Glycerin Demand Cycle

Glycerin is derived as a by-product from various production process, such as biodiesel, soap, fatty acid, and alcohol. Hence, glycerin supply is largely determined by the global demand of biodiesel and fatty acids/alcohols

Global Supply–Demand Analysis

Biodiesel is the largest industry source for glycerin, with more than 60 percent share to the global glycerin supply, followed by fatty acids (24 percent). Higher biodiesel blending mandates in the EU and blenders’ tax credit in the US have led to their leading positions among the global biodiesel producers

Market Outlook - 2016/17

  • Regulatory policies promoting the production of biodiesel across countries led to increased production of biodiesel in the recent decade. Thus, the biodiesel industry emerged as the largest contributor to the global glycerin supply 

  • Biodiesel production displayed a tremendous annual growth rate of 37 percent during 2007–2011. However, sharp expansion of biodiesel production has been arrested during 2011–2013, at 6 percent, due to lower crude oil prices and non-viable biodiesel production