Palm Methyl Ester Derivative Market Size

Global Palm Methyl Ester Derivative Market Overview

The Palm Methyl Ester Derivative Market Size was valued at USD 1.5 billion in 2021. The Palm Methyl Ester Derivative market is projected to grow to USD 2.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.92% during the forecast period (2022 - 2030). According to the market report, rising demand for palm methyl ester derivatives in various end-user applications is driving palm methyl ester derivative market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Palm Methyl Ester Derivative Market Trends

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  Growing demand for biofuel represents one of the major factors in the global market growth.

  
  

The sustainability of the supply of fuels has attracted significant attention from the international community due to the increased use in numerous industries, the depletion of petroleum resources, and the volatility of crude oil market prices. The rising emissions of dangerous pollutants and greenhouse gases have also led to environmental issues due to various petrochemicals. Thus, it is essential to use clean energy sources, including biofuel. In addition to being safe, it has several advantages over petro-fuel, including being non-toxic, biodegradable, and has less air pollution per unit of net energy produced.

Biofuels are produced from renewable natural resources and are practical substitutes for fossil fuels. Palm-based biofuel is widely used in internal combustion engines without any modification needed for engines. Generally, it is referred to as methyl esters made from palm oil by the "transesterification" process. Palm methyl ester has less soot and sulfur than traditional petroleum-based biofuels, which results in more environmentally friendly vehicle emissions. Palm methyl esters can be added with rapeseed oil-based or soybean oil-based fuel to achieve a better cetane index and improved oxidation stability properties.

According to the International Energy Agency, in comparison to 2021, the demand for biofuels is predicted to increase by 6%, or 9 100 MLPY, in 2022. Due to favorable policies in the United States and Europe, renewable diesel accounts for the largest share in 2021. Brazil and India's demand increases are supported by blending mandates and financial incentives, and Indonesia's 30% biodiesel blending mandate encourages the usage of the fuel there.

The global biofuel demand is expected to reach 35 000 MLPY or 20% over 2022-2027 according to IEA in the main-case forecast. In emerging economies, biofuel is being opted to reduce oil imports and increase the use of domestic resources to boost the local economy. In developed nations, there is a surge in the increase of biofuel demand to reduce GHG emissions with supportive government policies. Thus, the growing demand for biofuel will eventually expand the palm methyl ester derivative market size during the forecast period.

However, there have been significant advances in palm methyl ester derivative demand across end-use industries. The rise in demand for palm methyl ester derivatives is likely to anticipate the growth of palm methyl ester derivative market revenue during the forecast period.Palm Methyl Ester Derivative Market Segment Insights

Product Type Insights

The palm methyl ester derivative market segmentation, based on product, includes methyl caprylate, methyl laurate, methyl myristate, methyl palmitate, methyl stearate, methyl oleate, and methyl linoleate. The methyl oleate held the majority share in 2021, concerning the Palm Methyl Ester Derivative Market revenue. This is primarily owing to the surge in demand for biodiesels globally will eventually raise the demand for methyl oleate, thereby expanding the palm methyl ester derivative industry. For instance, as per International Energy Agency, global biodiesel production is around 45,712 million liters per annum in 2021 and it is expected to expand by 11,288 million liters per annum by 2027. The growing adoption of sustainable products owing to reduce carbon emission is accelerating the growth of methyl oleate palm methyl ester derivatives during the forecast period.

Palm Methyl Ester Derivative Application Insights

The market, based on application, is segmented into soap and detergent, personal care and cosmetics, lubricants, and additives, biofuel, textile treatments, paints and coatings, agriculture, and others. The personal care and cosmetics segment dominated the palm methyl ester derivative industry in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the rapid demand for ester-based surfactants in the personal care and cosmetics industry. According to the Cosmetic Europe Association, the European cosmetics and personal care industry is valued at €80 billion (USD 85.95 billion) at a retail sales price in 2021, alongside the USA, the largest market for cosmetic products in the world. According to estimates, the cosmetics and personal care sector boosts the European economy each year by at least €29 billion. Cosmetics manufacturing contributes directly €11 billion and indirectly €18 billion through the supplier chain. Hence, the growing application of palm methyl ester derivatives in various end-use industries will positively impact the market.

Figure 2: Palm Methyl Ester Derivative Market, by Electrolyte Type, 2021 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Palm Methyl Ester Derivative Regional Insights

By region, the study provides palm methyl ester derivative market insights into North America, Europe, Asia-Pacific, and the Rest of the World. According to market statistics, the Asia-Pacific palm methyl ester derivative market holds the dominant share in 2021 and is expected to exhibit a significant CAGR during the study period. As per market data, this growth is attributed to the presence of manufacturing facilities, and the growing adoption of sustainable products across the region.

