ID: MRFR/F-B & N/1823-HCR | 135 Pages | Published By Pradeep Nandi on April 2023
Fatty Acid Market is expected to be worth USD 33.68 billion By 2030, growing at a 5.73% CAGR from 2022 to 2030.
Fatty Acid Market Size was prized at USD 23.2 billion in 2022. The fatty acid market industry is projected to grow from USD 24.5 Billion in 2023 to USD 34.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.73% during the forecast period (2023 - 2030). The increasing usage of fatty acids in pharmaceutical and nutraceutical goods and in household and industrial cleaning are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Fatty Acid Market Trends
Fatty acids can be found in a variety of cleaning supplies for the home, including soaps, detergents, bleaches, and cleaners. Some fatty acids utilized in soap and detergent formulations include lauric, myristic, palmitic, stearic, ricinoleic, oleic, linoleic, and linolenic acids. The sodium salts of fatty acids, produced from triglycerides or hydrolyzed fatty acids, make up about 70–85% of natural herbal soap bars. The market value of the European household care, professional cleaning, and hygiene sectors was predicted by the International Association for Soaps, Detergents, and Maintenance Products (A.I.S.E.) to be US$ 47.1 billion in 2020. Therefore, the growing awareness regarding personal hygiene has enhanced the fatty acid market CAGR ly in recent years.
Omega fatty acid supplements are used more frequently due to growing health consciousness. Fish oils are rich in omega fatty acids, essential components for the human body. Omega-3 supplements can be used as dietary supplements or therapeutic supplements and can aid in the relief of rheumatoid arthritis symptoms. The usage of Omega-3 and Omega-6 fatty acids aids in the prevention and treatment of diseases, enhances cardiovascular health, encourages a healthy metabolism, lessens joint pain and inflammation, improves brain function, etc. The World Health Organization (WHO) estimates that 17.9 million individuals worldwide die yearly due to cardiovascular illnesses. Therefore, the market for fatty acids is anticipated to be driven by growing awareness of health issues, particularly heart ailments. Thus, the increasing sales of fatty acids supplement is another factor driving the growth of the fatty acid market revenue.
Fatty Acid Market Segment Insights
Fatty Acid Source Insights
The fatty acid market segmentation, based on source, includes animal sources and plant sources. Animal-based fatty acids dominated the market with respect to the fatty acid market revenue. This is due to the high concentrations of DHA, and EPA omega-3s found in fish liver oil, oily or fatty fish, and marine microorganisms like krill and algae. Salmon, pollock, tuna, and mackerel are foods high in omega-3 fatty acids suitable for human consumption. Additionally, plant-based fatty acid witness significant growth. Since soybean, safflower, sunflower, cotton, and corn seeds are abundant sources of omega-3, there is an increasing demand for vegetable oils made from their seeds ly.
April 2022: DSM has introduced two new high-quality lipid powders for newborn nutrition: DHASCO®-B and ARASCO® powders, each containing at least 110 mg/g DHA (docosahexaenoic acid) or ARA (arachidonic acid). These powders comprise vegetarian DHA omega-3 and ARA omega-6 sources that are safe and acceptable for use in infant and follow-up formulae and growing-up milk products. This introduction has further broadened the growth opportunity for the fatty acid industry.
Fatty Acid Type Insights
The fatty acid market data has been bifurcated by type into saturated, monounsaturated, and polyunsaturated. In 2022, polyunsaturated fatty acids saw major growth in the fatty acid market. The sector is expanding as a result of factors like an increase in cardiovascular disorders, growing public knowledge of the health advantages of PUFAs, and rising consumption of goods containing omega-3 fatty acids.
Figure 1: Fatty Acid Market by Type, 2022 & 2030 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the fatty acid industry is the saturated type. The penetration of saturated type continues to increase among several end-use applications. This is because unsaturated fatty acids have a relatively low melting point, which shortens their shelf life and decreases their heat stability. Hence, rising applications of saturated fats for fatty acids positively impact the market growth.
Fatty Acid Application Insights
Based on application, the fatty acid industry has been segmented into food & beverages, animal feed, pharmaceuticals & nutraceuticals, personal care, and others. The largest growing application category on the market is food & beverages. Customers in North America and Europe's developed markets emphasize health management with food products like dietary supplements. The pharmaceuticals industry's increasing use of medicines due to their quality for nourishing the scalp is predicted to drive the pharmaceuticals segment's significant expansion throughout the forecast period.
Fatty Acid Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Fatty Acid market accounted for USD 10.6 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Product consumption in North America is anticipated to increase due to rising demand from several end-use industries, including domestic cleaning, pharmaceuticals, and food & beverage. One of the main users of fatty acids is the United States. The US market is shifting from refined 18:12 oils to concentrates and other products.
