A new report produced by Pune, India-based MarketsandMarkets indicates that the fatty acid methyl ester (FAME) market is expected to grow at a compound annual growth rate (CAGR) of 5.1 percent from 2016-’21, the firm stated in a press release. This CAGR equates to global market growth from $17.26 billion in 2016 to $22.13 billion in 2021. The largest sector in the FAME market is fuel (i.e., biodiesel), while other applications include lubricants, coatings, food and agriculture, metal working fluids and more.

“The fuel application holds the largest share in the global fatty acid methyl ester market among various applications of fatty acid methyl ester,” states the report summary. “This growth can be attributed to the significant rise in demand from the biodiesel industry. … Growing environmental concerns on the use of fossil-based fuel products that increase pollution levels as well as contain toxic volatile organic compounds, are significantly impacting the market for biodiesel as it is penetrating the market as a substituent for fossil fuel.”

North America was the largest FAME market in 2015, according to the report. “The rise in demand for fatty acid methyl ester in biodiesel production, and the strict environmental rules and regulations of North America, are attributing to the growth of fatty acid methyl ester market in this region,” the report states. “Soy methyl ester is the largest type segment in North America as this region is rich in production of soybeans. The growing application industries, such as fuel, lubricants, and coating, among others are expected to drive the growth of the fatty acid methyl ester market in the region.”

Conversely, the report states that the rapeseed methyl ester segment holds the largest share in the global fatty acid methyl ester market. “The growth of this segment can be attributed to the increasing use of rapeseed as the primary raw material for fatty acid methyl ester production, as rapeseed has better oil content than other types of raw material for fatty acid methyl ester manufacturing,” the firm stated in a press release. “Soybean has 18 to 22 percent oil content while rapeseed has 30 to 37 percent oil content. The high cetane number of biodiesel produced from rapeseed oil enables complete combustion and thus lowers emissions. Rapeseed is a major biodiesel feedstock used in Europe.”

The report, which covers FAME from soybean, rapeseed, palm and other oils, various applications, and the regions of North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America, also identifies key players in the market, including Wilmar International Ltd. (Singapore), Cargill Inc. (U.S.), KLK Oleo (Malaysia), ADM Co. (U.S.), Emery Oleochemicals (Malaysia), BASF SE (Germany), and others.

MarketandMarkets is charging $5,650 for a single-user license for the report.