Can Glycerine Market Meet 2025 Demand Surge?

The global Glycerine Market size was valued at USD 3.47 billion in 2024 and is predicted to reach USD 5.86 billion by 2030 with a CAGR of 5.8%. The sector is witnessing significant price surges and dynamic shifts in 2025, driven by supply constraints, robust industrial demand, and strategic expansions by key players.

This news article delves into the latest developments, applications, regional dynamics, key players, and future prospects of the glycerine market, offering actionable insights for industry stakeholders.

Glycerine Market Dynamics in 2025

Latest Developments (2024–2025)

The glycerine market has experienced notable price increases in April and early May 2025, particularly in Malaysia, Indonesia, and Germany. In Indonesia, prices for crude and refined glycerine have risen steadily due to strong domestic demand and supply shortages, exacerbated by logistical bottlenecks at Tanjung Priok Port and the depreciation of the Indonesian Rupiah against the US dollar. Despite declining palm oil prices, glycerine prices remain resilient, indicating that local consumption trends outweigh global feedstock costs.

Malaysia has seen modest price increases, reflecting a balanced market where firm demand is met by controlled supplies. The appreciating Malaysian Ringgit has reduced export competitiveness, while India’s 24% drop in palm oil imports in April has shifted regional dynamics, pushing buyers toward alternatives like soybean oil. In Germany, steady demand from pharmaceutical and personal care sectors has driven price hikes, with reduced stock levels at terminals tightening supply chains.

A significant development is Louis Dreyfus Company’s (LDC) launch of a 55,000 tonnes/year glycerine refining plant in Lampung, Indonesia, in May 2025, alongside a 64,800 tonnes/year edible oil packaging line. This facility, strategically located near export hubs, strengthens Indonesia’s position as the world’s largest glycerine producer and supports growing global demand for high-purity, USP-grade glycerine.

Impact on the Glycerine Market – Next Move Strategy Consulting’s Viewpoint

These developments signal a tightening global glycerine market, where supply constraints and currency fluctuations outweigh softening raw material costs. The launch of LDC’s Lampung plant enhances Indonesia’s capacity to meet rising demand, particularly for pharmaceutical-grade glycerine, but logistical challenges and currency depreciation continue to drive prices upward.

For procurement professionals, this underscores the need for diversified sourcing strategies and long-term contracts to mitigate price volatility. Next Move Strategy Consulting’s analysis suggests that monitoring regional supply chains and currency trends will be critical for cost management in 2025.

Applications Across Industries

Glycerine, also known as glycerol, is a versatile, clear, odorless, and syrupy liquid derived from vegetable oils or animal fats, widely used as a humectant (moisture-retaining agent). Its key applications include:

• Pharmaceuticals: High-purity glycerine is critical for drug formulations, where it acts as a solvent, stabilizer, and moisturizing agent. Rising costs are increasing manufacturing expenses for pharmaceutical companies.

• Cosmetics and Personal Care: Glycerine is a staple in moisturizers, lotions, and skincare products due to its ability to lock in moisture and soften skin. Celebrity-endorsed beauty hacks, such as Esha Deol’s glycerine-lemon mixture for tan removal, highlight its popularity.

• Food Processing: Glycerine serves as a sweetener, preservative, and texture enhancer in food products.

• Biodiesel Production: Crude glycerine is a by-product of biodiesel manufacturing, but Indonesia’s increased biodiesel blending mandate (B40) has reduced palm oil availability, tightening glycerine supply.

Regional Analysis: Dominating and Fastest-Growing Regions

The glycerine market is dominated by Asia-Pacific, with Europe and North America also playing significant roles.

Below is an analysis of key regions and countries: 

Why They Lead:

• Indonesia: Its dominance stems from vast palm oil production, a key glycerine feedstock, and strategic investments like LDC’s Lampung plant, which targets high-purity glycerine for global markets.

• Malaysia: Benefits from robust palm oil supply chains and controlled glycerine production, though export competitiveness is challenged by the appreciating Ringgit.

• Germany: Leads in Europe due to strong demand from pharmaceutical and personal care industries, despite reliance on imports.

• United States: LDC’s refining operations and growing demand for USP-grade glycerine position it as a key North American hub.

Key Players and Recent Strategies

The glycerine market features established leaders and emerging players, with recent strategies focusing on capacity expansion and high-purity production:

• Louis Dreyfus Company (LDC): A global agribusiness leader, LDC launched a 55,000 tonnes/year glycerine refining plant in Lampung, Indonesia, in May 2025, targeting USP-grade glycerine for pharmaceuticals and cosmetics. This complements its existing facilities in the U.S. (Claypool, Indiana) and Germany (Wittenberg), strengthening its global supply chain.

• Wilmar International: A major player in palm oil and glycerine, Wilmar focuses on sustainable refining processes to meet demand in Asia-Pacific.

• Emerging Players: Emerging players in Indonesia are expanding capacities to capitalize on the steady rise in refined glycerine demand, driven by pharmaceutical and cosmetic applications.

• Other Notable Players include P&G Chemicals, Oleon NV, Emery Oleochemicals LLC, The Dow Chemical Company, Vantage Specialty Chemicals, Vance Group Ltd., and more.

Future Prospects and Examples -

The glycerine market is projected to grow for refined glycerine through 2030, driven by demand for high-purity products in pharmaceuticals and cosmetics. Key trends include:

• Increased Skincare Demand: Warmer months will boost glycerine use in moisturizers and tan-removal products, as highlighted by celebrity endorsements like Esha Deol’s glycerine-lemon mixture.

• Biodiesel By-Product Growth: Indonesia’s B40 blending mandate will increase crude glycerine supply, but export constraints may keep prices elevated.

• Sustainability Focus: Companies like LDC are investing in sustainable refining to meet regulatory and consumer demands.

Examples:

• Pharmaceutical firms may face higher costs but can secure supply through long-term contracts with producers like LDC.

• Cosmetic brands can leverage glycerine’s humectant properties for innovative skincare lines, as seen in consumer trends toward natural products.

Conclusion

The glycerine market in 2025 is marked by price surges, supply constraints, and strategic expansions, with Asia-Pacific leading due to Indonesia and Malaysia’s production strength, and Europe’s Germany emerging as a fast-growing hub. Stakeholders should monitor currency trends, diversify sourcing, and explore long-term contracts to navigate volatility. Next Move Strategy Consulting recommends leveraging market intelligence to stay ahead in this dynamic landscape.

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