Market Overview:

The Global Fatty Acid Ester Market Is Expected To Grow At USD 55.95 Billion By 2022 And USD 82.93 Billion By 2030, Expanding At A CAGR Of 4.8% From 2022 To 2030.

Fatty acid esters are produced by dehydrating fatty acids and alcohols. These esters have outstanding lubricity, solubility, and oxidation resistance, making them useful in skin and personal care products, organic lubricants, paper and water treatment products. Biodiesel is typically a fatty acid ester generated by the transesterification of vegetable fats and oils, resulting in the partial substitution of one alcohol for glycerol. Fatty acid methyl esters (FAME) are esterified fatty acids. The physical properties of fatty acid esters are comparable to those of unadulterated vegetable oil and fossil diesel, but their properties vary according to the type of vegetable oil. Biodiesel is a combination of different fatty acid methyl esters and is a sustainable alternative fuel.

Low toxicity of fatty acid esters combined with changing end-user preferences for biodiesel is anticipated to be one of the main factors driving the global fatty acid esters market. Due to the low price and biodegradability of fatty acids, it is anticipated that the automotive industry's gradual transition towards greener transportation will increase global fatty acid growth.

COVID-19 Impact:

Recent coronavirus outbreak had a negative effect on the fatty esters market. The severe disruptions in manufacturing and supply-chain operations caused by various precautionary lockdowns imposed by governments to prevent the spread of disease resulted in a significant financial setback for the market. The pandemic severely impacted virtually every industry on the planet, including the industry for personal care products. People are now more concerned with cutting non-essential expenses from their budgets, as their general economic situation has been severely impacted by the outbreak. During the forecast period, the revenue trajectory of the market will be influenced by the aforementioned factors.

As a result of the decline in COVID cases, however, individual regulatory bodies have begun to relax these mandated lockdowns, resulting in a substantial market recovery. The continuation of suspended and discontinued operations resulted in market expansion. This caused market expansion to return to pre-pandemic levels.

Market Dynamics:

Latest Trends:

The growth of the market is anticipated to be accelerated by the rising demand for natural ingredients as a result of the rising popularity of natural and organic products. This is due to the increasing influence of social media and the changing consumer perception of natural ingredients in food and personal care products.

Demand for cosmetics is being driven by the expanding fashion awareness of consumers. In cosmetics, fatty acid esters serve an important role as emollients and thickeners. Increasing consumer discretionary income and a bettering lifestyle are further driving market expansion. In addition, an increasing number of working women and a rising demand for male hygiene products are expected to contribute to the market's growth.

Driving Factors:

• High Demand Across End-User

It is anticipated that the expanding use of fatty esters in personal care products such as cosmetics, lubricants, paper, and culinary products, as well as industrial applications due to its environmental friendliness, will contribute to the rapid growth of the fatty esters market. Increasing consumer preference for natural and specialty esters in personal care products is anticipated to fuel market growth over the forecast period. Fatty esters are increasingly utilized in biodiesels. Increasing demand for isopropyl palmitate in the cosmetics industry is also anticipated to propel market growth.

The increasing preference of consumers for natural and specialty esters, in conjunction with the, will propel the growth rate of the fatty esters market. In addition, the increasing demand for biodiesel as a result of supportive regulations will contribute to the expansion of the market's value. The increasing number of working women, the growing awareness of a healthy lifestyle, the rising demand for male hygiene products, and the growing importance of preventive healthcare are expected to drive the market's expansion.

• High demand for tallow fatty acids from the soap & detergent making industry

The rising demand for surfactant and detergent as a result of consumers' growing hygienic consciousness is anticipated to create lucrative opportunities in the near future. Increasing environmental awareness is fueling demand for fatty acid esters in surfactants and detergents, as they provide effective cleaning and promote environmental sustainability. Consequently, the increasing demand for surfactant and detergent is anticipated to stimulate market expansion over the forecast period.

Restraints/Challenges:

• Stringent Regulations

The strict environmental regulations will impede the expansion of the fatty esters market.

• Uncertain Global Economic Conditions

In addition, the uncertain global economic climate will be detrimental to the fatty esters market. Therefore, this will challenge the market growth rate for fatty esters.

