COVID-19 IMPACT SURVEY MAY 2020
The global market for Fatty Esters is projected to reach US$2.3 billion by 2025, driven by well-entrenched applications in the food, personal care and cosmetic sectors. The cosmetics and personal care sector represents one of the largest end-use markets, with growth supported by the steady rise in consumer spending on appearance maintenance products. A major factor that makes fatty esters a vital ingredient in cosmetics is their cost-effective ability to enhance product functionality by imparting an array of anti-microbial, cleansing and conditioning properties. Anti-obesity effect of fatty esters is storming into the spotlight as the world battles globosity creating new application possibilities in the food industry. Obesity is the most widespread d metabolic disorder that causes an imbalance between fat synthesis (lipogenesis) and fat breakdown (oxidation). As concerns rise and obesity becomes a global health crisis, there is strong demand for anti-obesity food solutions. Sugar esters are synthetic fats intended to replace conventional fats and oils in food preparations. Isoflavone fatty acid esters are valued for their anti-obesity effects. Sucrose fatty acid esters (SFE) are a popular category of fat substitutes. The growing share of population following low fat diet plans i. e. 42% in Latin America; 39% in Asia; 37% in Middle East; 28% in Europe; 25% in North America, will help expand the playing field for fatty esters. The growth in the market will also be driven by emerging new uses of fatty esters in automotive functional fluids and in the production of biodiesel. Major trends in the market include favorable food consumption patterns and the resulting use of fatty esters as food additives and emulsifiers; growing vehicle population, increasing vehicle miles travelled and increased demand for automotive functional fluids in the aftermarket; robust drug manufacturing activity and growing opportunity for medium chain triglycerides in drug delivery systems.
Glycerol monostearate represents the largest segment in the fatty esters market. The market is witnessing an increase in demand for GMS as a protective coating agent, an emulsifying agent, and as a food additive in several industrial and processing applications; thereby driving the growth of the segment in the overall fatty acid esters market. Glycerol monostearate, produced from glycerol, is used for various purposes. Glycerol monostearate is used as emulsifying agents in food, pharmaceuticals, detergents, and cosmetics. Triglycerides' hydrolysis; glycerolysis; or glycerol's direct esterification with various fatty acids leads to the production of monoglycerides. Industrial production methods mostly use homogeneous acids or essential catalysts that form mono-, di-, as well as triglycerides' mixtures, post direct esterification. Medium chain triglycerides (MCT) oil comprise the fastest growing product segment with developing countries such as India and China accounting for a large chunk of this growth. Solvency properties of MCT oil enable its use as solubilizer in perfumes. Various fatty esters including PEG esters, glycerol esters and Sorbian esters find application as moisturizers, emollients and base stabilizers in the personal care and cosmetics industry as they positively impact skin feel and care as well as increase consistency attributes of the formulation. The United States represents the largest market worldwide supported by stringent federal laws that mandate compliance and attractive incentives for biodiesel under the "Renewable Fuel Standard (RFS) Program". Asia-Pacific including China is a major market led by factors such as growing regional economies; robust manufacturing industry comprising pharmaceuticals, personal care and cosmetics which are supported by increased per capita healthcare spending and rising consumerism encouraged by stronger disposable incomes; and rapid progress being made in benchmarking of biodiesel fuel standardization in the region. Also, the growing obesity epidemic in the region is encouraging adoption of fatty esters as a fat replacer in convenience foods.