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Pharmacy benefit management market
PALM KERNEL FATTY ACID DISTILLATE (PKFAD) MARKET REPORT OVERVIEW
The global palm kernel fatty acid distillate (PKFAD) market size was USD 372.3 million in 2020 and will touch USD 650.3 million by 2027, exhibiting a CAGR of 2.3% during the forecast period.
Palm Kernel Fatty Acid Distillate (PKFAD), a by-product of crude palm oil refining, appears as a light brown semi-solid at room temperature, transforming into a brown liquid upon heating. Predominantly consisting of free fatty acids, with palmitic and olefin acids as major components, PKFAD serves crucial roles across industries. It finds application in the soap industry, oleochemicals production (candles, toiletries, cosmetics), and animal feed. Additionally, PKFAD is widely employed in the food, rubber processing, flavours, fragrance, and pharmaceutical sectors, functioning as a food emulsifier, rubber processing additive, and formulation ingredient in pharmaceuticals.
Derived from crude palm kernel oil refining, Palm Kernel Fatty Acid Distillate (PKFAD) is a light yellow liquid that plays a crucial role in the soap industry. It is an essential component in shampoos and detergents, functioning as surfactants, emulsifiers, and foaming agents. The textile industry also benefits significantly from PKFAD, utilizing it in the production of intermediates, laundry soap, methyl ester, biodiesel, fatty alcohol, and anti-caking agents. Comprising 80%-90% free fatty acids, PKFAD results from the condensation of volatile elements during the deodorizing process. This underscores its versatility and substantial value in various industrial applications, highlighting its importance in diverse manufacturing processes.
COVID-19 Impact: Migrant labour shortages in the market are causing disruptions to operations and production processes due to pandemic
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.
The palm oil industry is grappling with a significant challenge as border closures and restrictions have led to shortages in migrant labour. This shortage has reverberated throughout the industry, adversely affecting operational efficiency and disrupting production processes. With migrant labour playing a crucial role in various aspects of palm oil cultivation and processing, the scarcity has created bottlenecks, hindering the timely extraction and processing of palm kernels. Consequently, the overall supply of PKFAD is compromised, underscoring the intricate link between labour dynamics and the palm oil industry's downstream products.
LATEST TRENDS
"Innovations in extraction and refining processes to boost the market "
Advancements in the extraction and refining processes of palm kernel oil, the fundamental precursor for Palm Kernel Fatty Acid Distillate (PKFAD), represent a noteworthy trend driven by technological innovations. These developments aim to enhance operational efficiency and elevate product quality within the palm oil industry. The focus is on refining techniques and extraction methods that optimize resource utilization and minimize environmental impact. This trend reflects a broader industry commitment to sustainable practices and meeting evolving quality standards. As technology evolves, the integration of state-of-the-art methods in palm kernel oil extraction and refining underscores the industry's dedication to continuous improvement, fostering a more streamlined and environmentally conscious production process for PKFAD. Overall, these innovations are pivotal in shaping the future landscape of PKFAD production, aligning with the growing demand for efficiency and sustainability in the industry.
PALM KERNEL FATTY ACID DISTILLATE (PKFAD) MARKET SEGMENTATION
- By Type
Based on type the global market can be categorized into TFM 95% min and TFM 97% min.
TFM 95% min: Palm Kernel Fatty Acid Distillate (PKFAD) with a Total Fatty Matter (TFM) of 95% min is a significant category in the market. It is characterized by a high content of fatty acids, making it suitable for various applications. This type of PKFAD is widely used in the production of oleochemicals, feed, and other industrial applications. With a total fatty matter content of 95% or above, TFM 95% min PKFAD is a valuable raw material in the oleochemical industry.
TFM 97% min: The TFM 97% min Palm Kernel Fatty Acid Distillate (PKFAD) is a high-quality variant with a total fatty matter content of 97% or higher. This superior purity makes it highly desirable for a range of applications. TFM 97% min PKFAD is extensively utilized in the production of high-grade oleochemicals and other specialized industrial applications. Its exceptional purity and composition make it a preferred choice for various end-uses in the market.
