The global market for glycerin is projected to reach £5.4bn in consumption by the year 2017, propelled by the emerging use of glycerin in various novel applications such as in the food and beverage sectors, according to a new report.
Plummeting glycerin prices and improved standard of living in Asian countries augur well for the market’s long term growth.
The worldwide glycerin market is known for its unpredictable and complex nature as it is produced as a co-product of canola methyl ester production and is marketed in refined or crude form. Production of glycerin is directly affected by demand in several end use segments including pharmaceuticals, food and personal care.
Demand drivers for glycerin market include a wide range of existing applications, economical new end-uses, loyal end users who are unwilling to use substitutes, and eco-friendly nature of products. Further, as glycerin turns less expensive than other humectants, it stands to be the preferred choice among oleochemicals.
Global glycerin market witnessed a decline in demand in recent years, shadowing the slump in macro economy, the research revealed. The crude glycerin market was largely depressed in comparison to refined glycerin, due to the inability to transform crude glycerin into refined products.
Nonetheless, the market has bottomed out of the recession and is displaying early signs of recovery. Operations as well as demand in the overall market for oleochemicals, including glycerin, improved considerably in 2010. However, increasing prices for feedstock is expected to hinder the market in the near term. Setting up of new plants for conversion of glycerin into polyols including ethylene glycol and propylene glycol is forecast to open a wide range of downstream markets for glycerin.
In addition, biodiesel derived glycerin finds new application in the production of epichlorohydrin, a chemical that is used for the production of epoxy resins, water purification and paper reinforcement. Thus, with the emergence of new applications and new derivatives for glycerin, the market is expected to be strong and buoyant in the coming few years.
As stated by the new market research report on Glycerin, Asia-Pacific constitutes the largest regional market. Increased applications of glycerin in various sectors such as pharmaceuticals, personal care and food and beverages, coupled with lower import duties in the Chinese market is expected to boost demand for glycerin in the Asia-Pacific region.
Latin America is projected to register the fastest compounded annual growth rate of 6.75% over the analysis period. Worldwide consumption of refined glycerin is forecast to grow healthily in the coming few years. Glycerin use is consistent in high-volume applications such as pharmaceuticals, personal care products, food and beverages, and tobacco.
Source: Global Industry Analysts
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