Opportunities:

• Increasing Demand for Natural esters:

The increasing demand for natural esters from a variety of end-use industries is anticipated to generate substantial growth opportunities in the near future. In the pharmaceutical industry, natural esters are in high demand due to the expansion of nutrition research. Increasing end-user awareness of the benefits of natural esters is anticipated to stimulate the growth of the fatty acid esters market in the near future.

• Awareness and Development

The rising demand for surfactant and detergent as a result of consumers' growing hygienic consciousness is anticipated to create lucrative opportunities in the near future. Increasing environmental awareness is fueling demand for fatty acid esters in surfactants and detergents, as they provide effective cleaning and promote environmental sustainability. Consequently, the increasing demand for surfactant and detergent is anticipated to stimulate market expansion over the forecast period.

Strategic Development:

• In June 2022 - Chevron Corporation acquired Renewable Energy Group Inc. This acquisition added complementary capabilities, assets, and customer relationships to make Chevron one of the foremost renewable fuel companies in the United States.
• In June 2022 - Cargill completed its first advanced biodiesel plant, Bioro Biodiesel Refinery, in Ghent, Belgium, which converts waste oils and residues into renewable fuel. The facility's advanced biodiesel will be used in Europe's maritime and transportation sectors.
• In May 2022 - Oleon, an Avril Group subsidiary, has begun construction of a new production facility in Baytown, Texas, near Houston, with a USD 50 million investment. This new facility, which is expected to open by the end of 2023, will produce esters and provide blending services to support the company's expanding oil and gas business.
• In September 2020 - EMERY E, a family of fatty acid esters with numerous applications, was introduced by Emery Oleochemicals. The launch was intended to broaden its portfolio of sustainable solutions and provide a high-performance and efficient alternative to petrochemical-based materials.

Key Vendors:

The global fatty acid ester market is reasonably fragmented, with both global and regional players present. Among the main participants in the fatty acid ester market are

• Cargill Inc.

The corporation Cargill provides agricultural products. The company also offers animal nutrition, biofuels, livestock and poultry, food, and industrial goods. Cargill serves clients around the globe.

• DuPont

DuPont is a global manufacturer of chemicals and science-based products. DuPont, headquartered in Wilmington, Delaware, is responsible for the development of groundbreaking materials such as Teflon, Mylar, Dacron, Lycra, and Orlon.

• Estelle Chemicals Pvt. Ltd.

Estelle chemicals is one of the foremost manufacturers in the production of food emulsifier and speciality surfactants, creating sustainably produced ingredients with specialised performance characteristics. At Estelle we work in a direction intended to increase efficiency and quality of the product, to give our customers the best value for their money.

Estelle Chemicals PVT. LTD. team includes highly qualified and trained people who all believe in team work to achieve and demonstrate best of their capabilities and place Estelle first to ensure and achieve its long term goals.

• Evonik Industries

Evonik is one of the world's leading manufacturers of specialty chemicals. While we do not manufacture electric vehicles, aircraft, medications, or 3D printers, Evonik is a component of many of these and other end products.

• Faci Asia Pacific Pvt. Ltd.

Established in 1999, Faci Asia Pacific Pte Ltd is wholly owned by Faci S.p.A, a family owned corporation started in 1949 and headquartered in Carasco, Italy. It was the first Italian company to invest on Singapore's Jurong Island, and it has been there since November 9, 2000. The strategic location in Singapore enables it to readily export the finished products to the regional markets. The objective is to supply the whole of Asia and other areas such as Australia, USA, Middle East and Africa from Singapore. In addition, this facility will also support the production requirements of other branches where necessary.

• Fine Organics

Fine Organics is a well-known manufacturer of specialty additives that are used in foods, plastics, rubbers, cosmetics, personal care, pharmaceuticals, coatings, and textile auxiliaries. Fine Organics, a technology and customer-driven company, holds a privileged position in the specialty additives industry worldwide. Fine Organics attributes its growth and success to its expertise on oleochemistry, in-house manufacturing technology, customer-centric research and development and a techno-commercial mindset

• KLK Oleo

KLK OLEO is a global oleochemical manufacturer with integrated complexes strategically located in Malaysia, Indonesia, China, and Europe. KLK OLEO provides a wide range of high-quality, innovative, and environmentally friendly products and solutions.

