The global fatty acid methyl ester (FAME) market is expected to grow from USD 17.26 Billion in 2016 to USD 22.13 Billion by 2021, at a CAGR of 5.1% from 2016 to 2021. Stringent environmental regulations and growing demand for biodiesel are some of the factors that are expected to drive the growth of the fatty acid methyl esters market during the forecast period.

The rapeseed methyl ester type segment led the global fatty acid methyl ester market in 2015. This can be attributed to the fact that rapeseed-based biodiesel has greater efficiency and better performance than the types of methyl ester. Rapeseed contains higher oil contents, which makes it more suitable for use in lubricating, coating, and metal working fluid applications. These factors are expected to boost the growth if the rapeseed segment in the coming years.

The rising need for fuel security has led to these economies searching for alternative fuels such as biodiesel. The growing dependency on fossil fuel and depleting reserves of fossil fuel have led to countries seeking alternative fuel sources. This is consequently expected to drive the growth of the fatty acid methyl ester market; as fatty acid methyl ester is a major raw material used in the manufacturing biodiesel. Fatty acid methyl ester is a preferred alternative to conventional mineral-based products for applications in lubricants, coatings, food & agriculture, and so on, owing to its properties, such as high lubricity, non-toxicity, and biodegradability. It is also used in leather, food, agriculture, and many other industries.

The North America region led the global fatty acid methyl esters market in 2015. The Asia-Pacific fatty acid methyl ester market is expected to witness high growth during the forecast period, owing to rising environmental awareness to reduce greenhouse gas emission and increasing support from the government by giving tax incentives and rebates to encourage the use of biodiesel in the region. The market in the region is in a nascent stage, but offers huge growth potential, especially in China, Japan, India, and South Korea.

Wilmar International Limited (Singapore) is one of the most active players in the global fatty acid methyl ester market. The company expanded its business in different regions to increase its global reach and cater to the diversified demands of its customers. The company also entered into joint ventures to strengthen its market position in various region. Cargill Inc. (U.S.) and ADM Company (U.S.) are also key players in the market and both these companies undertook diverse growth strategies to achieve growth.

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