Fatty Acid Methyl Ester (FAME) Market - Forecast(2021 - 2026)

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Fatty Acid Methyl Ester (FAME) Market Overview

Fatty Acid Methyl Ester (FAME) Market is forecast to reach $27.93 billion by 2026 after growing at a CAGR of 6% during 2021-2026. Fatty acid methyl ester is derived from the trans-esterification of methanol with fatty acids. It has excellent characteristics such as excellent solubility in organic solvents, good lubricity and high boiling points. The growth of the market of fatty acid methyl ester is expected to be driven by the high demand from the Oil and Gas industry.   

Fatty Acid Methyl Ester (FAME) Market Report Coverage

The report: “Fatty Acid Methyl Ester (FAME) Market -Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of fatty acid methyl ester (FAME) industry.  
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 and Gas, Lubricants (Oils, Grease), Industrial, Paint and Coatings, Agriculture, Household Cleaning (Surfactants, Detergents and Others), Pharmaceutical, Personal Care and Cosmetics, Food (Emulsifiers, Thickening Agents and Others), and Others.
By Geography: North America, South America, Europe, APAC, and RoW.

Key Takeaways

  • North America dominates the fatty acid methyl ester market owing to increasing demand from personal care and cosmetics industry.
  • Rise in the usage of fatty acid methyl esters as a green solvent owing to its low VOC and biodegradable nature will drive the growth of the market.
  • The high cost of the fatty acid methyl esters coupled with the high cost of procuring raw materials is expected to hamper the growth of this market in the forecast period.

Fatty Acid Methyl Ester (FAME) Market Segment Analysis - By Type 

The rapeseed methyl ester segment held the largest share in the fatty acid methyl ester market in 2020. This is due to the increasing use of rapeseed as the primary raw material for oil methyl ester production, as rapeseed has better oil content (30-37%) than other types of raw material used in the manufacturing. The high cetane number of biodiesel produced from rapeseed oil allows complete combustion and thus lowers emissions. Low profitability and weather conditions are expected to weigh on rapeseed planting and hence the rapeseed oil methyl ester. It can be used in pure form or may be blended with petroleum diesel at any concentration in most injection pump diesel engines. As a result, fuel filters may become clogged with particulates if a quick transition to pure biodiesel. Medium-chain triglycerides segment has the second-largest share in the fatty acid methyl ester market. Medium-chain triglycerides is a medical food derived from fatty acids and safflower oil, a polyunsaturated fat. It is used for dietary purpose in people whose bodies cannot digest certain foods properly. This includes people who are gluten or lactose intolerant, or who have unintended weight loss or need increased calories for other medical reasons.

Fatty Acid Methyl Ester (FAME) Market Segment Analysis - By Source

Coconut Oil segment held the largest share in the fatty acid methyl ester market in based on source in 2020. 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.

Fatty Acid Methyl Ester (FAME) Market Segment Analysis - By End Use

The household cleaning is the primary market fatty acid methyl ester in 2020 growing at CAGR of 7%. 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.  According to the data released by World Health Organization, showed that in 2015 inadequate sanitation has led to 280,000 diarrheal deaths across the globe. 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. 

Fatty Acid Methyl Ester (FAME) Market Segment Analysis - By Geography

North America dominates the fatty acid methyl ester market with a share of more than 38% 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. The 2019–2020 coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business. The current epidemic outbreak has deeply influenced consumers' daily life and in addition to the impact on personal care and cosmetic industry. It is estimated that changes will also be witnessed in consumers' purchase behavior. The supply chain of cosmetic industry is affected because it depends on the products, ingredients, or supplies from China. The Country has been choked off from suppliers, workers, and logistics networks. China’s manufacturing base is facing a multitude of unprecedented challenges, as coronavirus containment efforts hamper factories’ attempts to reopen. This may cause shortages in the global personal care and cosmetic industry from unreliable places.

Fatty Acid Methyl Ester (FAME) Market Drivers

Rise in the demand of biodiesel will drive the growth of the market in the forecast period 

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. The use of biofuels is justified by the common agricultural policy decisions, by the need to improve environment protection and by the search of alternative energy sources. 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. Currently, fatty acid methyl esters is added to regular diesel fuels in the amount of up to 7%. Besides, its consumption in a pure form grows as well. This factor will drive the growth of fatty acid methyl esters market in the forecast period.

Rise in the use of fatty acid methyl ester as a green solvent will drive the growth of market in the forecast period.

Fatty acid methyl ester is being increasingly used as a green solvent, since it contains low Volatile Organic Compounds along with being readily biodegradable. Moreover, in the leather chemical industry, it is used to produce a leather fat liquoring agent, which is used as an excellent textile detergent. Growing detergent demand is further expected to couple with the market growth over the forecast years. Its additional characteristics, such as excellent lubricity, superior solubility in organic solvents, and high boiling points are increasing its inclination in various end-use industries. These factors will drive the growth of the market in the forecast period.

Fatty Acid Methyl Ester (FAME) Market Challenges

High Cost of Fatty Acid Methyl Ester and its raw material will hinder the growth of the market

The high cost of the fatty acid methyl esters and unstable global markets have widespread implications for manufacturing organizations. Unexpected fluctuations in raw material price levels, unforeseen obstacles are destabilizing supply chains and making it difficult for manufacturers to remain in the black. With supplies of many raw materials becoming harder to secure, commodity price volatility may not be just a temporary phenomenon, and it is up to manufacturers to either absorb additional costs, find new ways to mitigate the expenses, or pass price increases along to customers who are already reluctant to spend. This factor will hinder the growth of the market in the forecast period. 

