Dhanbad News Paper

Fatty Acid Methyl Ester (FAME) Market Forecast to Reach $27.93 Billion by 2026

 Breaking News
  • No posts were found

Fatty Acid Methyl Ester (FAME) Market Forecast to Reach $27.93 Billion by 2026

April 23
22:30 2021
Fatty Acid Methyl Ester (FAME) Market Forecast to Reach $27.93 Billion by 2026

Fatty Acid Methyl Ester (FAME) Market
Rise in the Demand of Biodiesel Will Drive the Growth of the Fatty Acid Methyl Ester (FAME) Market

Fatty Acid Methyl Ester (FAME) Market is forecast to reach $27.93 billion by 2026 after growing at a CAGR of 6% during 2021-2026. Fatty acid methyl ester is derived from the trans-esterification of methanol with fatty acids. It has excellent characteristics such as excellent solubility in organic solvents, good lubricity and high boiling points. The growth of the market of fatty acid methyl ester is expected to be driven by the high demand from the Oil and Gas industry.

Fatty Acid Methyl Ester (FAME) Market Segment Analysis – By Type

The rapeseed methyl ester segment held the largest share in the fatty acid methyl ester market in 2020. This is due to the increasing use of rapeseed as the primary raw material for oil methyl ester production, as rapeseed has better oil content (30-37%) than other types of raw material used in manufacturing. The high cetane number of biodiesel produced from rapeseed oil allows complete combustion and thus lowers emissions. Low profitability and weather conditions are expected to weigh on rapeseed planting and hence the rapeseed oil methyl ester. It can be used in pure form or may be blended with petroleum diesel at any concentration in most injection pump diesel engines. As a result, fuel filters may become clogged with particulates if a quick transition to pure biodiesel. Medium-chain triglycerides segment has the second-largest share in the fatty acid methyl ester market. Medium-chain triglycerides is a medical food derived from fatty acids and safflower oil, a polyunsaturated fat. It is used for dietary purpose in people whose bodies cannot digest certain foods properly. This includes people who are gluten or lactose-intolerant, or who have unintended weight loss or need increased calories for other medical reasons.

Fatty Acid Methyl Ester (FAME) Market Segment Analysis – By Source

Coconut Oil segment held the largest share in the fatty acid methyl ester market in based on source in 2020. Coconut oil is a rich source of saturated fatty acids, and short- and medium-chain fatty acids account for 70% of these fatty acids. Coconut oil has garnered considerable attention in the lay press as a health food with a myriad of purported health benefits. Saturated fat comprises more than 90% of the fat content of coconut oil, the majority of which is in the form of medium-chain fatty acids. The highly resistant nature of coconut oil to oxidative rancidity is attributed to its high concentration of saturated fat and low unsaturated fatty acids. This quality makes it coconut oil as the best source of fatty acid methyl ester because it is the derivative of fatty acid. However, in contrast to the longer-chain saturated fatty acids more typically found in animal fats.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=16485

Report Price: $ 4500 (Single User License)

Fatty Acid Methyl Ester (FAME) Market Segment Analysis – By End Use

The household cleaning is the primary market fatty acid methyl ester in 2020 growing at CAGR of 7%. Fatty acid methyl esters are used as a surfactant, which is ideally suited for liquid detergents and general-purpose cleaners. Household cleaning products and cleaners are widely used for maintaining hygiene, regular cleaning, and for pest control. Increasing focus on maintaining cleanliness as lack of hygiene can lead to number of diseases such as buruli ulcer and diarrhoea. There is an increasing trend in developing as well as developed countries for hygiene products and homecare. Moreover, increasing use of household cleaners for commercial use where fabric refreshers and surface deodorizers are used largely has given a significant push in the household cleaners market. According to the data released by World Health Organization, showed that in 2015 inadequate sanitation has led to 280,000 diarrheal deaths across the globe. Unhygienic living places develop various diseases. Thus, there is a need for proper cleaning solutions that helps in keeping the area clean and free from harmful microbes such as cyanobacteria, staphylococcaceae, and acidobacteria. Rising sanitation standards and government initiatives to promote cleanliness in at different levels will drive the growth of household cleaners market in the forecast period.

Fatty Acid Methyl Ester (FAME) Market Segment Analysis – By Geography

North America dominates the fatty acid methyl ester market with a share of more than 38% followed by Europe and APAC. The economy of North America is mainly influenced by the economic dynamics of countries such as USA and Canada, but with growing foreign direct investment for the economic development of North America, the current scenario is changing. The rise in the demand for fatty acid methyl ester in biodiesel production and the stringent environmental regulations in North America are expected to contribute to the growth of fatty acid methyl ester market in this region. Soy methyl ester was the largest type segment in North America, since North America is a global leader in the production of soybean. The 2019–2020 coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business. The current epidemic outbreak has deeply influenced consumers’ daily life and in addition to the impact on personal care and cosmetic industry. It is estimated that changes will also be witnessed in consumers’ purchase behavior. The supply chain of cosmetic industry is affected because it depends on the products, ingredients, or supplies from China. The Country has been choked off from suppliers, workers, and logistics networks. China’s manufacturing base is facing a multitude of unprecedented challenges, as coronavirus containment efforts hamper factories’ attempts to reopen. This may cause shortages in the global personal care and cosmetic industry from unreliable places.

