Fatty Acid Ester Market Overview
Fatty Acid Ester Market size is forecast to reach US$3.1 billion by 2027, after growing at a CAGR of 4.3% during 2022-2027. Fatty acid esters such as medium-chain triglycerides, glyceryl monostearate, polyol esters, and more are manufactured from the combination of fatty acid and alcohol. Fatty acid ester is a biodegradable natural material, owing to which the use of fatty acid ester does not affect the environment, this is aiding to the growth of the market. The fatty acid ester market is primarily driven by the increasing demand from the cosmetics and personal care industry. Also, the rising demand for pharmaceutical products is accelerating the fatty acid ester market growth. Furthermore, the rapid growth of the textiles and garments segments is expanding fatty acid ester demand, thereby, propelling the fatty acid ester industry growth during the forecast period.
In 2020 COVID 19 pandemic has hampered the expansion of the fatty acid ester market. To prevent the spread of the coronavirus, governments around the world imposed strict government laws and restrictions. As a result, sales of cosmetics and personal care items fell, resulting in losses for the fatty acid ester. According to the Cosmetics Toiletries and Perfumery Association (CTPA), global sales of cosmetics and personal care products were €9.29 billion (US$10.4 billion) in 2019 and €8.71 billion (US$9.9 billion) in 2020, a 6.2 percent reduction. However, in 2021 the fatty acid ester industry was not much impacted by the COVID-19 pandemic because the production restrictions were removed. Furthermore, the COVID-19 effect is projected to be lessened by mid-2022, resulting in sustained growth for the fatty acid ester industry during the forecast period.
Fatty Acid Ester Market Segment Analysis – By Type
The fatty acid methyl ester segment held the largest share in the fatty acid ester market in 2021. The fatty acid methyl ester is widely employed in the fatty acid ester because compared with esters of fatty it has high lubricity. Fatty acid methyl esters organic solvent properties makes it ideal for using it in detergents and biodiesels. Furthermore, in comparison with other types, methyl ester is less costly, and the method utilized is also easy. Due to these advantages of fatty acid methyl ester, the fatty acid ester market will continue to prosper during the forecast period.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=503645
Report Price: $ 4500 (Single User License)
Fatty Acid Ester Market Segment Analysis – By Application
The solvents segment held the largest share in the fatty acid ester market in 2021 and is growing at a CAGR of 5.2% during 2022-2027. The solvents are utilized in the manufacturing of cosmetics and personal care products because solvents have natural properties. It has multiple advantages such as the high organic substance of fatty acid esters helping the solvent to increase the separation selectivity. Moreover, the use of fatty acid esters as a solvent is increasing because they have renewable contents since they’re made from ingredients such as vegetable oils and animal tallow. Thus, due to these benefits of solvents, the fatty acid ester market will see growth.
Fatty Acid Ester Market Segment Analysis – By End-Use Industry
The cosmetics and personal care segment held the largest share in the fatty acid ester market in 2021 and is growing at a CAGR of 6.8% during 2022-2027. Fatty acid esters are used in cosmetics and personal care products to dissolve active compounds with high polarity and UV absorbers. It gives the advantage of enhancing skin hydration and it is used in skincare products as a thickening agent. The growing cosmetics and personal care industry is accelerating the growth of the fatty acid ester market. For instance, according to Cosmetic Europe- the personal care association, Europe was the largest cosmetic market at the global level with annual sales of€76.7 billion (US$87.6 billion) in 2020. Thus, the growing cosmetics and personal care industry across the globe are aiding the fatty acid ester market growth.
Fatty Acid Ester Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the fatty acid ester market in 2021up to 41.2%. The demand for cosmetics and personal care goods is growing in the region, owing to the rising disposable income of the people, which is driving up demand for fatty acid ester. For instance, according to International Trade Administration (ITA), in 2018 South Korea’s cosmetics and personal care industry was at US$9,370 million and US$9,432 million in 2019, an increase of approximately 1%. Moreover, according to the Accord Australasia, in 2019 the cosmetics and personal care industry of Australia was US$26.06 billion, and in 2020 it was US$26.3 billion, an increase of about 1%. The government policies for increasing local level pharmaceuticals in the region are further accelerating the market growth. For instance, China is encouraging local pharmaceutical production; this will increase the demand for fatty acid esters for pharmaceutical application in the region. Furthermore, the increasing aged population in Japan has also resulted in increased pharmaceutical products in the region. Thus the growing building and construction industry in the Asia-Pacific region is fueling the fatty acid ester market growth.