Fatty Acid Methyl Ester (FAME) Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the fatty acid methyl ester market. In 2020 the market of fatty acid methyl ester has been consolidated by the top five players accounting for xx% of the share. Major players in the fatty acid methyl ester market are Biofuels Corporation, ADM Biodiesel, Diester Industries, Evonik Industries, Cargill, Green Fuels, and Others.  

Acquisitions/Technology Launches /Product launches

  • In May 2020, Pertamina is introducing engine oil compatible with 20% biodiesel blends in it. The 20% biodiesel mix is finally implemented, the state-owned oil and gas company expects as much as 5.14 million kiloliters of fatty acid methyl esters (FAME) will be used to blend with petroleum diesel fuel. Pertamina has prepared 63 fuel terminals in 31 cities to store diesel fuel and serve as distribution points to support Indonesia’s mandatory biodiesel program.

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1. Fatty Acid Methyl Ester (FAME) Market - Market Overview
    1.1 Definitions and Scope 
2. Fatty Acid Methyl Ester (FAME) Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by Type
    2.3 Key trends by Source
    2.4 Key trends by End User
    2.5 Key trends by Geography
3. Fatty Acid Methyl Ester (FAME) Market – Landscape 
    3.1 Comparative analysis   
        3.1.1 Market Share Analysis- Top Companies
        3.1.2 Product Benchmarking- Top Companies
        3.1.3 Top 5 Financials Analysis
        3.1.4 Patent Analysis- Top Companies
        3.1.5 Pricing Analysis
4. Fatty Acid Methyl Ester (FAME) Market - Startup companies Scenario Premium Premium 
    4.1 Top startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5. Fatty Acid Methyl Ester (FAME) Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis – Top 10 companies Investment
6. Fatty Acid Methyl Ester (FAME) Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Market Opportunities
    6.4 Porters 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. Fatty Acid Methyl Ester (FAME) Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product Life Cycle
    7.4 Suppliers and Distributor Analysis
8. Fatty Acid Methyl Ester (FAME) Market – By Type (Market Size -$Billion)
    8.1 Medium Chain Triglyceride
    8.2 Isopropyl Palmitate
    8.3 Glyceryl Monostearate
    8.4 Soya Methyl Ester
    8.5 Oil Methyl Ester
    8.6 Rapeseed Methyl Ester
    8.7 Polyol Ester
    8.8 Glycol Ester
    8.9 Sucrose Ester
    8.10 Others
9. Fatty Acid Methyl Ester (FAME) Market – By Source (Market Size -$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 (FAME) Market – By End User (Market Size -$Billion)
    10.1 Oil and Gas
    10.2 Lubricants 
        10.2.1.1 Oils
        10.2.1.2 Grease
    10.3 Industrial
    10.4 Paint and Coatings
    10.5 Agriculture
    10.6 Household Cleaning
        10.6.1 Surfactants
        10.6.2 Detergents
        10.6.3Others
    10.7  Pharmaceutical
    10.8 Personal Care and Cosmetics
    10.9 Food Industry
        10.9.1 Emulsifiers
        10.9.2  Thickening Agents
        10.9.3 Others
        10.10 Others
11. Fatty Acid Methyl Ester (FAME) Market - By Geography (Market Size -$Billion)
    11.1 North America
        11.1.1 U.S 
        11.1.2 Canada
        11.1.3 Mexico
    11.2 South America
        11.2.1 Brazil
        11.2.2 Argentina
        11.2.3 Colombia
        11.2.4 Chile
        11.2.5 Rest of South America
    11.3 Europe
        11.3.1 UK
        11.3.2 Germany
        11.3.3 France
        11.3.4 Italy
        11.3.5 Netherland
        11.3.6 Spain
        11.3.7 Russia
        11.3.8 Belgium
        11.3.9 Rest of Europe
    11.4 Asia-Pacific
        11.4.1 China
        11.4.2 Japan
        11.4.3 India
        11.4.4 South Korea
        11.4.5 Australia and New Zeeland
        11.4.6 Rest of APAC
    11.5 Rest of the World
        11.5.1 Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 U.A.E
            11.5.1.3 Israel
            11.5.1.4 Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 Rest of Africa
12. Fatty Acid Methyl Ester (FAME) Market – Entropy
    12.1 New Product Launches
    12.2 M&A’s, Collaborations, JVs and Partnerships
13. Fatty Acid Methyl Ester (FAME) Market – Market Share Analysis Premium
    13.1 Market Share by Country- Top companies
    13.2 Market Share by Region- Top companies
    13.3 Market Share by type of Product / Product category- Top companies
    13.4 Market Share at global level- Top companies
    13.5 Best Practices for companies
14. Fatty Acid Methyl Ester (FAME) Market – List of Key Companies by Country Premium
15. Fatty Acid Methyl Ester (FAME) Market Company Analysis
    15.1 Market Share, Company Revenue, Products, M&A, Developments
    15.2 Company 1
    15.3 Company 2
    15.4 Company 3
    15.5 Company 4
    15.6 Company 5
    15.7 Company 6
    15.8 Company 7
    15.9 Company 8
    15.10 Company 9
    15.11 Company 10 and more
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