1

1. GLYCEROL

i. Projection on Market and Demand for Glycerin from 2006 to 2022 

Supply of glycerin as a pure by-product (since the synthetic production has now been 

ceased) is entirely determined by external factors. Glycerin demand has no influence on the 

glycerin output instead the prices adjust to bring the demand into line with supply. The growth of 

oleochemical glycerin has been dwarfed by the volume of glycerin that has been produced by the 

biodiesel in the past decade. Figure 1. projecting crude glycerin availability forward to 2020, is 

striking in its depiction of the volume growth that is expected in the next decade. Crude glycerin 

volumes are forecast to grow from 1.08 million tonnes in 2004 to 5.45 million tonnes in 2020, 

predominately as a result of increased output as a by-product of biodiesel production (Fry, J., 

2010). In assessing glycerin volume forecast to be generated by increased oleochemical 

production, assumption has been made that after 2009 any additional fatty alcohol capacity that 

may be built will utilize fatty acids as their primary feedstock and therefore not generating any 

further supplies of glycerin. 

Source: Fry, J., (2009), Report: The Outlook for Oleochemical to 2020: Opportunities in a 

Changing Sector, LMC International, 2009

Figure 1: Global Crude Glycerin Production by Sector, 1980 – 2020
2

Shown in Figure 1, biodiesel has already grown sufficiently to outstrip the glycerin 

volumes derived from oleochemicals and this structural shift is not expected to reverse itself. On 

the contrary, crude glycerin volumes generated from biodiesel are forecast to grow almost threefold, from 1.4 million tones in 2008 to 4.3 million tones in 2020 (Fry, J., 2010). In comparison, 

combined fatty acid and alcohol related crude glycerin supply is only expected to grow by 0.2 

million tonnes in the same period. It is this explosion of crude glycerin production that will pose 

the greatest challenge for the glycerin sector in the coming decade.

Potentially, in the shorter term out to 2013, there could be a glut of crude glycerin before 

the new technical applications can consume large volumes. However, the stalling of biodiesel 

production in Europe in 2008 has eased that prospect. It is estimated that, in 2008, in the region 

of 125,000-150,000 tonnes of glycerin were used in the synthesis of epichlorohydrin and 

propylene glycol. These volumes are projected to rise to 700,000 tonnes in 2012, assuming 

current plans are implemented in full and the global recovery has begun (Fry, J., 2010).

It is these anticipated that over the long term, substantial increases in both crude and 

refined glycerin volumes will be consumed by increased markets in glycerin’s traditional enduses as a food, personal care and pharmaceutical ingredient and novel chemical applications. The 

new applications are made more attractive by removing the need to refine the glycerin. 

ii. Current Application of Glycerin and Their Products 

Glycerin is not poisonous to humans, so it is widely used in foods, pharmaceuticals and 

cosmetics. Some of the current reported applications are:

 Solvent for preparation of concentrated flavor extracts, texture improver, emulsifier and 

sugar substitute. It also functions as conditioner in wine gums, fondants, soft creams and 

pastilles. 

 Glycerin is also applied as fruits and vegetables preservatives to keep them in fresh 

conditions. 

 Esters of glycerin with acetic and tartaric acid are used as emulsifiers in bread 

production. 
3

 In cosmetic formulation especially in skin lotion to give moisturizing effect and relieve 

chapping. It functions mainly as emulsifier, emollient, and conditioning agent. 

 Hair shampoos utilize glycerin to make them flow easier when poured from the bottle. 

Glycerin may be added to give shiny transparent effect to the soap bars. 

 Glycerin is also utilized as mild laxative in suppositories and applied as softener in 

gelatin capsules. 

 Glycerin derivative, glycerol trinitrate, is an important drug for heart disease treatment. 

Glycerol methacrylate is used in the manufacturing of soft-lenses to make them 

permeable to air. 

