Fatty Acid Methyl Ester (FAME) Market Research Report – Forecast to 2030

Fatty Acid Methyl Ester (FAME) Market Information: By Type (Medium Chain Triglyceride, Isopropyl Palmitate, Glyceryl Monostearate), Applications (Fuel, Lubricant, Metalworking Fluids, Coatings, Cosmetics & Personal Care), Region - Forecast till 2030

ID: MRFR/CnM/4711-HCR | January 2023 | Region: Global | 100 Pages         

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Fatty Acid Methyl Ester (FAME) Market

The fatty acid methyl ester market is expected to reach a value of $22.3 billion by 2027 with a CAGR of around 5.

Segmentation
By Type Medium Chain Triglyceride Isopropyl Palmitate Glyceryl Monostearate
By Application Fuel Lubricant Metalworking Fluids Coatings Cosmetics Personal Care
Key Players
Companies Profiled   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.)
Drivers
Market Driving Forces    Growing use and demand for FAME as an alternative to mineral oil derived fuel is the primary factor driving the growth
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Fatty Acid Methyl Ester (FAME) Market Overview:


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.


COVID 19 Analysis:


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.


Competitive Landscape:


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.



  • 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.) 


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.


MARKET DYNAMICS


Drivers:


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.


Restraints:


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.


Technology Analysis:


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.


Study Objectives:




  • To analyze the trends that are prevalent in the global fatty acid methyl ester market regions and players that will dominate the global trends and lead the fatty acid methyl ester market operations towards growth figures that have been predicted by the prominent leaders in the international market and key experts for the ongoing forecast period that ends in 2028. 



  • To understand the scale of functioning of the global fatty acid methyl ester market segments that are prevalent through their ability to meet the vibrant needs of the target audience for fatty acid methyl ester market products and services in major mushrooming regions across the globe for the period.



  • To draw a competitive scale amongst the global fatty acid methyl ester market players and to understand the recent developments of the key market players in the recent past that promise great results to the market for the ongoing forecast period and fatty acid methyl ester market trends that end in 2028.


Segment Overview: The fatty acid methyl ester  market has been segmented as follows:


By Type:                




  • Rapeseed methyl ester              


  • Soy methyl ester            


  • Palm oil methyl ester          

  • Others


  By Application:



  • Fuels

  • Lubricants

  • Coatings

  • Metal Working Fluids

  • Food & Agriculture

  • Others


               By Region:



  • North America

  • Europe

  • Asia-Pacific

  • Latin America


  • Middle East & Africa 


Regional Analysis


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.


Recent Developments:


Jan 2022  - Indonesia's energy ministry plans to begin road tests for a biodiesel project focusing on 40% palm-based bio-content in February (B40). The world's leading oil producer instructed that biodiesel distributed in the country be blended with 30% palm-based biodiesel to reduce power imports and stimulate palm oil consumption. The energy ministry plans to test two types of B40 blending: one that combines 30% fatty acid methyl ether and 10% distilled palm methyl ester, and another one that has 30% FAME and 10% palm-based diesel, dubbed green diesel. The government planned to implement the B40 project between 2021 and 2022, but the premium cost of vegetable oil made it unaffordable. B40 was likely to be deferred beyond this year , according to the Indonesian Palm Oil Association (GAPKI).Jan 2022 - Before the end of March, Laing O'Rourke wants to replace red diesel in its plant equipment with hydrotreated vegetable oil (HVO). Laing O'Rourke's decision to join the HVO exodus comes after six months of testing at its plant companies Select Plant Hire and Explore Plant & Equipment. Laing O'Rourke, on the other hand, sees HVO as a "transition fuel" as it works toward a plant fleet consisting completely of electric and hydrogen-powered machinery. HVO is more stable and easier to transport and store than mineral types of diesel and other biofuels, according to sources, because it contains no FAME (fatty acid methyl ester). The use of red diesel in plant equipment is currently the company's greatest single source of direct emissions, accounting for 39 percent of total emissions. The conversion to HVO will lower greenhouse gas emissions from the plant by up to 90%.Recently, ABITEC corp. A major producer of fatty acid methyl esters has announced its acquisition of Larodan AB which is an international manufacturer and producer of high-grade lipids, thus creating a market for itself.In recent times, in the USA a new technique of producing fatty acid methyl esters and its esterification has been developed which involves the usage of catalysts for the treatment of feedstock, also known as Green chemistry to develop biofuels with zero carbon emissions and minimal wastage. 

Report Overview:  


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.



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 24.5 billion
  CAGR   CAGR 5.45%
  Base Year   2021
  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


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Frequently Asked Questions (FAQ) :

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.