Palm Methyl Ester Derivative Market - Forecast(2023 - 2028)

Palm Methyl Ester Derivative Market Overview

The palm methyl ester derivative market size is forecast to reach US$8.4 billion by 2027 after growing at a CAGR of 5% during 2022-2027. Palm methyl ester derivatives are deeply associated with personal care and cosmetic products such as color cosmetics, hair care, skin care, etc., where they act as emulsifiers and lubricating agents. The global personal care and cosmetic market are expanding robustly and this will drive the market’s growth in the forecast period. For instance, as per the November 2020 data by the India Brand Equity Foundation (IBEF), Oriflame Holding AG expanded its color cosmetics portfolio in the Indian market by introducing several vibrant color cosmetics. Furthermore, the adoption of biofuel like biodiesel is increasing owing to the rapid shift from conventional energy sources to renewable sources. Palm methyl ester derived from palm oil is one of the most widely used biodiesel feedstock and the rising demand for biodiesel will drive the market’s growth in the forecast period. As per the March 2019 journal by the journal of vibroengineering (JVE) titled optimization of palm methyl ester, taguchi based optimization method was utilized for producing biodiesel from palm oil. The methyl oleate product will witness the highest demand in the forecast period. Other products like methyl caprylate and methyl laurate will witness significant demand in the forecast period. The fluctuation in palm oil prices might hinder the market’s growth in the forecast period.

COVID-19 Impact

The palm methyl ester derivative market was moderately affected by the COVID-19 pandemic. Disturbances like supply chain disruption and idling of factories are some of the key challenges faced by the market players. As per the April 2020 report by Wilmar International about plantation life during COVID-19, the palm oil sector in Malaysia was kept operational on a reduced scale as this sector was classified as critical to the food supply chain. Malaysia was under full nationwide movement restrictions and the supply of palm oil was paramount in that region. Apart from Malaysia, Wilmar International maintained its oil palm services afloat on reduced capacity in Indonesia, Ghana, and Nigeria. Going forward, the market is expected to witness robust growth owing to the expanding personal care and cosmetics industry and increasing demand for biodiesel.

Report Coverage

The report: “Palm Methyl Ester Derivative Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Palm Methyl Ester Derivative Industry. 

By Type:Crude Palm Oil, Palm Kernel Oil 

By Product:Methyl Caprylate, Methyl Laurate, Methyl Myristate, Methyl Stearate, Methyl Oleate, Methyl Palmitate, Methyl Linoleate

By Application:Soaps and Detergents, Personal Care and Cosmetics, Textile Treatments, Inks, Rubber, Waxes, Food and Beverages, Lubricants and Additives, Agricultural Products, Biofuel, Paints and Coatings, Pharmaceutical Ingredients, Plasticizers, Others 

By Geography:North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:       

• Methyl oleate is leading the palm methyl ester derivative market in the forecast period. Methyl oleate is widely used in various processes for manufacturing multiple products in end-use industries which makes it a desirable choice in the target market.
• Personal care and cosmetics will drive the market’s growth in the forecast period. As per Cosmetics Europe, the European cosmetics and personal care market was valued at US$ 88.91 billion at retail price in 2020.
• The Asia-Pacific region is anticipated to witness the fastest growth in the target market in the forecast period owing to increasing demand for personal care and cosmetic products. As per India Brand Equity Foundation (IBEF), India’s cosmetic and personal care industry is expected to become a market value of US$ 15.17 billion by 2024, which was US$ 9.98 billion in 2019.
  
  
  

  Figure: Asia  Palm Methyl Ester Derivative Market Revenue, 2022-2027(US$ Billion)Pacific 

  
  

  
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Palm Methyl Ester Derivative Market - By Type

The palm kernel oil dominated the palm methyl ester derivative market in 2021 and is growing at a CAGR of 5.2% in the forecast period. This type of oil is used as a raw material for preparing final formulations in multiple products in detergents, food and beverages, pharmaceuticals, etc. This oil is also used in the production of biodegradable biofuel such as biodiesel. Owing to these superior qualities, manufacturers and research organizations are focusing more on the higher implementation of palm kernel oil. For instance, as per the April 2021 journal by the University of Nigeria titled “production and characterization of biodiesel from palm oil sludge and palm kernel oil using the non-heating method”, biodiesel was produced with the help of palm kernel oil by agitation at room temperature. The report also states the properties of palm kernel oil methyl esters were well within the minimum limits and proved biodiesel can be produced effectively with palm kernel oil with a reduced production cost. Such implementation of palm kernel oil in the production of biodiesel and making final formulations will increase its demand in the target market during the forecast period.

Palm Methyl Ester Derivative Market - By Product

Methyl oleate dominated the product segment in the palm methyl ester derivatives market in 2021. This can be attributed to the high demand for methyl oleate in various end-use applications. Methyl oleate is used extensively as solvents in the production of coatings and inks, as a lubricant for metalworking, as a surfactant in personal care products, and many more. These varied applications of methyl oleate are encouraging manufacturers and research organizations for its higher uses. For instance, as per the May 2021 updated journal by research gate, lubrication of steel balls was carried out with the help of olive oil and methyl oleate. The final result demonstrated that methyl oleate had an effective lubrication effect as the functional groups of the center position in the molecular chain of methyl oleate are found to be most significant. Such effectiveness of methyl oleate in lubricating and other applications will amplify its demand in the market in the forecast period. Methyl caprylate and methyl laurate will witness significant demand in the forecast period.

