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The global fatty acid esters market stood at $2,240.9 million in 2019, and it is expected to reach $3,688.9 million by 2030, demonstrating a CAGR of 4.6% during 2020–2030.
The Asia-Pacific (APAC) region is projected to demonstrate the highest CAGR during the forecast period, owing to the growth in the personal care sector in countries such as India, Indonesia, and Malaysia. Fatty acid esters are vastly used in the personal care sector, due to their applications in skin care products, such as body lotions, face creams, and moisturizers, as well as usage in cosmetic products, such as concealers and lipsticks. In addition, a shift toward the adoption of organic and bio-based personal care products generates high demand for fatty acid esters.
Key trend observed in the fatty acid esters market is the shift in preference from tallow-based fatty acid esters toward tall oil-based fatty acid esters. This is ascribed to the low-cost availability of tall oils, particularly in North America and Europe. In addition, there has been a shift toward the adoption of tall oil fatty acid (TOFA) esters, due to their ability to provide excellent performance at low temperatures, thereby making them suitable for applications as lubricant additives, as well as additives for personal care products.
In recent times, there has been a rise in awareness regarding benefits of bio-based fatty acid esters and their usage as lubricant additives for automotive, hydraulic, and metal-cutting applications. In addition, these eco-friendly esters offer excellent lubricity, as well as provide a cleaner and less toxic work environment, as compared to conventional lubricants. Also, these esters have low cost due to the abundant availability of their raw materials, such as animal fats and plant oils (rapeseed oil, coconut oil, soy oil, and several others). Moreover, rising concerns for the depletion of fossil fuels have further augmented the demand for fatty acid esters. Such factors are expected to derive the growth of the fatty acid esters market during the forecast period.
The fatty acid esters market holds immense potential for growth in coming years, owing to the stringency in consumption of fossil fuels, which is likely to create a shift toward adoption of fatty acid esters. Fossil fuels, such as coal, natural gas, and oil, are natural resources that are limited in nature, and over time their consumption has increased at a rapid pace. In addition, these fuels emit harmful gases, such as sulfur dioxide and nitrogen oxide. These gases combine and react with water, oxygen, and other chemicals that lead to hazardous pollutants in the atmosphere. With the increasing environmental and health concerns, several governments aim to curtail the usage of fossil fuels. This in turn is expected to create a shift toward the adoption of biofuels, thereby propelling the demand for fatty acid esters during the forecast period.
The oleates category held the largest volume share, of nearly 32%, in the market for fatty acid esters in 2019, on the basis of product type. The market in this category is projected to reach $1,180.8 million by 2030, demonstrating a CAGR of 4.7% during the forecast period. This can be ascribed to the high-volume demand from lubricants, pharmaceuticals (solvents), and personal care applications. Oleate-based fatty acid esters have low volatility and toxicity, excellent lubrication, and cold flow properties, which make them highly suitable for a wide range of applications.
The personal care & cosmetic products category is expected to demonstrate the fastest growth during the forecast period in the fatty acid esters market, based on application. This can be ascribed to the fast-paced adoption of fatty acid esters as emollient and thickener in skin creams, along with usage as a detergent cleansing agent. In addition, with the increasing awareness of bio-based cosmetics, the demand for fatty acid esters is projected to increase during the forecast period.
Geographically, APAC accounted for the largest share in 2019 in the fatty acid esters market. Moreover, the regional market is expected to witness the fastest growth during the forecast period, owing to the increasing demand for fatty acid esters from the growing lubricant, personal care, and agriculture sectors of developing economies, including China, India, and Indonesia. In addition, the region is home to some of the largest fatty acid manufacturers, such as KLK OLEO, Kao Corporation, DKS Co. Ltd., Wilmar International Ltd., Mitsubishi Chemical Corporation, and Emery Oleochemicals Group.
The global fatty acid esters market is partially consolidated in nature, with the top five players accounting for a market share of nearly 50%. Some of the leading players operating in the market are Wilmar International Ltd., Esterchem Ltd., Emery Oleochemicals Group, KLK OLEO, NYCO, Temix Oleo Srl, Kao Corporation, and Oleon NV.
Major players in the market for fatty acid esters have taken several strategic measures, such as mergers & acquisitions and geographical expansion, in order to gain a competitive edge in the industry. For instance, in February 2018, KLK Oleo announced the acquisition of Elementis Specialties Netherlands B.V., located in Delden (Netherlands), which is a manufacturer of fatty acid polyglycol esters and several other chemical products. With this acquisition, KLK Oleo aims to accelerate its growth in downstream chemical specialties business in Europe.
The report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Product Type
Based on Application
The fatty acid esters market will witness a CAGR of 4.6% during 2020–2030.
The strongest fatty acid esters industry growth drivers are the increasing product demand from the personal care & cosmetics sector and rising requirement for bio-lubricants.
Oleates are the highest-revenue-generating product type in the fatty acid esters market.
Investors in the fatty acid esters industry should focus on APAC, which is the highest revenue generator.
The top five players hold an around 50% share, which is why the fatty acid esters market is partially consolidated.