FATTY ACID ESTER MARKET ANALYSIS

Global fatty acid ester market was valued at US$ 2,505.2 Mn in 2022, exhibiting a CAGR of 5.7% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 3,895.9 Mn by 2030. Fatty acid esters are ester produce via the reaction between alcohol and fatty acid. They are widely used across a wide range of applications due to its lubricating, resistance to oxidation, and solvency properties. Fatty acid esters are derived from vegetable oils and animal tallow.

Global Fatty Acid Ester Market- Impact of Coronavirus (Covid-19) Pandemic

The novel Coronavirus (COVID-19) has impacted almost all the industries globally including personal care products market. Rising demand for personal care products owing to rising health and hygiene awareness supports the growth of the fatty acid ester market globally. Owing to increased consumption of personal care products such as soaps, body wash, and hand wash etc. thereby, increasing the demand for the market over the forecast period.

Figure 1. Global Fatty Acid Ester Market, By Application, 2022 

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 Global Fatty Acid Ester Market- Drivers

Growing demand for fatty acids from personal care industry

High demand for fatty acid esters from cosmetic and personal care products is propelling the market growth. These esters are used as emollients and thickeners in various personal care products. Its emulsification and surface adhesion properties make them suitable for cosmetic and personal care applications. Thus, the high demand for fatty acid esters from cosmetic and personal care products is augmenting the market growth of the fatty acid esters. For instance, 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 leading renewable fuel companies in the United States.

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

Increasing use of fatty acid esters in the pharmaceutical industry is augmenting the market growth. It is used in the formulation for treating the gastrointestinal and other diseases. The rise in the geriatric population is creating demand for healthcare services. Moreover, increase in the prevalence of chronic disease around the globe is another major factor in creating healthcare needs. Hence, growing use of fatty acid esters from pharmaceutical industry will favour the market growth. 

 Global Fatty Acid Ester Market- Restraints

Increasing demand for synthetic lubricants

Increasing demand for synthetic lubricants due to cost-effectiveness is expected to hamper the demand for fatty acid esters based lubricants. This factor is projected to restrict the market growth over the forecast period . Synthetic oil has 'smoother' particles so offers superior fluid film protection against metal-to-metal contact. Mechanical parts will be less susceptible to wear, so require less maintenance– which also leads to better productivity.

 Global Fatty Acid Ester Market- Segmentation

On the basis of application in 2022, the food segment has accounted for the largest market share of 33.00% in terms of value. Fatty acid esters of 3-chloropropane-1, 2-diol (3-MCPD) are food processing contaminants, which are widespread in refined vegetable oils and fats, as well as vegetable fat-containing products including infant formulas.

Global Fatty Acid Ester Market- Opportunities

The growing popularity of natural esters

The growing popularity of natural esters from various end user industries is expected to serve major growth opportunities in the near future. Pharmaceutical industry is witnessing a high demand for natural esters due to rising research in the field of nutrition sector. Increasing awareness regarding the benefits of natural esters among the end user is further projected to foster the market growth of the fatty acid esters in the near future.

Figure 2. Global Fatty Acid Ester Market, By Region, 2022

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Rising demand for surfactant and detergent

Rising demand for surfactant and detergent due to growing hygiene awareness among consumers is projected to offer profitable opportunities in the near future. Growing environmental concern is driving demand for fatty acid esters in surfactant and detergent as they offer effective washing and also promote environmental sustainability. Hence, the growing demand for surfactant and detergent is projected to foster market growth over the forecast period.

Global Fatty Acid Ester Market- Trends

• Demand for cosmetic products.

A growing sense of fashion among consumers is driving demand for cosmetic products. Fatty acid esters plays important role as emollient and thickener in cosmetic products. Increasing disposable income of the consumer coupled with the improving lifestyle is further fuelling the market growth. Moreover, an increasing number of working women coupled with the growing demand for male grooming products is again projected to foster the market growth.

Global Fatty Acid Ester Market- Regional Insights

North America region dominated the global fatty acid esters market in 2022, accounting for 42% share in terms of value, followed by Asia Pacific and Europe, respectively

 Global Fatty Acid Ester Market- Key Developments

• In July 2021, Verbio AG, signed a Memorandum of understanding with Indian Oil Corporation Ltd. The MoU will explore the possibility of creating a Joint Venture Company using Verbio’s technology and expertise in the production of biofuels (biomethane (CBG/BioCNG), bioethanol, and biodiesel) and marketing these biofuels through Indian Oil’s network.
• In March 2021, Renewable Energy Group Inc., collaborated with Optimus Technologies. This collaboration delivers biodiesel to fleets across the USA. With Optimus’ new technology, biodiesel can be utilized as B100 in fleets, i.e., with 100% blended biodiesel.
• In June 2022, Cargill, completed its first advanced biodiesel plant in Ghent, Belgium, called Bioro Biodiesel Refinery, which converts waste oils and residues into renewable fuel. The advanced biodiesel produced at the facility will be used by the maritime and trucking sectors in Europe.
• In May 2022, Oleon, a subsidiary of the Avril Group, started construction of a new production facility in Baytown, Texas, Houston, with an investment of US$ 50 million. This new facility is expected to become operational by the end of 2023 and will produce esters and provide blending services to support the company's growing oil and gas business.

 Global Fatty Acid Ester Market- Key Players

Major players operating in the global fatty acid ester market includes Cargill Incorporated, E.I du Pont Nemours and Company (DuPont), Estelle Chemicals Pvt. Ltd., Evonik Industries, Faci Asia Pacific Pte Ltd., Fine Organic, KLK Oleo, Oleon NV, Procter & Gamble (P&G) Chemicals, The Seydel Companies, Inc., and World Chem Industries.

*Definition: Fatty acid esters are ester produce via the reaction between alcohol and fatty acid. They are widely used across a wide range of applications due to their lubricating, resistance to oxidation, and solvency properties. Fatty acid esters are derived from vegetable oils and animal tallow.