Fatty Acid Market

Global Fatty Acid Market Overview

Fatty Acid Market Size was prized at USD 23.2 billion in 2023. The fatty acid industry is projected to grow from USD 24.5 Billion in 2024 to USD 34.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.73% during the forecast period (2024 - 2032). The increasing usage of fatty acids in pharmaceutical and nutraceutical goods and in household and industrial cleaning are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fatty Acid Market Trends

• Increase awareness regarding personal hygiene and cleaning to boost the market growth

Fatty acids can be found in a variety of cleaning supplies for the home, including soaps, detergents, bleaches, and cleaners. Some fatty acids utilized in soap and detergent formulations include lauric, myristic, palmitic, stearic, ricinoleic, oleic, linoleic, and linolenic acids. The sodium salts of fatty acids, produced from triglycerides or hydrolyzed fatty acids, make up about 70–85% of natural herbal soap bars. The market value of the European household care, professional cleaning, and hygiene sectors was predicted by the International Association for Soaps, Detergents, and Maintenance Products (A.I.S.E.) to be US$ 47.1 billion in 2020. Therefore, the growing awareness regarding personal hygiene has enhanced the fatty acid market CAGR in recent years. 

Omega fatty acid supplements are used more frequently due to growing health consciousness. Fish oils are rich in omega fatty acids, essential components for the human body. Omega-3 supplements can be used as dietary supplements or therapeutic supplements and can aid in the relief of rheumatoid arthritis symptoms. The usage of Omega-3 and Omega-6 fatty acids aids in the prevention and treatment of diseases, enhances cardiovascular health, encourages a healthy metabolism, lessens joint pain and inflammation, improves brain function, etc. The World Health Organization (WHO) estimates that 17.9 million individuals worldwide die yearly due to cardiovascular illnesses. Therefore, the market for fatty acids is anticipated to be driven by growing awareness of health issues, particularly heart ailments. Thus, the increasing sales of fatty acids supplement is another factor driving the growth of the fatty acid market revenue.

Segment Insights

Fatty Acid Source Insights

The  fatty acid market segmentation, based on source, includes animal sources and plant sources. Animal-based fatty acids dominated the market with respect to the  fatty acid industry revenue. This is due to the high concentrations of DHA, and EPA omega-3s found in fish liver oil, oily or fatty fish, and marine microorganisms like krill and algae. Salmon, pollock, tuna, and mackerel are foods high in omega-3 fatty acids suitable for human consumption. Additionally, plant-based fatty acid witness significant growth. Since soybean, safflower, sunflower, cotton, and corn seeds are abundant sources of omega-3, there is an increasing demand for vegetable oils made from their seeds ly.

April 2022: DSM has introduced two new high-quality lipid powders for newborn nutrition: DHASCO®-B and ARASCO® powders, each containing at least 110 mg/g DHA (docosahexaenoic acid) or ARA (arachidonic acid). These powders comprise vegetarian DHA omega-3 and ARA omega-6 sources that are safe and acceptable for use in infant and follow-up formulae and growing-up milk products. This introduction has further broadened the growth opportunity for the fatty acid industry.

Fatty Acid Type Insights

The  fatty acid market data has been bifurcated by type into saturated, monounsaturated, and polyunsaturated. In 2022, polyunsaturated fatty acids saw major growth in the fatty acid. The  sector is expanding as a result of factors like an increase in cardiovascular disorders, growing public knowledge of the health advantages of PUFAs, and rising consumption of goods containing omega-3 fatty acids.

Figure 1:  Fatty Acid Market by Type, 2022 & 2030 (USD Billion)Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

The second fastest-growing segment in the fatty acid industry is the saturated type. The penetration of saturated type continues to increase among several end-use applications. This is because unsaturated fatty acids have a relatively low melting point, which shortens their shelf life and decreases their heat stability. Hence, rising applications of saturated fats for fatty acids positively impact the market growth.

Fatty Acid Application Insights

Based on application, the  fatty acid industry has been segmented into food & beverages, animal feed, pharmaceuticals & nutraceuticals, personal care, and others. The largest growing application category on the market is food & beverages. Customers in North America and Europe's developed markets emphasize health management with food products like dietary supplements. The pharmaceuticals industry's increasing use of medicines due to their quality for nourishing the scalp is predicted to drive the pharmaceuticals segment's significant expansion throughout the forecast period.

