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Fatty Acid Methyl Ester Market – By Type (Medium Chain Triglyceride, Isopropyl Palmitate, Glyceryl Monostearate, Soya Methyl Ester, Oil Methyl Ester, Rapeseed Methyl Ester, Polyol Ester, Glycol Ester, Sucrose Ester, and Others), By Source (Animal Fats, Vegetable Oil, Sunflower Oil, Palm Oil, Soybean Oil, Coconut Oil, and Others), By End Use (Oil & Gas, Lubricants [Oils, Grease], Industrial, Paint & Coatings, Agriculture, Household Cleaning [Surfactants, Detergents, and Others], Pharmaceutical, Personal Care & Cosmetics, Food [Emulsifiers, Thickening Agents, and Others], and Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030
Fatty Acid Methyl Ester Market Overview:
Fatty Acid Methyl Ester Market size is estimated to reach US$28.1 billion by 2030, growing at a CAGR of 5.8% during the forecast period 2024-2030. The rise in the demand for biodiesel and the increasing use of fatty acid methyl esters (FAMEs) as a green solvent are expected to propel the growth of Fatty Acid Methyl Ester market.
Additionally, there is a noticeable trend towards sustainable practices across industries, driven by consumer awareness, regulatory pressures, and corporate sustainability initiatives. companies are increasingly incorporating renewable and environmentally friendly materials into their products and processes. within the fame market. As a growing demand for biodiesel and green solvents like fames, reflecting a broader shift towards sustainability and circular economy principles. Technological advancements continue to drive innovation in fame production processes, leading to improved efficiency, cost-effectiveness, and sustainability. innovations such as enzyme-catalyzed transesterification, continuous flow reactors, and integration of biorefinery concepts enable higher yields, reduced energy consumption, and utilization of diverse feedstocks. companies investing in R&D to harness these technological advancements can gain a competitive edge in the market and meet the increasing demand for sustainable bio-based products.
Market Snapshot:
Fatty Acid Methyl Ester Market - Report Coverage:
The “Fatty Acid Methyl Ester Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Fatty Acid Methyl Ester Market.
| Attribute | Segment |
|---|---|
By Type | ● Medium Chain Triglyceride ● Isopropyl Palmitate ● Glyceryl Monostearate ● Soya Methyl Ester ● Oil Methyl Ester ● Rapeseed Methyl Ester ● Polyol Ester ● Glycol Ester ● Sucrose Ester ● Others |
By Source | ● Animal Fats ● Vegetable Oil ● Sunflower Oil ● Palm Oil ● Soybean Oil ● Coconut Oil ● Others |
By End Use | ● Oil & Gas ● Lubricants
● Industrial ● Paint & Coatings ● Agriculture ● Household Cleaning
● Pharmaceutical ● Personal Care & Cosmetics ● Food
● Others |
By Geography | ● North America (U.S., Canada and Mexico) ● Europe (Germany, France, UK, Italy, Spain, Netherlands and Rest of Europe), ● Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and Rest of Asia-Pacific), ● South America (Brazil, Argentina, Chile, Colombia and Rest of South America) ● Rest of the World (Middle East and Africa). |
COVID-19 / Ukraine Crisis - Impact Analysis:
● The COVID-19 pandemic disrupted global supply chains and economic activities, affecting the fatty acid methyl esters (FAMEs) market. During the initial phases of the pandemic, lockdowns and travel restrictions led to a decrease in demand for transportation fuels, including biodiesel blends containing FAMEs. Reduced industrial activities also impacted the demand for FAMEs in industrial applications such as lubricants and solvents. However, as economies gradually reopened and the focus on sustainability increased, there has been a resurgence in demand for biodiesel and renewable fuels, driving the recovery of the FAMEs market.
● Ukraine is a significant player in the global agricultural sector, with a substantial production capacity for oilseeds such as sunflower seeds, soybeans, and rapeseed, which are key feedstocks for FAMEs production. Political and economic instability in Ukraine can impact the availability and prices of these feedstocks, thereby affecting the FAMEs market. However, Ukraine's strategic location and abundant agricultural resources also present opportunities for market expansion and investment in FAMEs production, especially as the country seeks to enhance its energy security and promote renewable energy development.
