The fatty acid ester market is expected to record a CAGR of over 5% during the forecast period. One of the main factors driving the market is the rising demand for personal care products in major economies of the world. However, high manufacturing cost due to volatile raw material market is expected to hinder the growth of the market studied.
- Increasing demand for fatty acid ester in the manufacturing process of biodiesel is likely to act as an opportunity for the market studied in the coming years.
- By application, the personal care products segment is expected to grow further during the forecast period.
- The Asia-Pacific region is expected to dominate the market across the world with the largest consumption from countries, such as China and India.
Key Market Trends
Increasing Demand for the Fatty Acid Ester Market from Personal Care Products
- Fatty acid esters are among the most used ingredients in personal care and home care formulations. They are used in a variety of products, such as shampoo, conditioner, shower gel, antiperspirant, and lipsticks, as emollients and thickeners, owing to their amphipathic and non-ionic surfactant nature.
- Additionally, it is used in skincare products as a solvent, emulsifier, antiseptic, buffer, and penetration enhancer (improves delivery of an ingredient into the skin).
- The global market for personal care products is expected to witness substantial growth over the coming years, owing to the growing disposable income of consumers and awareness of consumers for natural as well as organic products, thus enabling them to spend on luxury personal care products. Constant innovations and improvisations in products have also led to a demand for multifunctional and cosmeceutical products.
- Hence, owing to the above-mentioned factors, the application of fatty acid ester in beauty and personal care products is likely to dominate during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for fatty acid esters during the forecast period. Personal care products and detergents in major economies, such as China, India, and Japan, are estimated to boost the market studied during the forecast period.
- The largest producers of fatty acid esters are based in the Asia-Pacific region. Some of the leading companies in the production of fatty acid esters are KLK OLEO, P&G Chemicals, Croda International PLC, Stepan, and Wilmar International Ltd.
- The growing consciousness toward maintaining an individual’s appearance and a considerable increase in disposable incomes, are factors majorly driving the cosmetics products market in the Asia-Pacific region, which, in turn, increases the demand for fatty acid esters in this region.
- Rising consumer expenditure on green products and increasing awareness regarding the harmful effects of chemicals used in cosmetic products have resulted in a rise in the oleochemicals market in the region, especially over the past few years.
- Asia-Pacific is the largest oil and fat producer and raw material base for oleochemicals, globally, with Asia-Pacific region having better control of the production and distribution of oleochemicals.
- Owing to the above-mentioned factors, the market for fatty acid esters in the Asia-Pacific region is projected to grow significantly during the study period.
The fatty acid ester market is partially fragmented in nature with only a few major players dominating the market. Some of the major companies are KLK OLEO, P&G Chemicals, Croda International PLC, Stepan, and Wilmar International Ltd.
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