A new study says the global worth of the biodiesel by-product glycerol will hit $2.52 billion by the year 2020. The report, “Glycerol Market By Source (Biodiesel, Fatty Acids, Fatty Alcohols), By Application (Personal Care, Alkyd Resins, Polyether Polyols), Downstream Opportunities (Propylene Glycol, Epichlorohydrin, 1,3 Propanediol) And Segment Forecasts To 2020,” from Grand View Research also says biodiesel is the leading source of the ingredient now found in personal care products, alkyd resins, and polyether polyols applications.

Biodiesel emerged as the leading source of glycerol, accounting for over 1,400 kilo tons of glycerol production in 2013. Growing application market coupled with increased production of oleochemicals in Asia Pacific is expected to augment glycerol demand over the forecast period.

Personal care and pharmaceuticals were the largest application segment, with glycerol consumption exceeding 870 kilo tons in 2013. However, food & beverage is expected to be the fastest growing application segment at an estimated CAGR of 8.4% from 2014 to 2020, owing to improving lifestyle in emerging economies leading to increased consumption of processed and packed foods.

The report went on to say that the Asia-Pacific region was the leading market and accounted for more than one-third of market volume in 2013 and will be the fastest growing market over the next six years. In addition, the global glycerol market is highly concentrated with the top four companies including IOI Group, KL Kepong, Emery Oleochemicals and Wilmar International accounting for more than 65 percent of market revenue last year.

You can read the full report here.