Distilled Fatty Acids Market Trends

Growth Drivers

• Upsurge in Water Supply
• According to the Ministry of Housing and Urban Affairs, the benchmark for urban water delivery in India is 135 liters per capita per day (lpcd). Under the Jal Jeevan Mission, a minimum service delivery standard of 55 lpcd for rural regions was established, which states may raise to a higher standard. Hence, the demand for PVC plastisol is expected to increase. Fatty acids are widely used in the manufacturing of PVC plastisol as they have a strong affinity for vinyl chloride monomer (VCM), which allows for a reduction in polymerization time. Hence, underground irrigation pipes made of PVC are frequently utilized in water distribution systems.
• Rise in Construction Activities
• The global construction industry must develop about 12,000 structures every day until 2050 to accommodate the estimated 6 billion people who would live in cities (around 9 billion people worldwide). 
• Growing Automotive Production
• Nearly 70 million automobiles were produced globally in 2021. Comparing this number to the prior year, there has been a rise of about 2%. The top three auto and commercial vehicle makers in 2020 were China, Japan, and Germany.
• Surge in Import and Export of Distilled Fatty Acids All Around Globe
• Fatty acid import shipments in Malaysia were about 3K, with 133 Malaysia Importers purchasing from 141 Suppliers. United States, Sri Lanka, and Netherlands are the top 3 importers of fatty acids, each with approximately 7,490 shipments. Sri Lanka comes in second with about 1,680 shipments, and Netherlands comes in third with about 1,520 shipments.
• Rise in Demand for Hygiene and Personal Care Products
• Among different categories of cosmetics, skincare and makeup powders have seen the biggest gains in sales (up about 23% from 2020), followed by manicure and pedicure supplies (up about 16%), eye makeup supplies (up about 15%), and then skincare products for beauty (up about 14%).

Challenges

• High Cost of Distilled Fatty Acids
• Supply Chain Disruption for Raw Material
• Adverse Effect on Environment of Plantation - Palm tree plantations are sprouting up all across Asia, Africa, and Latin America. However, in order to make room for massive monoculture palm oil plantations, such development has devastated extensive tropical forests, which are vital homes for many endangered species, including rhinos, elephants, and tigers. For instance, between 2010 and 2021, Tesso Nilo National Park lost about 66% of its primary forest, with the rate of deforestation in 2021 nearly double that of 2020 and reaching its highest level since 2016. In 2022, additional removal of the primary forest was visible in satellite photography. The unlawful establishment of large-scale plantations to grow oil palm and other tree crops is responsible for much of Tesso Nilo's destruction.