The esters market includes a wide range of products that are used as solvents, lubricants, foods, plasticizers and fuel additives. Esters are principally used as solvents in industries such as textile processing, dry cleaning and metal degreasing industries owing to their low volatility and toxicity. They also provide properties such as good penetration, high flash point and low odor to formulations.
The Global esters market is estimated to be valued at US$ 1105.92 Mn in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the esters market are BASF SE, Exxon Mobil Corporation, NYCO S.A., Hatco Corporation, Calumet Specialty Products Partners, L.P., PMC Biogenix, Inc., Cargill, Inc. and Croda International, Plc. These companies hold a significant share of the market owing to their diverse product portfolio and global presence. BASF SE is one of the largest producers of esters globally with manufacturing facilities located across key regions.
The Esters Market Size is expected to significantly rise from the personal care and cosmetics industry over the forecast period. It is widely used as emollients and solvents in cosmetic formulations like lotions, creams, hair sprays owing to excellent solvent properties. Rapid growth of the cosmetic industry especially in developing economies will drive the consumption of esters.
Advancements in ester production technologies are helping companies to develop innovative and customized product grades. Many players are investing in R&D to offer bio-based and environment-friendly esters to suit the changing regulatory environment. Development of low volatile organic compound (VOC) containing esters formulations for paints & coatings is another key technological trend.
Market Trends
Growing preference for bio-based products: With rising environmental concerns, manufacturers are focussed on developing esters from renewable bio-based sources like vegetable oils and fatty acids. This is expected to significantly boost the green chemicals market over the coming years.
Rising consumption in personal care applications: Esters find extensive applications as emollients, solvents and viscosity controlling agents in personal care products. Growing cosmetic industry especially in emerging nations of Asia Pacific and Latin America will drive the demand.
Market Opportunities
Expanding use in lubricants manufacturing: Recent advancements allow development of high-performance lubricant additives and base stocks using ester chemistry. This opens new opportunities in automotive and industrial lubricant formulations.
Emerging economies: Rapid urbanization and rising living standards in developing countries of Asia Pacific, Latin America, Middle East and Africa will augment the consumption of end-use products like coatings, cosmetics and textiles driving esters market growth.
Impact of COVID-19 on Esters Market Growth
The COVID-19 pandemic severely impacted the growth of the esters market initially due to lockdowns imposed worldwide. Factory and business shutdowns disrupted supply chains, hampering production and sales. Demand from end-use industries such as food and beverages, personal care products saw a steep decline as people stayed indoors. This led to oversupply situations and price wars among manufacturers. However, esters found increased applications in sanitizers and disinfectants as the pandemic heightened hygiene consciousness. The market is witnessing steady recovery post lockdowns as restrictions ease and demand resumes from major application industries. While supply chain issues prevail, companies are investing in advanced technologies and operational strategies to enhance production efficiency. Sustained demand from the food industry and increased focus on health and immunity are likely to support esters market growth going forward.
Geographical Regions with High Esters Market Concentration
Asia Pacific dominates the global esters market in terms of value and is expected to maintain its leading position during the forecast period. Abundant raw material availability and a large consumer base drive esters demand in the region. China, Japan and India are the major countries contributing to the region's large market share. North America ranks second supported by well-established personal care and food industries. The U.S. accounts for a major portion of regional esters consumption. Expanding activities in end-use verticals along with product innovation by key players are boosting the European market.
Fastest Growing Region for the Esters Market
The Middle East and Africa region is projected to emerge as the fastest growing market for esters globally between 2024 and 2031. Factors such as rapid economic development, growing population, rising consumer spending power and increasing industrial activities are fueling esters demand across various end-use industries in Middle Eastern and African countries. The personal care sector in particular is witnessing strong growth, driving the uptake of esters. Countries including Saudi Arabia, South Africa and Egypt are major revenue contributors to the esters market in this region.
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