For instance, China's palm methyl ester derivative market is the fastest growing market as china is one of the largest manufacturing hubs for various applications such as biofuels, cosmetics, lubricants, agricultural products, soaps & detergents, and many more. For instance, according to the United States Department of Agriculture, biodiesel production in China is around  1.7 billion liters in 2021, up by more than 54% from 2020 due to strong exports. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Furthermore, the major countries studied are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Palm Methyl Ester Derivative Market Share By Region 2021 (%)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe Palm Methyl Ester Derivative market accounts for the second-largest share in 2021. The adoption of bio-based products in end-user sectors to replace non-renewable fuels with renewable and ecologically friendly fuels encouraged by the government is supporting the market growth. Further, the German palm methyl ester derivative market held the largest market share, and the UK palm methyl ester derivative market was the fastest-growing market in the European region.

The North America Palm Methyl Ester Derivative market accounts for the third-largest share in 2021. This is due to the high adoption of sustainable products to reduce carbon emissions. Moreover, the U.S. palm methyl ester derivative market held the largest share, and the Canadian palm methyl ester derivative market was the fastest-growing market in the North American region

Palm Methyl Ester Derivative Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the palm methyl ester derivative market grow even more. Market major players are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers & acquisitions, increased investments, and collaboration with other organizations. According to the palm methyl ester derivative market competitive landscape, players in the palm methyl ester derivative industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the global palm methyl ester derivative industry to benefit clients and expand the palm methyl ester derivative market sector is manufacturing locally to reduce operating costs.

In October 2020, Kao Corporation, Apical Group, and Asian Agri established a new sustainability program in order to help independent oil palm smallholders in Indonesia increase their yields, obtain international certification, and eventually gain sales premiums from selling certified palm oil. This joint venture will help eventually to boost palm methyl ester derivative market development.

Key Companies in the Palm Methyl Ester Derivative market includes

• Musim Mas


• KLK Oleo


• Emery Oleochemicals Group


• Carotino Group


• Apical Group


• Asian Agri


• Ecogreen Oleochemicals


• Oleon NV


• VVF LLC


• Kao Corporation among others

Palm Methyl Ester Derivative Industry Developments

In August 2023, Carotino Group announced a collaboration with Ecogreen Oleochemicals to enhance the production of palm methyl ester derivatives, which was when such news was announced. This collaboration intends to enhance the supply chain and enhance the market share of sustainable palm oil products.

In October 2023, Wilmar International announced its new correlation with Kao Corporation in order to find new ways of consuming palm methyl ester derivatives in cosmetics. This collaboration seeks to create new products that comply with some of the new demands from consumers in terms of sustainability.

In November 2023, Vantage Specialty Ingredients made a strategic investment in Peter Cremer, North America, for the production of palm methyl ester derivatives. This partnership aims to leverage the oleochemical competencies of the two companies to target the emerging markets of biodiesel and personal care.

In January 2024, Future Prelude Sdn Bhd and PMC Biogenix agreed to work collaboratively in their war on developing innovative biodiesel using the deterioration of palm methyl ester. This partnership seeks to foster sustainable and innovative biofuels.

In August 2023, Sime Darby Plantation published that it was merging AAK AB, one of the companies that specialize in vegetable oils and fats. In chemical engineering, this merger would allow them to add more specialty oils, including derivatives of palm methyl ester to the global market, raising needs in both food products and non-food ones.

In December 2023, Procter & Gamble Company merged with Carotino Sdn Bhd in a bid to expand the supply chain of palm-derived ingredients with a special focus on producing sustainable Palm Methyl Esters for its extensive range of personal care products. Such a merger is in agreement with Procter & Gamble's policy on sustainable development and responsible procurement.

Palm Methyl Ester Derivative Market Segmentation

Palm Methyl Ester Derivative Product Type Outlook

• Methyl Caprylate


• Methyl Laurate


• Methyl Myristate


• Methyl Palmitate


• Methyl Stearate


• Methyl Oleate


• Methyl Linoleate

Palm Methyl Ester Derivative Application Outlook

• Soap and Detergent


• Personal Care and Cosmetics


• Lubricants and Additives


• Biofuel


• Textile Treatments


• Paints and Coatings


• Agriculture


• Others

Palm Methyl Ester Derivative Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America