Fatty Acid Ester Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 3.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fatty Acid Ester Market Analysis
The Fatty Acid Ester Market size is estimated at 1.84 Million tons in 2024, and is expected to reach 2.07 Million tons by 2029, growing at a CAGR of less than 3% during the forecast period (2024-2029).
- The major factors driving the fatty acid ester market are a growing preference for biodiesels and a rising demand for personal care products.
- On the other hand, performance limitations associated with fatty acid esters are likely to hamper the market's growth during the forecast period.
- Emerging applications and recycling of fatty acid esters are likely to act as opportunities for the market studied in the coming years.
- Asia-Pacific is expected to be the largest and fastest-growing market, registering the highest CAGR during the forecast period.
Fatty Acid Ester Market Trends
Increasing Demand for Fatty Acid Ester from Biofuel Applications
- Biodiesel produces a higher level of toxic pollutants and greenhouse gases than petroleum diesel. It is made from a wide range of renewable sources, such as fatty acid esters. Some of the commonly used renewable sources are fatty acid methyl and ethyl esters.
- These fatty acid esters can be utilized in their pure form or blended with petroleum diesel. Blends include B2 (2% biodiesel, 98% petroleum diesel), B5 (5% biodiesel, 95% petroleum diesel), and larger concentrations like B20 and B100. Notably, large trucking companies often use biodiesel in its purest form, B100.
- According to the United States Energy Information Administration, biodiesel production in the United States reached approximately 1.7 billion gallons in 2023.
- At the same time, Brazil emerged as South America's leading biofuel producer. In 2023, daily oil production hit 455 thousand barrels, marking an 18.5% rise, according to the Energy Institute's Statistical Review of World Energy.
- In response to rising biodiesel demand, companies are ramping up production capacities. For example, Binatural, a prominent Brazilian biodiesel producer, announced plans in December 2023 to boost its annual output by 20%, targeting 650 million liters per annum by the end of 2026.
- These developments indicate a robust demand for various kinds of fatty acid esters in biofuel production.
Asia-Pacific Projected to Dominate the Market
- Asia-Pacific is the biggest market for fatty acid esters (FAEs) owing to the huge demand for biofuels, synthetic lubricants, and other applications.
- As per the 2024 Statistical Review of World Energy, Asia-Pacific emerged as the dominant biodiesel producer. In 2023, the region accounted for over 33% of global biodiesel output, churning out approximately 320,000 barrels daily, up from 290,000 barrels in 2022.
- Fatty acid esters are also used in the production of synthetic lubricants such as greases, hydraulic fluids, and others.
- In recent times, various companies have invested in setting up production plants to meet the growing demand for various lubricants in India. For instance, in March 2023, Exxon Mobil announced the investment of USD 110 million in setting up a lubricant production plant in Mumbai, India. The plant is expected to be operational by the end of 2025 and will have a production capacity of 159,000 kilotons of finished lubricants every year.
- In May 2024, Kluber Lubrication, another global manufacturer of lubricants, announced an investment of EUR 15.6 million (USD 17.20 million) in expanding its lubricant manufacturing plant in Mysore, India.
- In March 2024, Shell Indonesia announced that it would set up its first grease manufacturing plant in India. The plant is expected to have a production capacity of 12 kilotons of grease every year and will produce grease products under the trademark of Shell Gadus, which are used in applications such as bearings and gears.
- Such investments are expected to have a positive impact on the consumption of fatty acid esters in Asia-Pacific.
Fatty Acid Ester Industry Overview
The fatty acid ester market is fragmented in nature, with only a few major players dominating it. Some of the major companies (not in a particular order) are Wilmar International Ltd, Avril, Chevron Corporation, Verbio Vereinigte Bioenergie AG, and Cargill Corporation.
Fatty Acid Ester Market Leaders
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Wilmar International Ltd
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Avril
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Chevron Corporation
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Verbio Vereinigte Bioenergie AG
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Cargill Corporation
*Disclaimer: Major Players sorted in no particular order
Fatty Acid Ester Market News
- June 2022: Chevron Corporation acquired Renewable Energy Group Inc. This acquisition added complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuel companies in the United States.
- June 2022: Cargill completed its first advanced biodiesel plant in Ghent, Belgium, called Bioro Biodiesel Refinery, which converts waste oils and residues into renewable fuel. The advanced biodiesel produced at the facility will be used by the maritime and trucking sectors in Europe.
- May 2022: Oleon, a subsidiary of the Avril Group, started construction of a new production facility in Baytown, Texas, Houston, with an investment of USD 50 million. This new facility will produce esters and provide blending services to support the company's growing oil and gas business.
