Glycerin

Glycerin is one of the oleochemicals also known as glycerol. It is extensively used in the pharmaceutical and chemical industries. The glycerin market is categorized based on different segments. These include the grade of glycerin, which could be crude or refined. Based on the source, it is classified as biodiesel, soybean oil, rapeseed oil, and fatty alcohols.

It is also classified based on its application. The glycerol market is growing thanks to its multiple applications, like in pharmaceuticals, food and beverages, cosmetics and personal care, resins, industrial Chemicals, tobacco humectants, automotive, and others.

When we compare crude and refined glycerol, we find that refined glycerol has a share of nearly 65%. Its application in cosmetics, pharmaceuticals, and food sectors makes it the preferred choice. Crude glycerol is used in applications like the preparation of animal feed, where it is being used as a replacement for corn.

When we look at the applications for which glycerin is used, we find that the maximum usage is from the cosmetics and personal care sector. It accounts for around 36% of the total market share. Glycerin is used in a variety of products like shampoos, moisturizers, hair conditioners, and even toothpaste. It is also used in eye drops.In the food industry, it is used as an additive and is considered safe to use.

Biodiesel is the largest industrial source for glycerin, contributing more than 60 percent share to the global glycerin supply, followed by fatty acids that account for 24 percent share. Higher biodiesel blending mandates in Europe and blenders' tax credit in the U.S have led to their leading positions among the global biodiesel producers. Europe is the largest biodiesel supplier and along with the U.S., it accounts for more than 50 percent of the global share of biodiesel production. With a production capacity of 26 billion liters and production of around 10.8 billion liters, Europe is the largest producer of glycerin as well. However, since 2012, Brazil and Argentina have been increasing their production of biodiesel due to an increase in mandates imposed by the government. With the current market, glycerin is oversupplied globally. And with many fragmented suppliers, buyers have endless options to change suppliers and bargain for the most effective procurement option.

Glycerin Global Market Outlook

• The global glycerin market is expected to reach $3.21 billion by 2023, with a CAGR of 3.12 percent

• Currently, it is a tight market, and the trend is uncertain with changes in policies of anti-dumping duties for biodiesel market in the US and the EU. The US domestic production has increased, and the EU imports are witnessed to increase this year

• The market is highly concentrated, as top 5–6 participants accounted for over 65 percent of the total demand in 2022E. Key market suppliers include IOI, KL Kepong, Oleon, Wilmar, ADM, P&G, and Emery

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 U.S. have led to their leading positions among the global biodiesel producers

Market Overview (2021–2022 E)

• In 2022, there is a shortages following the war in Ukraine continues to keep rapeseed based non-GMO glycerin availability low across Europe

• In the last ten years, production of biodiesel has expanded as a result of regulatory support. Consequently, the production of biodiesel became the main source of the world's glycerin supply. Biodiesel production displayed a tremendous annual growth rate of approx. 28-30 percent during 2012–2022F

• In 2022, Biodiesel production was reduced by several producers in response to significantly poor margins brought on by the increases in energy and feedstock costs.

Glycerin Global Demand by Application (2021/22 E)

• Glycerin production is a by-product of saponification process, which has decreased in the recent days. This is because of the increasing consumer preference for shower gels in developed countries and predominant usage of fatty acids to produce soaps in the developing countries

• Synthetic production of glycerin is negligible, and Dow Chemical is the only manufacturer of synthetic glycerin, shut down its £140 million plants, when the prices dropped to unprofitable levels

Global Glycerin Trade Dynamics

The global trade volume of glycerin has been increased at a CAGR of 6 percent since 2016. In 2022, Biodiesel production was reduced by several producers in response to significantly poor margins brought on by the increases in energy and feedstock costs. Glycerin availability was dented further because of upstream biodiesel supply issues due to Russia-Ukraine war.​

• Higher percentage of biodiesel mandates in Brazil had made it one of leading contributor of glycerin at a global scale

• Brazil will keep the 10 percent biodiesel blend in diesel mandate through March 31, 2023

• Indonesia surpassed Brazil in 2016, due to the abundance of palm plantations, which are processed to fatty acids and alcohols, which yield out glycerin as a byproduct. Moreover, impact of weather in Brazil has impacted its soybean production.

• China imports glycerin from Southeast Asia and Brazil to meet its demand for glycerin

Methodology for writing this Report

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers, and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Why should you buy this report?

The report provides an extensive analysis of the key price drivers, supply-demand trends, and trade dynamics of global glycerin manufacturers such as Europe, the U.S., and Asia.

The report provides a detailed analysis of Porter's Five Forces for glycerin along with a detailed understanding of the glycerin supplier landscape. It also discusses the supply share of major commercial suppliers of refined glycerin brands including Archer Daniels Midland (ADM), Kuala Lumpur Kepong Berhad (KLK), Musim Mas, Twin Rivers Technologies, IOI Group, and BioMCN.