Global Higher Alpha Olefins (HAOs) Market Snapshot

Higher alpha olefins (HAOs) are typically defined as linear alpha olefins (LAOs) with a carbon chain number equal and greater than ten (C10 and plus).  Therefore, the HAO business is inseparable from the LAO business due to the nature of the technology used to produce alpha olefins.

The linear alpha olefins (LAOs) business is complex; although certain alpha olefins can be produced on-purpose, much of the production takes place using ethylene oligomerisation which produces a full-range of alpha olefins from C4 (butene-1) through C30+ (triacontane1).  These products supply a wide range of very different markets and each behaves very differently in terms of application, market size, growth, customer locations and supply chain characteristics.  

For a full-range producer, managing an alpha olefins business presents the challenge of balancing the requirements of serving the various markets, while maximising revenue across the whole range of alpha olefins products.  At any one time in the economic cycle, demand across all fractions fluctuates - some fractions will be long, while others will be short. 

Another key factor to consider is product variation between grades produced at different plants.  Up to dodecene-1 (C₁₂) there is little difference in properties of the alpha olefins produced from different sources.  However, beyond C₁₂, significant variations arise in alpha olefin properties such as concentration of alpha olefin, internal olefin or branched species.  Some applications (e.g. personal care) are favoured by more linear species, others (e.g. some household detergent and industrial applications) benefit from modest branching.  

The low carbon number components such as butene-1, hexene-1 and octene-1 are consumed in the production of polyethylene.   The main end use markets for HAOs are:

• C10 LAO (decene-1): mainly polyalphaolefins (PAO), some consumption into plasticizer and detergent alcohols

• C12 LAO (dodecene-1): mainly detergent markets in detergent alcohols and linear alkylbenzene (LAB)

• C14 LAO (tetradecene-1): similar market to C12 LAO, mainly goes to detergent markets in detergent alcohols and LAB, as well as alpha olefin sulfonates (AOS)

• C16 LAO (hexadecene-1): mainly alcohols, oilfield chemicals and alkenyl succinic anhydride ( ASA).

• C18 LAO (octadecene-1): similar market to C16 LAO, mainly goes to alcohols, oilfield chemicals and alkenyl succinic anhydride ( ASA).

• C20-24 LAO (C20-24 fractions): mainly lubricant additives. Also chlorinated olefins.

• C26-30+ LAO (C26-30+ fractions): mainly lubricant additives, waxes and PVC lubricants.

Alpha Olefin Market Segment

Global demand for higher alpha olefins (HAOs) is expected to reach almost 1.7 million tons in 2025 and is set to grow at just over 3 percent per year to 2035, driven by growth in new markets and new capacity for polyalphaolefins (PAOs). 

Global supply of higher alpha olefins currently comes primarily from the full range plants of Shell, Chevron Phillips and INEOS in North America, accounting for more than half of global supply.  The major new plants by Shell, INEOS and ExxonMobil in North America have increased the region’s share of global capacity to 70 percent.   

Research in China continues to progress with ongoing tests in expanding coal processing into a viable economical route. The recent startup of full range capacity developments in the United States have helped to relax the market and caused a temporarily reduction in operating rates, although they will recover due to demand growth.  There will be the need for further capacity addition of full range LAO processes in the longer term; regions where there is a long-term price advantage on ethylene are the likely locations for capacity addition.  

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Market Insights: Higher Alpha Olefins - 2025

This report provides a comprehensive review of the higher alpha olefins (HAO) market, covering fractions from C10 to C26-30+.  Analysis includes:

• Discussion regarding key market trends and drivers influencing supply and demand in each region.

• Supply, demand and trade analyses are presented for North America, South America, Western Europe, Central Europe, Eastern Europe, Middle East, Africa, Asia Pacific excluding China and China.

• Comprehensive review of the competitive landscape and projects in the regions.

• Pricing analyses for HAOs by each cut for the key markets: Western Europe, China, United States.

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