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Increasing Demand for Fatty Acid Methyl Ester to Push Global Market Revenue Growth During 2017 - 2025

Increasing Demand for Fatty Acid Methyl Ester to Push Global

Fatty acid methyl ester is derived from the trans-esterification of methanol with fatty acids. It can also be prepared from soya beans, rapeseed, vegetable oil and palm oil. Rapeseed is generally preferred for the production of fatty acid methyl ester due to its better oil content (nearly 30%-35%) as compared to other materials used for fatty acid methyl ester manufacturing. Moreover, biodiesel produced from rapeseed has high cetane number which helps in complete combustion, thereby lowering emissions. Due to various government regulations in favor of bio-based products, the demand for fatty acid methyl ester is expected to rise in near future.

Based on product type, medium chain triglyceride is expected to dominate the global fatty acid methyl ester market owing to their rising demand from the food industry. Glyceryl monostearate is projected to witness significant growth during the forecast period. The increasing use of glceryl monostearare as an emulsifier in baking preparations and confectionaries is expected to escalate the demand for fatty acid methyl ester by the end of 2025.

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Based on applications, the fuel segment is anticipated to dominate the global fatty acid methyl ester market. Fatty acid methyl ester is a major constituent of biodiesel. The rising demand from the biodiesel industry is expected to propel the demand for fatty acid methyl ester during the forecast period. However, personal care and cosmetics is projected to be the fastest growing segment throughout the forecast period.

Fatty Acid Methyl Ester Market: Dynamics

The shifting focus of end users towards biodiesel over conventional diesel owing to its low toxicity is expected to be one of the major factors driving the growth of the global fatty acid methyl ester market. Additionally, rise in the usage of fatty acid methyl esters as a green solvent owing to its low VOC and biodegradable nature is further expected to escalate the growth of the global fatty acid methyl ester market. Fatty acid methyl ester has high boiling point, high lubricity and IS highly soluble in organic solvents. Due to the aforementioned properties, there is increasing demand for fatty acid methyl ester from metalworking fluids, detergents & surfactants, fuels and many other industries, which in turn, is expected to drive the growth of the global fatty acid methyl esters market during the forecast period.

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 near future.

Fatty Acid Methyl Ester Market: Segmentation

The global fatty acid methyl ester market can be segmented on the basis of product type and applications. On the basis of product type, the market can be segmented into medium chain triglycerides, isopropyl palmitate, glyceryl monostearate, glycol ester, polyol esters and sucrose esters. On the basis of applications, the market can be further segmented into food, coatings, lubricants, polymers, agriculture, metalworking fluids, cosmetics & personal care and fuels.

Fatty Acid Methyl Ester Market: Regional Outlook

Based on regions, North America is expected to be the most promising revenue generating region. Increasing demand for personal care products is expected to drive the growth of the global fatty acid methyl ester market. Moreover, regulations in North America that favor biodiesel with the intention of combating global warming are further anticipated to escalate the demand for fatty acid methyl ester in this region. Asia Pacific is expected to witness significant growth during the forecast period. Strong demand from emerging economies like China and India in the Asia Pacific region is expected to upsurge the demand for fatty acid methyl ester in near future. Europe and Latin America are projected to witness positive growth throughout the forecast period.

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Fatty Acid Methyl Ester Market: Key Players

Some of the prominent players identified in the global fatty acid methyl esters market are mentioned below:

Archer Daniels Midland Company (ADM)
Wilmar International Limited
BASF SE
Cargill Inc
KLK Oleo Sdn. Bhd.
Berg + Schmidt
P&G Chemicals
Emery Oleochemicals Group
Longyan Zhuoyue New Energy Co. Ltd.
Western Lowa Energy
Evonik Industries

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