Fatty Methyl Ester Sulfonate Market

Market Overview

The Total Addressable Market (TAM) for fatty methyl ester sulfonate was valued at USD 559.66 million in 2021. It is projected to reach USD 1,598.73 million by 2030, growing at a CAGR of 12.37% during the forecast period (2022–2030).

Fatty methyl ester sulfonate is made from olive oil, palm oil, coconut oil, and fats. Sulfonating methyl esters produce eco-friendly anionic surfactants with saturated fatty acids. One of the most widespread uses of oleo chemicals is in fatty acids, which are found in various products, including medicines, foods, soaps, detergents, candles, waxes, lubricants, paints, and coatings. Plastics, rubber, and surface-active agents are just a few industries benefiting from increased fatty acid consumption. FMES is made by esterifying vegetable oils and then sulfonating them. Vegetable oils are widely used in powdered and liquid detergents due to their high detergency and availability. Increases in the demand for natural ingredients in the personal care and hair care industries also contribute to the growth of the global FMES market.

Market Dynamics

Market Drivers

Growing Demand for Surfactants in Personal Care Industry

The end-user industries that benefit most from FMES' widespread application include those that produce surfactants, such as cosmetics, laundry detergents, personal care, and lubricant industries. Since surfactants are widely used in the formulation of hair care, skin care, creams, gels, ointments, and other products, personal care and cosmetics are a significant application segment of the surfactant market. The surfactants market is anticipated to expand due to the expanding personal care industry and rising consumer spending on high-quality products.

As the retail sector in emerging economies like Brazil, India, and China becomes more organized, the personal care and cosmetics industry is expected to expand, driving demand for FMES in surfactant production. Historically, the most popular uses of FMES-based surfactants in the personal care and cosmetics industry have been shampoos and soaps. However, a significant factor propelling the market is the growing popularity of products incorporating surfactants, such as lotions and cold creams. Hair loss and skin deterioration are common complaints among the elderly, and this demographic has helped drive the industry's growth. Using surfactants derived from Oleochemicals as noble surface-active agents in these products is anticipated to increase the number of uses for fatty methyl ester sulfonate in the cosmetics industry.

Emergence of Plant-Based Chemicals

Chemicals for making laundry detergent can be derived from petroleum or plant oils like palm kernel oil, palm stearin, and coconut oil. Strict government rules about the management and control of chemicals around the world encourage sustainable development and the use of bio-based chemicals instead of oil- and gas-based chemicals, causing laundry detergent makers to focus a lot more on oleo chemical-based ingredients. According to the American Chemical Society, chemists who work on bio-based chemicals are trying to solve problems with the global environment and people's dependence on petroleum, a key feedstock for many products. Plant-based chemicals' potential to serve as efficient replacements for petrochemical-based chemicals is a critical factor likely to propel the laundry detergent chemicals market.

Market Restraint

Deforestation and Rising Concerns due to Large-Scale Palm Oil Cultivation

Oil palm expansion currently requires effective regulation to reduce environmental damage from the unchecked growth of large-scale palm oil plantations. Countries in the Asia-Pacific region, like Indonesia and Malaysia, which supply most of the world's palm oil, are apprehensive about these problems. Several research studies have suggested that large amounts of carbon are released when palm oil is grown in peat lands. In addition, palm oil plantations necessitate the conversion of vast swaths of primary forest to agricultural land, contributing to a substantial decline in biodiversity. It also goes against the country's promises to fight climate change and protect biodiversity.

Market Opportunities

Increasing Preference for Biodiesel

Biodiesel is made by combining various fatty acid methyl esters that have been extracted from natural sources such as vegetable oils and waste animal fat. Biodiesel can be used as a substitute fuel in the majority of contemporary diesel engines, in contrast to raw vegetable oil, which can be used in modified or historical diesel engines. Their most distinguishing characteristic is that they have similar properties to conventional diesel but are biodegradable and non-toxic.

The demand for fuels that contain a percentage of biodiesel has reached an all-time high because of alarming increases in air pollution worldwide. In the occasion of a spill or leak, the effects of pure biodiesel are much less severe than those of petroleum diesel. It is less flammable than petroleum diesel, making it a safer alternative. Manufacturers are actively testing vehicle performance with biodiesel in Europe. As biodiesel consumption rises, the need for fatty methyl ester sulfonate is expected to increase significantly over the forecast period.

Regional Analysis

The global fatty methyl ester sulfonate market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, Central and South America, and The Middle East and Africa.

Europe Dominates the Global Market

Europe is the most significant shareholder in the global fatty methyl ester sulfonate market and is expected to grow at a CAGR of 12.76% during the forecast period. Europe is the largest detergent market in the world, accounting for nearly one-fifth of the global demand. The substance is widely employed in the formulation of powdered and caked detergents. Since the turn of the century, European nations, including Germany, Spain, and the United Kingdom, have exhibited a high demand for detergent powder. Due to their ease of preservation and storage, detergent pods are gaining popularity throughout the region. In Europe, Germany is the leading market for fatty methyl ester Sulfonate. The demand is driven by the high consumption of the substance in detergent formulations, followed by the growing demand in the personal care market. In the coming years, the nation's need for fatty methyl ester Sulfonate is expected to remain steady due to the rising demand for personal care products and the maintenance of personal hygiene.

