LONDON--(BUSINESS WIRE)--The latest market research report by Technavio on the global fatty acid methyl ester (FAME) market predicts a CAGR of around 5% during the period 2017-2021.
The report segments the global fatty acid methyl ester market by application (fuel, coatings, lubricants, metalworking fluid, and food and agriculture) and by geography (North America, Europe, APAC, and ROW). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
Here are some key findings of the global fatty acid methyl ester market, according to Technavio chemicals and materials researchers:
- Growth of personal care industry: a major market driver
- The global FAME market by fuel accounted for a market share of around 39% in 2016, making it the largest segment
- In 2016, North America dominated the FAME market and accounted for a market share of around 36%
- Cargill, Emery Oleochemicals, Kuala Lumpur Kepong Berhad, Wilmar International, and Wratislavia-BIOdiesel are the leading players in the market
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Growth of personal care industry: a major market driver
The growth of the personal care industry is one of the major factors driving the global fatty acid methyl ester market. FAME is extensively used in cosmetics and personal care applications. During the forecast period, the increasing demand for FAME in creams, lotions, and moisturizers will propel the market growth. End-users in developing as well as developed countries such as Canada, the US, Australia, France, China, the UK, India, Saudi Arabia, and Germany spend on cosmetics. Therefore, the consumption of cosmetic products is high in these regions, which is attributed to the high disposable income. FAME is manufactured from raw materials such as fats and oils from animals and vegetables by a process known as transesterification. The basic raw materials used in the production of FAME include vegetable oils and animal fats, which are biodegradable and non-toxic in nature.
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North America: largest FAME market
In 2016, North America dominated the FAME market and accounted for a market share of around 36%, according to Technavio researchers. The FAME market in North America is predicted to witness significant growth due to the increasing demand for FAME in the production of biodiesel. The FAME market in North America is expected to grow at the highest CAGR during the forecast period because of the increasing demand for FAME from end-user industries such as fuel, food, and agriculture in the US.
According to Ajay Adikhari, a lead analyst at Technavio for research on specialty chemicals, “Regulatory favorability for biodiesel in North America to combat global warming is driving the FAME market in this region. The use of conventional fuel results in the emission of greenhouse gas that lead to global warming. To protect the environment, governments in North America encourage the use of biodiesel. This will drive the market demand for FAME during the forecast period.”
Competitive vendor landscape
The global FAME market is dominated by five prominent vendors that comprise of Cargill, Emery Oleochemicals, Kuala Lumpur Kepong Berhad, Wilmar International, and Wratislavia-BIOdiesel. These players have a vast geographical presence with production facilities located across the globe. However, there are many local and regional vendors with substantial shares of the market. Vendors compete based on factors such as operational cost, innovation, price, and product quality. Some of the players can drive down market prices because their costs are lower than their competitors. Additionally, some of the suppliers have more financial, technological, and other resources and can better withstand the changes in the market conditions.
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