Fatty Acid Methyl Ester Fame Market
PUBLISHED: 2025 ID: SMRC28343
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Fatty Acid Methyl Ester Fame Market

Fatty Acid Methyl Ester (FAME) Market Forecasts to 2030 - Global Analysis By Fatty Acid Type (Saturated Fatty Acids and Unsaturated Fatty Acids), Source (Vegetable Oils, Animal Fats, Algae Oils, Waste Oils and Other Sources), Production Method, Application and By Geography

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4.8 (21 reviews)
Published: 2025 ID: SMRC28343

This report covers the impact of COVID-19 on this global market
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Years Covered

2022-2030

Estimated Year Value (2024)

US $17.52 BN

Projected Year Value (2030)

US $23.84 BN

CAGR (2024 - 2030)

6.5%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

North America


According to Stratistics MRC, the Global Fatty Acid Methyl Ester (FAME) Market is accounted for $17.52 billion in 2024 and is expected to reach $23.84 billion by 2030 growing at a CAGR of 6.5% during the forecast period. Fatty Acid Methyl Ester (FAME) refers to a group of chemical compounds derived from fatty acids through a process called transesterification, where the fatty acids are reacted with methanol to form methyl esters. FAME is known for its renewable, biodegradable, and cleaner-burning properties, contributing to reduced greenhouse gas emissions compared to traditional fossil fuels.

According to a study report, Coconut oil is a rich source of saturated fatty acids, and short- and medium-chain fatty acids account for 70% of these fatty acids.

Market Dynamics: 

Driver: 

Growing demand for renewable energy sources

FAME is a key component of biodiesel, a cleaner alternative to fossil fuels. As countries strive to reduce carbon emissions and combat climate change, governments have introduced policies and mandates to increase the use of renewable fuels, boosting biodiesel consumption. FAME, derived from renewable feedstocks like vegetable oils and animal fats, meets sustainability goals by providing an eco-friendly energy source. This rising demand for cleaner energy solutions drives FAME production and adoption in transportation, industrial, and energy sectors globally.

Restraint:

Storage & transport challenges

FAME faces storage and transport challenges due to its higher viscosity, which can lead to clogging in fuel lines and equipment. Additionally, FAME is hygroscopic, leading to potential microbial growth and corrosion. These issues require specialized infrastructure for handling, storage, and transportation, increasing costs. The need for compatible storage tanks, pipelines, and maintenance adds complexity to the logistics, thereby hampering market growth.

Opportunity:

Government initiatives and subsidies

Governments worldwide, particularly in regions like North America, Europe, and Asia, have implemented renewable fuel standards and mandates, such as the Renewable Fuel Standard (RFS) in the U.S. These policies encourage the use of biodiesel made from FAME, supporting cleaner energy solutions and reducing greenhouse gas emissions. Subsidies and tax breaks for biodiesel producers make FAME more cost-competitive with conventional fuels, accelerating its use in transportation, industry, and energy, thus boosting market growth.

Threat:

High production costs

Fatty Acid Methyl Ester (FAME) has high production costs due to several factors, including the expensive feedstocks (vegetable oils and animal fats), energy-intensive transesterification process, and the use of catalysts. Additionally, fluctuations in raw material prices and the need for specialized equipment further contribute to its high production cost. These elevated costs make FAME less competitive compared to traditional fossil fuels, limiting its widespread adoption.

Covid-19 Impact

The covid-19 pandemic significantly impacted the fatty acid methyl ester (FAME) market by disrupting supply chains, reducing demand for transportation fuels, and halting biodiesel production due to lockdowns. Economic slowdowns led to lower fuel consumption, which affected the demand for biodiesel made from FAME. However, as economies recover, the market is seeing a rebound, driven by increasing environmental concerns, government support for renewable energy, and a growing shift towards sustainable fuel alternatives to fossil fuels.

The transesterification segment is expected to be the largest during the forecast period

The transesterification segment is predicted to secure the largest market share throughout the forecast period. Transesterification is the primary method used to produce Fatty Acid Methyl Ester (FAME). It involves reacting vegetable oils or animal fats with methanol, using a catalyst such as sodium hydroxide or potassium hydroxide. The process is widely used due to its efficiency and cost-effectiveness in biodiesel production.

