Global Fatty Acid Methyl Ester (FAME) Market Overview
Fatty Acid Methyl Ester (FAME) Market Size was valued at USD 16.2 billion in 2022. The fatty acid methyl ester (FAME) industry is projected to grow from USD 17.0 Billion in 2023 to USD 25.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2023 - 2032). Growing use and demand for FAME as a mineral oil substitute, as well as an increase in industrialization are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Fatty Acid Methyl Ester (FAME) Market Trends
Rising demand for biodiesel will propel the market growth
Rising demand for biodiesel drives the market CAGR for Fatty Acid Methyl Ester (FAME). The main component of biodiesel is fatty acid methyl ester. Growing environmental concerns about the usage of fossil fuel products that increase pollution levels and contain harmful volatile organic compounds are having a big impact on the market for biodiesel, which can be an environmentally beneficial substitute for fossil fuel. The use of biofuels is justified by agricultural policy decisions, the need to increase environmental protection, and the hunt for alternative energy sources. 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.
Fatty Acid Methyl Ester (FAME) Market Segment Insights
Fatty Acid Methyl Ester (FAME) Type Insights
The fatty acid methyl ester (FAME) market segmentation, based on type includes medium chain triglyceride, isopropyl palmitate, glyceryl monostearate. The growing usage of medium-chain triglycerides in the food industry caused them to become the dominant segment. Due to its expanding use as an emulsifier in confections and baking preparations, glyceryl monostearate is predicted to experience significant expansion.
Figure1: Fatty Acid Methyl Ester (FAME) Market, by Type, 2022 & 2032 (USD billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Fatty Acid Methyl Ester (FAME) Application Insights
The fatty acid methyl ester (FAME) market segmentation, based on application, includes fuel, lubricant, metalworking fluids, coatings, cosmetics personal care. The fuel category is also the fastest-growing, with the greatest CAGR in the projected period, followed by the lubricant segment, which is expected to increase at the second-fastest rate. The biofuels sector adopted Fatty Acid Methyl Ester because its physical qualities are more similar to that of fossil fuel diesel fuels than other vegetable oils. The market is seeing increased prospects as a result of expanding demand for bio-based raw materials in novel applications such as polymer manufacture.
Fatty Acid Methyl Ester (FAME) Regional Insights
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, MRFR 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.
Fatty Acid Methyl Ester (FAME) Key Market Players& Competitive Insights
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. 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.
Key Companies in the fatty acid methyl ester (FAME)market include
BASF S.E. (Germany)
Archer Daniels Midland Company (ADM) (U.S.)
Cargill Inc. (U.S.)
Wilmar International Limited (Singapore)
Procter & Gamble (Singapore)
Emery Oleochemicals Group (Malaysia)
Evonik Industries AG (Germany)
KLK Oleo (Malaysia)
Longyan Zhuoyue New Energy Co Ltd. (China)
Alnor Oil Co. Inc. (U.S.)
Fatty Acid Methyl Ester (FAME) Industry Developments
In December 2019, Cargill's chemical market has announced the acquisition of performance technologies and industrial chemicals. Cargill's bio-industrial business would be expanded as a result of the acquisition, allowing it to better offer industrial firms seeking greener ingredient solutions. This acquisition would also aid in the expansion of Cargill's chemical industry.
In February 2022, Indonesia's energy ministry plans to start road tests for a biodiesel project focusing on 40% palm-based bio-content (B40). To reduce power imports and stimulate palm oil consumption, the world's leading oil producer directed that biodiesel distributed in the country be blended with 30% palm-based biodiesel. The energy ministry intends to test two types of B40 blends: one with 30% fatty acid methyl ether and 10% distilled palm methyl ester and another with 30% FAME and 10% palm-based diesel, dubbed green diesel.
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.
Fatty Acid Methyl Ester (FAME) Market Segmentation
Fatty Acid Methyl Ester (FAME) Market Type Outlook
Fatty Acid Methyl Ester (FAME) Market Application Outlook
Cosmetics Personal Care
Fatty Acid Methyl Ester (FAME) Regional Outlook
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Latin America
|Market Size 2022
||USD 16.2 billion
|Market Size 2023
||USD 17.0 billion
|Market Size 2032
||USD 25.5 billion
|Compound Annual Growth Rate (CAGR)
|Market Forecast Period
|Market Forecast Units
||Value (USD Billion)
||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
||Type, application, and Region
||North America, Europe, Asia Pacific, and the Rest of the World
||The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
|Key Companies Profiled
|| BASF SE. (Germany), Archer Daniels Midland Company (ADM) (U.S.), Cargill Inc. (US.), Wilmar International Limited (Singapore), Procter Gamble (Singapore), Emery Oleochemicals Group (Malaysia), Evonik Industries AG (Germany), KLK Oleo (Malaysia), Longyan Zhuoyue New Energy Co. Ltd. (China), and Alnor Oil Co. Inc. (U.S.), and others.
|Key Market Opportunities
||Concerns about the use of conventional and polluting crude oil-based liquid fuels are on the rise.
|Key Market Dynamics
||Increasing use and demand for FAME as an alternative to mineral oil derived fuel.
Frequently Asked Questions (FAQ) :
The fatty acid methyl ester (FAME) market size was valued at USD 16.2 Billion in 2022
The market is projected to grow at a CAGR of 5.20% during the forecast period, 2023-2032
North America had the largest share in the market
The key players in the market are Procter Gamble (Singapore), Emery Oleochemicals Group (Malaysia), Evonik Industries AG (Germany), KLK Oleo (Malaysia), Alnor Oil Co. Inc. (U.S.)
The fuel application category dominated the market in 2022
The medium-chain triglycerides had the largest share in the market
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