The rising demand from the personal care and cosmetics sectors for fatty esters is tipped to drive the global market with Asia-Pacific set to grow likewise.
The global market for fatty esters is forecast to reach US$2.2 billion by 2018, driven primarily by the growing demand from personal care and cosmetics sectors, according to a new report from Global Industry Analysts.
Although food still constitutes the largest use of the market, personal care and cosmetics application is forecast to be the fastest growing end-use application registering a CAGR of 3.6 percent over the analysis period.
Similarly, growth-wise, Asia-Pacific is projected to be the fastest growing regional market registering a CAGR of about 3.6 percent over the analysis period.
The US represents the largest regional market for fatty esters worldwide, as stated by the new market research report, whilst Europe trails in terms of the sales of fatty esters.
In terms of different types of fatty esters, Glyceryl Monostearate represents the single largest segment, although the fastest growth is likely to emanate from the Medium Chain Triglyceride Oil segment.
The fatty esters market is also witnessing increasing demand for fatty esters derived from natural vegetable-based sources.
Natural fatty esters find usage in a wide range of applications. In cosmetics, simple esters derived from lower chain alcohols are used as emollients for example.
Furthermore, manufacturers of fatty esters are developing various ester compositions to improve the performance and texture of end use products.
Niche and new applications of esters, such as thickening, solvency, and many others are gradually entering the mainstream owing to the end user innovation.
“Over the years, the global fatty esters market witnessed overwhelming commoditization, and knuckled under skimpy margins due to the consolidation throughout the market vertical” says GIA.
Also, low cost imports from South East Asia also flooded the global market, giving tough competition to European and the American fatty esters.
Nevertheless, GIA says that the fatty esters market is currently being driven by the huge demand from the personal care and cosmetics, and food sectors; zooming ahead in the industrial arena, with a wide gamut of applications paving way for a brighter future.
Increasing use in industrial applications, backed by its environment-friendliness, and rise in popularity of specialty esters and natural esters, constitute the other factors propelling the Fatty Esters market.