Asia-Pacific is expected to grow at a CAGR of 13.38% during the forecast period. High product consumption in developing economies of Asia-Pacific, such as India and China, which are developing rapidly and have become manufacturing hubs for most companies, is responsible for the significant growth in detergent demand in the region, thereby indicating positive growth prospects for laundry detergents. It will result in high order for fatty methyl ester Sulfonate throughout the area in the coming years. Increased demand for hair care, cosmetics, soaps, and body lotion from Japan, South Korea, India, and China drives the need for personal care products in the region. In the foreseeable future, the rising demand for these products is anticipated to increase the demand for fatty methyl ester Sulfonate in Asia-Pacific formulations of personal care products.

North America accounts for a significant portion of the global production of soaps and detergents, which are major surfactant applications. The toxicity and ionic nature of synthetic ingredients used in household detergents and personal care product formulations are becoming increasingly apparent to consumers. It is driving demand for bio-based products in the applications listed above. FMES is widely utilized in various commercial sectors in Canada, including hospitals, educational institutions, recreational facilities, and residential cleaning. Government bodies have enacted restrictions on synthetic ingredients' use in the region's developed nations in response to numerous environmental concerns. Thus, it is anticipated that the demand for bio-based products, such as FMES, in North America will increase over the forecast period.

Central and South America region is anticipated to be driven by rising detergent demand in Brazil, followed by expanding market conditions in Argentina. Due to the rapid spread of coronavirus throughout the powerful nations of Central and South America, sales of cleaning products, such as laundry detergent powders, increased in the region by 2020. Companies such as Tide, Downy, and Surf are the leading detergent manufacturers in the area, and their product and process innovations account for most of their market share. The market is mainly driven by the rising demand for detergents in the country, which is supported by consumer preference for maintaining personal hygiene in terms of clothing and apparel, as well as the increased purchasing power of the local people. Argentina is quickly becoming one of the most promising consumer markets in Central and South America. Rising interest in self-care is a crucial factor propelling the personal care market.

Demand for fatty methyl ester Sulfonate in detergent production in the Middle East and Africa is also driven by the fact that people there are becoming more likely to wear clean clothes. Saudi Arabia is one of the most critical places in the Middle East and Africa to sell laundry detergent and other cleaning products. Companies like SIDCO, Knooz Al-Ardh Detergent Factory, Surfactant Detergent Company ltd. (SDC), and others, dominate the market because they have been around for a long time and keep coming up with new ways to make their products. One of the main things driving growth in the detergent industry is the growing need for clean and fresh clothes across the country. It will likely create many market opportunities for fatty methyl ester Sulfonate over the next few years.

Segmental Analysis

The global fatty methyl ester sulfonate market is segmented by end-user.

Based on end-user, the global fatty methyl ester sulfonate market is bifurcated into personal care, detergent, and others.

The detergent segment is the highest contributor to the market and is expected to grow at a CAGR of 12.28% during the forecast period. Fatty methyl ester sulfonate is categorized as an anionic surfactant and is utilized extensively in the production of laundry detergents. They are used in both domestic and institutional settings. Household applications include laundry powders and liquids ranging from 0.1% to 0.8% and 1.5% to 18%, respectively. They are widely used in liquid dishwashing products and laundry detergent formulations due to their reduced sensitivity to water hardness and high foaming capacity.

FMES is a readily biodegradable alternative to linear alkyl benzene Sulfonate that is highly branched. It is effective in the presence of hard water, which contains insoluble calcium soaps, and is frequently combined with other softening substances to boost the product's effectiveness. Increasing discretionary income and rapid urbanization are anticipated to drive the demand for laundry detergents, which will, in turn, fuel the demand for fatty methyl ester sulfonate.

FMES is used in creams, skincare, sun care, hair care, and oral care products within the personal care segment. The increasing demand for organic and anti-aging products to maintain a youthful appearance is driving the need for personal care products, which is anticipated to increase the demand for oleo chemical derivatives such as FMES in the personal care and cosmetics application markets. Over the past ten years, this industry has exhibited consistent growth and increased shelf space in supermarkets, hypermarkets, retail stores, and boutique stores around the globe. The production of personal care products, such as anti-aging creams, styling gels, lipsticks, hair treatment creams, moisturizers, eye shadow, and lip gloss, has increased the demand for specialty esters, glycerol esters, and fatty amines.

Recent Developments

• September 2022- Stepan Company announced that it had signed a definitive agreement to acquire PerformanX Specialty Chemicals' surfactant business and related assets.
• October 2022- Emery Oleochemicals and Sukano are launching the PET Antifogging compound they made together for PET packaging that directly interacts with food.