by Esters are organic compounds derived from an acid (organic or inorganic) in which at least one –OH (hydroxyl) group is replaced by an –O–alkyl (alkoxy) group. Esters are widely used as solvents, cosmetic emollients, plasticizers, food additives, lubricants, and fragrances. They provide emollient properties and are commonly used in personal care products such as lotions, creams, and hair care products as occlusive agents.
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 players are focusing on new product launches and capacity expansions to strengthen their market presence. The growing personal care industry is fueling the demand for esters globally. Increasing spending on personal care and changing consumer preference towards natural and organic personal care products is a key factor boosting market growth. Major players are also investing in emerging countries in Asia Pacific and Latin America to tap the opportunistic markets with high growth potential.
Market Key Trends
Growing demand from personal care industry is one of the major in Esters Market Trends. Esters provide emollient properties to personal care products and are widely used in formulation of lotions, creams, hair care and skincare products. The booming personal care industry especially in developing countries is propelling the demand. Asia Pacific is the largest and fastest growing personal care market led by countries such as China and India. Increasing disposable income, online retail penetration and focus on natural products are driving the personal care market growth in the region. This in turn is expected to significantly boost esters consumption over the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants find it difficult to enter the esters market due to the high capital required and the presence of dominant players.
Bargaining power of buyers: Large buyers have moderately high bargaining power due to the availability of substitutes.
Bargaining power of suppliers: The suppliers of raw materials for esters have moderate bargaining power due to the availability of alternative suppliers.
Threat of new substitutes: Substitutes like oil and grease pose moderate threat for certain applications of esters.
Competitive rivalry: Intense competition exists between the key players to gain market share.
Geographical Regions
North America accounted for the largest share of the global esters market in terms of value in 2024. This was mainly due to the rise in food processing and personal care industries in the region.
The Asia Pacific region is expected to witness the fastest growth in the esters market during the forecast period. Countries like China, India, Japan, and South Korea are anticipated to drive the demand for esters owing to the expansion of end-use industries in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups. LinkedIn
