Fatty Acid Ester Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fatty Acid Ester Market Analysis
The global fatty acid esters market is estimated to reach over 1,771.21 kilotons by the end of the current year, and the market is projected to register a CAGR of over 4% during the forecast period.
The COVID-19 pandemic affected the market negatively in 2020 and the first half of 2021, owing to a decrease in end-user industries such as biofuels and personal care. However, the market has currently reached pre-pandemic levels, and it is expected to grow at a steady rate.
- The major factors driving the market studied are a growing preference for biodiesels and rising demand for personal care products.
- On the other hand, performance limitations associated with fatty acid esters are likely to hamper the market's growth in the forecast period.
- Emerging applications and recycling of fatty acid esters are likely to act as opportunities for the market studied in the coming years.
- The European region dominated the market across the world. However, the Asia-Pacific region is expected to register the highest CAGR during the forecast period.
Fatty Acid Ester Market Trends
This section covers the major market trends shaping the Fatty Acid Ester Market according to our research experts:
Increasing Demand for the Fatty Acid Ester Market from Biofuel Applications
- Biodiesels made from fatty acid esters (renewable sources) are safer for the environment. Biodiesel produces fewer toxic pollutants and greenhouse gases than petroleum diesel.
- They can be used in pure form (B100) or can be blended with petro-diesel in the form of B2 (i.e., 2% biodiesel, 98% petroleum diesel), B5 (i.e., 5% biodiesel, 95% petroleum diesel). Likewise, they can be used as B20 and B100. In some cases, biodiesel is used as it is (B100), majorly by large truck companies.
- Biodiesel has also helped several countries to reduce their dependence on foreign oil reserves, as they are domestically produced and can be used in any diesel engine with little or no modification to the engine or the fuel system.
- According to IES, in 2021, biofuel demand reached 155,400 million liters, returning to near-2019 levels. Demand increased by 8,700 million liters Y-o-Y. Biodiesel ((referring to FAME)) demand increased by 0.2% compared to 2019 and 0.3% compared to 2020.
- Over the same period, biodiesel and hydrotreated vegetable oils (HVO) production is predicted to increase by 380,000 barrels per day, mostly due to capacity additions in the United States, Indonesia, and Malaysia.
- According to BP Statistics, in 2021, global biodiesel production reached 734 thousand barrels of oil equivalent per day compared to the 712 thousand barrels of oil equivalent per day that were produced in 2020.
- The biofuel (biodiesel in this case) market is expected to increase at a good pace, owing to its added advantages and safety, which will significantly increase the demand for natural fatty acid esters.
European Region to Dominate the Market
- The European market is the largest market for fatty acid esters (FAEs) owing to the huge demand for biofuels and personal care and cosmetics, majorly from countries such as Germany and France.
- Europe is the largest producer of biodiesel globally. It reached 248 thousand barrels of oil equivalent per day in 2021 compared to the production level in 2011, which recorded about 160 thousand barrels of oil equivalent per day. HVO and biodiesel output in Europe is predicted to reach 320,000 barrels per day in 2026, up from 40,000 barrels per day in 2020.
- As per the new laws passed in the German parliament, the country's greenhouse gas (GHG) emission reduction obligation is scheduled to increase to 25% by 2030 from 6% presently. The oil companies in the country are expected to increase the use of renewables in transport significantly. In contrast, the number of crop-based biofuels counted toward the blending mandate has been capped at 4.4%, with palm oil-based biofuels banned from 2023 onward.
- According to the Union Zur Förderung von Oel und Proteinpflanzen (UFOP), Germany's biodiesel production was at approximately 2.38 million tons. The diesel fuel standard DIN EN 590 limits the incorporation rate of FAME (biodiesel) to 7% by volume.
- In Germany, about half of the land is used for agriculture. It is the third largest exporter of agricultural goods in the world. Grain is majorly cultivated on about one-third of the farmland of Germany, where wheat is the leading crop, followed by barley and rye. This is increasing the demand for FAEs from various agricultural applications.
- In 2021, the gross value added of the German agricultural sector accounted for about EUR 19.36 billion (~USD 19.90 billion), compared to EUR 20.62 billion (~USD 21.19 billion) in 2020. Furthermore, in 2020, the German agricultural production value was estimated at EUR 57.59 billion (~USD 59.18 billion), which decreased from EUR 58.53 million (~USD 60.15 billion) in 2019.
- FAEs are used in biofuel applications to reduce carbon footprints. The French government passed a law in 2015 named Loi de Transition Énergétique that includes a commitment to increasing the share of renewables in transport fuels to 15% by 2025.
- According to the report of the BP Statistical Review of World Energy 2022, biofuel production in France accounted for around 48 thousand barrels of oil equivalent per day in 2021 compared to 43 thousand barrels of oil equivalent per day in 2020, an increase of roughly 12% from the previous year.
