The global fatty acid methyl ester market is projected to reach USD 22.13 billion by 2021, at a CAGR of 5.1% between 2016 and 2021. Growing demand for biodiesel due to its environment friendly nature, tax incentives from the government and recyclability are some of the factors driving the global fatty acid methyl ester market.
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The key companies offering fatty acid methyl ester have been mainly involved in expansion and acquisitions strategies. They have been rigorously adopting these strategies to strengthen their position in the global fatty acid methyl ester market. The large players operating in this market have been taking initiatives to enhance their global reach, while small companies have been concentrating increasingly on the development of new products between 2012 and 2016.
The strategy of acquisitions has been most important growth strategy adopted by the company’s manufacturing fatty acid methyl ester between 2012 and 2016. This strategy accounted for a share of 35% of all strategic developments that took place in the market between 2012 and 2016. The strategy of joint ventures & expansions were the second-most preferred growth strategies adopted by the manufacturers and accounted for a share of 29% of the total development strategies that took place in the global fatty acid methyl ester market between 2012 and 2016.
Wilmar International Limited (Singapore), Cargill Inc. (U.S.), KLK Oleo (Malaysia), ADM Company (U.S.), Emery Oleochemicals (Malaysia), BASF SE (Germany), are some of the key players operational in the fatty acid methyl ester market.
Wilmar International limited (Singapore), is the leading player in the fatty acid methyl ester market. The company offers wide range of fatty acid methyl ester. The company follows both, organic as well as inorganic growth strategies to increase its market share in the global fatty acid methyl ester market. The company has been focusing on joint ventures and also expanding its business in new geographies. This has helped the company expand its global footprint and to tap the critically advantageous geographic regions that are witnessing rapid growth in the fatty acid methyl ester market. For instance, in September 2016, Wilmar International and ADM (U.S.), formed a joint venture company, Olenex. Through this joint venture, Wilmar and ADM will be able to offer its products more efficiently to the huge customer base in Europe. In May 2016, Adani Wilmar Ltd, a joint venture between Adani Enterprises Ltd (AEL) and Wilmar International Ltd, has proposed to join hands with Ruchi Soya to create one of India’s leading consumer goods companies. This joint venture will help the companies to increase their market presence in India and other South-East Asian countries.
ADM Company (U.S.) is another key player operating in this market. This company manufactures and supplies a wide range of fatty acid methyl ester. The products range from soy methyl ester, rapeseed methyl ester, palm methyl ester and so on. The company adopted both expansion and acquisitions strategies over the years to expand its global footprint in the fatty acid methyl ester market. In June 2016, ADM started its new soybean crushing capacity at its oilseeds plant in Straubing, Germany and also expanding its soy crushing options at other facilities in northwest Europe. This will help ADM expand its products offering to the European market. In November 2014, ADM acquired Specialty Commodities Inc. (U.S.), which helped ADM to procure high quality raw materials for its processing plants and offer high quality products to its customers.
The global fatty acid methyl ester market is a competitive market, with key players adopting various growth strategies to maintain or increase their shares in the global fatty acid methyl ester market.
The fatty acid methyl ester market is estimated to reach USD 22.13 billion by 2021 at a CAGR of 5.1% from 2016 to 2021. Growing biodiesel demand, stringent environmental rules and regulations, reduction of greenhouse gases, energy efficiency are some of the factors driving the global fatty acid methyl ester market.
Based on type, the rapeseed methyl ester segment led the market for fatty acid methyl ester. This segment is the largest market segment for the global fatty acid methyl ester market. The rapeseed methyl ester segment is projected to grow at the highest CAGR during the forecast period. Rapeseed oil is the largest source of fatty acid methyl ester feedstock in the world, with more than 1.5 million gallons of biodiesel produced from rapeseed globally in 2009. Rapeseed has better oil content than soybean. Soybean has 18% to 22% oil content while rapeseed has 30% to 37% oil content. The high cetane number of biodiesel produced from rapeseed oil enables complete combustion and thus lowers emissions. Rapeseed is a major biodiesel feedstock used in Europe, and it is expected to dominate the overall fatty acid methyl ester market in future as well.
The North America region accounted for the largest share of the global fatty acid methyl ester market in 2015, owing to presence of various fatty acid methyl ester manufacturers in the region with their sales presence all around the globe. However, Asia-Pacific is expected to be the fastest-growing market in the coming years, in terms of value. This market has the highest growth potential, as emerging economies in the Asia-Pacific region are expected to be key markets. Presently, the fatty acid methyl ester market in Asia-Pacific is at the early growth stage and is growing at a faster pace than that of other regions. The Asia-Pacific biodiesel market has high growth potential, due to the abundant availability of feedstock, such as palm oil in Malaysia, Indonesia, and Philippines and waste oil and animal fat in China and Japan. This is expected to consequently increase the demand for fatty acid methyl ester in the region.
The global fatty acid methyl ester market is fragmented and is highly competitive with the presence of large number of prominent players. BASF SE (Germany), Wilmar International Limited (Singapore), Cargill Inc. (U.S.), KLK Oleo (Malaysia), ADM Company (U.S.), Emery Oleochemicals (Malaysia) and so on.These companies adopted various strategies such as expansions, joint ventures, and mergers & acquisitions to strengthen their foothold and increase their share in this market. The global fatty acid methyl ester market is expected to have significant potential for growth in the near future.
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