Fatty Acid Methyl Ester (FAME) Market Drivers

Rise in the demand of biodiesel will drive the growth of the market in the forecast period

Fatty acid methyl ester is the primary constituent of biodiesel. Growing environmental concerns on the use of fossil fuel products that increase pollution levels as well as contain toxic volatile organic compounds, are significantly impacting the market for biodiesel as it can be an environment-friendly substituent for fossil fuel. The use of biofuels is justified by the common agricultural policy decisions, by the need to improve environment protection and by the search of alternative energy sources. In such a context, methyl esters of vegetable oils, known as biodiesel and ethyl alcohol are receiving increasing attention as alternative fuels for automotive engines. The main advantages of biodiesel and ethyl alcohol are that these fuels are nontoxic, biodegradable, and renewable with the potential to reduce engine exhaust emissions, especially with regard to greenhouse gases emission. The fact that these biofuels are available in larger and larger quantities is of great importance as well. Currently, in the European market the most important biofuel is FAME (Fatty Acid Methyl Esters) manufactured mainly as Rapeseed Methyl Esters. It is forecasted that the scale of production and consumption of this fuel will continue increasing as a result of the growing demand for diesel fuels and a levelled demand for spark-ignition engine fuels. Currently, fatty acid methyl esters is added to regular diesel fuels in the amount of up to 7%. Besides, its consumption in a pure form grows as well. This factor will drive the growth of fatty acid methyl esters market in the forecast period.

Rise in the use of fatty acid methyl ester as a green solvent will drive the growth of market in the forecast period.

Fatty acid methyl ester is being increasingly used as a green solvent, since it contains low Volatile Organic Compounds along with being readily biodegradable. Moreover, in the leather chemical industry, it is used to produce a leather fatliquoring agent, which is used as an excellent textile detergent. Growing detergent demand is further expected to couple with the market growth over the forecast years. Its additional characteristics, such as excellent lubricity, superior solubility in organic solvents, and high boiling points are increasing its inclination in various end-use industries. These factors will drive the growth of the market in the forecast period.

Fatty Acid Methyl Ester (FAME) Market Challenges

High Cost of Fatty Acid Methyl Ester and its raw material will hinder the growth of the market

The high cost of the fatty acid methyl esters and unstable global markets have widespread implications for manufacturing organizations. Unexpected fluctuations in raw material price levels, unforeseen obstacles are destabilizing supply chains and making it difficult for manufacturers to remain in the black. With supplies of many raw materials becoming harder to secure, commodity price volatility may not be just a temporary phenomenon, and it is up to manufacturers to either absorb additional costs, find new ways to mitigate the expenses, or pass price increases along to customers who are already reluctant to spend. This factor will hinder the growth of the market in the forecast period.

Fatty Acid Methyl Ester (FAME) Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the fatty acid methyl ester market. In 2020 the market of fatty acid methyl ester has been consolidated by the top five players accounting for xx% of the share. Major players in the fatty acid methyl ester market are Biofuels Corporation, ADM Biodiesel, Diester Industries, Evonik Industries, Cargill, Green Fuels, and Others.

Acquisitions/Technology Launches /Product launches

In May 2020, Pertamina is introducing engine oil compatible with 20% biodiesel blends in it. The 20% biodiesel mix is finally implemented, the state-owned oil and gas company expects as much as 5.14 million kiloliters of fatty acid methyl esters (FAME) will be used to blend with petroleum diesel fuel. Pertamina has prepared 63 fuel terminals in 31 cities to store diesel fuel and serve as distribution points to support Indonesia’s mandatory biodiesel program.

Key Takeaways

North America dominates the fatty acid methyl ester market owing to increasing demand from personal care and cosmetics industry.

Rise in the usage of fatty acid methyl esters as a green solvent owing to its low VOC and biodegradable nature will drive the growth of the market.

The high cost of the fatty acid methyl esters coupled with the high cost of procuring raw materials is expected to hamper the growth of this market in the forecast period.

Related Reports :

A. Fatty Acid Market

https://www.industryarc.com/Report/15848/fatty-acid-market.html

B. Glycol Ethers Market

https://www.industryarc.com/Report/11707/glycol-ethers-market.html

For more Chemicals and Materials related reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: 1-614-588-8538 (Ext: 101)
Address:Madhapur
City: Hyderabad
Country: India
Website: http://industryarc.com/


Warning: count(): Parameter must be an array or an object that implements Countable in /home/dimapurnewsdesk/dhanbadnewspaper.in/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5
Share