The global fatty acid methyl esters market was valued at US$ 43,180.3 million in 2021, according to Global Fatty Acid Methyl Esters Market Report, by Source (Vegetable Oils, Animal Fats, and Used Cooking Oils), by Product Type (Methyl Oleate, Methyl Laurate, Methyl Myristate, Methyl Caprate, Methyl Stearate and Others (Methyl Palmitate, Coconut Methyl Esters, etc.)), by Application (Fuels, Paints & Coatings, Food Additives, Detergents & Surfactants, Lubricants & Metalworking Fluids, Agrochemicals, Personal Care & Cosmetics and Others (Wetting Agents, Plasticizers, etc.)), and by Region (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa), published by Coherent Market Insights
The global fatty acid methyl esters market was valued at US$ 43,180.3 million, in terms of revenue, in 2021, and is estimated to exhibit a CAGR of 4.8% during the forecast period (2022 to 2030). Fatty acid methyl esters (FAME) are fatty acid esters synthesized from the transesterification of lipids with methanol. Fatty acid methyl esters is the fundamental molecule in biodiesel, which is mainly generated by transesterification from vegetable oils. Detergents and biodiesel are made from fatty acid methyl esters. Fatty acid methyl esters is typically produced in the presence of a base, such as sodium hydroxide, sodium methoxide, or potassium hydroxide, through an alkali-catalyzed reaction between lipids and methanol.
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Browse 50 market data tables* and 45 figures* on “Global Fatty Acid Methyl Esters Market” - Forecast to 2030.
Key Trends and Analysis of the Global Fatty Acid Methyl Esters Market:
- Rapidly expanding food & beverages industry is one of the growing trends in the global fatty acid methyl esters market and this trend is projected to drive the market in the forecast period. Rapidly expanding food & beverages industry is expected to boost the consumption of fatty acid methyl ester as it is widely used in the food & beverages industry as a thickening and emulsifying agent. Fatty acid methyl ester is mainly used as synthetic additives to processed foods, especially fried foods and baked goods, as it can increase the shelf life and flavor stability of these foods. Thus, growing food industry is expected to boost the global fatty acid methyl ester market growth.
- Increasing number of acquisitions, product launch, and business expansion by key players in the market is expected to drive global fatty acid methyl esters market growth. Key players operating in the global fatty acid methyl ester market are adopting various organic and in organic growth strategies such as new product launches, expansion, collaborations, joint ventures, mergers & acquisitions, strategic alliances, takeover, etc. to increase their business operations and revenues. For instance, in November 2021, (Archer Daniels Midland Company) an American multinational food processing company has announced the acquisition with Deerland Probiotics & Enzymes, a U.S.-based company, which offers services related to health and wellness products. The acquisition will help ADM to build a full-scale global health & wellness business to help meet fast-growing demand for food, beverages, and supplements that enhance health and wellbeing.
- The market is restricted by fluctuating prices of raw materials. Fatty acid methyl ester (FAME) is generally obtained from vegetable oils through transesterification reaction. It is a type of fatty acid ester, produced from an alkali catalyzed reaction of fats, fatty acid esters, and methanol. Soybean, palm oils, sunflower oil, and animal fats are also used as feedstock in the production of fatty acid methyl ester. However, a wide fluctuation in the cultivated areas of these feedstocks often results in fluctuation in the prices and supply of fatty acid methyl ester, which in turn is expected to restrain the market growth during forecast period. The high cost of fatty acid esters and raw material procurement increases the overall production cost of fatty acid methyl ester, which in turn is expected to restrain the market growth.
- On the basis of product type, Methyl Myristate dominated the global fatty acid methyl ester market in 2021, with around 33.67% of market share, in terms of revenue, followed by methyl oleate, methyl caprate, methyl laurate, methyl stearate and others (methyl palmitate, coconut methyl esters, etc.). The growth is attributed to rising demand for Methyl Myristate in various applications such as in preparation of high-density biodiesel. It is also used as intermediate in the manufacturing of emulsifiers, wetting agents, stabilizers, resins, lubricants, plasticizers, textiles, animal feeds.
- Key players operating in the global fatty acid methyl esters market include Acme Synthetic Chemicals, ADM (Archer Daniels Midland Company), Berg + Schmidt GmbH & Co. KG, Cargill, Incorporated, Chemrez Technologies, Inc., CREMER OLEO GmbH & Co. KG, Elevance Renewable Sciences, Inc., Emery Oleochemicals, Godrej Industries Limited, JNJ Oil Industries, Inc., KLK OLEO, Krishi Oil Limited, Mohini Organics Pvt. Ltd., P&G Chemicals, Renewable Energy Group, Inc., Stepan Company, Univar Solutions Inc., Vertec BioSolvents Inc., Victorian Chemical Company Pty Ltd., and Wilmar International Ltd
- These players are constantly engaged in business expansion to gain competitive advantage over other players. For instance, in March 2021, KLK OLEO, a global oleo chemical producer has expanded its business footprint to the Americas with a new sales office at Woodbury, NY, U.S. The company’s new office will oversee the sales and marketing in the U.S., Canada, and South America. It also maintains and builds customer relationships for the KLK OLEO group product portfolio.
Global Fatty Acid Methyl Esters Market - Impact of Coronavirus (COVID-19) Pandemic
- The COVID-19 pandemic has had a negative impact on the global fatty acid methyl esters market. The COVID-19 pandemic continues to wreak havoc on the supply chain of the fatty acid methyl ester industry and has put its resilience and flexibility to test. North American countries such as the U.S. and Canada are prominent markets in terms of both production and consumption of fatty acid methyl ester. The U.S. is most heavily impacted by the COVID-19. The pandemic has slowed the biodiesel manufacturing projects due to labor shortage and disruption in raw material supply. Due to such interruptions to global trade, the projects under construction were delayed, resulting in higher CAPEX for such construction projects, which in turn halted the supply of fatty acid methyl ester. The installations of new manufacturing facilities are severely affected as social distancing, self-isolation, and city-wide lockdowns have forced many manufacturing of fatty acid methyl ester across the world. All these factors have impacted the overall consumption of fatty acid methyl ester across all the countries, which in turn hampered the global fatty acid methyl ester market growth.
- Vegetable Oils
- Animal Fats
- Used Cooking Oils
By Product Type
- Methyl Oleate
- Methyl Laurate
- Methyl Myristate
- Methyl Caprate
- Methyl Stearate
- Others (Methyl Palmitate, Coconut Methyl Esters, etc.)
- Paints & Coatings
- Food Additives
- Detergents & Surfactants
- Lubricants & Metal Working Fluids
- Personal Care & Cosmetics
- Others (Wetting Agents, Plasticizers, etc.)
- North America
- Latin America
- Asia Pacific
- Middle East & Africa