Key Takeaways:
● North America Dominated the Market
Geographically, in the Fatty Acid Methyl Ester market share, the North America region is analyzed to hold a dominant market share of 41% in 2023, followed by Europe and APAC. The economy of North America is mainly influenced by the economic dynamics of countries such as USA and Canada, but with growing foreign direct investment for the economic development of North America, the current scenario is changing. The rise in the demand for fatty acid methyl ester in biodiesel production and the stringent environmental regulations in North America are expected to contribute to the growth of fatty acid methyl ester market in this region. Soy methyl ester was the largest type segment in North America, since North America is a global leader in the production of soybean. According to the US Energy Information Administration (EIA) estimations, the United States biodiesel production is expected to grow slowly during 2050 due to major economic and policy factors. Growing consumer spending on green products and growing understanding of the harmful effects of chemicals used in cosmetic products have led to an increase in the region's demand for oleochemicals, especially over the last few years.
● Household Cleaning is the fastest growing segment
In the Fatty Acid Methyl Ester market forecast, household cleaning segment is estimated to grow with a CAGR of 7.3% during the forecast period 2024 to 2030, Fatty acid methyl esters are used as a surfactant, which is ideally suited for liquid detergents and general-purpose cleaners. Household cleaning products and cleaners are widely used for maintaining hygiene, regular cleaning, and for pest control. Increasing focus on maintaining cleanliness as lack of hygiene can lead to number of diseases such as buruli ulcer and diarrhoea. There is an increasing trend in developing as well as developed countries for hygiene products and homecare. Moreover, increasing use of household cleaners for commercial use where fabric refreshers and surface deodorizers are used largely has given a significant push in the household cleaners market. Unhygienic living places develop various diseases. Thus, there is a need for proper cleaning solutions that helps in keeping the area clean and free from harmful microbes such as cyanobacteria, staphylococcaceae, and acidobacteria. Rising sanitation standards and government initiatives to promote cleanliness in at different levels will drive the growth of household cleaners market in the forecast period.
● Coconut Oil to Hold Largest Market Share
According to the Fatty Acid Methyl Ester Market analysis, coconut oil segment is estimated to hold the largest market share of 33% in 2023, Coconut oil is a rich source of saturated fatty acids, and short- and medium-chain fatty acids account for 70% of these fatty acids. Coconut oil has garnered considerable attention in the lay press as a health food with a myriad of purported health benefits. Saturated fat comprises more than 90% of the fat content of coconut oil, the majority of which is in the form of medium-chain fatty acids. The highly resistant nature of coconut oil to oxidative rancidity is attributed to its high concentration of saturated fat and low unsaturated fatty acids. This quality makes it coconut oil as the best source of fatty acid methyl ester because it is the derivative of fatty acid. However, in contrast to the longer-chain saturated fatty acids more typically found in animal fats.
● Rise in the Demand of Biodiesel
Fatty acid methyl ester is the primary constituent of biodiesel. Growing environmental concerns on the use of fossil fuel products that increase pollution levels as well as contain toxic volatile organic compounds, are significantly impacting the market for biodiesel as it can be an environment-friendly substituent for fossil fuel. In such a context, methyl esters of vegetable oils, known as biodiesel and ethyl alcohol are receiving increasing attention as alternative fuels for automotive engines. The main advantages of biodiesel and ethyl alcohol are that these fuels are nontoxic, biodegradable, and renewable with the potential to reduce engine exhaust emissions, especially with regard to greenhouse gases emission. The fact that these biofuels are available in larger and larger quantities is of great importance as well. Currently, in the European market the most important biofuel is FAME (Fatty Acid Methyl Esters) manufactured mainly as Rapeseed Methyl Esters. It is forecasted that the scale of production and consumption of this fuel will continue increasing as a result of the growing demand for diesel fuels and a levelled demand for spark-ignition engine fuels.
