Global Glycerine Market Report and Forecast 2024-2032

Global Glycerine Market Size

The global glycerine market value was approximately USD 3.35 billion in 2023. The market is projected to grow at a CAGR of 3% between 2024 and 2032, reaching a value of around USD 4.40 billion by 2032.

Glycerine Market Outlook

• Glycerine is finding new applications in areas such as in the medical field as a solvent or softening agent.

• The shift towards sustainability has led to a rise in the production of bio-based glycerine.

• Innovations in production and purification technologies are improving the efficiency and sustainability of glycerine manufacturing.

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Global Glycerine Market Growth

Glycerine is a substance of saponified, hydrolysed, transesterified fats and oils. It is either manufactured from propylene or recovered in a crude state and then refined by distillation or ion exchange. Glycerine can also be made by fermenting carbohydrates or via hydrogenolysis of carbohydrates; however, these processes are not currently used for large-scale industrial manufacturing.

According to the glycerine industry analysis, rising usage of glycerine in various industrial applications such as personal care, pharmaceuticals, food, alkyd resins, and automotive, is expected to propel the glycerine market growth during the forecast period.

With changing lifestyles and eating habits in developing and developed regions, the demand for fast foods or convenience foods is increasing which is likely to drive the demand for additives, such as glycerine, for use as sweeteners, solvents, or preservatives. Another important but indirect use of glycerine in food processing is represented by monoglycerides, the glycerol esters of fatty acids, emulsifiers and stabilisers for several products.

Recent Developments and Market Trends

Glycerine Industry Trends

Technological innovations in the production and purification processes of glycerine have significantly transformed the market, making it more efficient and cost-effective to produce high-purity grades of glycerine. A significant portion of glycerine is produced as a by-product of biodiesel manufacturing, and innovations in biodiesel production technology not only increase the yield of biodiesel but also enhance the efficiency of glycerine extraction, resulting in higher initial purity levels, further boosting the glycerine market development.

Industry Outlook

US refined glycerine imports fluctuated significantly from January 2020 to December 2021, according to customs data. The monthly import volumes ranged from around 6,500 tons to peaks of approximately 26,900 tons. Major contributing countries included Brazil, China, Indonesia, Malaysia, and Germany, with Brazil and Indonesia often leading in export volumes.

In mid-2020, there was a notable spike in imports, reaching 21,600 tons in July, driven primarily by increased imports from Brazil and Indonesia. This peak was followed by a decline, with imports dropping to around 9,800 tons in September 2020. Another significant peak occurred in November 2021, with imports rising to 19,600 tons, heavily supported by Brazil and Indonesia.

Throughout 2021, imports generally increased, with notable peaks in August and November, suggesting a strong demand for refined glycerine in the US market.

EU-28 refined glycerine imports from January 2020 to November 2021 showed significant variations, according to customs data. The monthly import volumes fluctuated, with peaks reaching up to 14,300 tons in June 2020. The primary contributing countries included Indonesia, Malaysia, and China, with Indonesia frequently being the largest exporter.

In mid-2020, particularly in June and July, there were notable peaks in imports, with June recording the highest at 14,300 tons and July at 13,000 tons. These spikes were largely driven by substantial increases in shipments from Indonesia and Malaysia. A subsequent peak occurred in August 2020, reaching 8,800 tons.

From September 2020 to March 2021, import volumes were relatively lower, fluctuating between 2,100 and 6,200 tons. A slight recovery was seen in April and May 2021, with imports stabilizing around 5,600 to 5,800 tons. However, the volumes generally remained below the mid-2020 peak levels.

Throughout 2021, the imports showed minor peaks in July and October, but overall volumes were lower compared to 2020, indicating a stabilization of supply and demand dynamics in the EU glycerine market.

In Q1 2022, US quarterly glycerine contracts faced upward pressure, with spot markets remaining firm, as reported by ICIS. Vegetable refined glycerine prices in the bulk Midwest increased by $0.06/lb to $2,161-$2,866 per ton, while tallow refined glycerine rose by $0.10/lb to $2,210-$2,624 per ton.

Historical pricing trends indicate a significant increase in both vegetable and crude glycerine prices from 2020 to early 2022, reflecting growing demand and supply constraints. The Asia spot market slowed due to weather and production issues, whereas Europe’s spot markets are expected to remain firm through the first quarter.

South America and Mexico experienced mixed price movements, with Brazil’s vegetable refined glycerine priced at $1,480-$1,550 per ton and crude glycerine at $540-$640 per ton. Argentina and Mexico reported similar mixed trends, influenced by local supply and demand dynamics.

Recent Developments

In Jan 2024, Bodyshop announced that it achieved a milestone, possibly becoming the first global beauty brand to fully embrace veganism, with its entire product range receiving certification from the Vegan Society. The company incorporated alternatives to other traditionally animal-based ingredients like glycerine, squalene, and stearic acid, all of which can be sourced from plants. Soy, palm oil, or coconut oil can be used to prepare vegetable-based glycerine instead of glycerine made from animal fats. Common animal-derived ingredients can be found in company’s non-vegan beauty products, such as beeswax, honey, lanolin, and shellac, but this range has been modified to use plant-based ingredients.

Versatile Applications and By-Product Availability are Among the Key Factors Supporting the Glycerine Sector

• Wide use in pharmaceuticals, personal care products, food and beverages, and industrial applications is expected to support the glycerine demand growth.

