According to our (Global Info Research) latest study, the global CTO Distillation market size was valued at US$ 3053 million in 2025 and is forecast to a readjusted size of US$ 5075 million by 2032 with a CAGR of 7.6% during review period.
Crude Tall Oil (CTO) is a by-product of the kraft pulping process used by many paper mills. Tall oil soap is collected at the mills and then acidulated to make crude tall oil. It is a mixture of fatty acids, rosin and Rubber neutral materials and forms water-in-oil emulsions and stabilizes mud systems at high bottom-hole temperatures. The CTO can then be further refined through the fractionation process to separate it into the components of tall oil fatty acid, tall oil rosin, distilled tall oil, pitch and heads. In 2025, global CTO Distillation production reached approximately 1986 K MT, with an average global market price of around US$ 1404 per MT.
CTO (Crude Tall Oil) distillation refers to the industrial separation and refining of crude tall oil, a bio-based byproduct recovered from the kraft pulping process in the paper industry. CTO is a complex mixture primarily made up of fatty acids, rosin acids, sterols, and other neutral compounds, and distillation upgrades it into higher-value fractions such as Tall Oil Fatty Acid (TOFA), Tall Oil Rosin (TOR), and Distilled Tall Oil (DTO)/pitch depending on plant configuration and target markets. Commercial CTO distillation units rely on vacuum distillation and careful thermal management because the feed can be heat-sensitive and variable, and product quality is strongly affected by feedstock composition, operating conditions, and contamination levels (e.g., sulfur compounds or ash). The overall purpose of CTO distillation is to transform a low-to-mid value residue stream into consistent renewable chemical building blocks for downstream industries.
Market drivers for CTO distillation are closely tied to the growing demand for bio-based and renewable raw materials in fuels, chemicals, and performance materials. Rising interest in low-carbon inputs supports long-term demand for TOFA in applications such as alkyd resins, adhesives, lubricants, metalworking fluids, surfactants, and polymer additives, while TOR feeds into inks, adhesives/tackifiers, rubber compounding, and paper sizing. Another driver is the strong economic incentive for pulp and paper operators and chemical refiners to maximize byproduct monetization, especially as traditional paper markets evolve and mills seek more diversified revenue streams. CTO distillation also benefits from increasing corporate and regulatory emphasis on traceable renewable content, which helps these pine-derived fractions compete as “drop-in” replacements for selected petroleum- or palm-derived inputs in certain formulations.
Key trends in CTO distillation include a shift toward higher-value product slates and tighter product specifications, as customers demand improved consistency in acid profiles, color, odor, and impurity levels. Producers are investing in process optimization and debottlenecking—better vacuum systems, improved heat integration, corrosion management, and real-time quality monitoring—to handle variable CTO feedstocks while reducing energy intensity and downtime. Another major trend is stronger integration with renewable fuels and advanced bioeconomy value chains, where certain CTO-derived streams may be upgraded into renewable diesel feedstocks, specialty esters, or high-performance additives, depending on regional economics and policy incentives. Overall, the industry is moving from simple fractionation toward more flexible, efficiency-driven refining that can respond quickly to changing demand between fuels, resins, and specialty chemical markets.
This report is a detailed and comprehensive analysis for global CTO Distillation market. Both quantitative and qualitative analyses are presented by manufacturers, by region & country, by Type and by Application. As the market is constantly changing, this report explores the competition, supply and demand trends, as well as key factors that contribute to its changing demands across many markets. Company profiles and product examples of selected competitors, along with market share estimates of some of the selected leaders for the year 2025, are provided.
Key Features:
Global CTO Distillation market size and forecasts, in consumption value ($ Million), sales quantity (K MT), and average selling prices (USD/MT), 2021-2032
Global CTO Distillation market size and forecasts by region and country, in consumption value ($ Million), sales quantity (K MT), and average selling prices (USD/MT), 2021-2032
Global CTO Distillation market size and forecasts, by Type and by Application, in consumption value ($ Million), sales quantity (K MT), and average selling prices (USD/MT), 2021-2032
Global CTO Distillation market shares of main players, shipments in revenue ($ Million), sales quantity (K MT), and ASP (USD/MT), 2021-2026
The Primary Objectives in This Report Are:
To determine the size of the total market opportunity of global and key countries
To assess the growth potential for CTO Distillation
To forecast future growth in each product and end-use market
To assess competitive factors affecting the marketplace
This report profiles key players in the global CTO Distillation market based on the following parameters - company overview, sales quantity, revenue, price, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Kraton, Westrock, Forchem, Georgia-Pacific, Eastman, Harima, OOO Torgoviy Dom Lesokhimik, Lascaray, Segezha Group, IOP, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Market Segmentation
CTO Distillation market is split by Type and by Application. For the period 2021-2032, the growth among segments provides accurate calculations and forecasts for consumption value by Type, and by Application in terms of volume and value. This analysis can help you expand your business by targeting qualified niche markets.
Market segment by Type
Tall Oil Rosin (TOR)
Tall Oil Pitch (TOP)
Distilled Tall Oil (DTO)
Tall Oil Fatty Acids (TOFA)
Market segment by Channel
Online Sales
Offline Sales
Market segment by Content
99% Content
98% Content
Other
Market segment by Application
Fuel and Additives
Adhesives & Sealants
Mining and Oilfield Chemicals
Coating and Inks
Rubber
Surfactant
Others
Major players covered
Kraton
Westrock
Forchem
Georgia-Pacific
Eastman
Harima
OOO Torgoviy Dom Lesokhimik
Lascaray
Segezha Group
IOP
DRT
Market segment by region, regional analysis covers
North America (United States, Canada, and Mexico)
Europe (Germany, France, United Kingdom, Russia, Italy, and Rest of Europe)
Asia-Pacific (China, Japan, Korea, India, Southeast Asia, and Australia)
South America (Brazil, Argentina, Colombia, and Rest of South America)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa, and Rest of Middle East & Africa)
The content of the study subjects, includes a total of 15 chapters:
Chapter 1, to describe CTO Distillation product scope, market overview, market estimation caveats and base year.
Chapter 2, to profile the top manufacturers of CTO Distillation, with price, sales quantity, revenue, and global market share of CTO Distillation from 2021 to 2026.
Chapter 3, the CTO Distillation competitive situation, sales quantity, revenue, and global market share of top manufacturers are analyzed emphatically by landscape contrast.
Chapter 4, the CTO Distillation breakdown data are shown at the regional level, to show the sales quantity, consumption value, and growth by regions, from 2021 to 2032.
Chapter 5 and 6, to segment the sales by Type and by Application, with sales market share and growth rate by Type, by Application, from 2021 to 2032.
Chapter 7, 8, 9, 10 and 11, to break the sales data at the country level, with sales quantity, consumption value, and market share for key countries in the world, from 2021 to 2026.and CTO Distillation market forecast, by regions, by Type, and by Application, with sales and revenue, from 2027 to 2032.
Chapter 12, market dynamics, drivers, restraints, trends, and Porters Five Forces analysis.
Chapter 13, the key raw materials and key suppliers, and industry chain of CTO Distillation.
Chapter 14 and 15, to describe CTO Distillation sales channel, distributors, customers, research findings and conclusion.
Summary:
Get latest Market Research Reports on CTO Distillation. Industry analysis & Market Report on CTO Distillation is a syndicated market report, published as Global CTO Distillation Market 2026 by Manufacturers, Regions, Type and Application, Forecast to 2032. It is complete Research Study and Industry Analysis of CTO Distillation market, to understand, Market Demand, Growth, trends analysis and Factor Influencing market.