The increasing consumption of personal care products and cosmetics, owing to the surging female working population and escalating consciousness about physical appearance, will create a huge requirement for fatty acid esters in the forthcoming years. These chemicals are being increasingly used as detergent cleansing agents and as emollients and thickeners in skin creams. Additionally, the rising customer awareness about bio-based cosmetics will fuel the consumption of such esters in the personal care and cosmetics industry.

Moreover, the usage of such chemicals as lubricant additives in automotive, metal cutting, and hydraulic applications will help the fatty acid esters market advance at a 4.6% CAGR during 2020–2030. According to P&S Intelligence, the market was valued at $2,240.9 million in 2019, and it is expected to generate $3,688.9 million revenue by 2030. The rapid shift toward bio-based fatty acid esters can be credited to their lower toxicity and excellent lubricity.

Additionally, the limited availability of natural gas, coal, and oil and extensive pollution caused by their combustion will augment the consumption of fatty acid esters, especially bio-based ones, in the upcoming years. As such bio-based products are derived from plant oils, such as soy oil, coconut oil, and rapeseed oil, and animal fats, their usage as biofuels does not have a detrimental impact on the environment. Thus, the accelerating awareness regarding air pollution mitigation and rising implementation of emission norms will facilitate the adoption of such chemicals.

At present, fatty acid ester manufacturers are engaging in mergers and acquisitions and geographical expansions to enhance their customer base. For example, in February 2018, KLK Oleo completed the acquisition of Elementis Specialties Netherlands B.V., which manufactures fatty acid polyglycol esters and other chemical products, to strengthen its downstream chemical specialties business in Europe. Furthermore, in 2019, Matangi Industries announced its plan to expand the production capacity of fatty acid esters to 14,400 tons annually.

Apart from these two companies, Esterchem Ltd., Tokyo Chemical Industry Co. Ltd., American eChem Inc., Temix Oleo Srl, and Oleon NV are offering oleates, dimerates, laureates, pelargonates, stearates, palmitates, and tall oil fatty acid (TOFA)-based esters for the lubricants, food additives, personal care, and industrial solvents and additives industries. Nowadays, oleates are consumed in the largest volume due to their increasing application in personal care products, pharmaceutical solvents, and lubricants, owing to their exceptional lubrication, excellent cold flow, and low toxicity and volatility.

Geographically, Asia-Pacific (APAC) led the fatty acid esters market in the preceding years, and it is also expected to consume these chemicals at the highest rate in the upcoming years. This can be primarily attributed to the widening application base of such esters in the lubricant, agriculture, and personal care industries of China, India, and Indonesia. Moreover, the presence of prominent manufacturers of such chemicals, such as Kao Corporation, DKS Co. Ltd., KLK OLEO, Emery Oleochemicals Group, Wilmar International Ltd., and Mitsubishi Chemical Corporation, will fuel their consumption in the region.

Therefore, the burgeoning demand for personal care products and biofuels will propel the consumption of fatty acid esters.