The fatty acid methyl ester market is expected to reach a value of $22.3 billion by 2027 with a CAGR of around 5.
The fatty acid methyl ester market is expected to reach a value of $24.5 billion by 2030 with a CAGR of around 5.45%.
The fatty acid methyl ester market is expected to reap positive results from the North American region where the demand for such fuels due to increased development activities is high. Moreover, the segment by application is expected to contribute maximum towards fatty acid methyl ester market share.
The fatty acid methyl ester market has been gaining recognition in the field of biodiesel and biofuels for a long time and is viewed as a strongly competitive market in the future. The fatty acid methyl ester is a by-product that is produced by the trans-esterification of methanol and fatty acids. Fatty acid methyl esters are also said to be produced from a variety of biosources such as rapeseed, palm oils, soybeans, etc. The biodiesel or biofuel produced from rapeseed is said to have high oil content and it reduces carbon emissions and complete combustion of fuels leaving no residue.
The fatty acid methyl ester market is chemically originated and has been experiencing a major shift in the demand due to extraneous uses of the product in a variety of applications and also as fuels that are more environment-friendly and also cheap. Fatty acid methyl ester market trends have been continuously monitored to explore the various uses of the products and it is viewed that not only as biofuels but these products are also used as lubricants, fuel additives, coatings, metalworking fields, and also as cosmetics and personal care.
The increased environmental awareness related to the carbon emissions and negative impact of other fuels has given rise to the biodiesel and oils produced as by-products of fatty acid methyl ester market which guarantee low carbon emissions and are less toxic which has ultimately led to an increased demand for such fuels.
The novel coronavirus or the Covid 19 pandemic has negatively impacted the fatty acid methyl ester industry since the demand for the end-use consumer products have declined that has created a negative impact on the fatty acid methyl ester industry and the fatty acid methyl ester companies have faced shortages in personnel, accumulated stocks, and forced shutdowns. Due to the lockdowns in various countries, the demand for fatty acid methyl ester products in various industries which were earlier using it for lubrication, coatings, metalworking, etc. have reduced thus creating an imbalance between demand-supply relationship.
Due to the Covid 19 effect, it has been observed that a large number of producers have been forced to shut down their production units and lay off employees but it is assumed that the market will soon pick up the pace and the demand would increase. It is expected that the post-lockdown period would be a great success for the fatty acid methyl ester market revenue. It is also analyzed that every segment would be contributing significantly towards the growth of fatty acid methyl ester market value.
The competitive landscape in terms of the fatty acid methyl ester market has been immense and nail-biting with new players easily entering the market and the existing players making huge investments in this segment.
The key players in the market are more focused on developing future strategies and set themselves as joint ventures to increase the fatty acid methyl ester market share and size.
The fatty acid methyl ester market has been experiencing a diversified growth in all segments and across different regions due to the rising populations and the increasing per capita incomes of people which has shifted the demands of people to highly sophisticated and technologically advanced products and equipment which have acted as a motivating factor to the fatty acid methyl ester market.
The second and the most important factor driving the fatty acid methyl ester market growth is the depletion of various fossil fuels which has created a market for other substitutes and biodiesel and biofuels manufactured as by-products from the fatty acid methyl ester market segments. This has provided a major boost to the market revenue of such products.
The overall growth in the fatty acid methyl ester market has been expediently rising but certain factors hinder the growth process of the market which include large sums of money to be invested initially in setting up of fatty acid methyl ester companies and thus it restricts various new players to enter the markets.
Additionally, it has also been viewed that the insufficient supply of raw materials has also posed a challenge to the fatty acid methyl ester industry since this market is a wholly chemical process based market and any delay of any sort in the supply of raw materials would diminish the market share and create a demand-supply imbalance.
Also, the cost of manufacturing and operational costs associated with the production of biofuels and other lubricants as by-products from the oils is a highly costly process since it requires highly skilled people, developed infrastructure, and logistics and thus acts as a barrier in the long run.
The fatty acid methyl ester market has originated in itself as a chemically processed and technologically oriented industry where oils are trans-esterified to obtain by-products which are then used in various other industries such as the automobile industry, food processing industry, or as biofuels and others. This process involves the use of technologically advanced logistics and systems to extract oils from raw materials.
In recent times a new methodology has been adopted by manufacturers to increase the production of biofuels based on the treatment of the fatty acid methyl esters which involve the usage of chromatography and molecular spectroscopy. This process involves using infrared FTIR spectroscopy and to extract oils that can be used in the industrial process from various food oils and also from animal wastes present in slaughterhouses. Thus, an improving technology which helps in reducing waste and increasing production.
Segment Overview: The fatty acid methyl ester market has been segmented as follows:
The global fatty acid methyl ester market has been divided into four regions where each region has been contributing significantly in terms of its capabilities and population demands. However, among the four regions, the Asia Pacific region has been accounting for the major fatty acid methyl ester market share whereby the key drivers towards the growth of the fatty acid methyl ester industry are developed here, and the population seems to be quite interested in the innovations in terms of new products in the market.
The major fatty acid methyl ester market revenue is expected to come from countries like China, Japan, Korea, and India. The fatty acid methyl ester statistics indicate that the population along with the disposable incomes of people of these countries has been increasing which has led to shifts in lifestyles and changing demands.
The European region has also been experiencing major growth with contributions coming from developed nations such as France, Germany, Denmark, Belgium, etc. . The North American region is also experiencing vast growth in fatty acid methyl ester market shares as the countries in this region have been reaping the benefits of technology thereby maximizing the level of operations and reducing operational cost.
The Global report helps the investors to gain meaningful information about the fatty acid methyl ester market and make decisions wisely. The report discusses the steps taken by the fatty acid methyl ester market leaders to boost the market growth and inflate market valuation for their good. The report fully summarises the ongoing market scenario in the fatty acid methyl ester market which would help the intended audience to seek more information about the market. The objective of the report was to fully summarise the key players in the market and their role in boosting the fatty acid methyl ester market value. The report also discusses the future growth prospects and the competitive landscape in the fatty acid methyl ester industry and lays down the expected growth rate of the market along with the hindrances it might have to face.
|Market Size||USD 24.5 billion|
|Forecast Period||2021 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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), and Alnor Oil Co. Inc. (U.S.), and others.|
|Key Market Opportunities||Surging environmental concerns pertaining to the use of conventional and polluting crude oil-based liquid fuels|
|Key Market Drivers||Growing use and demand for FAME as an alternative to mineral oil derived fuel is the primary factor driving the growth|
The Asia-Pacific region is expected to have a high growth rate and market share in the fatty acid methyl ester market.
The key manufacturers who hold a dominant position in the fatty acid methyl ester market are. BASF S.E. (Germany), Archer Daniels Midland Company (ADM) (U.S.), Cargill Inc. (U.S.), Wilmar International Limited (Singapore), and Procter & Gamble (Singapore)
The segment by applications is expected to provide maximum growth due to its wide uses in a variety of manufacturing processes.
The expected growth rate of the fatty acid methyl ester market is estimated to be 5.45% by 2030.