● Rise in the Use of FAME as a Green Solvent
FAMEs offer several advantages as solvents, including their biodegradability, non-toxic nature, and renewable sourcing from plant oils and animal fats. As industries increasingly prioritize sustainability and environmental responsibility, there is a growing shift towards replacing conventional solvents with green alternatives like FAMEs. This trend is particularly prominent in sectors such as coatings, paints, adhesives, and cleaning products, where the adoption of eco-friendly solvents aligns with regulatory requirements and consumer preferences for greener products. Additionally, the versatility of FAMEs allows for customization to meet specific formulation requirements, further enhancing their attractiveness to various industries. As a result, the expanding applications of FAMEs as green solvents are expected to drive market growth, presenting lucrative opportunities for manufacturers and stakeholders in the FAMEs industry.
● High Cost Hinders Market Growth
The cost of raw materials, primarily vegetable oils and animal fats, can fluctuate based on factors such as weather conditions, crop yields, and geopolitical events. Any increase in the cost of feedstocks directly affects the production cost of FAMEs. Small-scale production facilities may struggle to achieve economies of scale, leading to higher production costs per unit of FAMEs produced. Larger producers with more efficient production processes may have a competitive advantage in terms of cost. Advancements in production technologies and process optimization can help reduce production costs over time. FAMEs face competition from conventional petroleum-based solvents, which may be cheaper due to economies of scale and established infrastructure. Price sensitivity among consumers and industries may limit the willingness to switch to more expensive green solvents like FAMEs.
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Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Fatty Acid Methyl Ester Market. The top 10 companies in this industry are listed below:
- BASF SE
- Cargill, Inc.
- Wilmar International Ltd.
- ADM
- Renewable Energy Group, Inc. (Chevron Corp.)
- Acme Synthetic Chemicals, Inc.
- Louis Dreyfus Company B.V.
- Neste Oyj
- Evonik Industries AG
- Univar Solutions Inc.
Scope of Report:
| Report Metric | Details |
|---|---|
Base Year Considered | 2023 |
Forecast Period | 2024–2030 |
CAGR | 5.8% |
Market Size in 2030 | $28.2 billion |
Segments Covered | Type, Source, End Use |
Geographies Covered | North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Netherlands and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), Rest of the World (Middle East and Africa). |
Key Market Players |
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1. Fatty Acid Methyl Ester Market - Overview
1.1. Definitions and Scope
2. Fatty Acid Methyl Ester Market - Executive Summary
3. Fatty Acid Methyl Ester Market - Comparative Analysis
3.1. Company Benchmarking - Key Companies
3.2. Global Financial Analysis - Key Companies
3.3. Market Share Analysis - Key Companies
3.4. Patent Analysis
3.5. Pricing Analysis
4. Fatty Acid Methyl Ester Market - Start-up Companies Scenario
4.1. Key Start-up Company Analysis by
4.1.1. Investment
4.1.2. Revenue
4.1.3. Venture Capital and Funding Scenario
5. Fatty Acid Methyl Ester Market – Market Entry Scenario Premium
5.1. Regulatory Framework Overview
5.2. New Business and Ease of Doing Business Index
5.3. Case Studies of Successful Ventures
6. Fatty Acid Methyl Ester Market - Forces
6.1. Market Drivers
6.2. Market Constraints
6.3. Market Challenges
6.4. Porter's Five Force Model
