The Global Market for Refined Glycerin is Forecast to Reach 8.1 Billion Pounds by 2022

Competitiveness of Glycerin as a Feedstock in Numerous and Diverse Applications to Sustain Growth in the Global Glycerin Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Glycerin market. The global market for Refined Glycerin is forecast to reach 8.1 billion pounds by 2022, driven by falling prices of crude and refined glycerin; growing preference for renewable feedstocks as against petroleum derived feedstocks and fairly encouraging business climate in all major end-use application sectors.   

Since its discovery in the 1780s, glycerin has become an indispensable chemical substance available in various grades for commercial uses in the manufacture of a broad range of domestic, industrial and pharmaceutical products. Defined as a sweet-tasting, clear, colorless, odorless, hygroscopic trihydric alcohol, glycerin remains a highly valued chemical substance with technology developments continuing to expand its use in new application areas. The excess supply of crude glycerin in the market and its reprocessing into refined glycerin is pushing up supply of refined glycerin and driving down its prices. Although low prices of refined glycerin is exerting immense pressure on profit margins of glycerin refiners, the scenario is helping create favorable pricing for glycerin as compared to other petroleum-based substitutes thus encouraging new innovative uses. The large stock of crude glycerin in line with the robustly growing production of biodiesel which currently averages to over 18% per annum led by supportive biofuel policies in several countries across the world is expected to keep glycerin prices low in the coming years. The long-term outlook however promises a respite from low prices with research studies already underway to commercially produce acrylic acid, lactic acid, and propylene glycol from crude glycerin. The emergence of novel high-value added uses of crude glycerin will help reduce the supply surplus in the refined glycerin market over the medium to long-term period.

Major factors sustaining current growth in consumption of refined glycerin include established use in industries like food and pharma which continue to grow driven by growing population, increasing affluence and rising healthcare needs; favorable prices of glycerin as compared to other petroleum-based substitutes, and strong R&D investments in innovating new uses of glycerin. The market also stands to benefit from the growing trend towards organic, natural and eco-friendly products and feedstock. Being a non-toxic, biodegradable chemical, glycerin is poised to emerge as the greatest beneficiary of the move towards achieving a sustained future.  Especially poised to benefit is the demand for vegetable glycerin manufactured from soy, coconut or palm. Glycerin represents the fastest growing market segment of the bio-based chemicals market. The strong focus on renewable chemicals will drive demand for new glycerin-based intermediate chemicals. Growing use of glycerin in the production of more eco-friendly methanol, propylene glycol (PG), and ECH is poised to benefit growth in the market. Despite the opportunities for growth, the market will face challenges such as continued supply glut of crude glycerin; weak prices of refined glycerin; rise of substitutes such as sorbitol, pentaerythritol, propylene glycol; and falling prices of petroleum based feedstocks as a result of plummeting crude oil prices and the ensuing changes in cost differentials between feedstocks.

As stated by the new market research report on Glycerin, Asia-Pacific represents the largest market worldwide. The region is also forecast to emerge as the fastest growing market with a CAGR of 9.8% over the analysis period, led by factors such as rapidly growing food and beverage sector in emerging Asian economies experiencing rapid consumerism; robust drug manufacturing activity supported by the rise in pharmaceutical contract manufacturing and increased domestic consumption of drugs against the backdrop of growing healthcare burden; strong industrial and manufacturing activity; and robust policy led demand for renewable chemicals.

Major players in the market include Archer Daniels Midland Company, BASF SE, Cargill, Inc., CREMER OLEO GmbH & Co. KG, Croda International Plc, Ecogreen Oleochemicals, FPG Oleochemicals Sdn. Bhd, Godrej Industries Ltd., IOI Group, Kao Corporation, KLK OLEO, Pacific Oleochemicals Sdn Bhd, PMC Biogenix Inc., Procter & Gamble Chemicals, PT. Cisadane Raya Chemicals, PT. SOCIMAS, PT. Sumi Asih Oleochemical Industry, Sakamoto Yakuhin Kogyo Co., Ltd., Thai Glycerine Co., Ltd., The Dow Chemical Company, Twin Rivers Technologies, Inc., Vance Group Ltd., and Vitusa Products, among others.

The research report titled “Glycerin: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the U.S., Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Middle East & Africa and Latin America (Brazil, Mexico and Rest of Latin America). The market for refined glycerin is analyzed by the following End-Use Applications - Pharmaceuticals & Personal Care, Food & Beverages, Tobacco, Polyether Polyols, Alkyd Resins, and Others (Acrylic Acid, Animal Nutrition, Biological Research, Biomethanol, Cellophane, Epichlorohydrin Production, Epoxy Resins, Explosives, Fabric Softeners, Lubricants, Paints & Coatings, Paper, Polypropylene Glycol, and Textile applications among Others.)

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