Palm Methyl Ester Derivative Market - By Application

The personal care and cosmetic segment dominated the palm methyl ester derivative market in 2021 and is growing at a CAGR of 5.4% in the forecast period. Palm methyl ester derivatives are implemented vastly in the personal care and cosmetics industry where they act as lubricating agents and emulsifiers. The personal care and cosmetic products demand is increasing globally and this will drive the market’s growth in the coming years. For instance, in May 2020, Japanese based cosmetic company Shiseido Company Limited introduced its global prestige brand SHISEIDO in Sri Lanka owing to the increasing demand for cosmetics in the country. Similarly, as per the data by the Cosmetics, Toiletry and Perfumery Association (CTPA), the cosmetics market was valued at US$ 92.58, making Europe the largest cosmetics market globally in 2019. Such growth and demand for personal care and cosmetics will drive the growth of the palm methyl ester derivative market in the forecast. Apart from personal care and cosmetics, the growing need for biodiesel production will drive the growth of the market as palm methyl ester derivatives help in the cost-effective production of biofuel like biodiesel.

Palm Methyl Ester Derivative Market - By Geography

The Asia-Pacific region held the largest market share in the palm methyl ester derivative market in 2021 with a market share of up to 30%. The growing demand for palm methyl ester derivatives is attributed to the rapid expansion in personal care and cosmetics and the booming automotive industry. Palm methyl esters are used as lubricants and efficient emulsifiers in personal care products and used as palm oil biodiesel (palm methyl ester) in automotive diesel engines and this will increase the demand for the target market’s product in the forecast period. For instance, as per the data by the Ministry of Economy, Trade and Industry (METI), Japan’s cosmetic and personal care market was valued at US$ 35 billion, making it the world’s third-largest market in 2019. Such high growth in the personal care and cosmetic industry will amplify the demand for palm methyl ester derivatives in the forecast period. The automotive industry is gaining traction in the Asia-pacific region. As per the data by the China Association of Automobile Manufacturers (CAAM), the Chinese automobile sector is booming in the current times and it is projected to be on a progressive track in the forecast period which will increase the demand for palm oil biodiesel utilization in automobile diesel engines. The European region will witness significant demand for palm methyl ester derivatives as it is one of the biggest personal care and cosmetics markets in the world and the demand for cosmetic products is also on the rise in the region.

Palm Methyl Ester Derivative Market Drivers

Expanding personal care and cosmetic application will drive the market’s growth

The personal care and cosmetic product application are expanding globally. Palm methyl ester derivatives are deeply rooted in personal care and cosmetics as they are utilized as lubricants and emulsifiers in various personal care and cosmetic products. The growing personal care and cosmetic products will drive the growth of the palm methyl ester derivative market in the coming years. For instance, as per the data by the Cosmetics, Toiletry and Perfumery Association (CTPA), the European region witnessed the highest demand for cosmetics globally where Germany (US$ 16.25 billion) dominated the region followed by France (US$ 13.35 billion) and the UK (US$ 11.37 billion) in 2020. Similarly, as per the September 2021 data by Invest India, Reliance retail will soon start the online selling of cosmetic products owing to the rapid growth of the cosmetics market in India. Such high growth in the personal care and cosmetics application will drive the growth of the market in the forecast period.

Increasing demand for biodiesel will drive the market’s growth

The demand for biodiesel is gaining traction in the last few years globally. Biodiesel is a biodegradable biofuel and it is non-toxic compared to its counterparts which is contributing to the increase in demand for biodiesel. Furthermore, palm methyl ester derived from palm oil is used as a feedstock for biodiesel and the rising demand for biodiesel will drive the market’s growth in the forecast period. For instance, according to the data by Chinse organization China Dialogue, biodiesel consumption in Indonesia stood at 6.2 billion litres in 2019 which was 3.95 billion litres in the previous year. Similarly, biodiesel consumption in Malaysia was 0.94 billion in 2019 which was 0.66 billion litres in the previous year. Such increasing demand for biodiesel will amplify the uses of palm methyl ester, which, in turn, will drive the growth of the market in the forecast period.

Palm Methyl Ester Derivative Market Challenges 

Fluctuation in palm oil prices might hamper the market’s growth

The fluctuation in palm oil prices might slow down the growth rate of the target market in the forecast period. Palm oil is important vegetable oil and is used in many end-use applications such as biodiesel feedstock, formulations of pharmaceuticals, food and beverages, detergents, and many more. However, price fluctuation has become a major challenge in the market in the last few years. In 2020, international palm oil values registered a huge drop owing to higher-than-expected production and inventory levels in key exporting countries and subdued import demand globally. As per the June 2020 food outlook report by the Food and Agriculture Organization (FAO), the international palm oil price in May 2020 was 521 USD per tons which was 806 USD per tons in 2019. Therefore, this fluctuation affects the prices of the final products in various end-use industries, and this, in turn, might affect the growth of the palm methyl ester derivative market in the forecast period.

Palm Methyl Ester Derivative Market Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the palm methyl ester derivative market. Major players in the palm methyl ester derivative market are

• Musim Mas
• Oleon NV
• KLK Oleo
• Wilmar International
• VVF LLC
• Emery Oleochemicals Group
• Carotino Group
• Ecogreen Oleochemicals
• Kao Corporation
• Apical Group
• Asian Agri
• Others

Acquisitions/Product Launches

• In October 2020, Kao Corporation joined hands with Asian Agri and Apical Group to help independent oil palm smallholders in Indonesia improve their yields. This will boost palm oil production which in turn will amplify the palm methyl ester derivative portfolio in the forecast period.

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