• Produced as a by-product of biodiesel production, ensuring a steady supply.

• Safe for use in various consumer products and environmentally friendly.

• Highly valued for its humectant properties in cosmetics and skincare products.

Challenges Due to Price Volatility and Quality Variability

• Dependent on the biodiesel industry, leading to fluctuating prices.

• Differences in quality depending on the source and production process.

• Heavily relies on the availability of raw materials like vegetable oils and animal fats.

• Some markets have limited awareness of glycerine’s potential uses beyond traditional applications.

Competitive Dynamics Shaping the Global Glycerine Market Landscape

• Major players like Archer Daniels Midland Company, Cargill, Incorporated, Emery Oleochemicals, and Procter & Gamble dominate with extensive resources and advanced technologies.

• Companies differentiate products based on quality, purity levels, and specific applications.

• Competitive pricing is crucial, especially in regions with a high concentration of suppliers.

• Continuous R&D efforts improve production efficiency, enhance product quality, and develop new applications, which further contributes to the glycerine market value.

• Strategic partnerships, joint ventures, and mergers expand resource bases and market access.

• Increasing focus on sustainable and ethical sourcing of raw materials.

• Strong relationships with key customers, especially in the pharmaceutical and personal care sectors, ensure repeat business.

• Efficient supply chain management ensures consistent product quality and timely delivery.

Opportunities Driving Future Growth

• Growing demand in emerging markets with increasing industrialization and consumer awareness.

• New uses in bioplastics, pharmaceuticals, and sustainable products will likely positively influence the glycerine demand forecast.

• Opportunities for innovation in production processes and new product formulations.

• Rising demand for natural and sustainable ingredients in various industries is expected to impact the glycerine market dynamics and trends significantly.

Emerging Threats to Market Stability

• Stringent regulations regarding production and use in certain applications.

• Availability of alternative chemicals that can replace glycerine.

• Global economic instability impacting market demand and production costs.

• Environmental concerns related to the sourcing of raw materials, such as deforestation for palm oil.

Cost and Price Factors

• The cost of raw materials like vegetable oils and animal fats significantly impacts production costs.

• The type of production process (natural vs. synthetic) affects cost structure.

• Energy-intensive production means energy costs are a significant component of overall expenses.

• Labor costs, including wages and benefits, are crucial in production costs.

• Transportation and logistics costs are significant cost factors.

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Market Industry Segmentation

“Glycerine Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

The regional markets for base metal mining can be divided into:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Glycerine Market Share

Technical grade maintains its dominance in the glycerine market due to its growing usage as a raw material in various end-use sectors

The technical grade of glycerine is utilised in a vast array of industrial applications, contributing to the glycerine market growth. It serves as a raw material or a processing aid in the production of chemicals, plastics, alkyd resins (used in paints and coatings), textiles, paper, and other industrial products due to its versatility and functionality, which make it a valuable ingredient across multiple sectors. Compared to higher purity grades, technical grade glycerine is more cost-effective for industrial applications where stringent purity standards of pharmaceutical or food-grade glycerine are not necessary. This affordability makes it attractive for manufacturers looking to minimise raw material costs while still benefiting from the functional properties of glycerine.

The pharmaceutical grade segment of the glycerine market also occupies a considerable share due to its critical role in medical and health-related applications, where high purity and strict quality standards are paramount. Glycerine is used in pharmaceutical formulations as a solvent, humectant, and carrier for active ingredients as its ability to dissolve both aqueous and lipid substances makes it versatile for a wide range of drug formulations, including oral, topical, and injectable medications.

The personal care and cosmetics sector occupies a major glycerine market share due to the multiple applications offered by glycerine

The growing use of glycerine in the personal care segment as a thickening agent, emulsifier, lubricant, and humectant as well as the advantages offered by it like low toxicity and solubility, are expected to supplement the market growth. With the change in the demand for glycerine in soaps, handwash, and detergents during the COVID-19 pandemic, the need for glycerine has increased, particularly in the personal care sector, as some global cosmetics manufacturers, such as Johnson & Johnson, Unilever, P&G, and others, are significantly adopting natural glycerol as raw material to meet the growing demands.

The food and beverage sector is expected to witness a considerable growth in the coming years as glycerine is an effective humectant, meaning it has the ability to retain moisture. This property is crucial in food products where maintaining moisture content is essential for preserving texture, softness, and freshness, therefore it is widely used in baked goods, such as cakes and cookies, to prevent them from drying out.

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Glycerine Market Regional Insight

With the increase in pharmaceutical production in the Asia Pacific region, the demand for raw materials like glycerine is predicted to rise over the forecast period. With people becoming more health-conscious and the increasing ageing population, the demand for pharmaceuticals has been increasing around the globe, which has led to the high consumption of pharmaceutical ingredients and raw materials including glycerine.

Competitive Landscape

The market players are focusing on innovations and are incorporating plant-based glycerine ingredients to meet evolving customer demands

Other major player in the market includes IOI Corporation Berhad (IOI). The market players are engaging in a range of activities to enhance their market position, respond to global demand, and address the challenges and opportunities presented in the market.

Key Highlights of the Report

Glycerine Market Report Snapshots

Glycerine Market Size

Glycerine Market Growth

Glycerine Market Trends

Glycerine Market Share

Glycerine Companies

Glycerine Market Regional Analysis