Fatty Acid Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Fatty Acid market accounted for USD 10.6 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Product consumption in North America is anticipated to increase due to rising demand from several end-use industries, including domestic cleaning, pharmaceuticals, and food & beverage. One of the main users of fatty acids is the United States. The US market is shifting from refined 18:12 oils to concentrates and other products.

Further, the major countries studied in the market report are Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  FATTY ACID MARKET SHARE BY REGION 2022 (%)Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Asia-Pacific fatty acid market accounts for the second-largest market share. One of the main factors boosting the market expansion for fatty acids in the Asia Pacific area is the existence of a sizable population coupled with the rising usage of cleaning goods like soaps and detergents. In the Indian FMCG industry, making soap is one of the key operations, accounting for more than 50% of the consumer goods sector, according to an article published by IndianMirror. Moreover, China’s fatty acid held the largest market share, and India's fatty acid industry was the fastest-growing market in the Asia-Pacific region.

The Europe Fatty Acid Market is expected to grow at the fastest CAGR from 2022 to 2030. The region's booming pharmaceutical and cosmetic sectors are one reason for the region's predicted growth in the upcoming years. Customers in Europe and South America are becoming more aware of the health advantages of polyunsaturated fatty acids, which has increased the demand for nutritional supplements and functional foods that contain these fats. Further, the German market of fatty acid held the largest market share, and the UK fatty acid industry was the fastest-growing market in the European region.

Fatty Acid Key Market Players & Competitive Insights

Major market players are investing huge amounts of money in R&D to expand their product offerings, which will spur further growth in the fatty acid market. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic initiatives to expand their  footprint. To grow and thrive in a fierce climate of competition, and the market is growing, competitors in the fatty acid industry must provide affordable products.

One of the primary business strategies manufacturers use in the  fatty acid industry to assist customers and expand the market sector is local manufacturing to reduce operating costs. The fatty acid industry has recently given medicine some of the most important advantages. The fatty acid market's major players include Godrej Industries (India), BASF SE (Germany), WujiangJinyu Lanolin Co. (China), Ferro Corporation (US), and others who are supporting R&D initiatives to boost market demand.

Neptune Wellness Solutions, Inc. is a wellness firm that sells nutraceuticals, organic food and beverages, and consumer packaged goods to retail and business consumers. The company focuses on establishing a portfolio of high-quality, affordable consumer products that match the most recent market trends for natural, sustainable, plant-based, and purpose-driven lifestyle brands. In July 2021, Neptune Wellness Solutions Inc., a diverse and fully integrated health and wellness corporation focused on plant-based, sustainable, and purpose-driven lifestyle products, launched Forest Remedies' plant-based Multi Omega 3-6-9 gummies and soft gels featuring Ahiflower as a key ingredient.

Also, Kraton Corporation is a  leader in producing specialty polymers and high-value biobased products produced from co-products of pine wood pulping. Kraton polymers are utilized in various applications, such as adhesives, coatings, consumer and personal care goods, sealants and lubricants, medical, packaging, automotive, paving, and roofing. In August 2022, Kraton Chemical LLC/Kraton Chemical Products Shanghai Co. Ltd (Kraton) chose premier chemical distributor Redox Ltd (Redox) as a channel partner in Australia and New Zealand for its Tall Oil Fatty Acid and Ink Polyamides ranges.

Key Companies in the fatty acid market include

• BASF SE (Germany)
• Akzo Nobel N.V (Netherlands)
• Ashland Inc. (US)
• WujiangJinyu Lanolin Co. (China)
• Vantage Oleochemicals (US)
• Aker BioMarine AS (Norway)
• Ferro Corporation (US)
• Oleon N.V. (Belgium)
• Arizona Chemicals (US)
• Eastman Chemical Company (US)
• Colgate-Palmolive Ltd (India)
• Godrej Industries (India)
• Ferro Corporation (US)
• LongyanZhuoyue New Energy Co. Ltd. (China)
• Eastman Chemical Corporation (US).

Fatty Acid Industry Developments

September 2021: Vantage OleochemicalsTM, a division of Vantage Specialty ChemicalsTM, has announced a $0.06 per pound price increase for all grades of tallow oleic fatty acids beginning October 1, 2021. The price hike is backed by high demand in all domestic and international markets. Vantage's world-class oleochemicals factory is in Chicago and is one of North America's largest state-of-the-art oleochemical operators.

