Glycerin
Market, Supplier, Risk and
Competitive Intelligence

Glycerin Market Analysis and Industry Outlook

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 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). The sources of glycerin production include biodiesel (64 percent), fatty acids (24 percent), fatty alcohols (7 percent), saponification (4 percent), others (1 percent) and synthetic (0.10 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

Global glycerin market is supply dependent on the biodiesel production than its own demand and biodiesel production is dictated by the respective government mandates. Hence lower biodiesel production would significantly reduce the glycerin supply

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 was arrested during 2011–2013, at 6 percent, due to lower crude oil prices and non-viable biodiesel production

Glycerin Market - Global Analysis

• The global glycerin market is expected to reach $3.12 billion by 2021 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 glycerol market trends are positive thanks to the strong demand from the pharmaceutical industry. In 2018, the global glycerin market was worth $2,998.4 million.
• The market is highly concentrated, as the top 5 – 6 participants accounted for over 65 percent of the total demand in 2014.
• Key market players include IOI, KL Kepong, Oleon, Wilmar, ADM, P&G, and Emery.
• Key producing countries include the EU(25 percent), China(20 percent), and the US(15 percent).
• Key exporting countries include Brazil (12%), Indonesia (21%), Argentina (10%), France (9%), and Germany (9%).
• Key importing countries include China (42%), Netherland (12%), Germany (11%), and Malaysia (5%).
• Key consuming regions are Asia (36%), EU (25%), and Singapore (16%).
• The UK refined glycerin prices are dependant on biodiesel mandates and moving crude oil prices. The prices were forecasted to decline from 2019.
• The market price of crude and refined glycerin follows the same market dynamics at different price points. However, the imperative parameters are the mandates and blenders tax credit in the US, which had played a crucial role in improved biodiesel production.
• Price trends point to the fact that refined glycerin vs. crude glycerin costs remained stable in 2019.
• The glycerine price trend 2020 indicates that it was under pressure during the first half of 2020. The lockdowns imposed worldwide due to the COVID-19 situation have also affected crude glycerine price 2020. Once the lockdown was lifted, the prices stabilized and the trends are good for the next year.
• The price of glycerin is being affected by the demand for personal care products in developing countries. With the growth of the economy in these counties, the increased demand for glycerin has affected the glycerol market price.
• Even in the pharma industry, there has been an increase in demand. The Pharmaceutical industry needs glycerine as one of its key ingredients. The demand for fast food is increasing globally. This trend has led to an increase in the demand for glycerine, which is used as a preservative or sweetener.

Glycerin Consumption by Country

• Europe and China are the leading contributors to global glycerin consumption, with the increasing use of crude glycerin in disposal applications and refined glycerin in epichlorohydrin (ECH) production.
• Key consuming countries are China (25 percent), Western Europe (22 percent), the USA (17 percent), and the rest of Europe (9 percent).
• Higher consumption of glycerin in the EU and the US because of the growing crude glycerin usage in disposal applications, alongside the growth in demand from the personal care industry.
• The glycerin demand from the small segments, like alkyd resins, polyether polyols, and tobacco, is expected to grow at 3 – 4 percent every year.

Glycerin Global Demand by Application

• Glycerin production is a by-product of the saponification process, which has decreased in recent times. 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 was the only manufacturer of synthetic glycerin before it shut down its £140 million plants, when the prices dropped to unprofitable levels
• Key applications of glycerin include pharmaceuticals and personal care (35 percent),  others (17 percent), epichlorohydrin (13 percent), food and beverage (12 percent), tobacco and  humectants (12 percent), and alkyd resin (11 percent)

Glycerin Demand Cycle

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

Global Supply–Demand Analysis

Biodiesel is the largest industrial source for glycerin, with more than 60 percent share of the global glycerin supply, followed by fatty acids (24 percent). The sources of glycerin production include biodiesel (64 percent), fatty acids (24 percent), fatty alcohols (7 percent), saponification (4 percent), others (1 percent), and synthetic (0.10 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

The global glycerin market is supply-dependent on biodiesel production than its own demand; biodiesel production is dictated by the respective government mandates. Hence lower biodiesel production would significantly reduce the glycerin supply

Market Outlook

• 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, a sharp expansion of biodiesel production was arrested in the following years due to lower crude oil prices and non-viable biodiesel production. At present, the market trends are expected to be upbeat in the coming years.

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.