Generally, a fatty acid consists of a straight chain of an even number of carbon atoms, with hydrogen atoms along the length of the chain and a carboxyl group at another end of the chain. They are majorly available in saturated and unsaturated bonds types. Fatty acids are generally extracted from fruits, vegetable oil, seeds, nuts, animal fats, and fish among others. The fatty acids extracted from vegetable oil, seeds, and nuts are used in-home care and cleaning products. Fatty acids are used in soaps, and detergents to produce fast-forming, full, and bubbly lather properties. They also provide smoothness in soaps and make them soluble easily in water. The growing usage of cleaning products along with the increasing healthcare awareness is one of the major factors driving the demand for fatty acids globally. Globally, major companies are indulging in strategies such as acquisitions and product launches to keep up with the increase in demand for fatty acids. For instance, in May 2019, The KAO Corporation completed the construction of a new factory of PT Apical Kao Chemicals, a joint venture company of Kao Corporation and Apical Group Limited. The new factory is involved in the production of fatty acids in Sumatra, Indonesia. During the forecast period, extensive growth of the homecare cleaning industry is expected to drive the demand for fatty acids. Fatty Acid market size is forecasted to reach US$12,917.6 million by 2026, after growing at a CAGR of 5.5% during 2021-2026.

The COVID-19 outbreak wreaked havoc on the fatty acids market, owing to the significant economic concerns. As a result of the government's severe measures to slow the spread of the coronavirus, personal care, and home cleaning production output growth decreased, causing widespread restrictions and financial difficulties for the fatty acid. The COVID-19 outbreak led to major economic problems and challenges for the cosmetics and personal care industries. Decline in business for at least five months during 2020 coupled with lower demand from a few major markets had put pressure on the profitability of fatty acid manufacturers and vendors. Fatty acid importers were trying to keep a condensed output, shrink product inventory, and keep their feedstock consumption at low levels. Some companies even delayed their shipments, while many others minimized their spot purchases. Also, the demand for fatty acid remained unmet in the COVID-19 scenario due to a lack of logistical support and commercial activities. In addition, various regions went under lockdown to curb the coronavirus, which resulted in fatty acid supply chain and logistic disruption, owing to which the fatty acid industry growth slowed down causing widespread concern and economic hardship for the fatty acid manufacturers and suppliers. However, fatty acids are also used in the treatment of covid-19. This has shown some positive impact on the global fatty acid market. However, governments all over the world are taking the initiative to gain back momentum among various industries by heavily taking initiatives to accelerate industry growth.

Asia Pacific region holds a major share of the fatty acid market owing to the presence of raw material sources and workforce. The presence of key end-use industries such as personal & cosmetics, rubber, home care cleaning, and textile among others are increasing the demand for fatty acids in the region. The growing population along with increasing consumer spending level are some of the key factors propelling the market growth in the region during the forecast period. Rising demand for sustainable bio-products such as soaps, food emulsifiers, surface cleaners, detergents, fertilizers, cosmetics, paints, and skin cares is estimated to boost demand for fatty acids in industrial, commercial, and consumer utilization. For instance, according to the Chemical and Petrochemical Statistics at a Glance 2020 report released by the Government of India, Ministry of Chemicals and Fertilizers, and Department of Chemicals and Petrochemicals, the manufacture of soap and detergents, cleaning and polishing preparations, perfumes, and toilet preparations increased from 75,071 crores (US$11.2 billion) in 2016-2017 to 81,478 crore (US$12.5 billion) in 2017-2018. According to the Department of Statistics, Malaysia (DOSM), the production of natural rubber was registered at 49,825 tons in December 2020, up from 42,554 tons in the previous month, an increase of 17.1%, which is further driving the market for fatty acids in the country. Thus, it is anticipated that the increased demand from end-use industries in the Asia Pacific, is driving the fatty acid market growth in the region during the forecast period.

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Microencapsulated Pesticides Market Growth Drivers:

Increasing Demand from the Cosmetics and Personal Care Market

Cosmetic products are used for cleansing the body and skin and helps to look attractive. The fatty acids containing plant oils have been used as major components of cosmetic formulations. Many oils, fats, waxes, and phospholipids are used as excipients in cosmetics and personal care products. Majorly two types of fatty acids are used in the cosmetics and personal care industry namely natural fatty acids and essential fatty acids. Natural fatty acids such as glycerides, sterols, and phospholipids are widely preferred in skincare products. Essential fatty acids for the skin include omega-3 and omega-6. Fatty acids are most often as used as emollients or emulsifiers in the cosmetics industry. Emollient fatty acids help to enhance skin hydration. Fatty acids are also used as a thickening agent for skincare products. Finally, Fatty acids are highly beneficial in personal care products because they provide better spreadability as well as alleviate skin dryness. According to the facts published by Cosmetics Europe, the European cosmetics and personal care market is the largest market for cosmetic products in the world valued at EURO 76.7 (US$ 87.6 Billion) in 2020. The European cosmetic products export generated US$ 25.8 billion (trade value) in 2020. France and Germany were Europe's main exporters, exporting approximately US$13.3 billion and accounted for over 50% of total global exports from Europe. According to the report published by Loreal in 2020, Loreal, Uniliver, Estee Lauder, Procter & Gamble, Shiseido, and Coty are top players operating in the cosmetics industry globally. Thus, with the increased cosmetics production the demand for fatty acids will also eventually increase, which will drive the market growth during the forecast period.

The growing importance of fatty acids in human nutrition

Generally, fatty acids are synthesized by the human body or taken through the diet. Fatty acids are the major components of cell membrane structure that control gene transcription and serves as energy sources in complex, and interconnected systems. Essential fatty acids are required for biological function and they are generally obtained from dietary plant sources. Sufficient intake of essential fatty acids results in numerous health benefits such as improve heart health, improves brain functioning, and reduction of joint pain from rheumatoid arthritis among others. According to the article published by the American Heart Association, adults are recommended to eat fish at least twice a week, because fish contains omega-3 fatty acids which are capable of reduction in cardiovascular disease risk. Growing awareness regarding chronic diseases, along with expanding the application scope of omega 3 in infant formulations are driving the market for fatty acids during the forecast period.

R&D Investment:

Researchers and companies are heavily investing in the research and development of fatty acids to increase their applications. For instance, fatty acids are also used for the treatment of Corona disease. Linoleic acid fatty acid type is preferred among covid-19 patients. Linoleic acid is generally produced from plant oils. According to the data published by UK research and Innovation, linoleic acid locks the virus's spike protein and blocks the virus's entry into cells. The growing research and development activities in the fatty acid market are contributing to the growth of the fatty acid market and will further grow during the forecast period.

The Major Players in this Market Include

The major companies in the fatty acid market include Wilmar International Ltd., Musim Mas, VVF Ltd., Permata Hijau Group, Godrej Industries, KLK OLEO, Kao Corporation, BASF, Oleon NV., KH Neochem Co., Ltd, and other companies. The key focus of the companies has shifted towards joint ventures and expansion.

In June 2018, Oleon opened its new isostearic acid production unit. The new unit will produce Isostearic acid and Dimers, has a yearly production capacity of 14.125 tons. This will double Oleon's worldwide market share within this business segment to around 30%. Isostearic acid, also known as the ideal fatty acid, is a lightly-branched, liquid fatty acid.

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