Fatty amides are oleamide, behenamide, erucamide, and stearamide which are widely used across a variety of industries, such as plastics processing, rubber, and inks & coatings. Fatty amides are mainly used as slip agents and anti-block agents in the production of polyolefin films & sheets that have applications in the packaging industry. Fatty acids maintain the clarity of polyolefin film and act as an anti-blocking agent. Nearly 70% of fatty amides are used in the film processing industries. Oleamide and stearamide are majorly used by industries such as paper, textiles, rubber, and ink.
The global fatty amides market is projected to surpass US$ 420 million by the end of 2027, in terms of revenue, growing at CAGR of 6.2% during the forecast period (2019 to 2027).
Expanding processed food and beverage industry especially in Asia Pacific region is expected to augment the market growth of fatty amides. According to the Hong Kong Trade Development Council, in 2018, Hong Kong’s total exports of processed food and beverages increased by 1% to reach US$ 8.9 billion. Mainland China was the largest market for Hong Kong’s processed food and beverage exports, accounting for 41% of the total, followed by Vietnam on 20%.
Growing demand for plastic around the globe due to the booming end-user industry is anticipated to stimulate market growth over the forecast period. According to the report published by polymer database, for the period 2012 to 2017, the demand for plastic products increased steadily by about 3.7% per year with a total world plastics production of about 300 tons in 2013. Therefore, rising demand for plastic is anticipated to foster the market growth of fatty amides.
Regionally, Asia-pacific dominated the global fatty amides market in 2018, reporting 36% market share in terms of revenue, followed by Europe and North America and, respectively.
Figure 1. Global Fatty Amides Market, Revenue Share (%), By Region, 2018
Developed regions such as North America and Europe together account for major share in the global fatty amides market. However, these markets are mature and therefore experiencing relatively slow growth. This factor is projected to hinder the market growth of fatty acids over the forecast period. Moreover, China, is another major market that is experiencing an economic downturn. The aforementioned factors are projected to restrict the growth of the global fatty amides market over the forecast timeframe.
The fluctuating price of raw material used for the production of fatty amides is expected to affect the manufacturing process. High cost of production will add up the cost of the product and this factor is expected to hinder the market growth of fatty amides. Therefore, fluctuating raw material prices is anticipated to restrain the market growth of fatty amides over the forecast timeframe.
The booming rubber industry around the globe is expected to offer potential growth opportunities to the market of fatty amides. According to the report published by Business Lines, the natural rubber consumption is projected at 1270,000 tons in 2019-20, supported by economic growth and higher import duty and anti-dumping duty on tires and the consumption has increased from 111, 2210 tons in 2017-18 to 1211,940 tons in 2018-2019.
Growing demand for slip additives from health care for offering better seal strength to the plastic packaging product is anticipated to foster the market growth of fatty amides over the forecast period. Moreover, the growing demand for erucamide-based slip additives from packaging consumer goods due to their high slip performance, better stability, and high-temperature performance is anticipated to accelerate the market growth of fatty amides.
Figure 2. Global Fatty Amides Market – Opportunity Analysis
The growing launch of novel and innovative slip additive for seal packaging is expected to foster the market growth of fatty amides. For instance, in September 2018, Dow Performance Silicones, a new silicone-based slip additive for low-density polyethylene (LDPE) film that optimizes form-fill-seal (FFS) packaging production. Such innovation in slip additive will favor market growth over the forecast period.
The rising number of partnerships among key players in order to enhance their presence in the market is expected to foster the market growth of fatty amides. For instance, in January 2020, Smiths High Performance and Burloak Technologies, a leader in the additive manufacturing (AM) industry and a division of Samuel, Son & Co., Limited, announced the exclusive agreement to supply additive manufactured parts in metals and polymers to the worldwide Formula 1 racing market.
Figure 3. Global Fatty Amides Market, Revenue Share (%), By Derivative, in 2018
On the basis of product type, in 2018, erucamide segment accounted the largest market share of 74% in terms of revenue, followed by oleamide and stearamide, respectively.
Figure 4. Global Fatty Amides Market – Value Chain Analysis
Key players active in the global fatty amides market are BASF SE, Monsanto Company, E I du Pont de Nemours & Company, Bayer AG, The Dow Chemical Company, Syngenta AG, and Nufarm Limited
Few Recent Developments
PMC Biogenix Inc.
Fine Organic Industries Pvt. Ltd.
Fatty Amides are widely used in different industries such as food & beverages, plastic, personal care, rubber, film processing and others, as anti-blocking agent and anti-slip agents. Fatty amides exhibits wide range of benefits and value-enhancing properties. The demand for fatty amides in plastic & film processing industry is rising, on account of its usage in the industry for production of inks and dyes. This scenario is expected to fuel the demand of fatty amides globally, during the forecast period
The global fatty Amides market has witnessed a surge of growth in terms of revenue in recent past years, owing to the increase in demand of fatty acids for various applications in different industries such as food & beverage, rubber, film processing and others. On the basis of form the global fatty amides market is segmented into bead & micro-beads, powder and pastilles. Fatty amides are predominantly used for processing of rubber and thermoplastic resins.
On the basis of region, Asia Pacific is expected to grow substantially in the next few years, owing to the rise of foreign investments and rapid growth of manufacturing industries in the region. Moreover, factors such as increasing population and rise of per capita income in emerging economies such as China and India, are expected to foster the growth of global fatty amides market during forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.