Glycerol or glycerine is a clear, colorless and syrupy liquid which is mainly sourced as a by-product of biodiesel production and soap manufacturing. It has wide applications across pharmaceuticals, food & beverage and personal care industries. Glycerol acts as a humectant in cosmetic products by holding moisture close to the skin. It is commonly used as a base in soaps, toothpastes and moisturizers owing to its hydrophilic property. Glycerol helps improve the texture and appearance of various cosmetic products.
The global Glycerol Market is estimated to be valued at US$ 3.15 Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity: The growing cosmetics industry worldwide offers significant opportunity for glycerol market players. There is increasing demand for natural and organic cosmetic products among consumers which use glycerol as a key ingredient. Glycerol derived from plant and vegetable oils is considered natural and safe for use in cosmetics. It helps provide skin conditioning properties without any side effects. The widespread adaptability of glycerol across personal care formulations such as lotions, creams and lip balms is fueling consumption. Manufacturers are focusing on leveraging the moisture locking ability of glycerol for developing innovative cosmetic products. This will continue driving the need for glycerol in cosmetics sector over the forecast period.
Porter's Analysis
Threat of new entrants: Low capital requirements for production and the fragmented nature of the industry allows for easy entry. However, established players have economies of scale and brand value which deters new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the commodity nature of the product and presence of substitutes. However, switching costs are low.
Bargaining power of suppliers: Glycerol suppliers have low bargaining power given the fragmented supply base and availability of substitutes. Suppliers are price takers in this market.
Threat of new substitutes: Substitutes like sorbitol pose a medium threat given their similar properties and end-use applications. However, glycerol remains the preferred substitute.
Competitive rivalry: The glycerol market is highly competitive with players competing on pricing and quality.
SWOT Analysis
Strengths: Wide applications across industries like personal care, food and beverage give steady demand. Glycerol is a byproduct of biodiesel production providing sustainable advantage.
Weaknesses: Commodity nature of product limits pricing power. Supply is dependent on biodiesel production cycles exposing to upstream volatility.
Opportunities: Growth in cosmetics and personal care industries in developing nations offers new avenues. Demand from technical and industrial sectors is on the rise with new product innovations.
Threats: Presence of substitutes like sorbitol and propylene glycol poses competition. Fluctuations in raw material costs impact profitability.
Key Takeaways
The Global Glycerol Market Scope is expected to witness high growth during the forecast period led by growth in end use industries like personal care and food and beverage.
The Asia Pacific region dominated the global market in 2023 and is projected to maintain its leading position through 2030. Rapid growth of personal care and food processing industries along with rising disposable incomes in countries like China and India will drive the regional glycerol market.
Key players operating in the glycerol market are dbWatch AS, eG Innovations, Heroix Corporation, Nagios Enterprises, LLC, Paessler AG, Quest Software Inc., Red Gate Software Ltd., Sematext Group, SolarWinds Worldwide, LLC, and VirtualMetric. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry. The players focus on new product innovations and capacity expansions to leverage opportunities in the high growth regions. Research collaborations with end use industries also help improve product development.
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