of 2025.
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Tall Oil Production Trends by Geography
Tall oil production is heavily concentrated in regions with strong pulp and paper industries, particularly where pine-based pulping is widespread. This is because tall oil is a byproduct of the kraft pulping process of coniferous trees, especially pine. Globally, North America and Europe remain the dominant production hubs, while Asia and South America are gradually increasing their manufacturing capacities to meet growing domestic and export demands.
North America
The United States is the leading global producer of tall oil, benefiting from an abundant supply of pine wood and a mature paper and pulp industry. Southeastern states such as Georgia, Alabama, and South Carolina are particularly prominent in tall oil recovery and refining. Production volumes have steadily increased over the past five years due to expanding applications in biofuels and specialty chemicals. The U.S. also houses several refineries that specialize in converting crude tall oil into high-value derivatives such as fatty acids and rosin acids. The country continues to invest in technology upgrades to improve tall oil yield and quality.
Canada, while a smaller producer, contributes to the regional supply, mainly in provinces like British Columbia and Quebec. Production here is largely consumed domestically in adhesives, lubricants, and construction chemicals. However, recent initiatives aimed at increasing renewable fuel output have led to a renewed focus on tall oil as a bio-based feedstock.
Europe
Northern and Western Europe form the second largest tall oil production block globally. Countries such as Finland, Sweden, and Norway have well-established kraft pulping operations, which are the primary source of crude tall oil. Finland and Sweden, in particular, have invested significantly in tall oil refining infrastructure. Their production is driven not only by demand from adhesives and resin industries but also by the renewable energy sector. Distilled tall oil is used in the manufacture of bio-based fuels, especially renewable diesel.
Germany and the Netherlands import crude tall oil for further processing, with several downstream players specializing in high-grade fatty acids and emulsifiers. The European Union’s stringent sustainability directives have driven increased utilization of bio-based resources like tall oil, prompting steady growth in production and technological innovation in refining processes.
Asia-Pacific
Asia, historically an importer of tall oil, is slowly building up its own production capacities. China has initiated limited-scale tall oil production in regions with emerging pulp industries. However, the majority of tall oil in Asia still comes through imports, primarily from the U.S. and Finland. Local processing units in China, India, and South Korea refine imported crude tall oil into chemical intermediates, adhesives, and surfactants.
India has seen a rise in downstream tall oil processing in industrial hubs such as Gujarat and Maharashtra. Although it lacks domestic production of crude tall oil, it is emerging as a re-exporter of tall oil derivatives. This pattern is likely to continue as demand for eco-friendly materials in the chemical industry rises.
South America
Brazil is the leading South American contributor to tall oil production, leveraging its expanding paper and pulp sector. Brazilian producers are integrating tall oil recovery systems within kraft mills to supply to domestic and regional markets. The tall oil produced in Brazil is primarily used in biodiesel blending, lubricants, and road surfacing chemicals.
Other countries such as Chile and Argentina are still in nascent stages but are exploring investment opportunities in tall oil recovery as part of broader bioeconomy strategies.
Middle East and Africa
Currently, the Middle East and Africa do not produce tall oil on a commercial scale due to the lack of kraft pulp mills using pine feedstock. However, some pilot initiatives in South Africa and the UAE aim to explore the potential of bio-based alternatives for industrial use. Any developments in these regions are expected to be in collaboration with global pulp producers or through joint ventures for refining imported tall oil.
Overall, tall oil production is expected to grow in traditional regions such as North America and Europe while expanding gradually into Asia and South America. Future trends will likely be shaped by investments in green chemicals, bioenergy transitions, and innovations in the pulping and refining processes.
Tall Oil Market Segmentation
Tall oil is a versatile product that finds application across numerous sectors, thanks to its complex composition of fatty acids, rosin acids, and sterols. The market for tall oil can be segmented into the following categories:
Key Market Segments:
- By Product Type
- Crude Tall Oil (CTO)
- Distilled Tall Oil (DTO)
- Tall Oil Fatty Acids (TOFA)
- Tall Oil Rosin (TOR)
- Tall Oil Pitch
- By Application
- Adhesives and Sealants
- Inks and Coatings
- Biofuels
- Rubber and Tyres
- Mining and Drilling
- Soaps and Detergents
- By End-Use Industry
- Construction
- Chemical
- Energy (Biofuel)
- Packaging
- Automotive
- By Region
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Explanation of Leading Segments :
By Product Type
Among product types, Tall Oil Fatty Acids (TOFA) represent the largest market share. TOFA is widely used in the manufacture of alkyd resins, which are essential in paints, coatings, and inks. Its demand has grown with the shift toward environmentally friendly coatings. The increasing need for bio-based emulsifiers and lubricants is also supporting TOFA demand.
Distilled Tall Oil (DTO) is the next most prominent segment. It is used in various chemical industries for producing plasticizers, drying agents, and corrosion inhibitors. Its versatile use across industrial coatings and fuel additives has made it a growing segment, particularly in Europe and the United States.
Tall Oil Rosin (TOR) has niche but stable demand in the adhesives and rubber sectors. Its tackifying properties are highly valued in pressure-sensitive adhesives. TOR’s market is expected to grow in alignment with packaging adhesives and sealant demand.
By Application
The biofuel segment has emerged as a major consumer of tall oil in recent years. Crude tall oil is increasingly used as a renewable feedstock in the production of green diesel and biodiesel. This trend is especially visible in Europe, where policy frameworks support renewable transportation fuels.
Adhesives and sealants remain a traditional stronghold for tall oil derivatives. Tall oil’s ability to improve bonding and provide flexibility makes it ideal for applications in wood-based and construction adhesives. The construction boom in Asia-Pacific has significantly contributed to the growth of this segment.
The inks and coatings sector also consumes large volumes of tall oil, especially TOFA. Waterborne and solvent-based printing inks benefit from tall oil components due to their excellent dispersion and film-forming properties.
Rubber processing and tyre manufacturing utilize tall oil products as softeners and plasticizers. This use is particularly prominent in Europe and China.
By End-Use Industry
The chemical industry dominates tall oil consumption due to its wide use in producing chemical intermediates like esters, amines, and metal soaps. These intermediates find applications across multiple verticals, including personal care, industrial lubricants, and agrochemicals.
The energy sector, particularly biofuel production, has shown the highest growth rate in tall oil usage. With crude tall oil increasingly considered a second-generation feedstock for biodiesel, this segment is anticipated to drive future demand.
Construction is another major end-use segment. From adhesives and sealants to wood preservatives, tall oil derivatives are embedded into a wide range of construction products. This has been supported by regulatory shifts toward greener construction materials.
Packaging is an emerging application area, especially in sustainable packaging adhesives. The demand is linked to growing environmental concerns and regulatory pushbacks on petroleum-based adhesives.
Automotive and mining industries use tall oil-based additives for fuel performance, corrosion resistance, and emulsification. As these sectors lean towards eco-friendlier formulations, tall oil adoption is expected to rise.
In conclusion, the tall oil market is highly diversified, with fatty acids and biofuels being the standout growth segments. Market expansion is supported by rising environmental regulations, increasing industrial sustainability demands, and advancements in refining technology.
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