|
|
 |
|
Viewing report
|
|
|
|
Global Fatty Acids Markets
Frost & Sullivan, March 2005
Volatility in Raw Material Prices Leads to Uncertainty in Revenues
Price pressures and falling profit margins are a significant issue in the world fatty acids market. The volatile raw material prices that comprise 80 percent of fatty acid costs are magnifying the challenge and making it increasingly difficult for manufacturers to maintain profit margins in this market. Moreover, shifting consumer preference for vegetable oil-based products makes the fatty acids industry more susceptible to harvest issues. While tallow and tall oil are less susceptible to harvest issues, manufacturers of fatty acids will have to constantly track palm oil prices that are depicting greater fluctuations. Severe competition, overcapacity, and the emergence of new fatty acid manufacturing facilities in China and Southeast Asia add to the price pressures. Offering competitive prices is likely to be a key strategy to survive in this highly competitive and price sensitive market.
This Frost & Sullivan research service offers a comprehensive analysis of the global fatty acids market, and focuses on the naturally-derived fatty acids. In addition to detailed insights into market drivers and industry challenges, this study provides strategic growth recommendations to vendors.
China to Open up New Growth Opportunities
Saturation within the fatty acids market is restricting growth in developed countries and compelling fatty acids manufacturers to sustain revenues by focusing on new and upcoming markets in developing countries such as China, notes the analyst of this research. Economic growth in China and the resultant rise in living standards have boosted demand for end user products, thereby driving the growth of fatty acids market.
Many participants have taken strategic steps to move closer to their Chinese customers and are investing in new manufacturing facilities in China to increase market share. Another strategy adopted by many participants is to manufacture in Southeast Asia and then export to China. Participants need to make a thorough analysis of production costs and accordingly choose the best strategy.
Southeast Asia Hugely Influences the Global Fatty Acids Market
Availability of raw materials and sophisticated infrastructure is turning Southeast Asia into a manufacturing hub for fatty acids industry. Local participants in Malaysia and Indonesia are enhancing their manufacturing capacities in response to the rising export demands. Many plantation companies in this region are also increasing investment in downstream activities.
Facilities in developed countries are old and running costs are high, notes the analyst. As a result, many companies from these countries are shifting their operations to Southeast Asia to take advantage of easy access to raw materials and relatively low operational costs. Strategic alliances between companies in developed countries and their counterparts in Southeast Asia are also on the rise and promise numerous growth opportunities for the world fatty acids market in the future.
Customers who bought this item also bought
European Fatty Acids Markets Analysis
The World Market for Fatty Acids and Acid Oils from Refining Animal or Vegetable Fatty Substances: A 2009 Global Trade Perspective
European Fatty Alcohols Markets
The 2009 World Market Forecasts for Imported Fatty Acids and Acid Oils from Refining Animal or Vegetable Fatty Substances
The World Market for Degras and Fatty Acids, Acid Oils, or Residues Resulting from the Treatment of Animal or Vegetable Waxes or Fatty Substances: A 2009 Global Trade Perspective
The 2009 Report on Fatty Acids Produced for Sale: World Market Segmentation by City
The 2009-2014 World Outlook for Fatty Acids Produced for Sale
The 2009-2014 World Outlook for Tall Oil Containing Less Than 2-Percent Rosin Acids and More Than 95-Percent Fatty Acids
The 2009-2014 World Outlook for Animal Oil Mill Products Excluding Fatty Acids
Fatty Esters - Global Strategic Business Report
The 2009 Report on Animal Oil Mill Products Excluding Fatty Acids: World Market Segmentation by City
The 2009 Report on Tall Oil Containing Less Than 2-Percent Rosin Acids and More Than 95-Percent Fatty Acids: World Market Segmentation by City
|
|
|
|
