World market analysis of glycerine

Ariyanchira Syamala, . (2005) World market analysis of glycerine. [Proceedings Paper]

Glycerine is recognized as one of the most versatile compounds in chemical industry. The profitability of oleochemcal industry is very much dependent on the economic value of glycerine as this is an important byproduct of this industry. Splitting or transesterification of any vegetable oil or fat will result in the production of glycerine upto 10% in yield. Glycerine can also be synthesized from propylene via epichlorohydrin but this route is losing its significance as prices of petroleum based raw materials are on the rise. Glycerine market was affected by a number of factors that played important roles in determining the market trends. First was the BSE factor that shifted consumer preference from tallow to vegetable oil-based products. Since palm-oil is the most traded vegetable oil in the world, Southeast Asia became an important manufacturing hub for all the oleochemcial products including glycerine. These developments resulted in many plant closures in developed markets. However, the biggest blow to glycerine market is coming from bio-diesel industry. Biodiesel tax subsidies are lowering the market value of glycerine by creating an abundance of new supply for this product. Market suppliers fear that the era of glycerine market as a high-priced commodity is over and the trend now is expected to be a long-term decline with an occasional low level price spike related to mineral oil or vegetable oil costs. World consumption of glycerine in 2004 was around 1 million tonnes. The market showed a compound average growth rate of 4.5% between 2000 and 2004. Even though Europe and United States were the major markets in 2004, the bulk of the growth from now on is expected to come from China. Despite significant growth potential, glycerine market will remain in a state of oversupply and price pressures will continue unless something radical is done. Global initiatives are on by many end-users and industry associations to improve the consumption of glycerine. Main market developments focused on solving the oversupply problem can be classified into three - cost effective substitutions, innovative manufacturing routes which help to reduce the amount of free glycerine entering the market and development of new applications for glycerine. In short, there are reasons to be optimistic as declining prices are opening up new opportunities for glycerine. However, profit margins are not expected to recover in the near future. Even though it will remain a challenge to absorb the massive quantities of glycerine that is entering the market, many emerging solutions are expected to improve the current market situation.

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Abstract

Glycerine is recognized as one of the most versatile compounds in chemical industry. The profitability of oleochemcal industry is very much dependent on the economic value of glycerine as this is an important byproduct of this industry. Splitting or transesterification of any vegetable oil or fat will result in the production of glycerine upto 10% in yield. Glycerine can also be synthesized from propylene via epichlorohydrin but this route is losing its significance as prices of petroleum based raw materials are on the rise. Glycerine market was affected by a number of factors that played important roles in determining the market trends. First was the BSE factor that shifted consumer preference from tallow to vegetable oil-based products. Since palm-oil is the most traded vegetable oil in the world, Southeast Asia became an important manufacturing hub for all the oleochemcial products including glycerine. These developments resulted in many plant closures in developed markets. However, the biggest blow to glycerine market is coming from bio-diesel industry. Biodiesel tax subsidies are lowering the market value of glycerine by creating an abundance of new supply for this product. Market suppliers fear that the era of glycerine market as a high-priced commodity is over and the trend now is expected to be a long-term decline with an occasional low level price spike related to mineral oil or vegetable oil costs. World consumption of glycerine in 2004 was around 1 million tonnes. The market showed a compound average growth rate of 4.5% between 2000 and 2004. Even though Europe and United States were the major markets in 2004, the bulk of the growth from now on is expected to come from China. Despite significant growth potential, glycerine market will remain in a state of oversupply and price pressures will continue unless something radical is done. Global initiatives are on by many end-users and industry associations to improve the consumption of glycerine. Main market developments focused on solving the oversupply problem can be classified into three - cost effective substitutions, innovative manufacturing routes which help to reduce the amount of free glycerine entering the market and development of new applications for glycerine. In short, there are reasons to be optimistic as declining prices are opening up new opportunities for glycerine. However, profit margins are not expected to recover in the near future. Even though it will remain a challenge to absorb the massive quantities of glycerine that is entering the market, many emerging solutions are expected to improve the current market situation.

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Item Type:	Proceedings Paper
Additional Information:	Available at Perpustakaan Sultan Abdul Samad, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia. TP684 P3I61 2005 Call Number
AGROVOC Term:	glycerol
AGROVOC Term:	world markets
AGROVOC Term:	industrial products
AGROVOC Term:	market research
AGROVOC Term:	trade
AGROVOC Term:	economic analysis
AGROVOC Term:	consumers
AGROVOC Term:	industrial development
AGROVOC Term:	sustainability
Geographical Term:	Malaysia
Depositing User:	Nor Hasnita Abdul Samat
Date Deposited:	09 Sep 2025 08:47
Last Modified:	09 Sep 2025 08:47
URI:	http://webagris.upm.edu.my/id/eprint/1100

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