Growth in the paints and coatings industry is driving the market growth of Global Glycerol Market. Growing construction activities due to increasing investment and the need for more infrastructure are fueling the demand for paints and coatings. The increasing population coupled with the robust growth in urban population especially across developing regions is driving the demand for residential as well as commercial infrastructure. Thus, increasing construction activities around the globe are driving the demand for paints & coatings, which, in turn, is fueling the market growth of global glycerol market.
Market Opportunities
Emerging applications of glycerol are projected to provide lucrative opportunities over the forecast period. There is an increasing demand for crude glycerol from animal feed over corn as it is cheaper. Moreover, glycerol is an ideal diet for non-ruminants, such as hens and pigs, due to its high absorption rate. Furthermore, it is also used as a raw material for the manufacturing of epichlorohydrin, syngas, and propylene glycol. Thus, emerging applications of glycerol are projected to foster the market growth.
Recent Developments
- On July 9, 2021, according to the ICIS report, in the global glycerol market, crude glycerin prices had nearly doubled from around US$ 300/ton in the early January to US$ 600/tones in June, Glycerin is the byproduct of generation of biodiesel and oleo chemicals with output typically about 10% of the capacity of both processes. Brazil was a major exporter of crude glycerin and its biodiesel blending mandate was crucial in determining the glycerin supply.
- On June 20, 2021, Glycerin first quarter contract increased due to market tightness towards the end of the fourth quarter, limited supply was caused by a lack of upstream biodiesel production amid continuous coronavirus limitations, which have lowered fuel demand, while the refiner glycerol market is balanced, and glycerin buying interest is extremely strong due to ongoing shortage.
Market Restraints
Low-profit margins for glycerol refiners are expected to hamper the global glycerol market. For instance, glycerol refiners earn approximately 2.5% to 3% profit on glycerol refining, however, profit margins can be raised by using new and advanced technologies for production. Furthermore, the availability of substitutes, such as diethylene glycol, ceramides, and sorbitol, is again expected to hinder the market growth over the forecast period.
Global Glycerol Market - Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 outbreak has had an adverse impact on various industries around the globe. Due to the strict rules and regulations undertaken by government to curb the spread of the infection, companies are looking to function remotely. Moreover, various companies are implementing strict measures to operate at minimum risks. Additionally, various companies had shut down their manufacturing units which had an adverse impact on the global glycerol market.
Key Takeaways:
The global glycerol market was valued at US$ 2.91 Bn in 2022 and is forecast to reach a value of US$ 5.57 Bn by 2030 at a CAGR of 8.4% between 2023 and 2030.
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Market Trends
The increasing use of glycerol as chemical intermediates in the manufacturing of chemical products is a growing trend. Growth in the chemical industry due to increasing production of chemicals worldwide is driving the demand for glycerol. According to Cefic Facts & Figures in 2020, the global chemical turnover was valued at $3,347 billion in 2018. Moreover, the global sales grew by 2.5% from $3,266 billion in 2017 to $3,347 billion in 2018. Thus, the growing production of chemical products is projected to foster the market growth.
The growing demand for green chemicals due to the shifting trend of go green is projected to augment global glycerol market. The increasing disposable income of consumers is driving the demand for glycerol as a natural ingredient in various consumer products such as personal care, cosmetic, food & beverages, and pharmaceutical drugs. In addition to this, growing research and development activities among key manufacturers for developing innovative products with enhanced properties are projected to foster global glycerol market over the forecast period.
Competitive Section:
- Proctor & Gamble Chemicals
- Dial Corporation
- Croda
- Dow Chemicals
- Godrej Industries Ltd.
- Emery Oleochemicals
- IOI Group
- Kuala Lumpur Kepong Berhad
- Wilmar International
- Sofiprotéol Group
