Fatty acid esters are esters that have low volatility compared as compared to traditional solvent. Due to this, they are widely used as a solvent in paints &coatings applications. They are produced with the reaction between fatty acids and alcohols. Vegetable oils and animal fats are key raw materials used in the production of fatty acid esters.
The global Fatty Acid Ester Market accounted for US$ 2,139.5 Mn in terms of value in 2019 and is expected to grow at a CAGR 4.1% during the forecast period (2020-2027).
Strong demand for fatty acid esters from the food &beverage industry is escalating market growth. They are used as flavoring agents in the preparation of various food products such as jams, candies, bakery, and beverages. Moreover, they are also used as a flavoring agent in dairy products such as milk, ice-creams, and yogurts. They help in enhancing stability, appeal, taste, and maintain the freshness of the food products. Thus, the growing demand for fatty acid ester as an additive and emulsifier is surging the market growth.
The rising use of Medium Chain Triglycerides (MCT) from various industries such as personal care and pharmaceutical is projected to provide lucrative growth opportunities. They help in improving the stability and offer smooth texture in various personal care products. Moreover, they are also used in combination with various drugs to treat digestion conditions, liver disease, and diarrhea. Thus growing use of Medium Chain Triglycerides from personal care and pharmaceutical industries is augmenting the market growth.
The fluctuating price of raw materials used in the manufacturing of fatty acid esters is expected to hinder the market growth. Vegetable oils, animal fats, and petroleum are key feedstock used in the production of fatty acid esters. All these raw materials are highly susceptible to volatility, thereby hindering the market growth.
Global Fatty acid ester market was valued at US$ 2,139.5 Mn in 2019 and is forecast to reach a value of US$ 2,964.7 Mn by 2027 at a CAGR of 4.1% between 2019 and 2027.
Glyceryl monostearate segment dominated the global fatty acid ester market in 2019, accounting for 40% share in terms of value, followed by Medium Chain Triglyceride Oil and others, respectively.
Increasing focus of key manufacturers on expanding the production capacity of the emollient esters is one of the current trends in the market. For instance, in June 2017, BASF inaugurated a new plant for emollients and waxes in Jinshan, Shanghai with the investment of CNY 150 million projects (approximately €20 million). The new facility complements BASF’s current production of wax esters, emulsifiers and primary surfactant in Jinshan.
Expansion of the online retail industry due to the growing trend of digitalization is playing an important role in the growth of the market of fatty acid esters. Consumers prefer online shopping for purchasing products such as beauty products due to convenience and discounts offered by the retail industry. Moreover, emerging economics coupled with the increasing teens and adult population is further fueling industrial expansion.
Global Fatty Acid Ester Market - Impact of Coronavirus (Covid-19) Pandemic
The sudden occurrence of the novel coronavirus has a major impact on the global fatty acid ester market owing to increased consumption of personal care products such as soaps, body wash, hand wash etc. thereby, increasing the demand for the market over the forecast period.
Few Recent Developments
In June 2017, BASF inaugurated a new plant for emollients and waxes in Jinshan, Shanghai with the investment of CNY 150 million projects (approximately €20 million). The new facility complements BASF’s current production of wax esters, emulsifiers and primary surfactant in Jinshan.
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