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The fatty acid methyl ester (FAME) market share is expected to increase by USD 5.84 million from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 5.21%.
This fatty acid methyl ester (FAME) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers fatty acid methyl ester (FAME) market segmentation by application (fuel, coatings, lubricants, metalworking fluid, and others) and geography (North America, Europe, APAC, South America, and MEA). The fatty acid methyl ester (FAME) market report also offers information on several market vendors, including BASF SE, Berg + Schmidt GmbH & Co. KG, Cargill Inc., Eastman Chemical Co., Emery Oleochemicals Group, Evonik Industries AG, KLK Oleo, Stepan Co., The Procter and Gamble Co., and WRATISLAVIA-BIODIESEL SA among others.
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The rising demand for fuels and food and agriculture is notably driving the fatty acid methyl ester (FAME) market growth, although factors such as FAME diesel causing contamination problems impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the fatty acid methyl ester (FAME) market industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Fatty Acid Methyl Ester (FAME) Market Driver
Rising demand for fuels and food and agriculture is one of the major drivers of the fatty acid methyl ester (FAME) market growth. Fuel is a major application segment owing to its use in stationary power generators, machines such as farm equipment, construction equipment, mining equipment, and vehicles. FAME is used in the food industry as an emulsifying and thickening agent. The growing food industry will fuel the demand for the FAME market during the forecast period. In agricultural applications, it is used as a pesticide and fertilizer, which is anticipated to increase the demand for FAME further during the forecast period. FAME is highly accepted by all these above-mentioned application segments due to its versatile characteristics. Some of its characteristics are high boiling point, excellent solubility in organic solvent high lubricity, and lower toxic emission. Due to these characteristics, there is an increasing demand for FAME from fuels and various other industries. This results in huge market demand for FAME, thereby driving the global FAME market during the forecast period.
Key Fatty Acid Methyl Ester (FAME) Market Trend
Strong demand from emerging economies is one of the major trends in the fatty acid methyl ester (FAME) market growth. APAC is experiencing considerable growth in the FAME market. The increased use of FAME as a green solvent because of its low VOC and biodegradable nature in emerging economies like China, India, and Japan will drive its future growth. The countries in APAC have benefitted from macroeconomic policies such as those implemented to promote comprehensive growth, job creation, economic stability, and economic transformation, including efforts to increase the revenue earned by commodity-exporting countries. The continuous economic growth of China, India, Japan, Australia, and New Zealand will boost the FAME market during the forecast period. The market is gaining importance in developing regions as there are ample opportunities from various end-use industries such as fuels, coatings, metalworking fluids, lubricants, and agriculture.
Key Fatty Acid Methyl Ester (FAME) Market Challenge
FAME diesel causes contamination problems and is one of the major challenges to the fatty acid methyl ester (FAME) market growth. Petroleum-derived diesel does not absorb moisture, whereas biodiesel absorbs moisture. This is because methyl esters present in biodiesel are hygroscopic. Therefore, it absorbs water from the surrounding environment. About 1,500 parts per million of water can dissolve in biodiesel. Excess water accumulates as free water, separated from fuel, and causes the rusting of engines and tanks. It also results in the proliferation of bacteria and microorganisms. As petroleum-derived fuels absorb less moisture, they tend to shed water as a separate layer at the bottom of the storage tanks. In the case of FAME fuel, the water contaminates the diesel and gives rise to conditions that are suitable for microbial growth and can lead to molds, bacteria, diesel bugs, and yeast, which spread throughout the fuel.
This fatty acid methyl ester (FAME) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global fatty acid methyl ester (FAME) market as a part of the global specialty chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the fatty acid methyl ester (FAME) market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the fatty acid methyl ester (FAME) market encompasses successful business strategies deployed by the key vendors. The fatty acid methyl ester (FAME) market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The fatty acid methyl ester (FAME) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the fatty acid methyl ester (FAME) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the specialty chemicals market includes the following core components:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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