- By Application
Based on application the global market can be categorized into Oleochemicals, Feed and Others.
Oleochemicals: Palm Kernel Fatty Acid Distillate (PKFAD) finds extensive application in the oleochemical industry, serving as a crucial raw material for producing soaps, detergents, and cosmetics. The high fatty acid content of PKFAD makes it suitable for manufacturing a wide range of oleochemical products. Due to its versatile nature, PKFAD is in high demand for oleochemical applications.
Feed: In the feed industry, Palm Kernel Fatty Acid Distillate (PKFAD) serves as an important ingredient in animal feed, providing essential nutrients for livestock and making it a valuable component in feed formulations. The high-quality fatty acids present in PKFAD make it a preferred choice for enhancing the nutritional content of animal feed, contributing to the overall health and well-being of livestock.
Others: Apart from its primary applications in oleochemicals and feed, Palm Kernel Fatty Acid Distillate (PKFAD) has diverse uses in other industries. It is utilized in the production of biofuels, offering a sustainable alternative to traditional fossil fuels. Additionally, PKFAD is employed in various industrial applications due to its high fatty acid content and versatile nature, making it a valuable commodity in the market.
DRIVING FACTORS
"Growing demand for biofuels has increased as a feedstock to boost the market"
The escalating demand for biofuels has driven a significant surge in the global palm kernel fatty acid distillate (PKFAD) market growth as a promising feedstock, exerting a favourable influence on market expansion. This trend is a direct response to the heightened emphasis on sustainable and renewable energy sources. As the biofuels sector gains momentum, PKFAD emerges as a valuable resource, showcasing its potential as a feedstock in the production processes. The positive impact on market growth is evident, reflecting the growing recognition of PKFAD's versatility and efficacy in contributing to the biofuels landscape. This dynamic shift not only aligns with environmental sustainability goals but also positions PKFAD as a key player in advancing the objectives of the expanding biofuels market.
"Rising consumer demand for personal care and cosmetic products to expand the market"
The increasing consumer appetite for personal care and cosmetic items has driven the expansion of Palm Kernel Fatty Acid Distillate (PKFAD) in the production of soaps, shampoos, and cosmetics, representing a significant upswing in its usage. This trend directly responds to the growing market demand for high-quality personal care products. As consumers seek diverse and innovative formulations, PKFAD has emerged as a versatile ingredient, contributing to the efficacy and appeal of soaps, shampoos, and cosmetics. Its integration into these products aligns with evolving consumer preferences, underscoring the industry's commitment to utilizing sustainable and functional components. The substantial growth of PKFAD in this context signifies its pivotal role in shaping the landscape of personal care and cosmetic manufacturing, adeptly meeting the dynamic needs of a discerning consumer base.
RESTRAINING FACTORS
"Concerns over deforestation and environmental issues could potentially impede the market"
The production of palm kernel fatty acid distillate (PKFAD) is intricately connected to the palm oil industry, which has become a focal point of environmental apprehension due to widespread deforestation. Particularly notable in some regions, palm oil production has led to extensive deforestation, resulting in the depletion of vital forest habitats. This poses a grave threat to biodiversity, imperilling numerous species reliant on these ecosystems. The expansion of palm oil plantations has further exacerbated concerns by fragmenting and degrading natural habitats, negatively impacting wildlife conservation initiatives. Additionally, the palm oil industry is implicated in the displacement of indigenous communities, biodiversity loss, and the release of substantial carbon emissions, thereby contributing significantly to the broader challenge of climate change.
PALM KERNEL FATTY ACID DISTILLATE (PKFAD) MARKET REGIONAL INSIGHTS
"Asia Pacific region dominates the market for soap, detergent, and cosmetic production"
The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.
