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Fatty Acid Market

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  • 100 Pages
  • August 2021
  • Region: Global
  • IndustryARC
  • ID: 3973762

Fatty Acid Market Overview

Fatty Acid market size is forecasted to reach US$12,917.6 million by 2027, after growing at a CAGR of 5.5% during 2022-2027. A fatty acid is an important component of lipids present in plants, animals, and microorganisms. The growing demand from the personal care and home care industry is one of the major factors supporting the market growth during the forecast period. Fatty acids are widely used in the production of soaps and detergents products in the home care sector. Increasing awareness about the benefits of a healthy lifestyle and growing consumer preference for a healthier diet is anticipated to accelerate the market during the forecast period. Growing demand for omega-3 and omega-6 fatty acids among the food & beverage industry is triggering market growth. However, fluctuating supply and prices of feedstock materials are likely to hamper the market during the forecast period.

COVID-19 Impact

During the global pandemic, Covid-19, the demand for fatty acids decreased due to various economic restrictions and regulations. And due to these strict lockdown measures, many fatty acid units had to stop their production process, which restricted the fatty acid market growth in 2020. In addition, due to the outbreak, the production and export of edible oils decreased, owing to which the demand for fatty acid also decreased, causing a significant decline in the fatty acid market revenue. Furthermore, because of the covid-19 epidemic, the production, consumption, imports, and exports of Fatty Acid were also hindered. These multiple consequences of the covid-19 pandemic stretched the troubles for the Fatty Acid market in 2020. However, the demand for Fatty Acid is set to improve by the year-end of 2021, owing to the boosting personal and home care sectors.

Report Coverage

The report: “Fatty Acid Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Fatty Acid Industry.

By Type: Unsaturated fatty acid and Saturated fatty acid

By Length of Chain: Short-chain fatty acids (SCFA), Medium-chain fatty acids (MCFA), Long-chain fatty acids (LCFA), and Very long chain fatty acids (VLCFA)

By Application: Personal Care and Cosmetics, Home and Industrial Cleaning, Textiles, Agrochemicals, Pharmaceuticals, Rubber, Plastics, Paper and Paper Products, Paints and Varnishes, and Others

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

Key Takeaways

  • The Asia Pacific dominates the Fatty Acid market, owing to the increasing home care cleaning and industrial cleaning sector in the Asia Pacific region. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the fatty acid market in the region.
  • Government regulations promoting the use of eco-friendly products among various end-use industries such as agrochemicals, personal care, and plastics are supporting the market growth for fatty acids.
  • The increasing usage of plastics and rubber products globally is also one of the major factors driving the fatty acids market between 2022-2027.

The unsaturated segment held the largest share in the Fatty Acid market in 2020 up to 72% by revenue and is estimated to grow at a CAGR of 5.2% during 2022-2027. Unsaturated fatty acids have one or more carbon-carbon double bonds in their composition. Unsaturated fatty acid plays an important role in the synthesis of Polyunsaturated fatty acids (PUFAs). Unsaturated fats are generally extracted from avocado, nuts, and soybean, canola, and olive oil among others. Unsaturated fatty acids are also preferred as an important component in diet and they help to reduce the risk of heart disease and lower cholesterol levels. These are some of the major factors supporting the market growth for the unsaturated fatty acids segment during the forecast period. The saturated fatty acid segment is expected to grow at a high CAGR of 6.2% in the global fatty acid market.

The home and industrial cleaning segment occupied the largest share in the Fatty Acid market in 2020 up to 48% by revenue and is estimated to grow at a CAGR of 5.4% during 2022-2027. Fatty acids are widely used as an anti-foaming agent in the household and industrial cleaning market. Thus, growing awareness about the importance of hygiene has led to robust growth in demand for household and industrial products which is also growing the consumption of fatty acids during the forecast period. Additionally, fatty acids and oils are used for industrial floor cleaners and floor polishes because of their wetting, emulsifying and cleansing properties which also acts as a driving factor for the fatty acid market growth. According to the article published by Entrepreneur India, the Soap Industry in India is comprised of about 700 companies and generates revenue of around $17 billion US dollars each year. This will further increase the demand for fatty acids in the Indian market. The pharmaceutical segment is expected to register a high CAGR of 6.2% in the application segment.

