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The global palm methyl ester derivatives market generated the revenue worth $1,443.4 million in 2018, and it is projected to surpass $2,106.7 million by 2023, witnessing a CAGR of 6.4% during the forecast period (2019–2024).
Asia-Pacific (APAC) is expected to witness the fastest growth in the industry during the forecast period. This can be mainly attributed to the increase in manufacturing facilities, owing to high demand for the beauty and personal care products in the region, along with high-volume demand for end-formulation products by growing middle-class population.
Dynamics of Palm Methyl Ester Derivatives Market
The key trend observed in the palm methyl ester derivatives market is the increasing shift to consumer preference for natural personal care products from chemically synthesized products due to long-term skin benefits. This has led to the increased production of organic products in the personal care industry and growing use of palm oil derivatives in skin care, hair care, and other beauty products.
In the recent years, the personal care sector has witnessed a rapid growth, particularly in developing countries of APAC and LATAM regions in the palm methyl ester derivatives market. This is attributed to the increasing disposable income, rising awareness about skin care, and adoption of organic products. Palm oil derivatives are used as emollients, humectants, and viscosity modifiers in these products. These properties, thus, encourage the widespread adoption of palm oil derivatives. Palm oil and its derivatives, such as olein and stearin, are used as precursors in the manufacturing of beauty products. With the high-volume availability, and suitability of palm oil and its derivatives for usage as a feedstock for organic personal care products, their market demand is expected to increase.
Rise in the commercial adoption of palm oil-based biodiesel is identified as a key growth opportunity for the players operating in the palm methyl ester derivatives market, globally. There has been a fast-paced shift from conventional energy sources to renewable sources, such as biodiesel, which efficiently produces energy and has low environmental impact. Biodiesel, being a non-polluting fuel, is obtained from fatty acid methyl esters (FAMEs) of vegetable oils, such as rapeseed oil and palm oil, which can efficiently produce energy and have low environmental impact in contrast to diesel fuels. In recent years, research has been carried out on the production of biodiesel using palm oil derivatives, which efficiently produce energy and have low impact on environment. Furthermore, commercial adoption of palm oil in biodiesel is possible, owing to the easy availability of feedstock, low product price, and high-performance attributes of palm biodiesels and blends.
Segmentation Analysis of Palm Methyl Ester Derivatives Market
The palm kernel oil (PKO) category accounted for the larger revenue share in 2018 in the palm methyl ester derivatives market. PKO serves as a raw material for manufacturing final formulations of pharmaceuticals, food and beverages, detergents, and other medium-chain fatty alcohol-based substances. It is due to presence of antioxidants, healthy unsaturated fats, vitamin A and vitamin K, and other nutrients in the kernel oil.
The methyl oleate category is expected to witness the fastest revenue growth in the product segment during the forecast period in the palm methyl ester derivatives market. This can be attributed to the high-volume demand for oleate in several end-use industries. For instance, oleate is used as solvent in industrial cleaners, as surfactant in personal care products, and as lubricant for metal and precision metal cleaning.
The personal care products & cosmetics category is expected to exhibit fastest revenue growth in terms of application over the forecast period. This can be ascribed to their wide usage in variety of personal care and cosmetics applications, including hair care, soaps, and skin care.
Geographical Analysis of Palm Methyl Ester Derivatives Market
APAC was the largest region in the global palm methyl ester derivatives market during the historical period and is expected to maintain the trend during the forecast period as well. This is majorly attributed to the region’s presence of high-volume feedstock, coupled with low manufacturing cost, and rise in demand for beauty and personal care products. During the forecasted period, China is expected to lead the APAC market, generating revenue worth $389.6 million in 2024.
Competitive Landscape of Palm Methyl Ester Derivatives Market
The palm methyl ester derivatives market is highly fragmented in nature, wherein top five players account for nearly 50% share. They key players in market are Wilmar International Ltd., The Procter & Gamble Company, IOI Corporation Berhad, Musim Mas Group, KLK OLEO and Emery Oleochemicals Group. Some of the other market players are VVF LLC, Oleon NV, Vantage Specialty Ingredients Inc., Kao Corporation, Carotino Group, and Timur OleoChemicals.
Recent Strategic Developments of Major Palm Methyl Ester Derivatives Market Players
In recent years, major players in the palm methyl ester derivatives market have taken several strategic measures, such as product launches and geographical expansions by acquisition, to gain a competitive edge in the industry. For instance, in August 2018, New Britain Palm Oil Limited (NBPOL), a wholly owned subsidiary of Sime Darby Plantation Berhad, acquired Markham Farming Company Limited, an agriculture land company in Papua New Guinea for palm oil plantation. Furthermore, the acquisition is expected to boost NBPOL’s productivity of palm oil products and improve its supply chain management.
Moreover, in April 2018, BASF SE announced a shift in its personal care products portfolio with the introduction of palm-based specialty chemicals, including personal care products and cosmetics, soaps and detergents, and food and beverages.
Market Size Breakdown by Segment
The Palm Methyl Ester Derivatives Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2024.
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