The Asia Pacific region dominates the global palm kernel fatty acid distillate (PKFAD) market share and is widely utilized in the manufacturing of soaps, detergents, and cosmetics, given the region's significant role as a major centre for these industries. The extensive application of PKFAD in the Asia Pacific region stems from its versatile properties that enhance the quality and functionality of various personal care and cleaning products. This trend is particularly prominent due to the thriving soap, detergent, and cosmetics sectors in the region, where PKFAD serves as a crucial raw material. The inherent properties of PKFAD make it an ideal ingredient, contributing to the efficacy and appeal of the final products. The strategic incorporation of PKFAD in the production processes underscores its essential role in supporting the vibrant and dynamic landscape of the soap, detergent, and cosmetics industries within the Asia Pacific.
KEY INDUSTRY PLAYERS
"Key Industry leaders use broad networks to expand the market reach and customer base"
Key industry players possess the strategic advantage of utilizing their well-established distribution networks to access a broader customer base and enhance the market presence of Palm Kernel Fatty Acid Distillate (PKFAD). Leveraging their extensive distribution channels enables these key industry players to effectively distribute PKFAD to diverse regions, reaching both existing and potential customers. This strategic approach not only facilitates the widespread availability of PKFAD but also fosters market expansion. By tapping into their robust distribution networks, these industry giants can capitalize on economies of scale, optimize supply chains, and establish a competitive edge. This not only benefits the industry players in terms of market dominance but also contributes to the overall growth and accessibility of PKFAD, meeting the diverse needs of consumers across various geographical markets.
List of Market Players Profiled
- FGV Holdings (Malaysia)
- Sime Darby Plantation (Malaysia)
- Genting Plantations (Malaysia)
- KLK OLEO (Malaysia)
- Future Prelude (Malaysia)
- Soon Soon Oilmills Sdn Bhd (Malaysia)
- Wilmar International (Singapore)
- RGE Group (Singapore)
- Golden Agri Resources (Singapore)
- Musim Mas (Singapore)
- First Resources (Singapore)
- Mewah Group (Singapore)
- Astra Agro Lestari (Indonesia)
- Permata Hijau Group (Indonesia)
- Cargill (U.S.)
INDUSTRIAL DEVELOPMENT
December 2023: A decade ago, Wilmar International's No Deforestation, No Peat, No Exploitation policy marked a significant environmental milestone, prohibiting harmful practices in their palm oil supply chain. Glenn Hurowitz, CEO of Mighty Earth, emphasizes the success of this policy, which led to a 90% reduction in palm oil-related deforestation. The achievement showcases the impact of private sector involvement, effective campaigning, and continuous effort, emphasizing the need for practical implementation rather than relying solely on data for change. This transformation not only reduced climate pollution but also protected wildlife habitats and Indigenous communities.
REPORT COVERAGE
The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.
The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.
REPORT COVERAGE | DETAILS |
---|---|
Market Size Value In |
US$ 372.3 Million in 2020 |
Market Size Value By |
US$ 650.3 Million by 2027 |
Growth Rate |
CAGR of 2.3% from 2020 to 2027 |
Forecast Period |
2022-2027 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Types & Application |
Frequently Asked Questions
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What value is the palm kernel fatty acid distillate (PKFAD) market expected to touch by 2027?
The global palm kernel fatty acid distillate (PKFAD) market is expected to reach USD 650.3 million by 2027.
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What CAGR is the palm kernel fatty acid distillate (PKFAD) market expected to exhibit by 2027?
The palm kernel fatty acid distillate (PKFAD) market is expected to exhibit a CAGR of 2.3% by 2027.
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Which are the driving factors of the palm kernel fatty acid distillate (PKFAD) market?
Growing demand for biofuels as a feedstock, and rising consumer demand for personal care and cosmetic products are some of the driving factors of the palm kernel fatty acid distillate (PKFAD) market.
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What are the palm kernel fatty acid distillate (PKFAD) market segments?
The palm kernel fatty acid distillate (PKFAD) market segmentation that you should be aware of, which include, Based on type the palm kernel fatty acid distillate (PKFAD) market is classified as TFM 95% min and TFM 97% min. Based on application the palm kernel fatty acid distillate (PKFAD) market is classified as Oleochemicals, Feed and Others.