The Asia Pacific held the largest share in the Fatty Acid market in 2020 up to 59% by revenue, owing to the flourishing home care and pharmaceutical industry in the region. The presence of developing nations such as China, India, and others is supporting the regional growth. The presence of a large population along with the growing usage of cleaning products such as soaps and detergents is one of the key drivers driving the market growth for fatty acids in the Asia Pacific region. According to the Article published by IndianMirror, soap manufacturing is one of the major activities in the Indian FMCG industry and accounted for more than 50% of the consumer goods sector. They also mention about 50% of soaps produced in India are sold in the rural market. As per 2019-2020 data, approximately 5 million retail outlets sell soaps of which 3.5 million shops are in the rural area. Furthermore, the growing personal care and cosmetics sector in the Asia Pacific region is increasing the consumption of fatty acids during the forecast period. According to the facts published by the Ministry of Economy and Industry, the Indian beauty and personal care (BPC) industry is estimated to reach USD 9.5-10.5 billion by 2021.

Fatty Acid Market Drivers

Growing usage of omega-3 and omega-6 fatty acids

Omega-3 fats are polyunsaturated fats. Majorly Omega 3 fats are available in 3 types namely Eicosapentaenoic acid (EPA), docosahexaenoic acid (DHA), and Alpha-linolenic acid (ALA). Omega-3 fatty acids have a carbon-carbon double bond and it is available in certain foods such as flaxseed and fish, as well as dietary supplements such as fish oil. The rising penetration of omega-3 in the active pharmaceutical ingredient (API) is supporting its growth during the forecast period. According to National Health and Nutrition Examination Survey (NHANES), most children and adults in the United States consume recommended amounts of omega-3s as ALA. Omega-3 fatty acids help to reduce the risk of cardiovascular disease, sudden cardiac death caused by an abnormal heart rhythm, and also reduce the risk of blood clots. They are types of fats generally found in vegetable oils, such as corn, safflower, and soybean oils among others. They are also used for reducing the risk of heart disease, lowering total cholesterol levels, lowering bad cholesterol levels, and reducing cancer risk among others. In August 2019, Cargill has received approval from the US Department of Agriculture (USDA), for the development of omega-3 Canoal in the United States.

Growing Usage of Hygiene and Detergent Products

Fatty acid salts are a widely used class of anionic surfactants in-home care cleaning industry. They are used in different household cleaning products such as soaps, detergents, bleaches, and cleaners among others. lauric, myristic, palmitic, stearic, ricinoleic, oleic, linoleic and linolenic acids and are some of the types of fatty acids used in soap and detergent products. Approximately 70-85% natural herbal soap bars are composed of sodium salts of fatty acids which are derived from triglycerides or hydrolyzed fatty acids. These fatty acids play key roles in the performance of the natural soap and reduce the cost of the finished products. Due to the covid-19 pandemic, the usage of household cleaning products increased rapidly globally to be safe from viruses. During the pandemic period, it was observed that the frequency of cleaning (69.3%) and the amount of cleaning product usage (74.2%) increased significantly globally. According to International Association for Soaps, Detergents and Maintenance Products (A.I.S.E), the total market value of the household care and professional cleaning and hygiene sector in Europe was estimated at US$ 47.1 billion in 2020. They also stated that in 2020, consumers in Europe spent an estimated US$ 37 billion on household care products.

Fatty Acid Market Challenges

Volatile Raw Material Prices

Raw materials are the most important component of the fatty acid industry. Hence, commodity prices are an important element in determining market strategy. In recent times there has been an increase in the prices of raw materials that are used for fatty acid manufacturing such as tall oil, soya, coconut, and palm kernel others, owing to which there is a fluctuation in the pricing of fatty acid as well. Fatty Acids are produced from natural fats and oils by hydrolytic or lipolytic splitting according to Tejimandi an advisory firm. Most of the agri-oils are in the inflationary trend. Palm oil and Palm Fatty Acid Distillate (PFAD) prices continued to rise. They are now up 43-55% on a YoY basis. Copra and coconut oil saw a 2- 5% MoM rise while groundnut oil was up 3% MoM. According to LMC International, raw materials occupy 80% of the total cost of production. Thus, the cost of raw materials is continuously increasing or fluctuating because of factors such as transportation & logistics, increasing demand, and more, which is affecting the price of fatty acids. Thus, the volatility and increase in prices of raw materials such as oils and fats are expected to create a significant challenge for the fatty acids market manufacturers during the forecast period.