July 2020: Croda, a specialty chemicals firm based in the United Kingdom, paid an unknown sum for Avanti Polar Lipids. Avanti's acquisition joins Croda's to broaden life sciences products, pharmaceutical services, and cGMP production capabilities for worldwide biotechnology, pharmaceutical, and life science research customers. Avanti Polar Lipids is a biotechnology business established in the United States.

Fatty Acid Market Segmentation

Fatty Acid Source Outlook

• Animal Source
• Plant Source

Fatty Acid Type Outlook

• Saturated
• Monounsaturated
• Polyunsaturated

Fatty Acid Application Outlook

• Food & Beverages
• Animal Feed
• Pharmaceuticals & Nutraceuticals
• Personal Care
• Others

Fatty Acid Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
• Rest of Europe
  • Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America

Fatty Acid Source Outlook (USD Billion, 2019-2030)

• Animal Source

• Plant Source

Fatty Acid Type Outlook (USD Billion, 2019-2030)

• Saturated

• Monounsaturated

• Polyunsaturated

Fatty Acid Application Outlook (USD Billion, 2019-2030)

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

Citrus Fiber Regional Outlook (USD Billion, 2019-2030)

• North America Outlook (USD Billion, 2019-2030)

• North America Fatty Acid Source

• Animal Source

• Plant Source

• North America Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• North America Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

  • Others

• US Outlook (USD Billion, 2019-2030)

• US Fatty Acid Source

• Animal Source

• Plant Source

• US Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• US Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• CANADA Outlook (USD Billion, 2019-2030)

• CANADA Fatty Acid Source

• Animal Source

• Plant Source

• CANADA Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• CANADA Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Europe Outlook (USD Billion, 2019-2030)

• Europe Fatty Acid Source

• Animal Source

• Plant Source

• Europe Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Europe Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Germany Outlook (USD Billion, 2019-2030)

• Germany Fatty Acid Source

• Animal Source

• Plant Source

• Germany Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Germany Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• France Outlook (USD Billion, 2019-2030)

• France Fatty Acid Source

• Animal Source

• Plant Source

• France Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• France Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• UK Outlook (USD Billion, 2019-2030)

• UK Fatty Acid Source

• Animal Source

• Plant Source

• UK Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• UK Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• ITALY Outlook (USD Billion, 2019-2030)

• ITALY Fatty Acid Source

• Animal Source

• Plant Source

• ITALY Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• ITALY Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• SPAIN Outlook (USD Billion, 2019-2030)

• SPAIN Fatty Acid Source

• Animal Source

• Plant Source

• SPAIN Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• SPAIN Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Rest Of Europe Outlook (USD Billion, 2019-2030)

• Rest Of Europe Fatty Acid Source

• Animal Source

• Plant Source

• Rest Of Europe Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Rest Of Europe Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Asia-Pacific Outlook (USD Billion, 2019-2030)

• Asia-Pacific Fatty Acid Source

• Animal Source

• Plant Source

• Asia-Pacific Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Asia-Pacific Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• China Outlook (USD Billion, 2019-2030)

• China Fatty Acid Source

• Animal Source

• Plant Source

• China Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• China Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Japan Outlook (USD Billion, 2019-2030)

• Japan Fatty Acid Source

• Animal Source

• Plant Source

• Japan Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Japan Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• India Outlook (USD Billion, 2019-2030)

• India Fatty Acid Source

• Animal Source

• Plant Source

• India Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• India Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Australia Outlook (USD Billion, 2019-2030)

• Australia Fatty Acid Source

• Animal Source

• Plant Source

• Australia Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Australia Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Rest of Asia-Pacific Outlook (USD Billion, 2019-2030)

• Rest of Asia-Pacific Fatty Acid Source

• Animal Source

• Plant Source

• Rest of Asia-Pacific Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Rest of Asia-Pacific Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Rest of the World Outlook (USD Billion, 2019-2030)

• Rest of the World Fatty Acid Source

• Animal Source

• Plant Source

• Rest of the World Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Rest of the World Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Middle East Outlook (USD Billion, 2019-2030)

• Middle East Fatty Acid Source

• Animal Source

• Plant Source

• Middle East Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Middle East Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Africa Outlook (USD Billion, 2019-2030)

• Africa Fatty Acid Source

• Animal Source

• Plant Source

• Africa Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Africa Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others

• Latin America Outlook (USD Billion, 2019-2030)

• Latin America Fatty Acid Source

• Animal Source

• Plant Source

• Latin America Fatty Acid Type

• Saturated

• Monounsaturated

• Polyunsaturated

• Latin America Fatty Acid Application

• Food & Beverages

• Animal Feed

• Pharmaceuticals & Nutraceuticals

• Personal Care

• Others