 In the production of phthalic and maleic alkyd resin and in cross-linked polyesters from 

mono- and dicarboxylic acids and polyol. 

 Polyether polyols of glycerol in combination with propylene- and ethylene oxide are 

polymerized with diisocyanates to form flexible or rigid polyurethane foams. 

 Glycerin also serves as a moisturizer and plasticizer in cellulose films. 

 In tobacco industries, glycerin serves as solvent for tobacco flavor compositions. It is also 

applied as humidifier and plasticizer for tobacco to prevent the leaves from becoming 

brittle and crumbling during drying.

 In order to avoid contamination in foods, drugs, and cosmetics manufacturing, glycerin is 

preferred as lubricant compared to oil. 

 Glycerin acts to reduce friction in pumps and bearings. 

 Glycerin is also used as lubricant in textile industries. Inks and printing colors contain 

glycerin to prolong their self-life. 

 Glycerin is also employed in adhesives and glues to keep them from very fast drying. In

paper industries, glycerin acts as humidifier, plasticizer, and lubricant. 

Figure 2 shows market shares of glycerin application. Glycerin is mostly applied in 

soaps, cosmetics and pharmaceuticals industries. These applications contribute to 37% of market 

share. Alkyd resin and food applications are followed with 13% and 12%, respectively. Eleven 

percent of glycerin capacities go to polyurethanes industry. Tobacco application also has 

important role, holds 9% of total market share. Minor amount is used for explosive industries.
4

Glycerine Applications

15%

3%

9%

11%

12%

13%

37%

Others

Explosive

Tobacco

Polyurethanes

Food

Alkyd resin

Soap, cosmetic, pharm.

Source: Suyenty, E., Sutanto, E. and Lie, A., (2009), Applications of Basic 

Oleochemicals: Old & New, PIPOC 2009

Figure 2. Applications of glycerin

iii. Substitution of Glycerin from Petro-based With Natural-based 

Crude glycerin from a conventional FAME unit contains a range of impurities, most of 

which will have an adverse effect on downstream processes and products. They arise both from 

the natural triglyceride background and, more significantly from the methanolysis process itself. 

Fat splitter glycerin is somewhat cleaner but does contain components which can poison the type 

of catalysts typically used in hydrogenation processes.

There is no doubt that, whichever process is used for the conversion of glycerin to 

propylene glycol (PG) it will be necessary to remove these impurities at some stage as their 

presence in the final product would be unacceptable. The best place for removal is in the 

upstream. The nature of the chemistry involved in the glycerin-based route is such that it is 

inevitable that the resultant PG will be different in detailed composition to that produced from 

conventional propylene oxide hydration. One obvious example is that conventional PG contains 

traces of di-propylene glycol; where glycerin based material does not. On the other hand, PG 
5

from the hydrogenolysis of glycerin contains minor amounts of ethylene glycol. This is a feature 

common to all bio-derived products – they may meet the “headline” commodity specification, 

but they will be different, and therefore effort is required to introduce them into the market.

iv. New Application on Glycerin 

Some of the reported new applications of glycerin are: 

 Ethylene glycol in anti-freeze

 Polyols in coating resins

 Monopropylene glycol in animal feeds

 Glycerin Tertiary Butyl Ether (GBTE) as potential additive for diesel (similar to the 

MTBE derived from methanol). MPOB has the process and currently the scale-up 

study is in progress.

 Surfactant in microemulsion system either oil in water or water in oil 

 Solvay was the first manufacturer that started production of epichlorohydrin from 

glycerin in 2007. Epichlorohydrin is used as building block in epoxy resins, 

elastomers, and synthetic glycerol production. 

 Glycerin for acrolein production and applied in the preparation of acrylic acid, 

polyester resin, polyurethane, propylene glycol, and acrylonitrile. 

 Glycerin may be converted to renewable fuels via cracking process to hydrocarbons.

