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Palm Methyl Ester Derivatives Market Overview
The global palm methyl ester derivatives market is estimated to value $1,443.4 million in 2018 and is expected to reach $2,106.7 million by 2024, demonstrating a CAGR of 6.4% during the forecast period. The market growth is mainly driven by the increasing adoption of these biologically sourced ester derivatives in various industries; macroeconomic growth in the APAC and LATAM regions; and growing utilization of these derivatives in agricultural formulations.
Palm methyl ester derivatives are biologically sourced organic compounds processed from palm derivatives, such as crude palm oil (CPO) and palm kernel oil (PKO). These compounds are primarily used in the production of personal care products and cosmetics, soaps and detergents, food and beverages, and industrial and agricultural formulations.
Based on type, the palm methyl ester derivatives market is classified into CPO and PKO, of which PKO is estimated to account for over 60% sales volume in the market in 2018. The high oil content of PKO and the possible translation of its health benefits into final formulations support its adoption in various industries.
On the basis of product, the palm methyl ester derivatives market is categorized into methyl caprylate, methyl laurate, methyl myristate, methyl palmitate, methyl stearate, methyl oleate, methyl linoleate, and others. In terms of volume, methyl oleate is estimated to account for the largest share in the market in 2018. Methyl oleates are widely used as solvents in industrial cleaners, as surfactants in personal care products, as defoamers in the production of inks and coatings, and as lubricants for metal and precision metal cleaning. The rise in demand for industrial and consumer products is, thus, expected to continue boosting the market growth of this category in the coming years.
Palm-based derivatives find major application in soaps and detergents, personal care products and cosmetics, food and beverages, lubricants and additives, and solvents. In terms of sales volume, the soaps and detergents category is estimated to hold the largest share in the palm methyl ester derivatives market in 2018. This is attributable to the high-volume adoption of palm-based derivatives, such as oleates, stearates, palmitates, linoleates, laurates, caprylates, and myristates, in soaps and detergents due to their low cost, high emulsifying power, high froth and lather formation, and appreciable performance in soft and hard wash conditions.
Palm Methyl Ester Derivatives Market Dynamics
The increasing consumer preference for natural personal care products and cosmetics is identified as a key trend in the palm methyl ester derivatives market. The spillover effects of the shift in consumer preference have led to the increased production of organic products and the adoption of palm oil derivatives in perfumes, cosmetics, and skincare and haircare products. This increased adoption of organic products can be attributed to factors such as the growing public awareness on health and wellness, increasing product availability, and standardization in the specialty personal care products and cosmetics market.
The growth of the palm methyl ester derivatives market is mainly driven by the growing demand for organic cosmetics and personal care products and the increasing adoption of palm oil owing to its beneficial properties.
Palm oil and its derivatives, such as olein and stearin, are used as precursors in the manufacturing of beauty products. Owing to the easy availability of feedstock, high product performance and stability, and rising consumer awareness and preference for organic beauty and personal care products, the demand for palm-based derivatives has increased considerably in the personal care products and cosmetics industry. Additionally, palm-based derivatives are characterized by biodegradability, higher solvency, and lower product toxicity as compared to petroleum-derived substitutes. These factors encourage their adoption in skin care products and cosmetics, food and beverages, and agricultural chemicals, thereby supporting the growth of the palm methyl ester derivatives market.
The increasing regulatory pressure on companies to source palm oil from sustainable plantations is expected to cause feedstock uncertainty, thereby marginally restricting the growth of the palm methyl ester derivatives market during the forecast period. Palm oil production that is unsustainable and does not comply with the Roundtable on Sustainable Palm Oil (RSPO) standards has contributed significantly to large-scale deforestation and peatland destruction in recent years, thus severely impacting indigenous human and animal populations. This has led to the establishment of new laws and regulations to govern the palm oil production and the end use of its products.
Palm Methyl Ester Derivatives Market Competitive Landscape
Some of the major players operating in the global palm methyl ester derivatives market are Wilmar International Ltd., The Procter & Gamble Company, IOI Corporation Berhad, Musim Mas Group, KLK Oleo, Emery Oleochemicals Group, VVF LLC, and Oleon NV.
A large number of these companies have facilities in Malaysia and Indonesia for sourcing of raw materials and processing of palm methyl ester derivatives. Besides, the market has witnessed forward and backward integration among players in recent years, as an effort toward integrating supply chain and increasing their market share. This trend had been primarily indicated by the increasing acquisitions of palm oil plantation companies and the launch of new consumer products in the market.