• Metroshen International Corporation

Metroshen International Corporation is a Philippine import/export, distribution, and logistics company. Metroshen International Corporation exports activated carbon, coconut oils, and agricultural products such as Crude Coconut Oil (CNO), Coconut Fatty Acid Distillate (CFAD), RBD Coconut Oil, Crude Glycerine, Biodiesel / Coconut Methyl Ester (CME), Virgin Coconut Oil, Banana Powder, and Copra Cake.

• Oleon N.V.

Oleon provides you a natural chemistry. Natural fats and oils are converted into a wide range of oleochemical products, including fatty acids, glycerin, esters, dimers, technical oils, specialty oleochemicals, and biodiesel. The products combine high performance with ready biodegradability as a leading producer of oleochemicals made from renewable raw materials.

• TCI Chemicals Pvt. Ltd. 

TCI offers laboratory organic compounds in addition to pharmaceutical, cosmetic, and functional materials. TCI is able to offer over 31,000 products in addition to custom synthesis due to its more than seventy years of experience in synthesis and its multi-purpose facilities.

Segmentation Analysis:

The Fatty Acid Esters Market is segmented on the basis of product type, application and regions.

By Product Outlook:

The global market was divided into glyceryl monostearate, medium-chain triglycerides, polyol esters, glycol esters, isopropyl palmitate, and sucrose esters based on the product. Due to their expanding use in the culinary industry, medium-chain triglycerides have become the dominant product segment. Glyceryl monostearate is anticipated to experience accelerated growth due to its increasing use as an emulsifier in confections and baking products.

Isopropyl esters are primarily derived from palm oils, and products such as palmitate and myristate are widely used in personal care products due to their moisturizing properties. Other esters, including emollient, polyols, and sucrose, are experiencing rapid expansion in the global market. During the forecast period, the product's functional properties will likely increase its demand in several end-use industries, including paper, pharmaceuticals, and food.

• Medium Chain Triglycerides (MCT)
• Glyceryl Monostearate
• Isopropyl Palmitate

By Application Outlook:

The global market was segmented by application into lubricants and fuels, surfactants and detergents, personal care and cosmetics, food, and pharmaceuticals. Fuel is the largest application segment for Fatty Acid Methyl Ester due to its extensive use in automobiles, stationary power generators, and machines such as construction equipment, agricultural equipment, and mining equipment.

Due to rising demand for Fatty Acid Methyl Ester in lotions, moisturizers, and creams, the personal care & cosmetics industry is anticipated to be the fastest-growing sector during the forecast period. Over the forecast period, the fatty acid methyl ester market is expected to grow due to rising demand in pharmaceutical formulations as well as as a pesticide and fertilizer in the agricultural industry.

• Personal Care Products and Cosmetics
• Lubricants
• Food
• Surfactants

Regional Insights:

Geographically, the global Fatty Acid Ester market has been segmented into North America, Latin America, the Middle East, Asia-Pacific, Africa, Europe, and India. In the near future, the global Fatty Acid Ester region will dominate this market.

In 2019, North America dominated the market and accounted for over 35.0% of global revenue; this trend is anticipated to continue over the forecast period. High standards of living and a growing emphasis on attractiveness and appearance due to the influence of social media, shifting consumer perceptions, and the transitioning promotional methods of major personal care companies are anticipated to drive product demand in this application segment.

In addition to growing sustainability and health concerns, there is a growing demand for natural ingredients and cosmetics containing fatty acid esters. Due to the high consumption of glyceryl monostearate in personal care and cosmetics products, APAC is predicted to be the fastest-growing regional market. Increasing industrial output and rising population, particularly in China, India, and Southeast Asia, have propelled the region's manufacturing and food processing industries sector. This resulted in a high demand for sustainable and natural materials with application-specific properties.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• This report forecasts global, regional, and country-level revenue growth and analyses the most recent industry trends in each subsegment.
• This study provides an analytical depiction of the fatty acid ester industry as well as current trends and future projections in order to identify imminent investment opportunities.
• In addition to a comprehensive analysis of the fatty acid ester market's size, the report discusses key market drivers, restraints, and opportunities.
• The current market is quantitatively analysed to illustrate the growth scenario for fatty acid esters.
• The report provides a comprehensive analysis of fatty acid esters based on competitive intensity and how the industry will evolve in the future years.