Further, the major countries studied in the market report are Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: FATTY ACID MARKET SHARE BY REGION 2022 (%)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Asia-Pacific fatty acid market accounts for the second-largest market share. One of the main factors boosting the market expansion for fatty acids in the Asia Pacific area is the existence of a sizable population coupled with the rising usage of cleaning goods like soaps and detergents. In the Indian FMCG industry, making soap is one of the key operations, accounting for more than 50% of the consumer goods sector, according to an article published by IndianMirror. Moreover, China’s fatty acid market held the largest market share, and India's fatty acid market was the fastest-growing market in the Asia-Pacific region.
The Europe Fatty Acid Market is expected to grow at the fastest CAGR from 2022 to 2030. The region's booming pharmaceutical and cosmetic sectors are one reason for the region's predicted growth in the upcoming years. Customers in Europe and South America are becoming more aware of the health advantages of polyunsaturated fatty acids, which has increased the demand for nutritional supplements and functional foods that contain these fats. Further, the German fatty acid market held the largest market share, and the UK fatty acid market was the fastest-growing market in the European region.
Fatty Acid Key Market Players & Competitive Insights
Major market players are investing huge amounts of money in R&D to expand their product offerings, which will spur further growth in the fatty acid market. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic initiatives to expand their footprint. To grow and thrive in a fierce climate of competition, and the market is growing, competitors in the fatty acid industry must provide affordable products.
One of the primary business strategies manufacturers use in the fatty acid industry to assist customers and expand the market sector is local manufacturing to reduce operating costs. The fatty acid industry has recently given medicine some of the most important advantages. The fatty acid market's major players include Godrej Industries (India), BASF SE (Germany), WujiangJinyu Lanolin Co. (China), Ferro Corporation (US), and others who are supporting R&D initiatives to boost market demand.
Neptune Wellness Solutions, Inc. is a wellness firm that sells nutraceuticals, organic food and beverages, and consumer packaged goods to retail and business consumers. The company focuses on establishing a portfolio of high-quality, affordable consumer products that match the most recent market trends for natural, sustainable, plant-based, and purpose-driven lifestyle brands. In July 2021, Neptune Wellness Solutions Inc., a diverse and fully integrated health and wellness corporation focused on plant-based, sustainable, and purpose-driven lifestyle products, launched Forest Remedies' plant-based Multi Omega 3-6-9 gummies and soft gels featuring Ahiflower as a key ingredient.
Also, Kraton Corporation is a leader in producing specialty polymers and high-value biobased products produced from co-products of pine wood pulping. Kraton polymers are utilized in various applications, such as adhesives, coatings, consumer and personal care goods, sealants and lubricants, medical, packaging, automotive, paving, and roofing. In August 2022, Kraton Chemical LLC/Kraton Chemical Products Shanghai Co. Ltd (Kraton) chose premier chemical distributor Redox Ltd (Redox) as a channel partner in Australia and New Zealand for its Tall Oil Fatty Acid and Ink Polyamides ranges.
Key Companies in the fatty acid market include
Fatty Acid Industry Developments
September 2021: Vantage OleochemicalsTM, a division of Vantage Specialty ChemicalsTM, has announced a $0.06 per pound price increase for all grades of tallow oleic fatty acids beginning October 1, 2021. The price hike is backed by high demand in all domestic and international markets. Vantage's world-class oleochemicals factory is in Chicago and is one of North America's largest state-of-the-art oleochemical operators.
July 2020: Croda, a specialty chemicals firm based in the United Kingdom, paid an unknown sum for Avanti Polar Lipids. Avanti's acquisition joins Croda's to broaden life sciences products, pharmaceutical services, and cGMP production capabilities for worldwide biotechnology, pharmaceutical, and life science research customers. Avanti Polar Lipids is a biotechnology business established in the United States.
Fatty Acid Market Segmentation
Fatty Acid Source Outlook
Fatty Acid Type Outlook
Fatty Acid Application Outlook
Fatty Acid Regional Outlook
|Market Size 2022||USD 23.2 billion|
|Market Size 2023||USD 24.5 billion|
|Market Size 2030||USD 34.2 billion|
|Compound Annual Growth Rate (CAGR)||5.73% (2023-2030)|
|Market Forecast Period||2023-2030|
|Historical Data||2019 - 2021|
|Market Forecast Units||Value (USD Billion)|
|Report Coverage||Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends|
|Segments Covered||Source, Type, and Application|
|Geographies Covered||Europe, Asia Pacific, North America, and Rest of the World|
|Countries Covered||Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Godrej Industries (India), BASF SE (Germany), WujiangJinyu Lanolin Co. (China), and Ferro Corporation (US).|
|Key Market Opportunities||· High demand from the cosmetic industry|
|Key Market Dynamics||· Rising awareness of the health benefits of polyunsaturated fatty acids (PUFA) will aid market growth · Growing usage of omega-3 and omega-6 fatty acids|
The fatty acid market size was prized at USD 23.2 Billion in 2022.
The market is expected to increase at a CAGR of 5.73% between 2022 and 2030.
North America had the major share of the market.
The key players in the market are Godrej Industries (India), BASF SE (Germany), WujiangJinyu Lanolin Co. (China), and Ferro Corporation (US).
The animal-based fatty acid dominated the market in 2022.
Polyunsaturated fatty acids had the largest share in the market.