Glycerin Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Glycerin Category Overview

The Glycerin category is anticipated to grow at a CAGR of 7.92% from 2023 to 2030. In 2022, the category size was estimated to be valued at USD 2.62 billion. The widespread use in industries like cosmetics, pharmaceuticals, food, and chemicals due to its moisturizing properties and versatility contribute to the growing demand for the category. The demand for it in the industries is fueled by its use in the production of biofuels and as a component in some medical products. The rising awareness of sustainable and bio-based products has also driven the demand for the category, as it can be derived from renewable sources like vegetable oils. Ongoing research and innovation have uncovered new applications, further expanding its potential uses across industries. Worldwide there are more than 1,500 known applications for glycerin.

High-purity glycerin is one of the most important industrial feedstocks. Crude glycerin, a byproduct of biodiesel production, can be used as a sustainable feedstock for biofuel production. It is a cost-effective and environmentally friendly alternative to traditional feedstocks, such as corn or soybeans. Another development among consumers who prioritize healthier food options is the low-sugar trend. Manufacturers looking for sustainable and renewable components are considering vegetable glycerin. It is environmentally beneficial and biodegradable. Made from plant oils and with a low glycemic index, it is a great sugar substitute while keeping the same flavor and quality. It is an ideal choice for creating low-sugar substitutes in a variety of product categories due to its adaptability and capacity to retain moisture. Manufacturers can appeal to health-conscious consumers without sacrificing flavor or sensory experience by using vegetable glycerin. It is about 60 to 75% as sweet as traditional sugar.

The category is highly fragmented due to the presence of various large numbers of players which forms a competitive environment. Vendors are using organic and inorganic growth strategies to compete in the market. Major players are competing on price, quality, and innovation. Sustainable manufacturing methods provide significant financial, environmental, and product quality advantages to a vast and escalating number of industries. As part of the organization's strategic goals to boost the downstream footprint of the glycerin refining plant, a leading merchant and processor of agricultural goods, Louis Dreyfus stated in July 2023 that it would be expanding its refining complex in Lampung, Indonesia.

The cost component of the category includes raw material sourcing, processing, utility requirements, infrastructure requirements, and purification. Some of the category fixed costs include machinery and technology requirements, manpower requirements, transportation, packaging, storage, and distribution. Prices of both crude and refined glycerin globally continue to fluctuate driven by multiple factors, such as elevated feedstock costs, uncertain biodiesel production, and logistics challenges. In Asia, the category experienced a tendency of price reductions in the second half of 2022. The primary cause of declining pricing trends was the ongoing depreciation in end-user demands. Raw material prices such as fats and oils also decreased as supply chains were streamlined and Chinese exports gained access to international markets. For instance, crude oil prices fell gradually, with an average benchmark price of USD1,000/MT in 2022 to USD700/MT in 2023. Similarly, in H2 2022, prices in Malaysia and Indonesia were settled at around USD 1050/MT and USD 920/MT, respectively, with average declines of 14.95% and 15.92% from H1 2022. However, prices in the American market continued to range the same in contrast to the Asian market. Price trends for glycerin in North America tended to be on the upper side for H2 2022. The high prices were influenced by increased energy and production expenses as well as high feedstock prices. With an average inclination of 0.35% from H1 2022 in the region, the value accessed for H2 2022, was USD 3080/MT.

Sourcing of the category may vary based on factors such as sustainability, purity, requirements, and cost consideration. Industries need to ensure they align with the intended use and ethical considerations of the product. When purchasing organic glycerin, it's essential to search for goods that have received organic certification from an authoritative body, such as the USDA National Organic Programme (NOP) in the United States. Indonesia is the major producer of the category. In 2022, the top 3 countries of glycerin export were Indonesia (33,474 shipments), India (27,023) and Malaysia (17,015 shipments). 

Glycerin Procurement Intelligence Report Scope