Fatty Acid Ester Market Drivers
Rapid Development of the Food and Beverage Sector
Fatty acid esters are used as a food additive in the food and beverage industry because it gives the benefit of extended shelf life of the food and beverage products. Fatty acid esters use in food and beverage has been approved by various international food safety organizations such as U.S. Food and Drug Administration (FDA), European Food Safety Authority (EFSA), and more, which is benefiting the market growth. Similarly, the growing food and beverage industry is fueling the fatty acid ester market growth. For instance, according to the China Chain Store and Franchise Association (CCFA), China’s food and beverage business was worth US$584.6 billion in 2018 and US$595 billion in 2019, representing a 7.8% increase. Moreover, according to the Food and Drink Federation of UK (FDF), the total manufacturing in the year 2018 for food and beverages was US$33 billion and in 2019 it was US$34.2 with a total increase of 3.6%. Thus, the growing food and beverage industry is increasing its demand, which is driving the fatty acid ester market growth.
Increasing Demand for Biodiesels
The fatty acid ester is widely employed in biodiesels because the physical properties of fatty acid esters are the same as diesel. The production of biodiesels is increasing at the world level, which is accelerating the fatty acid ester market growth. For instance, according to International Energy Agency, 2018 the total global production of biodiesels was 45.6 billion liters and in 2019 it was 48.3 billion liters, an increase of 5.9%. Moreover, the production growth was highest for Indonesia, in 2019 the total production of biodiesels in Indonesia was 5.6 billion liters and in 2020 it was 7.2 billion liters, an increase of 28.6%. Similarly, the biodiesels production in Europe was 16 billion liters in 2018, and in 2019 it was 16.3 billion, an increase of 1.9%. Thus, the increasing demand for biodiesels is increasing the demand for fatty acid esters, which is driving the fatty acid ester market growth.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=503645
Fatty Acid Ester Market Challenges
High Cost and Meeting the Standards of International Agencies
The high costs associated with the fatty acid ester are attributed as a major challenge for the growth of the market. The process associated with fatty acid ester manufacturing takes time which increases the cost of the fatty ester. Also, guidelines established by international bodies must be followed for the medicinal, cosmetics, and food and beverage applications of the fatty acid ester. The manufactures have to follow the guidelines set by U.S. Food and Drug Administration (FDA), European Food Safety Authority (EFSA), and more for the use of fatty acid esters. Thus, the high cost and meeting the standards set by the international agencies act as a bottleneck for the fatty acid ester market growth.
Fatty Acid Ester Market Landscape
Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in this market. Fatty Acid Ester top 10 companies include:
1. Wilmar International Ltd.
2. KLK OLEO
3. Evonik Industries
4. P & G Chemicals
5. AkzoNobel NV
8. Inolex Inc.
9. A & A Fratelli ParodiSpA
In September 2020, Emery Oleochemicals launched line Emery E general-purpose fatty acid ester. It can be used across various industries and this will further benefit the fatty acid ester market growth.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=503645
Asia-Pacific region dominates the fatty acid ester market, owing to the increasing government initiatives to increase the production of pharmaceuticals. For instance, in 2021 Department of Pharmaceuticals launched a PLI scheme to promote domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four separate ‘Target Segments’ with a cumulative outlay of Rs. 6,940 crore (US$ 951.27 million).
The rising disposable income of people all over the world is driving up demand for higher-quality foods, which is boosting up the demand for the fatty acid ester industry.
Moreover, the growing preference for biodiesels is increasing the demand for fatty acid ester, which is further boosting the growth of the market.
Nevertheless, the high cost associated with the fatty acid ester is posing a major challenge for the growth of the fatty acid ester market.
Fatty Acid Methyl Ester (FAME) Market – Forecast (2021 – 2026)
Personal Care Ingredients Market –Forecast (2021 – 2026)
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to email@example.com to discuss more about our consulting services.