Shaping the Industry with Sustainable Oils

The soap noodles industry in 2025 continues to strengthen, propelled by consumer demand for sustainable and plant-based raw materials. Feedstock composition plays a central role in balancing cost competitiveness and product performance, and vegetable oils dominate this space. In 2024, they made up 67.3% of the total feedstock mix, a share expected to hold steady through 2025. Their biodegradable, skin-friendly qualities align with the increasing global preference for eco-conscious personal care products, securing vegetable oils as the leading raw material for the sector.

Among these, palm oil, palm kernel oil, and coconut oil stand out, with the widely used 80:20 palm oil to palm kernel oil blend recognized for its superior fatty acid balance. This composition ensures soaps with effective cleansing, strong lathering, and durable hardness, while also optimizing production costs. Their reliable availability in tropical regions cements their role as the backbone of soap noodle manufacturing across Asia-Pacific.

As a senior executive in the oleochemical supply chain once remarked, “palm remains not just a feedstock but a foundation for consistent growth.” Companies like Tradeasia International, with extensive expertise in palm and oleochemicals, have positioned themselves as key partners in connecting producers with global demand, reinforcing stability in a sector shaped by fluctuating commodity markets. This strategic alignment ensures a seamless transition from raw material sourcing to finished product distribution.

Regional Leadership and Investment Driving Growth

Asia-Pacific remains the undisputed hub of soap noodle production, supported by the integrated palm oil ecosystems of Malaysia and Indonesia. This dominance is not only geographical but also industrial, as rising hygiene awareness and expanding personal care markets amplify demand across the region. The upstream and downstream integration provides a competitive edge, minimizing supply risks while ensuring efficiency.

Large-scale investments highlight the industry’s forward-looking approach. Kuala Lumpur Kepong Berhad (KLK) has strengthened its position by commissioning a 500,000 tons per annum (ktpa) fatty acid and glycerine plant in Jiangsu, China, one of the largest and most advanced facilities of its kind. Complementing this, KLK’s 55,000-ton glycerine facility in Sumatra enhances regional supply chain resilience. Such investments reflect an industry-wide strategy to meet demand with high-purity, sustainable inputs while maximizing resource efficiency.

Meanwhile, pricing dynamics in mid-2025 show that vegetable oil-based feedstocks, particularly palm oil blends, retain a cost advantage over animal fat-derived tallow. Their stable pricing, bolstered by consistent supply from Asia-Pacific, reinforces their attractiveness. Yet, external pressures—from weather-driven yield fluctuations to trade policy shifts—remain variables to watch closely.

Ultimately, the soap noodles market in 2025 is firmly anchored by vegetable oil-based feedstocks, led by palm oil and palm kernel oil blends. With Asia-Pacific’s production strength and strategic investments ensuring efficiency and sustainability, the industry is well-positioned to sustain global growth and meet evolving consumer expectations.

 

Sources:

  1. KLK expands oleochemicals processing capacity in China - https://www.fuelsandlubes.com/klk-expands-oleochemicals-processing-capacity-in-china/

  2. Soap Noodles Market - Industry Analysis and Forecast (2025-2032) - https://www.stellarmr.com/report/Soap-Noodles-Market/891

  3. Palm Chemicals - Leading Industrial Chemicals Suppliers - https://www.palm-chemicals.com