Fatty Acid Ester Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Market Drivers
- 4.1.1 Growing Preference toward Biodiesel
- 4.1.2 Rising Demand for Personal Care Products
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4.2 Market Restraints
- 4.2.1 Performance Limitations Associated with Fatty Acid Ester
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
-
5.1 By Type
- 5.1.1 Fatty Acid Methyl Esters (FAME)
- 5.1.2 Polyol Esters
- 5.1.3 Sorbitan Esters
- 5.1.4 Sucrose Esters
- 5.1.5 Other Types (Ethyl Esters, Propyl Esters, Sucrose Esters, etc.)
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5.2 By Application
- 5.2.1 Synthetic Lubricants
- 5.2.2 Pharmaceuticals
- 5.2.3 Personal Care Products
- 5.2.4 Food
- 5.2.5 Biofuel Applications
- 5.2.6 Other Applications
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5.3 By Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Malaysia
- 5.3.1.6 Thailand
- 5.3.1.7 Indonesia
- 5.3.1.8 Vietnam
- 5.3.1.9 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Spain
- 5.3.3.6 NORDIC countries
- 5.3.3.7 Turkey
- 5.3.3.8 Russia
- 5.3.3.9 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Colombia
- 5.3.4.4 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 Qatar
- 5.3.5.3 United Arab Emirates
- 5.3.5.4 Nigeria
- 5.3.5.5 Egypt
- 5.3.5.6 South Africa
- 5.3.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Avril
- 6.4.2 Cargill Incorporated
- 6.4.3 Chevron Corporation
- 6.4.4 Cremer Oleo Gmbh & Co. KG
- 6.4.5 Croda International PLC
- 6.4.6 DuPont
- 6.4.7 Granol
- 6.4.8 Inolex Incorporated
- 6.4.9 IOI Corporation Berhad
- 6.4.10 KLK Oleo
- 6.4.11 P&G Chemicals
- 6.4.12 Sasol
- 6.4.13 Stepan Company
- 6.4.14 Verbio Vereinigte Bioenergie AG
- 6.4.15 Wilmar International Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Emerging Applications and Recycling of Fatty Acid Ester
Fatty Acid Ester Industry Segmentation
Fatty acid esters are a type of ester that results from the combination of a fatty acid with an alcohol. When the alcohol component is glycerol, the fatty acid esters produced can be monoglycerides, diglycerides, or triglycerides.
The fatty acid ester market is segmented by type, application, and geography. By type, the market is segmented into fatty acid methyl esters, polyol esters, sorbitan esters, sucrose esters, and other types. By application, the market is segmented into synthetic lubricants, pharmaceuticals, personal care products, food, biofuel applications, and other applications. By geography, the market is segmented into Asia-Pacific, Europe, North America, South America, and the Middle East and Africa. The report also covers the market size and forecasts for the fatty acid esters market in 27 major countries across regions. For each segment, the market sizing and forecasts were made on the basis of volume (kilotons).
| By Type | Fatty Acid Methyl Esters (FAME) | |
| Polyol Esters | ||
| Sorbitan Esters | ||
| Sucrose Esters | ||
| Other Types (Ethyl Esters, Propyl Esters, Sucrose Esters, etc.) | ||
| By Application | Synthetic Lubricants | |
| Pharmaceuticals | ||
| Personal Care Products | ||
| Food | ||
| Biofuel Applications | ||
| Other Applications | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Malaysia | ||
| Thailand | ||
| Indonesia | ||
| Vietnam | ||
| Rest of Asia-Pacific | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Spain | ||
| NORDIC countries | ||
| Turkey | ||
| Russia | ||
| Rest of Europe | ||
| By Geography | South America | Brazil |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| By Geography | Middle East and Africa | Saudi Arabia |
| Qatar | ||
| United Arab Emirates | ||
| Nigeria | ||
| Egypt | ||
| South Africa | ||
| Rest of Middle East and Africa |
Fatty Acid Ester Market Research FAQs
How big is the Fatty Acid Ester Market?
The Fatty Acid Ester Market size is expected to reach 1.84 million tons in 2024 and grow at a CAGR of less than 3% to reach 2.07 million tons by 2029.
What is the current Fatty Acid Ester Market size?
In 2024, the Fatty Acid Ester Market size is expected to reach 1.84 million tons.
Who are the key players in Fatty Acid Ester Market?
Wilmar International Ltd, Avril, Chevron Corporation, Verbio Vereinigte Bioenergie AG and Cargill Corporation are the major companies operating in the Fatty Acid Ester Market.
Which is the fastest growing region in Fatty Acid Ester Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fatty Acid Ester Market?
In 2024, the Asia Pacific accounts for the largest market share in Fatty Acid Ester Market.
What years does this Fatty Acid Ester Market cover, and what was the market size in 2023?
In 2023, the Fatty Acid Ester Market size was estimated at 1.78 million tons. The report covers the Fatty Acid Ester Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fatty Acid Ester Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fatty Acid Ester Industry Report
Statistics for the 2024 Fatty Acid Ester market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fatty Acid Ester analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
