Fatty Acid Methyl Ester Market

Rising demand for biodiesel will propel the market growth

In this context, methyl esters of vegetable oils known as biodiesel and ethyl alcohol are gaining popularity as alternative fuels for car engines. It is expected that the scale of production and consumption of this fuel will continue to expand as a result of rising demand for diesel fuels and flat demand for spark-ignition engine fuels. Currently, up to 7% fatty acid methyl esters are added to normal diesel fuel. Furthermore, its usage in its purest form is increasing. This aspect will propel the fatty acid methyl esters market over the forecast period.

In addition, because it contains low Volatile Organic Compounds and is easily biodegradable, fatty acid methyl ester is becoming more popular as a green solvent. Furthermore, it is utilized in the leather chemical business to create a leather fat liquoring agent, which is a great textile detergent. Growing detergent consumption is predicted to coincide with market growth in the next years. Its other properties, including as exceptional lubricity, superior solubility in organic solvents, and high boiling points, are enhancing its appeal in a variety of end-use sectors. These factors will drive market expansion during the forecast period.

For instance, the government of India plans to blend 5% biodiesel by 2022, which is expected to drive the consumption of fatty acid methyl ester over the forecast period, according to the National Policy on Bictuels. Furthermore, fatty acid methyl ester-based biodiesel is more efficient and performs better than mineral-based biodiesels. Thus, driving the fatty acid methyl ester (FAME) market revenue.

The Global Fatty Acid Methyl Ester (FAME) Market Industry is experiencing a notable increase in demand for biofuels, driven by the global shift towards renewable energy sources. Governments worldwide are implementing policies to promote biofuel usage, which is expected to contribute to the market's growth. In 2024, the market is projected to reach 17.9 USD Billion, reflecting the growing acceptance of FAME as a sustainable alternative to fossil fuels. This trend is likely to continue, with the market anticipated to expand further as countries strive to meet their renewable energy targets.

The rising awareness of health benefits associated with fatty acid methyl esters is positively impacting the Global Fatty Acid Methyl Ester (FAME) Market Industry. FAME, being a source of omega fatty acids, is gaining traction in the food and dietary supplement sectors. As consumers become more health-conscious, the demand for products containing FAME is likely to increase. This trend not only supports market growth but also encourages manufacturers to innovate and diversify their product offerings. The growing emphasis on health and wellness is expected to further enhance the market's expansion.

The versatility of fatty acid methyl esters is driving their adoption across various industries, including automotive, cosmetics, and pharmaceuticals, thereby influencing the Global Fatty Acid Methyl Ester (FAME) Market Industry. In the automotive sector, FAME is increasingly used as a biodiesel blend, while in cosmetics, it serves as an emollient and surfactant. This broad applicability enhances market resilience and opens new avenues for growth. As industries continue to seek sustainable and eco-friendly alternatives, the demand for FAME is expected to rise, further solidifying its market position.

Technological advancements in the production processes of fatty acid methyl esters are propelling the Global Fatty Acid Methyl Ester (FAME) Market Industry forward. Innovations such as improved transesterification methods and the utilization of waste feedstocks are enhancing production efficiency and reducing costs. These developments not only make FAME more competitive against traditional fuels but also align with sustainability goals. As production technologies evolve, the market is likely to witness a compound annual growth rate (CAGR) of 4.54% from 2025 to 2035, indicating robust growth prospects.

Increasing environmental regulations and sustainability initiatives are significantly influencing the Global Fatty Acid Methyl Ester (FAME) Market Industry. As nations enforce stricter emissions standards, industries are compelled to adopt cleaner alternatives, such as FAME, which is derived from renewable resources. This regulatory landscape fosters innovation and investment in biofuel technologies, enhancing the market's attractiveness. The anticipated growth trajectory suggests that by 2035, the market could reach 29.1 USD Billion, underscoring the potential for FAME to play a crucial role in reducing greenhouse gas emissions.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America is predicted to increase significantly during the projection period, owing mostly to strong demand from end-use industries in the United States. High demand for personal care products is projected to drive regional fatty acid methyl ester market expansion.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: FATTY ACID METHYL ESTER (FAME) MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s fatty acid methyl ester (FAME) marketaccounts for the second-largest market share due to  increase in foreign direct investment for economic development Further, the German fatty acid methyl ester (FAME) market held the largest market share, and the UK fatty acid methyl ester (FAME) market was the fastest growing market in the European region

The Asia-Pacific Fatty Acid Methyl Ester (FAME) Marketis expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising need to control environmental pollution and restrict emissions have been observed in the region. Moreover, China’s fatty acid methyl ester (FAME) market held the largest market share, and the Indianfatty acid methyl ester (FAME) market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in R&D to expand their product lines, which will help the fatty acid methyl ester (FAME) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, fatty acid methyl ester (FAME)industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the fatty acid methyl ester (FAME) industry to benefit clients and increase the market sector. In recent years, the fatty acid methyl ester (FAME) industry has offered some of the most significant advantages to medicine. Major players in the fatty acid methyl ester (FAME) market, including Cargill Inc. (US.), Wilmar International Limited (Singapore), Procter Gamble (Singapore), Emery Oleochemicals Group (Malaysia) and others, are attempting to increase market demand by investing in R&D operations.

Emery Oleochemicals is a multinational oleochemical corporation. Emery has manufacturing sites in the United States, Germany, and Malaysia. Its products are used in a variety of industries, including agricultural, heavy industry, and consumer goods. The company is a 50:50 joint venture between Thailand's PTT Chemical and Malaysia's Sime Darby Plantation. Emery's history dates back to 1840, when Thomas Emery Sr. began converting leftover fat from meat producers in Cincinnati, Ohio, USA, into candles and lamp oil. The Emery Candle Company was founded in the United States of America in 1887.

The firm was renamed Emery Industries after it expanded and diversified under the leadership of John J. "Jack" Emery, Jr. (grandson of founder Thomas Emery). In September 2020, Emery Oleochemicals introduced EMERY E, which is a range of general purpose fatty acid esters. The launch was aimed at expanding its portfolio of sustainable solutions and offering alternative to petrochemical-based materials with high performance and efficiency.

PT Pertamina (Persero) is a Jakarta-based Indonesian state-owned oil and gas firm. It was formed in August 1968 by the combination of Pertamin (founded in 1961) and Permina (founded in 1957). In 2020, the company ranked third in Indonesian crude oil production, trailing ExxonMobil's Mobil Cepu Ltd and Chevron Pacific Indonesia. Pertamina was included in the Fortune 500 list of corporations for the first time in 2013, ranking 122 with revenues of $70.9 billion[4]. It was also the only Indonesian company to be included in the list.

Pertamina is the largest corporation in Indonesia, according to the 2020 Fortune list. In May 2020, Pertamina is introducing engine oil compatible with 20% biodiesel blends in it. The 20% biodiesel mix is finally implemented, the state-owned oil and gas company expects as much as 5.14 million kiloliters of fatty acid methyl esters (FAME) will be used to blend with petroleum diesel fuel. Pertamina has prepared 63 fuel terminals in 31 cities to store diesel fuel and serve as distribution points to support Indonesia’s mandatory biodiesel program.