The global fatty esters market garnered USD 2.1 Billion in 2021 and is likely to exhibit a Y-o-Y increase of 4.8% to be valued at USD 2.2 Billion in 2022. The market is likely to propel to USD 3.4 Billion by 2032, at a 4.4% CAGR during the forecast period.
Extensive applications for manufacturing cosmetics and biodiesel are likely to act as primary growth levers for the market of fatty esters across the forthcoming decade.
| Attributes | Details |
|---|---|
| Global Fatty Esters Market CAGR (2022 to 2032) | 4.4% |
| Global Fatty Esters Market (2032) | USD 3.4 Billion |
| Global Fatty Esters Market Attraction | Owing to high demand, the rising consumption of fatty esters in biodiesel is among the major trends expected to drive the fatty esters market in the forecast period. |
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Increasing Usage in Cosmetics to Boost the Market in the Forecast Period
The increasing use of cosmetics is expected to trigger the growth of the fatty esters market. The growing influence of social media is expected to be a major factor driving the growth of the personal care & cosmetics segment, thereby driving product demand. In addition, favorable government support and schemes implemented to control obesity and related lifestyle diseases have led to increased use of medium-chain triglycerides in processed food products.
The global fatty esters market is expected to witness tremendous growth owing to its increasing use in lubricants, paper, and food products. Growing demand for fatty esters for industrial applications owing to their environment friendliness is expected to augment market growth over the forecast period.
Fatty esters being synthetic lubricants with desirable characteristics such as high thermal and oxidation stability and low volatility can be used as antifoaming agents, emulsifiers, and thickening agents in the ointment. In addition, rising preference towards natural and specialty esters in personal care products is anticipated to further drive market growth.
Though the fatty esters market is rising exponentially still there are certain factors hindering the growth of the market in the forecasting period. Inadequate availability of raw materials is also one of the major factors affecting the growth of the market.
As fatty ester is a chemical-based market and any sort of delay in raw material would cause a demand-supply imbalance. One more challenge faced by market players is the lack of skilled professionals is projected to limit growth through the forecast period.
Also, the expenses associated with the production of Fatty ester are one more factor, limiting the market growth. And the huge costs associated with ester-based lubricants and oscillations in crude oil will hinder the growth of the fatty esters industry over the forecasting years.
Moreover, the lack of properly developed infrastructure in underdeveloped nations is a major disadvantage faced by the market. As large sums of money are to be invested initially in setting up fatty ester companies and thus it restricts various new players to enter the markets.
As per the analysis, the application sector is anticipated to hold remunerative opportunities for the global Fatty Esters market. Various developing countries are making significant developments in their budgets, thereby, offering lucrative opportunities to players in the market.
As players in the market are launching novel application-specific products to address the rising demand for fatty esters from a diverse industry. Manufacturers are improving their product offerings in response to regulations imposed on the quality of ingredients used in cosmetics and food products.
Due to these factors, the global fatty esters market is projected to expand steadily over the forecast period.
Furthermore, the increasing awareness regarding the benefits of natural esters among the end-user extends profitable opportunities to the market players in the forecast period of 2022 to 2032. Additionally, technological advancements, as well as product development, will further expand future growth.
Synthetic Lubricants to emerge as the Primary Application area for Fatty Esters
According to the observations, the synthetic lubricant segment, by application, is projected to dominate the market during the forecast period. The segment is expected to grow at a 3.9% CAGR in the assessment period.
This is simply attributed to the rising application of synthetic lubricants in different end-user industries, such as electronics, automotive, agriculture, and petrochemicals which boost the growth of the segment.
An increase in the number of initiatives taken by various organizations will help the industry gain traction in the coming years. On the other hand, pharmaceuticals, personal care products, and biofuel applications are expected to record significant growth due to the more use of these in different industries is anticipated to boost the growth of the market in the coming years
Fatty Acid Methyl Esters (FAME) to remain Top Category by Type
As per the type, the Fatty Acid Methyl Esters (FAME) segment is likely to dominate the market in the forecast period. The Fatty Acid Methyl Esters (FAME) segment is anticipated to expand at a CAGR of 4.1% during the forecast period.
