BIO GLYCEROL MARKET OUTLOOK (2024 - 2030)

The Bio Glycerol market, which amounted to USD 4.44 Billion, is anticipated to achieve a market valuation of USD 5.00 Billion by the conclusion of 2030, with a projected Compound Annual Growth Rate (CAGR) of 1.7% during the forecast span from 2024 to 2030.

Industry Analysis:

Bio Glycerol, a transparent polyol devoid of odor, belongs to the alcohol family and is derived from the hydrolysis of natural oils and fats. It serves as a fundamental raw material across various sectors, notably in pharmaceutical formulations like oral medications where it functions as a solvent and humectant. The escalating demand for oral medicines has consequently driven the need for bio glycerol. Furthermore, its utility as an emollient, plasticizer, and filler agent in pharmaceuticals and food industries has surged in tandem with the growing emphasis on health and wellness. The rising consciousness regarding beauty and personal care products, coupled with the increased adoption of hand sanitizers, wherein bio glycerol serves as a key ingredient, has further propelled its demand. Notably, bio glycerol emerges as a primary byproduct in the production of biodiesel, the usage of which has seen an uptick owing to the global shift towards alternative fuels to mitigate environmental concerns. Given its biodegradable nature, bio glycerol offers an environmentally friendly solution, aligning with the escalating global efforts towards sustainability.

COVID-19 Impact:

The COVID-19 pandemic significantly impacted the Bio Glycerol market, primarily due to imposed lockdowns worldwide, resulting in disrupted production activities. Challenges such as labor shortages and supply chain disruptions hindered the availability of raw materials essential for bio glycerol production. Moreover, the halt in biodiesel production directly affected bio glycerol output. Fluctuations in fuel and raw material prices during this period further compounded the challenges. Nonetheless, sectors such as pharmaceuticals and packaged foods witnessed growth amidst the pandemic, driving demand for bio glycerol-containing products like cough syrups and packaged foods, thereby mitigating the market impact to some extent.

MARKET DRIVERS

The surge in Bio Diesel demand propels growth in the Bio Glycerol Market:

The escalating demand for bio diesel, attributed to its eco-friendly nature and the global emphasis on reducing carbon footprint, has fostered growth in the bio glycerol market. With bio glycerol being a major byproduct of bio diesel production, the expansion of the bio diesel industry serves as a significant driver for the bio glycerol market.

Increasing demand for personal care products augments the Bio Glycerol Market:

The heightened awareness regarding personal hygiene, particularly amidst the COVID-19 pandemic, has bolstered the demand for personal care products like hand sanitizers, wherein bio glycerol serves as a crucial ingredient. Its emollient properties make it a preferred choice, thereby driving its demand in the personal care sector.

MARKET RESTRAINTS

Volatility in raw material prices impedes Bio Glycerol Market growth:

The Bio Glycerol market faces hindrances due to fluctuating prices of raw materials, exacerbated by geopolitical tensions impacting fuel prices. Supply chain disruptions stemming from events like the Russia-Ukraine conflict have constrained the availability of raw materials, restraining the market growth.

Growth of alternative fuels like green hydrogen restrains the Bio Glycerol Market:

The burgeoning green hydrogen industry poses a challenge to the Bio Glycerol market by diverting attention and investments away from bio diesel, thereby impacting bio glycerol production. The heightened competition from eco-friendly alternatives presents a significant restraint in the market's growth trajectory.

Segmentation of the Bio Glycerol Market by Type:

• Pharmaceutical Grade
• Industrial Grade

The Bio Glycerol market can be classified into two primary categories based on grade: Pharmaceutical Grade and Industrial Grade. Pharmaceutical Grade adheres to the purity standards set by the US Pharmacopeia, ensuring compliance with manufacturing regulations. Conversely, Industrial Grade represents the lowest level of purity and is less sought after in various industries.

Segmentation of the Bio Glycerol Market by End-Use Industry:

• Personal Care
• Food & Beverage
• Pharmaceuticals
• Others

Regarding End-Use Industry segmentation, the Bio Glycerol market encompasses four main sectors. In the Personal Care industry, Bio Glycerol serves as a crucial raw material, finding utility in products such as hand sanitizers due to its solvent and emollient properties. Within the Food & Beverage sector, it functions as a sweetener with notable biodegradable attributes. Additionally, the Pharmaceutical industry utilizes Bio Glycerol in syrups and oral medications, primarily for its humectant properties.

Segmentation of the Bio Glycerol Market by Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World (including Middle East and Africa)

North America stands as a significant Bio Glycerol market, propelled by consistent investments in research and development. Meanwhile, the Asia-Pacific region emerges as the fastest-growing market globally, driven by substantial increases in production capacity, facilitated by the availability of cost-effective labor and raw materials.

Segmentation of the Bio Glycerol Market by Company:

The Bio Glycerol market exhibits a high degree of fragmentation, with no dominant players holding significant market shares. Entry barriers remain formidable due to the capital-intensive nature of the industry, necessitating substantial investments in research and development. Moreover, the infrastructural costs associated with machinery setup pose additional challenges for newcomers. Key players in the market include IOI Oleochemicals, Emery Oleochemicals, and Kao Corporation.

Recent Developments in the Bio Glycerol Market:

• In June 2021, ENI and BANSF formed a joint venture aimed at producing bio-propanol from Bio Glycerol. The collaboration focuses on developing technology to convert propanol from Bio Glycerol.
• In April 2021, Croda International, a pharmaceutical company, contributed to sanitizer manufacturers by supplying Bio Glycerol free of charge. This initiative aimed to bolster Bio Glycerol production efforts.