Fatty Acid Methyl Esters Market, By Type (Rapeseed Methyl Ester, Soy Methyl Ester, Palm Oil Methyl Ester, and Others), By Application (Fuel, Lubricants, Coatings, Food and Agriculture, Metalworking Fluids, Personal Care Products, and Others), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Feb 2025

Code : CMI5008

Pages :190

Formats :

Excel and PDF

Industry : Specialty and Fine Chemicals

Market Challenge - Fluctuating prices of raw materials

Fluctuating prices of raw materials have always presented a significant challenge for players in this market. Palm oil and soybean oil are the primary raw materials used in the production of fatty acid methyl esters. Vegetable oil prices are highly dependent on global crop production and any disruptions caused by unfavorable weather conditions can cause prices to spike. As per data from the Food and Agriculture Organization (FAO) of the United Nations, the FAO food price index that tracks international prices of major commodities averaged 159.3 points in March 2022, up 12.6% from February and as high as March 2011 levels.

Market Opportunity - Increased focus on bio-based and organic seed treatment products

Increased focus on bio-based and organic seed treatment products presents a massive opportunity for players in this market. With sustainability and environmental protection becoming priorities around the world, the demand for bio-based agricultural inputs is witnessing a significant uptrend. They provide protection against various pests and diseases without contaminating the soil or harming other crops. With growing consumer preference for organic food and an increasing emphasis on sustainability within the agriculture industry, the demand for such natural seed treatments is expected to rise steadily. According to data from the Research and Markets organization, the global organic food market grew by nearly 13% in 2020 alone, demonstrating strong tailwinds.