Fatty Acid Methyl Esters (FAME) can be used under normal conditions as they have high oxidation stability.
The Fatty Acid Methyl Esters (FAME) industry dominated the market and is expected to grow during the forecast period because the use of these esters has become increasingly widespread in recent years, since they are readily biodegradable and thus are less environmentally harmful, and help in curbing problems like global warming.
Also, Fatty acid methyl esters find their application in the production of many products, in vehicles as a fuel, in machines (construction, mining, and farm), stationary power generators, cosmetics, as lubricants, industrial solvents, in pharmaceuticals, as fuel additives and as carriers for fertilizers and pesticides. Being eco-friendly and biodegradable in nature fatty acid methyl esters (FAME) are widely used in the Food and agriculture industry.
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North America to Present Substantial Growth Opportunities in the Future
North America is anticipated to lead the global fatty esters market during the forecast period. The USA is expected to emerge as the major hotspot, likely to garner USD 1.2 Billion while exhibiting a CAGR of 4.3% from 2022 to 2032.
The rapid development in the region can be attributed to the increasing prevalence of the personal care market in the USA resulting in high demand for fatty esters over the past few years and the trend is expected to continue over the forecast period.
And also, the presence of several renowned fatty esters manufacturers in the USA is expected to place the country as an attractive pocket in the forthcoming years. The rapid expansion of the pharmaceutical and cosmetics sectors is likely to propel sales in the USA market.
Asia Pacific is anticipated to be the fastest-growing region during the forecast period. China is likely to make the most significant contribution to developing the market. China is estimated at USD 235 Million, expanding at a 3.9% CAGR during the forecast period.
Simple esters are used as a demulcent in lubricants and cosmetics, while composite esters are used in paper manufacture, metal working fluids, food & water treatment, and rolling oils. The Asia Pacific is expected to dominate the market during the forecast period owing to the growing industrial sector such as food, personal care, and oil & gas, particularly in China and India. Rising government initiatives to cater to end-user requirements are anticipated to bode well for the Indian market.
In addition, Japan has been recognized as another potent player in the region. According to the analysis, the country is anticipated at USD 204.2 Million while recording a CAGR of 4.1% in the forecast period. The development of the regional market can be credited to the rapid development in the concerned field. South Korea is estimated at USD 124.1 Million, estimated to flourish at a CAGR of 3.6% from 2022 to 2032.
| Countries | Estimated CAGR |
|---|---|
| USA | 4.3% |
| UK | 4.2% |
| China | 3.9% |
| Japan | 4.1% |
| South Korea | 3.6% |
Eminent players in the global fatty esters market include Faci Asia Pacific Pte. Ltd., KLK Oleo, Estelle Chemicals Pvt. Ltd., Evonik Industries, and DuPont, among others. In addition, the vendors are likely to leverage up-gradation and product differentiation to gain an edge over other competitors in the market.
Recent key developments among players include:
The global fatty esters market is likely to value USD 2.1 Billion in 2021.
The global fatty esters market is estimated to grow at a CAGR of 4.4% from 2022 to 2032.
The global fatty esters market is predicted to procure USD 3.4 Billion from 2022 to 2032.
The fatty acid methyl esters (FAME) segment is projected to expand at a 4.1% CAGR during the forecast period.
The synthetic lubricant segment is likely to exhibit a 3.9% CAGR from 2022 to 2032.
The USA market is expected to garner USD 1.2 Billion while expanding at a 4.3% CAGR from 2022 to 2032.
| Market Estimation (2022E) | USD 851.4 Million |
|---|---|
| Market Projections (2027F) | USD 1,180.4 Million |
| Value CAGR (2022 to 2027) | 6.8% |
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