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Personal and oral care products are the leading markets for refined glycerin, accounting for nearly 38% of world consumption in 2007. Food and beverages and pharmaceuticals are the next largest markets, accounting for 14% and 9%, respectively.
Glycerin is produced in two ways: natural glycerin (as a by-product in the production of soap and in the conversion of fats and oils to fatty acids or fatty acid methyl esters, such as biodiesel) and synthetic glycerin. Natural glycerin is initially produced in a crude form that contains water and other impurities, which depend on manufacturing process. In most applications, crude glycerin is refined before its ultimate end use; a major grade is purified refined glycerin (³99.5%, USP), regardless of source (tallow, vegetable, a mixture of vegetable/tallow or synthetic).
Asia is the largest producer and consumer of refined glycerin, accounting for 44% and 35% of world production and consumption, respectively, in 2007. Asia is expected to remain the largest market in 2012, with increased demand in all applications including new markets for refined glycerin, such as epichlorohydrin. Western Europe is the second-largest producer and consumer of refined glycerin, accounting for nearly 35% and 28% of world production and consumption, respectively, in 2007. North America was the third-largest market in 2007. These three regions accounted for nearly 91% of world production and 82% of world consumption in 2007.
The following pie chart shows world consumption of refined glycerin:
Double-digit growth in consumption in the United States, China and Thailand and significant growth in Western Europe is largely due to increased demand in new applications, such as epichlorohydrin, syngas and propylene glycol. These new outlets for refined glycerin are also largely responsible for the projected growth in world demand during 2007–2012.
In the near future, supply of crude glycerin, which is now greatly dependent on biodiesel production, is expected to fluctuate as the result of an increasingly uncertain market for biodiesel. Issues pertaining to industry subsidies, rebates, sustainability and government legislation mandating biodiesel consumption are still being discussed in many regions. The outcome of these discussions will likely affect the profitability of the biodiesel market and whether it can survive with no or minimal support from governments. Additionally, demand for biodiesel is affected by prices for diesel and cost of oils/fats feedstocks. Although it is expected that crude glycerin volumes for further refining will increase, erratic supplies could hamper development and allow for unacceptable price fluctuations, leading to some replacement of refined glycerin by other products such as sorbitol or propylene glycol. |