6.4.1. Bargaining Power of Suppliers
6.4.2. Bargaining Powers of Customers
6.4.3. Threat of New Entrants
6.4.4. Rivalry Among Existing Players
6.4.5. Threat of Substitutes
7. Faty Acid Methyl Ester Market – Strategic Analysis
7.1. Value Chain Analysis
7.2. Opportunities Analysis
7.3. Market Life Cycle
8. Fatty Acid Methyl Ester Market – By Type (Market Size – $Million/$Billion)
8.1. Medium Chain Triglyceride
8.2. Isopropyl Palmitate
8.3. Glyceryl Monostearate
8.4. Soya Methyl Ester
8.5. Oil Methyl Ester
8.6. Rapeseed Methyl Ester
8.7. Polyol Ester
8.8. Glycol Ester
8.9. Sucrose Ester
8.10. Others
9. Fatty Acid Methyl Ester Market – By Source (Market Size – $Million/$Billion)
9.1. Animal Fats
9.2. Vegetable Oil
9.3. Sunflower Oil
9.4. Palm Oil
9.5. Soybean Oil
9.6. Coconut Oil
9.7. Others
10. Fatty Acid Methyl Ester Market – By End Use (Market Size – $Million/$Billion)
10.1. Oil & Gas
10.2. Lubricants
10.2.1. Oils
10.2.2. Grease
10.3. Industrial
10.4. Paint & Coatings
10.5. Agriculture
10.6. Household Cleaning
10.6.1. Surfactants
10.6.2. Detergents
10.6.3. Others
10.7. Pharmaceutical
10.8. Personal Care & Cosmetics
10.9. Food
10.9.1. Emulsifiers
10.9.2. Thickening Agents
10.9.3. Others
10.10. Others
11. Fatty Acid Methyl Ester Market – By Geography (Market Size – $Million/$Billion)
11.1. North America
11.1.1. Canada
11.1.2. Mexico
11.1.3. U.S.
11.2. South America
11.2.1. Argentina
11.2.2. Brazil
11.2.3. Chile
11.2.4. Colombia
11.2.5. Rest of South America
11.3. Europe
11.3.1. France
11.3.2. Germany
11.3.3. Italy
11.3.4. Netherlands
11.3.5. Belgium
11.3.6. Spain
11.3.7. UK
11.3.8. Denmark
11.3.9. Rest of Europe
11.4. APAC
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. South Korea
11.4.5. Australia and New Zealand
11.4.6. Indonesia
11.4.7. Taiwan
11.4.8. Malaysia
11.4.9. Rest of APAC
11.5. RoW
11.5.1. Saudi Arabia
11.5.1.1. UAE
11.5.1.2. Israel
11.5.2. South Africa
11.5.2.1. Nigeria
11.5.2.2. Rest of Africa
12. Fatty Acid Methyl Ester Market – Entropy
12.1 New product launches
12.2 M&A’s, collaborations, JVs and partnerships
12.2 M&A’s, collaborations, JVs and partnerships
13. Fatty Acid Methyl Ester Market – Industry/Segment Competition Landscape
13.1. Market Share Analysis
13.1.1. Market Share by Region – Key Companies
13.1.2. Market Share by Country – Key Companies
13.2. Competition Matrix
13.3. Best Practices for Companies
14. Fatty Acid Methyl Ester Market – Key Company List by Country Premium
15. Fatty Acid Methyl Ester Market - Company Analysis
15.1. BASF SE
15.2. Cargill, Inc.
15.3. Wilmar International Ltd.
15.4. ADM
15.5. Renewable Energy Group, Inc. (Chevron Corp.)
15.6. Acme Synthetic Chemicals, Inc.
15.7. Louis Dreyfus Company B.V.
15.8. Neste Oyj
15.9. Evonik Industries AG
15.10. Univar Solutions Inc.
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The Fatty Acid Methyl Ester Market is projected to grow at a CAGR of 5.8% during the forecast period 2024-2030.
Global Fatty Acid Methyl Ester Market size is estimated to be $19 billion in 2023 and is projected to reach $28.2 billion by 2030.
The leading players in the Fatty Acid Methyl Ester Market are BASF SE, Cargill, Inc., Wilmar International Ltd., ADM, Renewable Energy Group, Inc. (Chevron Corp.), and Others.
Shift towards sustainable practices and advancements in production technologies are the major trends in fatty acid methyl ester market.
The rise in the demand for biodiesel and the increasing use of fatty acid methyl esters (FAMEs) as a green solvent are expected to drive the growth of fatty acid methyl ester market. Expansion in emerging markets and focus on sustainable feedstock and production process to create growth opportunities in the market.