 Eicosapentaenoic acid (EPA), may also be synthesized from crude glycerin by

enzymatic process using Pythium irregulare (INFORM, 2009).

Consequently, novel, high volume and technically based applications have been 

developed. Notable novel applications to date have been awarded the annual Glycerin Innovation 

Award by the Soap & Detergent Association and National Biodiesel Board (Fry, J., 2010). The 

past three prizes are briefly outlined below:
6

 2007: Solvay was awarded the prize for its application of glycerin as a feedstock for 

the production of epichlorohydrin. This was a radical turn around because synthetic 

glycerin had previously been derived via a synthetic epichlorohydrin route.

 2008: Researchers from the U.S. Department of Agriculture (USDA) were honoured 

for glycerin derived surfactants and polymers, which are not only produced from 

renewable resources, but are also biodegradable.

 2009: Pittsburg State University in Kansas received the prize for research that has led 

to the development of a novel family of glycerin-based polyols to be used in rigid 

polyurethane foams.

v. Volume of Glycerin Production (2010 - 2022)

The regional breakdown in crude glycerin production is depicted in Figure 3 and it is 

obvious that Europe led the trend in volume growth associated with the biodiesel at the start of 

the century. In the coming decade the regions expected to experience the most significant growth 

in the production are South America, South East Asia and China. This regional pattern of 

glycerin generation is a reflection of global biodiesel production as well as the shift from 

Western oleochemical production to Asia. Approximately 10 lbs of glycerin (also known as 

glycerol) are produced for each 100 lbs of biodiesel fuel. Crude glycerin contains water and 

impurities. Refined glycerin is highly purified, such as the 99.7% pure USP grade.
7

Source: Fry, J., (2009), Report: The Outlook for Oleochemical to 2020: Opportunities in a 

Changing Sector, LMC International, 2009

Figure 3. Crude glycerine production by region (1980-2020)

Mean while, the overall regional supply of refined glycerine was projected to hit close to 

600,000 tonnes this year, 2010, while demand would just be at roughly half of the total, based on 

estimates of a major global trading firm. The demand for refined glycerine would grow at a 

slower pace of 5.8% this year to 280,000 tonnes compared to the 8.6% increase in 2009, industry 

sources said.

Malaysia is the biggest producer of the material in Asia, with an estimated production of 

190,000 tonnes this year. Indonesia comes in second with a forecast output of 163,000 tonnes, 

while China ranks as the third biggest producer with a projected capacity of 140,000 tonnes, 

based on industry estimates. The Philippines and Thailand would have a combined capacity of 

50,000 tonnes of refined glycerine this year. The capacity figures do not take into account supply 

coming from biodiesel production. Biodiesel plants in Asia are currently running at just 5% of 

capacity, which translates to 39,320 tonnes of glycerine supply for this year, according to 
8

industry estimates. If biodiesel plants were running at full capacity, they would generate 786,400 

tonnes of the by-product.

Crude glycerin must be refined in order to be suitable for currently established end-use 

applications in the food, personal care and pharmaceutical sectors. Figure 4 shows that global 

refined glycerin volumes by sector out to 2020. These estimates are based on the following 

assumptions:

 Oleochemicals and soap associated glycerin production will be 100 % refined

 By 2012, an estimated 75 % of crude glycerin derived from biodiesel produced by

multifunctional companies will be refined

 An estimated 50 % of smaller biodiesel producers will refine their crude glycerin 

production

Source: Fry, J., (2009), Report: The Outlook for Oleochemical to 2020: Opportunities in a 

Changing Sector, LMC International, 2009

Figure 4. Global refined glycerin volumes by sector, 1980-2020
9

The figure reveals that by 2020 it is expected that an estimated 3.53 million tones of refined 

glycerin should be produced annually. This represents 65 % of crude glycerin production and the 

remaining 35 % that is not refined should arise from smaller biodiesel plants.

vi. Conclusions

Glycerin has faced a considerable challenge since the biodiesel industry has grown in size and 

the industry continues to grapple with how to best apply the potential solutions. However, it is 

glycerin’s versatility as a molecule with a myriad of added value applications, as well as its 

‘green’ credentials, that it should be able to reinvent itself as a margin based commodity, as 

opposed to being merely a biofuel waste disposal problem, which pulls down oleochemical 

glycerin prices by association.

