Fatty Acid Ester Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Fatty Acid Ester Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Fatty Acid Esters Market was estimated to be 50,233.10 kilo tons in 2021. It is forecasted to register a CAGR of over 6%, during the period (2022-2027).

The negative impact of the Covid pandemic affected the market largely in 2020, however, the market has now reached pre-pandemic levels and is expected to grow at a steady rate.

• The major factor driving the market studied is the Increasing personal care applications across the globe.
• The shift towards HVO fuels is likely to hamper the market growth in the forecast period (2022-2027).
• Growing preference toward biodiesel is likely to act as an opportunity for the market studied in the coming years.

• Biodiesels made from fatty acid esters (renewable sources) are safer for the environment. Biodiesel produces fewer toxic pollutants and greenhouse gases than petroleum diesel.
• They can be used in pure form (B100) or can be blended with petro-diesel in the form of B2 (i.e., 2% biodiesel, 98% petroleum diesel), B5 (i.e., 5% biodiesel, 95% petroleum diesel). Likewise, they can be used as B20, B100. In some cases, biodiesel is used as-is (B100), majorly by large truck companies.
• Biodiesel has also helped several countries to reduce their dependence on foreign oil reserves, as they are domestically produced and can be used in any diesel engine with little or no modification to the engine or the fuel system.
• Biodiesel, an eco-friendly alternative to fuel, has been the need of the hour, significantly when the pollution levels have exceeded the safety levels.
• The biofuel (biodiesel in this case) market is expected to increase at a good pace, owing to their added advantages and safety, which will significantly increase the demand for natural fatty acid esters.

• The Asia-Pacific region is expected to dominate the market for fatty acid esters during the forecast period. Personal care products and detergents in major economies, such as China, India, and Japan, are estimated to boost the market studied during the forecast period.
• The largest producers of fatty acid esters are based in the Asia-Pacific region. Some of the leading companies in the production of fatty acid esters are KLK OLEO, P&G Chemicals, Croda International PLC, Stepan, and Wilmar International Ltd.
• Asia-Pacific is the largest oil and fat producer and raw material base for oleochemicals, globally, with Asia-Pacific region having better control of the production and distribution of oleochemicals.
• China by far, is the largest consumer of lubricants in the current scenario. The vast manufacturing activities pertaining to different sectors and the rapid growth in the industrial and automotive sectors have pushed the country to stand among the major consumers and producers in the landscape. The rate of consumption is expected to remain the same in the country, irrespective of the economy witnessing a slow growth.
• Furthermore, India ranks third in terms of pharmaceutical production by volume and 14th by value. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units.India’s drugs and pharmaceuticals exports stood at USD 24.44 billion in FY21. India is the 12-largest exporter of medical goods in the world. The country’s pharmaceutical sector contributes 6.6% to the total merchandise exports.
• Owing to the above-mentioned factors, Asia-Pacific region to dominate the market in the forecast period.

The fatty acid ester market is partially fragmented in nature with only a few major players dominating the market. Some of the major companies (in no particular order) are Wilmar-International, Avril, Renewable Energy Group, Granol, and Cargill Corporation.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support