Fatty amides are also known as fatty acids, such as stearic acid, uric acid, and oleic acid. They are widely used as anti-blocking agent in the polyolefin industries and offer a range of benefits and value-added properties. Fatty amides are mainly used in the manufacturing of inks and dyes. Moreover, fatty amides are also used to manufacture magnets and thermoplastic resins. They are also used to produce plastic and films for packaging goods especially food products. Food and beverages, personal care, and plastic and rubber is some of the major end-user of fatty amides.
The global fatty amides market was estimated to be valued more than US$ 250 million in terms of revenue in 2018 and is predicted to grow at a CAGR of 6.2% during the forecast period (2019 to 2027)
Growing demand for polyolefin films & sheet is propelling the market growth of fatty amides. Fatty amides, such as stearamide behenamide, oleamide, and erucamide are used as slip agents and anti-block agents in the production of polyolefin films and sheets which are further used in the packaging of food products. Moreover, rising demand for fatty amides in the flexographic and gravure ink formulations are further estimated to foster the market growth of fatty amides.
Growing disposable income of people and busy lifestyle is encouraging them to spend on packaged food and beverage and this is expected to propel the demand for packaged food. This factor is anticipated to accelerate the market growth of fatty amides over the forecast timeframe. According to United States Department of Agriculture Economic Research Service, in 2018, U.S. consumers, businesses, and government entities spent US$ 1.71 trillion on food and beverages in grocery stores and other retailers and on away-from-home meals and snacks.
Increasing focus of manufacturers to introduce alternative of fatty amides is anticipated to hamper the market growth of fatty amides. For instance, in January 2020, Croda Inc. announced the launch of Incroslip SL. Incroslip SL is a cutting edge slip additive technology specially developed as a high slip additive with superior stability for use where traditional slip additives, such as erucamide and oleamide are unable to give the desired performance.
On the basis of form, beads & micro-beads segment dominated the global fatty amides market in 2018 with around 61% of market share in terms of revenue, followed by powder and pastilles, respectively.
Rising focus of manufacturer to expand the production facility of fatty amides in order to meet the growing demand around the globe is expected to foster market growth over the forecast period. For instance, in February 2017, PMC Biogenix, a wholly owned subsidiary of PMC Group, announced that it has expanded its production capacity for long-chain fatty acid intermediates in Memphis, TN to support its recent expansions in fatty amide slip agent production. This expansion supports PMC’s expansion in fatty amides capacity at its Gyeongju, South Korea facility.
Growing distribution agreement among key players in order to enhance the distribution channel is projected to augment the market growth of fatty amides. For instance, in February 2018, Sukano, a world leader in the development and production of additive and color masterbatches and compounds for polyester and specialty resins, announced that they have reached an agreement with Austral Chemicals to become Sukano’s exclusive distributor in Chile. This partnership will, therefore, offer Austral to pursue sustainable growth in the Chilean packaging industry.
Key players active in the global fatty amides market are Croda International Plc., PMC Biogenix Inc., Fine Organic Industries Pvt. Ltd., Nippon Fine Chemicals Co., Ltd., Kao Corporation, Italmatch Chemicals S.p.A, Sichuan Tianyu Oleochemical Co., Ltd., Nippon Kasei Chemical Co., Ltd., and Haihang Industries Co. Ltd.
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