Market Size of Fatty Acid Methyl Ester Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Fatty Acid Methyl Ester (FAME) Market Analysis
The fatty acid methyl ester market is projected to register a CAGR of over 5% during the forecast period (2022-2027).
Manufacturing activities were halted due to supply chain disruptions and labor shortages or as a protective measure to stop the spread of COVID-19, thereby negatively affecting the market. Various end-user industries such as food and beverage and paints and coatings witnessed some major issues due to the pandemic, including the effects of nationwide lockdowns and companies moving to source away from China, thereby affecting the market on a short-term basis.
- Over the medium term, the growing demand for biodiesel has been driving market growth.
- However, the high manufacturing cost due to volatile raw material prices is likely to hinder the growth of the studied market.
- The North American region dominated across the world, with increasing consumption from countries such as the United States and Canada.
Fatty Acid Methyl Ester (FAME) Industry Segmentation
Fatty acid methyl esters (FAME) are a type of fatty acid ester derived from the transesterification of methanol fats. The biodiesel molecules are mainly fatty acid methyl ester, typically obtained by transesterification from vegetable oils. The fatty acid methyl ester market is segmented by type, application, and geography. By type, the market is segmented into rapeseed methyl ester, soy methyl ester, palm oil methyl ester, and other types. By application, the market is segmented into fuel, lubricants, coatings, food and agriculture, metalworking fluids, personal care products, and other applications. The report also covers the market sizes and forecasts in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
| Type | |
| Rapeseed Methyl Ester | |
| Soy Methyl Ester | |
| Palm Oil Methyl Ester | |
| Other Types |
| Application | |
| Fuel | |
| Lubricants | |
| Coatings | |
| Food and Agriculture | |
| Metalworking Fluids | |
| Personal Care Products | |
| Other Applications |
| Geography | |||||||
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Fatty Acid Methyl Ester Market Size Summary
The fatty acid methyl ester market is experiencing a positive growth trajectory, driven primarily by the increasing demand for biodiesel. This demand is fueled by the need for alternative fuel sources due to the depletion of fossil fuels and the environmental benefits of biodiesel, such as lower toxic emissions and improved fuel lubricity. The market has faced short-term challenges due to the COVID-19 pandemic, which disrupted manufacturing and supply chains, particularly affecting industries like food and beverage and paints and coatings. However, the medium-term outlook remains optimistic, with North America leading the market growth, supported by government initiatives and environmental awareness aimed at reducing greenhouse gas emissions.
The fuel segment is the dominant area within the market, as regulations continue to evolve to protect the ozone layer and combat global warming. The North American region, particularly the United States and Canada, is expected to see significant growth in biodiesel use, bolstered by government support and incentives. Additionally, the use of fatty acid methyl esters as a green solvent in the paints and coatings industry is anticipated to contribute to market expansion. The market is characterized by its fragmented nature, with numerous players such as Univar Solutions, Larodan Inc., and BASF SE, indicating a competitive landscape. Overall, the fatty acid methyl ester market is poised for growth, driven by environmental considerations and the shift towards sustainable energy solutions.
Fatty Acid Methyl Ester Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Growing Production of Biodiesel
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1.1.2 Other Drivers
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1.2 Restraints
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1.2.1 High Manufacturing Cost Due to Volatile Raw Material Price
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1.2.2 Other Restraints
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Rapeseed Methyl Ester
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2.1.2 Soy Methyl Ester
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2.1.3 Palm Oil Methyl Ester
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2.1.4 Other Types
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2.2 Application
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2.2.1 Fuel
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2.2.2 Lubricants
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2.2.3 Coatings
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2.2.4 Food and Agriculture
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2.2.5 Metalworking Fluids
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2.2.6 Personal Care Products
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2.2.7 Other Applications
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2.3 Geography
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2.3.1 Asia-Pacific
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2.3.1.1 China
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2.3.1.2 India
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2.3.1.3 Japan
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2.3.1.4 South Korea
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2.3.1.5 Rest of Asia-Pacific
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2.3.2 North America
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2.3.2.1 United States
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2.3.2.2 Canada
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2.3.2.3 Mexico
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2.3.3 Europe
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2.3.3.1 Germany
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2.3.3.2 United Kingdom
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2.3.3.3 France
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2.3.3.4 Italy
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2.3.3.5 Rest of Europe
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 Saudi Arabia
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle-East and Africa
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Fatty Acid Methyl Ester Market Size FAQs
What is the current Fatty Acid Methyl Ester Market size?
The Fatty Acid Methyl Ester Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Fatty Acid Methyl Ester Market?
Univar Solutions Inc. , Larodan AB (ABITEC), TCI Chemicals (India) Pvt. Ltd., BASF SE and Elevance Renewable Sciences, Inc. are the major companies operating in the Fatty Acid Methyl Ester Market.
