The market for fatty acid methyl ester is expected to grow at a CAGR of more than 5.1% globally during the forecast period. 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 growing demand for biodiesel has been driving the market growth.
– However, the high manufacturing cost due to volatile raw material prices and the outbreak of coronavirus across the globe are likely to hinder the growth of the studied market.
– The growing personal care industry is likely to provide opportunities for the fatty acid methyl ester market over the next five years.
– The fuel sector is the major application segment for the market studied.
– Asia Pacific region dominated across the world with increasing consumption from countries like China and India.
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Key Market Trends
Fuel Sector to Dominate the Market
– Fuel segment stands to be the dominating segment owing to evolving regulations aimed at protecting the ozone layer and reducing global warming.
– Growing dependence on fossil fuel and depleting fossil fuel reserves have led countries to look for alternative sources of fuel. Accordingly, this is expected to drive the growth of the methyl ester fatty acid market; as methyl ester fatty acid is a major raw material used in biodiesel production.
– Biodiesel is witnessing an increase in consumption on account of its properties such as lower toxic emissions and biodegradable.
– North American countries such as the United States of America and Canada are expected to experience high growth in biodiesel use during the forecast period due to increased government support and environmental awareness to reduce greenhouse gas emissions.
– All the aforementioned factors are expected to drive the fatty acid methyl ester market during the forecast period.
North America Region to Dominate the Market
– North America region is expected to be the largest and fastest-growing market over the forecast period owing to rising environmental awareness to reduce greenhouse gas emission and increasing support from the government by giving tax incentives and rebates to encourage the use of biodiesel in the region.
– In addition, due to its low VOC and biodegradable nature, increased use of fatty acid methyl esters as a green solvent in the paints and coating industry is expected to further accelerate the development of the methyl ester fatty acid industry.
– Growing consumer spending on green products and growing understanding of the harmful effects of chemicals used in cosmetic products has led to an increase in the region’s demand for oleochemicals, especially over the last few years.
– High demand for personal care goods in the North America region is expected to fuel growth in the regional methyl ester fatty acid industry.
– Hence, all such market trends are expected to drive the demand for fatty acid methyl ester market in the region during the forecast period.