Fatty Acid Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Fatty Acid market. Major players in the Fatty Acid market are:

Wilmar International Ltd.

Musim Mas

VVF Ltd.

Permata Hijau Group

Godrej Industries


Kao Corporation


Oleon NV.

KH Neochem Co., Ltd

Other Companies

Acquisitions/Technology Launches

  • In May 2019, The KAO group completed the construction of new factory of PT Apical Kao Chemicals, a joint venture company of Kao Corporation and Apical Group Limited. The new factory is involved in the production of fatty acids in Sumatra, Indonesia. The Kao Group increased its production capacity, of oleochemical products.

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Table of Contents

1. Fatty Acid Market- Market Overview
1.1 Definitions and Scope
2. Fatty Acid Market- Executive Summary
2.1 Key Trends by Bond
2.2 Key Trends by Length of Chain
2.3 Key Trends by Application
2.4 Key Trends by Geography
3. Fatty Acid Market - Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Fatty Acid Market - Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Porters Five Force Model
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Powers of Buyers
4.3.3 Threat of New Entrants
4.3.4 Competitive Rivalry
4.3.5 Threat of Substitutes
5. Fatty Acid Market - Strategic Analysis
5.1 Value Chain Analysis
5.2 Opportunity Analysis
5.3 Product/Market Life Cycle
5.4 Distributor Analysis - Major Companies
6. Fatty Acid Market - By Bond (Market Size - US$ Million/Kilo Tons)
6.1 Unsaturated Fatty Acid
6.2 Saturated Fatty Acid
7. Fatty Acid Market - By Length of Chain (Market Size - US$ Million/Kilo Tons)
7.1 Short-chain fatty acids (SCFA)
7.2 Medium-chain fatty acids (MCFA)
7.3 Long-chain fatty acids (LCFA)
7.4 Very long chain fatty acids (VLCFA)
8. Fatty Acid Market - By Application (Market Size - US$ Million/Kilo Tons)
8.1 Personal Care and Cosmetics
8.2 Home and Industrial Cleaning
8.3 Textiles
8.4 Agrochemicals
8.5 Pharmaceuticals
8.6 Rubber
8.7 Plastics
8.8 Paper and Paper Products
8.9 Paints and Varnishes
8.10 Others
9. Fatty Acid Market - By Geography (Market Size - US$ Million/Kilo Tons)
9.1 North America
9.1.1 USA
9.1.2 Canada
9.1.3 Mexico
9.2 Europe
9.2.1 UK
9.2.2 Germany
9.2.3 France
9.2.4 Italy
9.2.5 Netherlands
9.2.6 Spain
9.2.7 Denmark
9.2.8 Belgium
9.2.9 Rest of Europe
9.3 Asia-Pacific
9.3.1 China
9.3.2 Japan
9.3.3 India
9.3.4 South Korea
9.3.5 Australia and New Zealand
9.3.6 Taiwan
9.3.7 Malaysia
9.3.8 Rest of APAC
9.4 South America
9.4.1 Brazil
9.4.2 Argentina
9.4.3 Colombia
9.4.4 Chile
9.4.5 Rest of South America
9.5 Rest of the World
9.5.1 Middle East
9.5.2 Africa
10. Fatty Acid Market - Entropy
10.1 New Product Launches
10.2 M&As, Collaborations, JVs and Partnerships
11. Fatty Acid Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
11.1 Wilmar International Ltd.
11.2 Musim Mas
11.3 VVF Ltd.
11.4 Permata Hijau Group
11.5 Godrej Industries
11.7 Kao Corporation
11.8 BASF
11.9 Oleon NV.
11.10 KH Neochem Co., Ltd
*Financials would be provided on a best efforts basis for private companies