ESTERS MARKET ANALYSIS

Global esters market is estimated to reach around US$ 1,813.4 Million by  2030, in terms of revenue, exhibiting a CAGR of 8.6% during the forecast period (2023-2030).

Global Esters Market: Market Drivers

Rising Demand for Esters from Cosmetic Industry

The growing demand from the cosmetic industry is expected to drive growth in the esters market. The demand for emulsifiers and stabilizers in the personal care and detergent industries is also expected to drive growth in the market for esters. The esters market is expanding alongside the cosmetic industry as a result of the rising demand for cosmetics and personal care products around the world.

Growing Demand for Esters from Food Industry

Increasing use of esters in the food industry as a food additive is expected to drive the market growth. These are largely used in baked food products, ice-creams, and processed food. It stabilizes and thicken the food, and also enhance the texture of the food products. Global ester market is expected to witness growth due to rising demand for processed food products around the globe. For instance, in August 2021, Mitsubishi Chemical Corporation announced the opening of a new sugar ester production facility at its Fukuoka facility. The new facility will increase the company's production capacity in order to meet the rising demand from the food industry, where sugar ester is primarily used.

Global Esters Market: Market Restraints

Lack of Proper Standardization for Food-Grade Lubricants

Lack of proper standardization for food-grade lubricants is expected to hinder the market growth. Moreover, the market is also facing restrictions on the amount of ester additives used in the food industry. All these factors are expected to hinder the market growth.

High Cost of Raw Materials

Fluctuating prices of raw materials used in the preparation of chemically synthesized esters that are produced from petroleum product, and hence volatile price of crude oil affects the overall price of the synthetic esters. This factor is expected to hinder the market growth.

Global Esters Market:  Market Opportunity

Rising Use of Esters in Various Products

Increasing use of esters for niche applications such as solvency and bio-diesel are expected to offer potential growth opportunities for the market players. Bio-diesel derived from fatty acids is considered as an ideal alternative of the conventional crude oil. Moreover, growing demand for specialty and natural esters from various industries is further expected to drive the market growth of the esters.

Inclusion of Esters by Paint Industry

Growing demand for eco-friendly ester from the paints industry is expected to provide potential growth opportunities to the market. Increasing demand for esters are in from packaging industry is expected to drive the market growth. Moreover, increasing adoption of environmentally acceptable lubricants (EAL) is further anticipated to drive the market growth of the esters over the forecast period.

Global Esters Market:  Market Trends

Adoption of Esters by Aviation Industry

Launch of aviation lubricants for gas turbines that operates up to 300°F is expected to be a major trend in the market. Dioctyl sebacate and dibasic acid esters are two major aviation lubricants that are used by aviation industry. Rising use of thick multi-grade lubricants to thin synthetic lubricants is another major trend due to growing demand for durable and fuel-efficient lubricants. All these factors are expected to drive the market growth. Increasing production capacity of the esters by manufacturers, in order to meet the global demand is expected to be a major trend.

Global Esters Market: Key Developments

In January 2023, a Chemical company BASF SE, has made its initial financial information for the entire year 2022 available. The projected 2022 sales of US$95, 231 million and operating income (EBIT) of €7, 531 million before special items are in line with BASF's forecast ranges and the level of analyst consensus estimates

In May 2023, Montana Renewables, LLC (MRL), an unrestricted subsidiary of Calumet Specialty Products Partners, L.P., hosted significant aviation stakeholders, including Montana Governor Greg Gianfort, as part of a multi-year agreement with Shell Trading (US) Company ("Shell"), to commemorate the first production and initial shipments of sustainable aviation fuel (SAF). As soon as production begins, Montana Renewables surpasses all other producers of SAF in North America.

In May 2023, the company that develops, produces, and sells specialty chemicals, Croda International Plc (Croda), has signed two new partnership agreements. The first partnership is a contract for an exclusive license with Amyris, a major synthetic biology company. The second partnership is with Botanical Solutions Inc. (BSI) to create a QS-21 vaccine adjuvant of pharmaceutical grade. These agreements will help the pharmaceutical industry create a more sustainable vaccine adjuvant supply chain.

In November 2022, Food Warming Equipment Company, Inc. (FWE), a manufacturer that specializes in heated holding cabinets, cook & hold ovens, smokers, refrigerated cabinets, transport carts, and others, was acquired by Hatco Corporation, a U.S.--based company which provides Commercial Foodservice & Restaurant Equipment. 

Global Esters Market: Regional Analysis

Figure 1. Global Esters Market Share (%), in terms of Value, By Region, 2022

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Among region, Asia Pacific dominated the global esters market with a 33% revenue share, followed by Europe and North America, in 2022. The rapid growth of the end-use industries, the low cost of raw materials, and the increase in consumer awareness are primary drivers.

Global Esters Market: Segmentation

Based on product type, the global esters market is segmented into complex esters, methyl esters, diesters, and monoesters. In 2022, complex esters segment dominated the market with 35% of the revenue share followed by methyl esters and diesters.

Figure 2. Global Esters Market Share (%), By Product Type, 2022

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Global Esters Market-Impact of Coronavirus (COVID-19) Pandemic

Esters are used as lubricants in different industries such as automotive, aviation, marine, and food. The COVID-19 pandemic had negatively affected the automotive, aviation, and marine industries. For instance, in 2020, according to the European Automobile Manufacturers’ Association (ACEA), in the European Union (EU), the total sales of new vehicles in the first two months of 2020 were 7.4% less than the same period in the 2019. The major countries in the EU that faced decline in demand in 2020 were Germany, France, Italy, and Spain. Demand for automotive lubricants is falling as a result of the downturn in the automotive industry forced on by the spread of Covid-19. 

Global Esters Market: Key Companies

Key Companies operating in global esters market are BASF SE, Exxon Mobil Corporation, NYCO S.A., Hatco Corporation, Calumet Specialty Products Partners, L.P, PMC Biogenix, Inc., Cargill, Inc. and Croda International, Plc.

*Definition: Esters are produced from organic or inorganic acids by dehydration with the alcohol process. It contains a carbonyl group adjacent to the ether linkage. Nitrate esters, acid esters of glycerol, and polyesters are some of the major types of esters. Oils, fats, and triglycerides are some of the types of naturally occurring esters. These are widely used in cosmetics, lubricants, plastics, resins, bio-fuel, explosives, and surfactants.