Glycerol Market From Biodiesel, Fatty Acids, Fatty Alcohols For Personal Care, Alkyd Resins, Polyether Polyols Applications, Downstream Opportunities And Segment Forecasts To 2020

Industry Insights

Glycerol is a sweet, colorless, viscous, sugar polyol compound displaying hygroscopic and soluble properties. Also called as glycerine/ glycerin, it is a core component of all triglycerides. Glycerols can be synthetic or natural based depending on the raw materials used for its production. Transesterification, hydrolysis, and saponification are a few glycerol production processes. Glycerol is widely used in many consumer products due to its non-toxicity and nutrition values. Its applications range from food sweeteners and preservatives to antifreeze chemicals and explosives, largely dependent on its chemical properties. Mainstream application of biofuels and increased demand for oleochemicals are expected to drive the supply of glycerol market. Growth in healthcare technologies is expected to help in the expansion of this market. Its potential as a platform chemical for renewable chemicals production hold scope as alternate options are explored for economical feasibility. Uncertain feedstock supply may restrain the growth of the market. Low margins for refining processes may further hinder the market growth. Industry subsidies and unstable government legislations affect the profitability of glycerol market, challenging glycerol market growth.

Source Insights

Earlier, glycerol was primarily obtained by synthetic processes. However, biodiesel has become a major source of glycerol over the recent years. This can be attributed to the evolution of transesterification process i.e. the process of using biodiesel/ fatty alcohol for glycerol production. Also, synthetic processes are considered economically infeasible when considered for large scale production. Being a by-product of biodiesel, glycerol supply has risen with increased exploration of biodiesel options. Hydrolysis of fatty acids and saponification are other methods of natural glycerol production.

Application Insights

Personal care is a major application segment for glycerol market. Glycerol is widely used in many skin products for its nutritive value and healing properties. In addition, its laxative and sweet tasting features, it is incorporated in many health products. The increase in demand for these products as a result of improved lifestyle and awareness are key factors in driving the growth of this segment. The growing paints and coatings industry also demands glycerol input in the form of alkyd resins as feedstock. Polyether polyols segment has also been growing with the increase in the use of low-calorie sweeteners in food products such as chewing gums. This is due to its property of being unaffected by bacteria activity causing tooth decay. Other applications of glycerol include food preserving, perfume production, tobacco humectants, pharmaceuticals, explosive production, etc.

For its use in pharmaceutical applications, a special high purity grade >99.7% purity is being manufactured by specialised manufacturers.

Downstream Opportunity Insights

Glycerol holds potential as a chemical platform for the renewable production of chemicals. It provides an economical and environmentally friendly alternative. Propylene Glycol, Epichlorohydrin, and 1-3 propanediol are few chemicals that have undergone processes of being manufactured from glycerols.,

Regional Insights

Europe has been a dominant consumer of glycerol market due to high demand in segments of personal care, pharmaceuticals, and food & beverages. Use of glycerol as a raw material is on the rise for the production of epichlorohydrin and propylene glycol. China’s consumption levels are expected to increase with an increase in production of epichlorohydrin from glycerol. With its developed paints and coatings market, Middle East regions’ demand for glycerol is expected to be considerable for alkyd resins and allied products. With increased adoption of pharmaceutical and cosmetic products containing glycerol, the global demand will experience significant growth.

Countries such as Argentina, Brazil, Philippines, Indonesia, Colombia and Thailand and Malaysia with plenty of palm and coconut plantations have been sourcing the raw materials to Europe and U.S. for the production of biodiesel. However, over the recent past years, a number of Asia Pacific based players have emerged with noteworthy production capacities and market share in the global glycerol market.

Competitive Insights

The glycerol market consists of many major as well as minor participant companies. A few of these participants are Cognis Corporation (U.S.), Sofiprotéol Group (France), Wilmar International (Singapore), Procter & Gamble Chemicals (U.S.), Solvay SA (Belgium), Kuala Lumpur Kepong Berhad (Malaysia), Godrej Industries Ltd. (India), Dow Chemical Company (U.S.), IOI Oleochemical Industries Berhad (Malaysia), Archer Daniel Midland (U.S.), Croda International Plc. (UK), United Coconut Chemicals, Inc. (Philippines), Pacific Oleochemicals Sdn Bhd (Malaysia), Pt Flora Sawita Chemindo (Indonesia), Sakamoto Yakuhin Kogyo Company Ltd. (Japan), Kao Corporation (Japan), Pt Cisadane Raya Chemicals (Indonesia), Twin Rivers Technologies, Inc. (U.S), Sumi Asih Oleochemical Industry (China), Kashima Chemical Co., Ltd. (Japan), Dial Corporation (U.S.), Cremer Gruppe (Germany), Emery Oleochemicals LLC (U.S.), Vitusa Product (U.S.).

There are a number of small to medium scale China Based players also operating in the market. One of the major challenge for manufacturers is the raw material price volatility

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