 Naturally, some glycerin will continue to be disposed of in low value application, such as 

burning. This should only occur where the crude glycerin is of low quality, or is 

available in limited volumes, or is logistically too isolated to find customers. In all these 

cases, such supplies should have little influence on the wider market.

 Furthermore, it is probable that new technologies will create the means necessary to 

convert such ‘low value’ glycerin into a biofuel for use in-house.

 Prices are not expected to remain at the recent low levels and the price correction process 

should begin in line with the global recovery. In short term, the global recession will 

continue to depress both prices and demand, making 2009 – and potentially 2010 –

challenging for sellers of glycerin.

 Prices are under severe pressure and producers will experience a steep decline in their 

glycerine revenues over the forecast period. Price is the determining factor in the majority 

of end user sectors; however quality is fundamental in the main sectors such as 

pharmaceuticals, personal care and food. 
10

 New applications are needed for both refined and crude glycerin and prices need to 

compete with propylene, sorbitol and other alternative chemicals.

One possible threat to the emergence of novel chemical outlets for technical grade glycerin is 

that governments withdraw their economic and political support from the biodiesel industry. If 

biodiesel output were to fall, glycerin supply would follow suit, and markets would do their 

traditional job of rationing demand by raising prices.

However, glycerin is well placed to meet the more likely challenges of further large 

increases in supplies. In particular, the development of new high volume industrial applications 

should meet the future high supply of glycerin. Although, it must be stressed that glycerin will 

always be vulnerable to short term imbalances and the resultant price cycles. In the coming 

decade, it will be important to see how the demand from new technical applications matches the 

increases in glycerin supplies. A possible solution to imbalances would be the creation of joint 

ventures between biodiesel plants and chemical manufacturers to ensure some form of 

equilibrium between large step changes in both demand and supply. This strategy should 

provide the feedstock supply security for a chemical manufacturer to invest the sums needed to 

build a glycerin consuming plant, whilst ensuring the biodiesel company has a guaranteed outlet 

for its glycerin by-product output. 

References

Frost & Sullivan (2001). The World’s Fatty Acids Industry: Feedstocks, Derivatives, and Endproducts, 1997-2002-2007.

Fry, J., (2010), Report: The Outlook for Oleochemical to 2020: Opportunities in a Changing 

Sector, LMC International, 2009

Heming, J., (2007), World Glycerine Market up to 2010, with Emphasis on New Uses for 

Glycerine, PIPOC 2007.
11

Lawrence, R.C., (2009), Glycerin to Propylene Glycol , PIPOC 2009

Rupilius, W., And Ahmad, S. (2006). The Changing World of Oleochemicals.

Seng S., (2010), Asian Glycerine Supply to Remain In Glut; Prices under Pressure, 

www.icis.com

Suyenty, E., Sutanto, E. and Lie, A., (2009), Applications of Basic Oleochemicals: Old & New, 

PIPOC 2009

http://en.wikipedia.org/wiki/Glycerin_soap, (May 2010)

http://www.soyatech.com/news_story, (May 2010)

http://www.asasea.com, (May 2010)
12

Exports of Glycerin from Malaysia 

Year Volume (Tonnes) Major Destinations

2006 216,529 USA, China, P.R, Japan, EU 

2007 246,321 China, P.R, USA, Japan, EU

2008 217,044 USA, China, P.R, Japan, EU

2009 237,589 China, P.R, USA, Japan, India

2010(Jan/Apr) 68,825 China, P.R, USA, Japan, South Korea