The global Fatty Acid Market was valued at USD 30.17 billion in 2017 and is estimated to grow at a CAGR of 4.7% from 2018 to 2026. Fatty acids are organic compounds that are formed by the combination of carbon chain and carboxylic group. There are various types of fatty acids with different applications in the end-use industries.
Fatty acids are obtained from coconut, soybean, palm kernel oil (PKO), hydrolysis of tallow, and fractional distillation of crude tall oil. As fatty acids have plant-based raw materials, these have an advantage in the market of not being subjected to intense price volatility. Fatty acids is a market with massive demand on account of its derivatives that have large array of applications.
North America Fatty Acid Market Share by Application, 2017-2026
Note: Inside circle depicts data for 2017 & outside circle depicts data for 2026
The global fatty acids market is primarily driven by rising consumption of sustainable products and demand for natural fatty acids. Health supplements & nutraceuticals is the most trending industry for the consumption of fatty acids in the current scenario. Micronutrient deficiency & malnutrition status of the population, especially in the countries with very low economic growth, has forced the government & international health organizations to support them with medical aids.
Rising awareness among the consumers concerning health benefits, increasing costs of hospitalization coupled with the rise in personal consumer spending in the growing economies of the world has significantly contributed to the growth of dietary supplements. Changing consumer lifestyle with the affluence of growing working population is also a crucial factor that has led to increased demand of dietary supplements. Thus, this application of fatty acids has been a notable market for its global market.
North America Fatty Acid Market by Product Type, 2017 - 2026
The demand of fatty acids is also largely driven by its usage in emulsifiers, defoaming agents, plasticizers, stabilizers, and lubricants. Food & beverage industry is one of the fastest growing industries across the world and consumes fatty acids in substantially large quantities. In food industry, fatty acids are used in margarine, bakery products, cooking oil, candies, ice creams, and chewing gums.
The primary derivative chain of fatty acids includes saturated fatty acids, monounsaturated fatty acids, polyunsaturated fatty acids, and trans fatty acids. Monounsaturated has witnessed significant growth in the past five years on account of omega-3 and omega-6 fatty acids being largely used in dietary supplements. Other types of fatty acids are also used in large quantities for different end-use industries, except trans-fats.
On the basis of applications, fatty acids are segmented into dietary supplements, food & beverages, animal feed, personal care products, lubricants, and others. Some of the downstream potential market for the fatty acids application include greases, rubber manufacturing, leather, paints & coatings, and metal working.
Asia Pacific is the largest and highly lucrative regional market for the fatty acids. The regional countries have abundant availability of vegetable based raw materials such as coconut oil and palm kernel oil. Some major countries in this aspect include Indonesia, Malaysia, and Philippines. The region also includes high application growth prospects for fatty acids with significant end-use industries such as food & beverage and healthcare.
North America is the second largest market after Asia Pacific followed by Europe. The two regions are anticipated to witness substantial gains over the forecast period but not as rapid as the growth in Asia Pacific. The United States is the major contributing nation for the growth in North America fatty acids market due to its downstream potential end-use industries.
Global fatty acids market is highly competitive and moderately consolidated. It constitutes of large number of domestic and international market players. Some of key fatty acids market players include BASF SE, Eastman Chemical Corporation, Ashland Inc, Vantage Oleochemicals, Godrej Industries, Oleon, Akzo Nobel, and Arizona Chemicals.