Fatty Acid Methyl Ester Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
発行: Mordor Intelligence Pvt Ltd
ページ情報: 英文 130 Pages
The fatty acid methyl ester market is projected to register a CAGR of over 5% during the forecast period (2021-2026).
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 COVID-19 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 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 North American region dominated across the world, with increasing consumption from countries such as the United States and Canada.
The 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 fuels 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 biodegradability. Biodiesel has been a demanding fuel in recent years, as it helps in raising the cetane number of the fuel and improves fuel lubricity. This improved lubricity helps in reducing the friction within the moving parts by avoiding additional wear.
North American countries such as the United States 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.
As per the data provided by the US Energy Information Administration (EIA) estimations, the US biodiesel production is expected to grow slow during 2050 due to major economic and policy factors. In 2019, the United States consumed approximately 43 million barrels (1.8 billion gallons) of biodiesels. B5 has been used in the trucking industry and B20 biodiesel has been used with fleets of school and transit buses, garbage trucks, mail trucks, and military vehicles.
According to the European Union, the consumption of biofuels in the region is supported by the 10% blending target for biofuels in transport fuels for 2020.
All the aforementioned factors are expected to drive the fatty acid methyl ester market during the forecast period.
The North American region is expected to be the largest and fastest-growing market over the forecast period due to rising environmental awareness to reduce greenhouse gas emissions and increasing support from the government by giving tax incentives and rebates to encourage the use of biodiesel in the region.
However, the COVID-19 pandemic impacted the fuel market due to lockdown regulations and travel bans around the world. This caused less consumption of biofuel by vehicles and decreased the consumption of fatty acid methyl esters.
COVID-19 impacted the production and sales of vehicles in the North American region, thus decreasing the demand in the market studied. The North American region produced a total number of 13.37 vehicles in 2020, which was a 20.5% decrease from 2019.
Besides, due to their low VOC and biodegradable nature, the 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.
In 2020, the American multinational chemical corporation Dow generated some USD 7.95 billion revenue in its Performance Materials and Coatings segment.
Growing consumer spending on green products and growing understanding of the harmful effects of chemicals used in cosmetic products have led to an increase in the region's demand for oleochemicals, especially over the last few years.
The high demand for personal care goods in the North American 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 esters in the region during the forecast period.
The fatty acid methyl ester market is fragmented in nature due to the presence of numerous players with no significant market share. Some of the major companies are Univar Solutions, Larodan Inc., TCI Chemicals (India) Pvt. Ltd, BASF SE, and Elevance, among others.