Fatty Acid Esters Market Competitive Dynamics and Global Industry Outlook


Global Fatty Acid Esters Market: Snapshot

Esters are chemical compounds derived from acids by replacing at least one –OH (hydroxyl) group by –O–alkyl (alkoxy) group. Whereas, fatty acid esters are the type of esters that are formed due to the combination of fatty acids and alcohols. Also known as oleochemical substances, fatty acid esters could be natural substitutes to petroleum products and find various applications in biofuels. Vegetable oils such as rapeseed oil, palm oil, and sunflower oil are prominent raw materials used for the production of fatty acid esters. Applications in the manufacture of various products such as surfactants, lubricants, cosmetics, and food are expected to drive the global fatty acid esters market. Furthermore, increasing applications in the paper and pharmaceuticals industries could promise a significant growth of the global market for fatty acid esters.

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A report by Transparency Market Research (TMR) estimates that the worldwide market for fatty acid esters could grow to reach a value of US$2.24 bn by the end of 2020.

Growing Demand from Food and Beverage to Propel Growth

Various product types of fatty acid esters such as isopropyl palmitate, glyceryl monostearates (GMS), medium chain triglycerides (MCT), sucrose esters, glycol esters, and polyol esters could find numerous applications across a range of industries. Used in the food industry as an emulsifier and a thickening agent, GMS forms a significant market share of the world fatty acid esters market. Using MCT, man-made fats prepared from palm oil, in food items helps to burn calories to reduce weight. Another fatty acid ester produced by palm oil, isopropyl palmitate is used as a thickening agent and emollient in the production of cosmetics such as creams and lotions.

The growing demand from the cosmetic industry for isopropyl palmitate is anticipated to fuel the global market for fatty acid esters. Other product types such as sucrose esters, glycol esters, and polyol esters could account for a relatively smaller market share. Nevertheless, due to growing applications of these esters in industries such as surfactant, pharmaceutical, and paper, they are projected to grow their global annual production in future.

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However, GMS could still be a major product in the world fatty acid esters market. It is usually in the form of a hygroscopic, sweet-tasting, odorless, and white flaky powder and finds applications in various markets such as health and personal care, pharmaceutical, and food and beverage. In food production, GMS is engaged as a texture stabilizer, flavor enhancer, and an emulsifier for food products such as instant noodles, biscuits, chewing gums, non-dairy creamers, toffees, caramels, chocolates, candies, pastas, and meats products.

North America to Sustain Foremost Position Due to Demand from Cosmetics

According to the report, the global fatty acid esters market is envisaged to grow at a healthy CAGR with substantial support provided by key regions. The extensive use of fatty acid esters in the food industry may assist Asia Pacific countries to grow at a telling pace. The rising demand from the cosmetics and food industries is forecasted to boost the market for fatty acid esters in not only the Asia Pacific but also North America region. The market for fatty acid esters in Asia Pacific is foreseen to increase owing to a rising demand from the food industry.

In the recent past, North America had dominated the global market of fatty acid esters. For the same year, the Europe market had secured a decent share in the fatty acid esters business worldwide. However, Europe is predicted to lose its market share because of volatile prices and strict regulations imposed by European Union (EU) regulation bodies such as Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).

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The international fatty acid esters market could witness the presence of several prominent players including Cremer Oleo, Chemicals Co. Ltd., Henan Eastar, China Top Chemical (Jiangsu) Co. Ltd., and Zhengzhou Dahe Food S&T Co. Ltd.

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