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Government Support in Development of Biodiesel Plants Spurs Growth of the U.S Glycerin Market - New analysis from Frost & Sullivan, U.S. Glycerin Market, reveals that the market earned revenues of $157.4 million in 2006, and estimates this to reach $185.3 million in 2013
Government Support in Development of Biodiesel Plants Spurs Growth of the U.S Glycerin Market

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2006/12/12 - New analysis from Frost & Sullivan, U.S. Glycerin Market, reveals that the market earned revenues of $157.4 million in 2006, and estimates this to reach $185.3 million in 2013.

   
 
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Producer Tax Credits offered by the United States Department of Energy and other advantages of biodiesel are impelling large-scale development of the biodiesel industry. Biodiesel is gaining popularity as preference for eco-friendly and non-emissive fuels increases. This is resulting in an abundant supply of crude glycerin, produced as a co-product.

New analysis from Frost & Sullivan, U.S. Glycerin Market, reveals that the market earned revenues of $157.4 million in 2006, and estimates this to reach $185.3 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the U.S. Glycerin Market, send an e-mail to Trisha Bradley, Corporate Communications, at trisha.bradley[.]frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

Although there is an oversupply of crude glycerin in the market, the demand for refined glycerin from various end users is growing. Most biodiesel plants sell crude glycerin to refiners, while some refine it at their own facilities.

Refined glycerin is extensively used in personal care products, pharmaceuticals, food and beverages, tobacco, alkyd resins and other technical applications. Growth in these sectors, especially in the personal care industry, encourages demand for glycerin. Since skin care, hair care, and oral care products incorporate glycerin, the importance of vegetable-based products is exceptionally high. Therefore, producers are sourcing feedstock from oil seed plantations to satisfy the growing trend for natural and eco-friendly products. Glycerin is likely to replace polyols in food and related applications, which can increase the consumption of refined glycerin.

“Continual production of biodiesel is resulting in oversupply of crude glycerin, leading to declining prices of crude and refined glycerin,” notes Frost & Sullivan Research Analyst Tejasvini Kulkarni. “However, leveraging of low prices is possible by using glycerin as a substitute for other similar products and finding innovative applications for glycerin.”

Glycerin market participants can enhance market profitability by encouraging research and development activities to discover new applications for glycerin to ensure that excess glycerin is absorbed into suitable applications thereby preventing depreciation. Some key research areas include biorefineries, anti-freeze, animal and bird feed, glycerin derivatives, which see use as starting material for other chemistries and as lubricants. Continuous innovation is critical for a positive economic outlook for the U.S. glycerin industry.

As the production of refined glycerin requires technical expertise and heavy operation costs, including energy and raw materials, participants should concentrate on improving product quality through enhanced production efficiency.

Since the market is mature, participants need to emphasize on widening the customer base and improving brand loyalty as well as better marketing and advertising strategies.

The U. S. Glycerin market is highly competitive with market participants vying for the top position. Apart from internal competition, participants have to deal with a significant amount of competition from the east, predominantly from Malaysia and China.

“Market participants can make the best possible use of each other’s strengths by combining resources from the east and west,” notes Kulkarni. “U.S. glycerin manufacturers’ efficient production technology, when united with inexpensive man power available in Southeast Asia, can better drive the global glycerin market, facilitating participation in global trade instead of restricting it to local markets.”

The U.S. Glycerin Market is part of the Chemicals and Materials subscription. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership service, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Government Support in Development of Biodiesel Plants Spurs Growth of the U.S Glycerin Market

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