A new report says a by-product of biodiesel production will be a $2.1 billion industry by 2018. This Digital Journal article says the Transparency Market Research report, “Glycerol Market By Source (Biodiesel, Fatty Acids & Fatty Alcohols), By Applications (Personal Care, Alkyd Resins, Polyether Polyols, Others), Downstream Opportunities (Propylene Glycol, Epichlorohydrin, 1, 3 Propanediol And Others) – Global Industry Analysis, Size, Share, Trends, Growth And Forecast 2012 – 2018,” the global demand for glycerol is expected to reach 3,060.4 kilo tons by 2018, generating more than $2 billion in revenues.

Growing demand from the major end use industries such as personal care, pharmaceuticals and foods & beverages is expected to drive glycerol demand over the next five years. In addition, over the last three years, glycerol has been increasingly explored as a platform chemical for a host of renewable chemical intermediates. However; uncertainty of feedstock supply, coupled with low refining margins have emerged as a key challenge for market participants.

Abundant biodiesel production the past few years have kept glycerol prices steady, but new potential markets could drive up demand to match the biodiesel industry’s output.