The cosmetics & personal care segment is expected to have the highest CAGR during the forecast period

The cosmetics & personal care segment is anticipated to witness the highest CAGR during the forecast period due to its emollient, moisturizing, and skin-conditioning properties. FAME, derived from natural oils, is commonly found in creams, lotions, and hair care products, where it enhances texture, improves skin absorption, and provides a smooth, non-greasy finish. FAME’s biodegradable and eco-friendly nature makes it a preferred choice for natural and sustainable formulations.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period driven by increasing demand for biodiesel as an eco-friendly alternative to fossil fuels. Key countries like China, India, and Indonesia are major producers and consumers, driven by government incentives promoting renewable energy and reducing carbon emissions. The region's large agricultural sector provides abundant feedstocks like palm oil, soybeans, and jatropha. Additionally, rising energy prices and environmental awareness are further accelerating the adoption of FAME-based biodiesel in transportation and industrial sectors.

Region with highest CAGR:

North America is expected to witness the highest CAGR over the forecast period due to growing demand for renewable fuels and government mandates on biodiesel usage. The U.S. and Canada are key players, with policies like the Renewable Fuel Standard (RFS) encouraging the use of biodiesel made from FAME. The region’s emphasis on reducing greenhouse gas emissions and dependence on fossil fuels is driving the shift toward sustainable energy sources. Additionally, North America's agricultural production provides ample feedstocks, such as soybean oil and animal fats, supporting FAME market growth.

Key players in the market

Some of the key players profiled in the Fatty Acid Methyl Ester (FAME) Market include Cargill Inc., BASF SE, Wilmar International Limited, Archer Daniels Midland Company, Evonik Industries AG, Neste Corporation, The DOW Chemical Company, Kraton Polymers, COFCO Corporation, Imperial Oil, Alfa Chemistry, Arkema Global, Louis Dreyfus Company, Maruzen Oil Co., Ltd., Aemetis, Inc., Biowanze S.A., Infinita Renovables S.A. and TransEnergy Fuels.

Key Developments:

In May 2023, Alfa Chemistry expanded its fatty acid and ester product line that reflects the company's commitment to meeting the increasing demand for high-quality lipids and fatty acids in scientific and industrial applications. The product line is designed to support a range of research purposes, including biochemical studies, formulation of bio-based products, and industrial applications that require specialized fatty acid derivatives.

In February 2023, Arkema launched Oleris® Esterol A, a bio-based product, specifically designed to meet the growing demand for sustainable materials in various industries. The product consists of more than 75% C18 fatty acid methyl esters. This product is part of Arkema's broader initiative to provide innovative, bio-based solutions that contribute to sustainable development across various sectors.

Fatty Acid Types Covered:
• Saturated Fatty Acids
• Unsaturated Fatty Acids

Sources Covered:
• Vegetable Oils
• Animal Fats
• Algae Oils
• Waste Oils
• Other Sources

Production Methods Covered:
• Transesterification
• Supercritical Methanol Process
• Homogeneous Catalysis
• Heterogeneous Catalysis
• Microbial Synthesis
• Enzymatic Process
• Other Production Methods

Applications Covered:
• Automotive
• Agriculture
• Chemicals & Petrochemicals
• Energy
• Cosmetics & Personal Care
• Food & Beverages
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary             
               
2 Preface              

 2.1 Abstract             
 2.2 Stake Holders            
 2.3 Research Scope            
 2.4 Research Methodology           
  2.4.1 Data Mining           
  2.4.2 Data Analysis           
  2.4.3 Data Validation           
  2.4.4 Research Approach           
 2.5 Research Sources            
  2.5.1 Primary Research Sources          
  2.5.2 Secondary Research Sources          
  2.5.3 Assumptions           
               
3 Market Trend Analysis            
 3.1 Introduction            
 3.2 Drivers             
 3.3 Restraints            
 3.4 Opportunities            
 3.5 Threats             
 3.6 Application Analysis           
 3.7 Emerging Markets            
 3.8 Impact of Covid-19            
               
4 Porters Five Force Analysis            
 4.1 Bargaining power of suppliers           
 4.2 Bargaining power of buyers           
 4.3 Threat of substitutes           
 4.4 Threat of new entrants           
 4.5 Competitive rivalry            
               
5 Global Fatty Acid Methyl Ester (FAME) Market, By Fatty Acid Type        

 5.1 Introduction            
 5.2 Saturated Fatty Acids           
 5.3 Unsaturated Fatty Acids           
               
6 Global Fatty Acid Methyl Ester (FAME) Market, By Source         
 6.1 Introduction            
 6.2 Vegetable Oils            
 6.3 Animal Fats            
 6.4 Algae Oils            
 6.5 Waste Oils            
 6.6 Other Sources            
               
