Factors that Impact on the Glycerin Market Industry in Upcoming Years !

The growth of the glycerin market from USD 2.19 billion in 2015 to USD 3.12 billion by 2021 at a CAGR of 6.8%. Growing use of glycerin in personal care, food & beverages, and pharmaceuticals & healthcare segments is expected to drive the market over the next five years. Glycerin acts as a substitute for propylene glycol in cosmetics, food & beverages, and electronic cigarette industries. Glycerin is also used in producing propylene glycol, which is used as antifreeze when leakage leads to contamination of food or any other product, and is used as a substitute for sorbitol as a plasticizer across various industries. It is effective, inexpensive, and makes the resulting plastic flexible even at very low temperatures, which quality is required in a freezer wrap.

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The glycerin market is expected to witness a high growth rate from 2016 to 2021, in terms of value. The key players in the glycerin market are Emery Oleochemicals (Malaysia), IOI Oleochemicals (Malaysia), KLK Berhad (Malaysia), Wilmar International (Singapore), and Godrej Industries (India). These players have adopted various strategies to expand their global presence and increase their market shares. Expansions & agreements, mergers & acquisitions and joint ventures are some of the major strategies adopted by the market players to achieve growth in the glycerin market.

The growth of the glycerin market was largely influenced by adoption of the expansions, mergers and acquisitions strategies in the past few years. 2015 experienced a combination of all strategies being used by the major players in the market.

Emery Oleochemicals is a major industry player in the glycerin market. The company engages in manufacturing natural-based chemicals from fats and oils, and offers bio-lubricants, agrochemical formulations, green polymers additives, eco-friendly polyols, oleobasics, and home & personal wellness products. Glycerin is included in the oleobasics product portfolio of the company, which has strong partnerships with Sime Darby Plantations and PTT Global Chemical Company Limited.

IOI Oleochemicals focuses on palm oil and other feedstock plantations and resource-based manufacturing business, which comprises of three segments, namely, oleochemicals, refineries, and specialty fats & oils. IOI Oleochemicals mainly adopted acquisitions as a key strategy in the glycerin market. In 2015, the company announced the acquisition of Cremer’s oleochemicals manufacturing business in Germany by its subsidiary, Alstersee V GmbH (IOI Oleo GmbH). 

The global market for glycerin is projected to reach USD 3.12 billion by 2021, at a CAGR of 6.8% during the forecast period. The global glycerin industry is witnessing growth due to the increasing applications and increasing demand in the Asia-Pacific region, mainly from China, Thailand, Malaysia, and India.

Growing use of glycerin as a platform chemical due to its easy availability and lower cost is expected to lead to the growth in demand for glycerin over the next few years. High investments are witnessed across industries in R&D to come up with new formulations of chemicals, which can accommodate the cost of these conversion processes and help to generate higher profits.

Fat splitting is expected to witness fastest growth over the next five years. This is a method for producing fatty acids with glycerin as a by-product, whereby the steam molecule breaks fatty acid from its triglyceride molecular structure. Growing preference for natural ingredients in personal & beauty care products among consumers is expected to benefit the growth of glycerin produced through fat splitting or hydrolysis.

Glycerin produced from various plant lipids is called vegetable glycerin. Typical plant oils used to produce glycerin are palm oils, soy oils, coconut oils, and other oils. The growing demand for naturally derived products is expected to benefit the demand for glycerin produced from vegetable oils.

Rise in technical grade glycerin in manufacturing various chemicals is expected to benefit the segment. Technical grade glycerin acts as a platform chemical for the production of chemical intermediates. Increased use of chemicals such as 1,3 propanediol, alkyd resins, propylene glycol, and epichlorohydrin in end-use industries such as tobacco, furniture, construction, and paint & coatings are expected to drive the market for technical grade glycerin.

In terms of application, the market for glycerin used in manufacturing chemical intermediates is expected to register the highest growth. Refined glycerin is mostly used in personal care, food & beverages, and pharmaceuticals industries.

The market in the Asia-Pacific region is projected to grow at the fastest CAGR from 2016 to 2021. Increasing demand for glycerin for manufacturing chemical intermediates in emerging countries such as India, China, and Southeast Asian countries is expected to drive the glycerin market. Chemical manufacturing hubs in the region are expected to lead to an increase in demand for glycerin. A steady rise in the consumption of glycerin in personal care and beauty care products has been witnessed in these countries during the past few years.