The anticipated growth of the global glycerine market appears promising, with projections suggesting it will soar to a value of USD 2.53 billion by 2028, marking a compound annual growth rate (CAGR) of 5.3% over the forecast period. This upward trajectory is fueled by several factors, notably the escalating demand for bio-based fuels like biodiesel, propelled by the rapid pace of industrialization and urbanization worldwide. These insights stem from a comprehensive report titled "Glycerine Market, 2021-2028" by Fortune Business Insights™. The report highlights that the market's size stood at USD 1.68 billion in 2020.
Key Drivers & Constraints:
An escalating preference for natural and organic ingredients in cosmetics and personal care products is poised to drive the growth of the glycerine market in the foreseeable future. This surge can be attributed to heightened consumer awareness about the detrimental effects of chemical constituents. Consequently, leading cosmetic giants such as L’Oréal, P&G, Unilever, and Johnson & Johnson are increasingly incorporating natural and organic ingredients to meet consumer demand. However, the reliance on glycerine derived as a by-product during the biodiesel production process presents challenges for refiners, including fluctuating profit margins and production issues due to price volatility, potentially hampering market growth.
Market Segmentation:
The personal care segment emerges as a significant contributor, accounting for 25.4% of the glycerine market share in 2020. This growth is underpinned by the expanding utilization of glycerine in the formulation of various personal care products such as shaving cream, toothpaste, soaps, hair care items, and skincare formulations. Forecasts suggest that this segment will continue to dominate, fueled by the product's ability to offer conditioning properties and viscosity reduction.
Regional Analysis:
In terms of revenue, Asia Pacific commanded a notable share of USD 0.73 billion in 2020, owing to the presence of leading industry players in countries like Japan, India, Indonesia, and Malaysia. China, in particular, is positioned to lead the regional market, buoyed by the expansion of chemical, food, and personal care industries within its borders. Notably, the USP grade segment held a substantial 49.7% share in China.
Conversely, Europe stands as a key global producer of glycerol and biodiesel. The region's burgeoning biodiesel production, propelled by increasing demand from various European nations, is expected to propel market growth. Moreover, North America is poised to witness growth, driven by heightened demand for glycerine from the personal care and chemical industries in the United States.
This analysis underscores the multifaceted dynamics shaping the glycerine market's trajectory, emphasizing its evolution as a pivotal sector within the broader industrial landscape.
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