- FAEs are used in the cosmetics industry as they have a conditioning effect of softening the skin to create a soothing sensation. The French cosmetics products market was valued at USD 2.38 billion in 2021 compared to USD 2.05 billion in 2020, and it is expected to reach approximately USD 3.55 billion by 2026.
- Owing to the aforementioned factors, the European region is likely to dominate the market in the forecast period.
Fatty Acid Ester Industry Overview
The fatty acid ester market is fragmented in nature, with only a few major players dominating the market. Some of the major companies are Wilmar International Ltd, Avril, Chevron Corporation, Verbio Vereinigte Bioenergie AG, and Cargill Corporation, among others.
Fatty Acid Ester Market Leaders
Wilmar International Ltd
Avril
Chevron Corporation
Verbio Vereinigte Bioenergie AG
Cargill Corporation
*Disclaimer: Major Players sorted in no particular order
Fatty Acid Ester Market News
- June 2022: Chevron Corporation acquired Renewable Energy Group Inc. This acquisition added complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuel companies in the United States.
- June 2022: Cargill completed its first advanced biodiesel plant in Ghent, Belgium, called Bioro Biodiesel Refinery, which converts waste oils and residues into renewable fuel. The advanced biodiesel produced at the facility will be used by the maritime and trucking sectors in Europe.
- May 2022: Oleon, a subsidiary of the Avril Group, started construction of a new production facility in Baytown, Texas, Houston, with an investment of USD 50 million. This new facility is expected to become operational by the end of 2023 and will produce esters and provide blending services to support the company's growing oil and gas business.
Fatty Acid Ester Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Growing Preference toward Biodiesels
4.1.2 Rising Demand for Personal Care Products
4.2 Restraints
4.2.1 Performance Limitations Associated with Fatty Acid Ester
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Type
5.1.1 Fatty Acid Methyl Esters (FAME)
5.1.2 Polyol Esters
5.1.3 Sorbitan Esters
5.1.4 Sucrose Esters
5.1.5 Other Types
5.2 Application
5.2.1 Synthetic Lubricants
5.2.2 Pharmaceuticals
5.2.3 Personal Care Products
5.2.4 Food
5.2.5 Biofuel Applications
5.2.6 Other Applications
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 France
5.3.3.3 United Kingdom
5.3.3.4 Italy
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Avril
6.4.2 Cargill Incorporated
6.4.3 Chevron Corporation
6.4.4 Cremer Oleo Gmbh & Co. KG
6.4.5 Croda International PLC
6.4.6 DuPont
6.4.7 Granol
6.4.8 Inolex Incorporated
6.4.9 IOI Corporation Berhad
6.4.10 KLK Oleo
6.4.11 P&G Chemicals
6.4.12 Sasol
6.4.13 Stepan Company
6.4.14 Verbio Vereinigte Bioenergie AG
6.4.15 Wilmar International Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Emerging Applications and Recycling of Fatty Acid Ester
Fatty Acid Ester Industry Segmentation
Fatty acid esters are a type of ester that results from the combination of a fatty acid with an alcohol. When the alcohol component is glycerol, the fatty acid esters produced can be monoglycerides, diglycerides, or triglycerides.
The fatty acid ester market is segmented by type, application, and geography. By type, the market is segmented into fatty acid methyl esters, polyol esters, sorbitan esters, sucrose esters, and other types. By application, the market is segmented into synthetic lubricants, pharmaceuticals, personal care products, food, biofuel applications, and other applications. By geography, the market is segmented into the Asia-Pacific, Europe, North America, South America, the Middle East and Africa. The report also covers the market size and forecasts for the fatty acid esters market in major countries across 15 countries. For each segment, the market sizing and forecasts have been done on the basis of volume (kilotons).
| Type | |
| Fatty Acid Methyl Esters (FAME) | |
| Polyol Esters | |
| Sorbitan Esters | |
| Sucrose Esters | |
| Other Types |
| Application | |
| Synthetic Lubricants | |
| Pharmaceuticals | |
| Personal Care Products | |
| Food | |
| Biofuel Applications | |
| Other Applications |
| Geography | |||||||
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Fatty Acid Ester Market Research FAQs
What is the current Fatty Acid Ester Market size?
The Fatty Acid Ester Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Fatty Acid Ester Market?
Wilmar International Ltd , Avril, Chevron Corporation, Verbio Vereinigte Bioenergie AG and Cargill Corporation are the major companies operating in the Fatty Acid Ester Market.
Which is the fastest growing region in Fatty Acid Ester Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fatty Acid Ester Market?
In 2024, the Europe accounts for the largest market share in Fatty Acid Ester Market.
What years does this Fatty Acid Ester Market cover?
The report covers the Fatty Acid Ester Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fatty Acid Ester Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fatty Acid Ester Industry Report
Statistics for the 2024 Fatty Acid Ester market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fatty Acid Ester analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