7 Global Fatty Acid Methyl Ester (FAME) Market, By Production Method        
 7.1 Introduction            
 7.2 Transesterification            
 7.3 Supercritical Methanol Process          
 7.4 Homogeneous Catalysis           
 7.5 Heterogeneous Catalysis           
 7.6 Microbial Synthesis            
 7.7 Enzymatic Process            
 7.8 Other Production Methods           
               
8 Global Fatty Acid Methyl Ester (FAME) Market, By Application        
 8.1 Introduction            
 8.2 Automotive            
 8.3 Agriculture            
 8.4 Chemicals & Petrochemicals           
 8.5 Energy             
 8.6 Cosmetics & Personal Care           
 8.7 Food & Beverages            
 8.8 Other Applications            
               
9 Global Fatty Acid Methyl Ester (FAME) Market, By Geography         
 9.1 Introduction            
 9.2 North America            
  9.2.1 US            
  9.2.2 Canada            
  9.2.3 Mexico            
 9.3 Europe             
  9.3.1 Germany            
  9.3.2 UK            
  9.3.3 Italy            
  9.3.4 France            
  9.3.5 Spain            
  9.3.6 Rest of Europe           
 9.4 Asia Pacific            
  9.4.1 Japan            
  9.4.2 China            
  9.4.3 India            
  9.4.4 Australia            
  9.4.5 New Zealand           
  9.4.6 South Korea           
  9.4.7 Rest of Asia Pacific           
 9.5 South America            
  9.5.1 Argentina           
  9.5.2 Brazil            
  9.5.3 Chile            
  9.5.4 Rest of South America          
 9.6 Middle East & Africa           
  9.6.1 Saudi Arabia           
  9.6.2 UAE            
  9.6.3 Qatar            
  9.6.4 South Africa           
  9.6.5 Rest of Middle East & Africa          
               
10 Key Developments             
 10.1 Agreements, Partnerships, Collaborations and Joint Ventures        
 10.2 Acquisitions & Mergers           
 10.3 New Product Launch           
 10.4 Expansions            
 10.5 Other Key Strategies           
               
11 Company Profiling             
 11.1 Cargill Inc.            
 11.2 BASF SE             
 11.3 Wilmar International Limited           
 11.4 Archer Daniels Midland Company          
 11.5 Evonik Industries AG           
 11.6 Neste Corporation            
 11.7 The DOW Chemical Company           
 11.8 Kraton Polymers            
 11.9 COFCO Corporation            
 11.10 Imperial Oil            
 11.11 Alfa Chemistry            
 11.12 Arkema Global            
 11.13 Louis Dreyfus Company           
 11.14 Maruzen Oil Co., Ltd.           
 11.15 Aemetis, Inc.            
 11.16 Biowanze S.A.            
 11.17 Infinita Renovables S.A.           
 11.18 TransEnergy Fuels            
               
List of Tables              
1 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Region (2022-2030) ($MN)      
2 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Fatty Acid Type (2022-2030) ($MN)      
3 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Saturated Fatty Acids (2022-2030) ($MN)     
4 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Unsaturated Fatty Acids (2022-2030) ($MN)     
5 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Source (2022-2030) ($MN)      
6 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Vegetable Oils (2022-2030) ($MN)      
7 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Animal Fats (2022-2030) ($MN)      
8 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Algae Oils (2022-2030) ($MN)      
9 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Waste Oils (2022-2030) ($MN)      
10 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Other Sources (2022-2030) ($MN)      
11 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Production Method (2022-2030) ($MN)     
12 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Transesterification (2022-2030) ($MN)     
13 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Supercritical Methanol Process (2022-2030) ($MN)    
14 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Homogeneous Catalysis (2022-2030) ($MN)     
15 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Heterogeneous Catalysis (2022-2030) ($MN)     
16 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Microbial Synthesis (2022-2030) ($MN)     
17 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Enzymatic Process (2022-2030) ($MN)     
18 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Other Production Methods (2022-2030) ($MN)    
19 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Application (2022-2030) ($MN)      
20 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Automotive (2022-2030) ($MN)      
21 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Agriculture (2022-2030) ($MN)      
22 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Chemicals & Petrochemicals (2022-2030) ($MN)    
23 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Energy (2022-2030) ($MN)      
24 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Cosmetics & Personal Care (2022-2030) ($MN)    
25 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Food & Beverages (2022-2030) ($MN)     
26 Global Fatty Acid Methyl Ester (FAME) Market Outlook, By Other Applications (2022-2030) ($MN)     
               
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above. 

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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