Glycidol Market - Forecast(2023 - 2028)

Glycidol Market Overview

The Global Glycidol Market size is forecast to reach US$189.2 million by 2027, after growing at a CAGR of 5.4% during the forecast period 2022-2027. Glycidol is primarily used in the synthesis of glycerol, esters, and amines. Moreover, it is used in the alkylation of 2-methyl quinazoline-4(3H)-one and theophylline to produce diproqualone, and dyphylline respectively. Glycidol is used in a wide range of industries, including pharmaceutical, paints & coatings, building & construction, automotive, packaging, cosmetics & personal care, textile, and other industries. According to Japan Paint Manufacturers Association (JPMA), Japan's total paints and coatings production reached 1,645,960 tons during the year 2019. An increase in paints and coatings production along with the increasing demand from the cosmetics & personal care industry acts as the major driver for the market. On the other hand, health hazards associated with the use of glycidol may act as a major constraint for the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing, and production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of the supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, a slow recovery in new cosmetics, and skincare production has been witnessed across many countries around the world since the end of 2020. Glycidol is primarily used in the synthesis of glycerol, esters, and amines that are used in cosmetics and skincare products as it helps in protecting the skin from irritants while keeping the skin smooth by adding moisture to the surface of the skin. According to recent insights published on The Business Line, India reported a growth of around 20% in annual retail sales of cosmetics and other skincare products during the fourth quarter of 2020 and is expected to grow in the upcoming years. In this way, a steady increase in production activities from the cosmetics & skincare industry is expected to increase the demand for glycidol required for the production of these cosmetics and skincare products. This indicates a steady recovery of the market in the upcoming years.

Report Coverage

The report: “Glycidol Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Global Glycidol Industry.

By Assay: Glycidol 96%-96.9%, Glycidol 97%-97.9%, Others.
By Application: Epoxies, Chemical Intermediate, Pharmaceutical Intermediate, Sanitary Chemicals, Paints and Finishes, Adhesives, Plastics, Elastomers, Varnishes, Fabric Dyes Detergents, Synthesis of Glycerol, Esters, and Amines, Others.
By End-Use Industry: Pharmaceutical, Paints & Coatings, Building & Construction, Automotive, Packaging, Cosmetics & Personal Care, Textile, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

• Pharmaceutical intermediate application held a significant share in the Global Glycidol Market in 2021, owing to its increasing demand from the pharmaceutical sector across the world. In May 2021, Novartis' Sandoz invested around EUR 150 million (US$ 183.32 million) for the development of antibiotics manufacturing plants in Austria and Spain over the next three to five years.
• Pharmaceutical industry held the largest share in the Global Glycidol Market in 2021, owing to the increasing production of medical drugs and expansion of healthcare facilities across the world. According to Institute for Healthcare Informatics, the overall volume of medicines used across the globe reached around 4.5 trillion doses in 2020 with an approximate cost of around US$ 1.4 trillion.
• Asia-Pacific dominated the Global Glycidol Market in 2021, owing to the increasing demand for glycidol from the pharmaceutical sectors of the region. For instance, under Union Budget 2021-22, the Ministry of Health and Family Welfare has been allotted INR 73,932 crore (US$ 10.35 billion) and the Department of Health Research has been allotted INR 2,663 crore (US$ 365.68 billion). The government allotted INR 37,130 crore (US$ 5.10 billion) to the 'National Health Mission' with the aim of improving the country’s healthcare and pharmaceutical sectors.

Figure: Asia-Pacific Glycidol Market Revenue, 2021-2027 (US$ Million)

Glycidol Market Segment Analysis – By Application

The pharmaceutical intermediate application held a significant share in the Global Glycidol Market in 2021, owing to the increasing production of medical drugs and expansion of healthcare facilities across the world. For instance, Continuous Pharmaceuticals invested around US$ 125 million in order to build a pharmaceutical manufacturing facility in Massachusetts, U.S. in 2021. The development of the new facility began in October 2021 and is scheduled for completion by the end of 2022. In December 2021, Arrowhead Pharmaceuticals invested around US$ 200 million to build a new pharmaceutical drug manufacturing facility in Wisconsin, U.S. The development of the facility is scheduled to be completed in 2023. Furthermore, in November 2021, Meiji Seika Pharma Co., Ltd. invested around US$ 20.1 million to build a new medical drug manufacturing plant in India. The facility will be built on an area of 8,000-square-meter and is expected to be operational by 2023.

In this way, such new development in pharmaceutical manufacturing plants is expected to increase the demand for glycidol as a pharmaceutical intermediate during the drug manufacturing process. This is expected to drive the growth of the market during the forecast period.

Glycidol Market Segment Analysis – By End-Use Industry

The pharmaceutical industry held the largest share in the Global Glycidol Market in 2021 and is expected to grow at a CAGR of 5.5% between 2022 and 2027, owing to the increase in pharmaceutical production across the globe. For instance, in January 2020, Eli Lilly invested around US$ 474 million to build a new pharmaceutical manufacturing facility in North Carolina, U.S. The facility is anticipated to be operational by the end of 2023. Furthermore, in May 2021, BD (Becton, Dickinson, and Company) announced its plan to build a new pharmaceutical manufacturing facility in Spain to strengthen its drug delivery business. The overall cost of building the new facility was valued at around EUR 165 million (US$ 200 million). The development of the facility is scheduled to be completed by 2030.

Thus, an increase in demand and production of pharmaceuticals is expected to increase the demand for glycidol since it is primarily used in pharmaceutical intermediates and sanitary chemicals utilized in such manufacturing facilities. This is expected to accelerate the growth of the market during the forecast period.

Glycidol Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the Global Glycidol Market in 2021 up to 30%. The consumption of glycidol is particularly high in this region due to its increasing demand from the pharmaceutical sector. For instance, according to the India Brand Equity Foundation, India ranks third for pharmaceutical production by volume across the world. India has an established domestic pharmaceutical industry that consists of approx. 3,000 drug companies along with 10,500 manufacturing units across the country. Moreover, the Indian government has set up a nearly INR 1 lakh crore (US$ 1.3 billion) fund to provide a boost to companies to manufacture pharmaceutical ingredients domestically by 2023. Furthermore, according to International Trade Administration, the local pharmaceutical production in Japan reached up to US$ 62,570 in 2018, US$ 87,027 in 2019, and US$ 84,600 in 2020 respectively.

In this way, an increase in the production of medicines and drugs from pharmaceutical sectors across multiple countries in the region is expected to increase the demand for glycidol as a pharmaceutical intermediate during the drug manufacturing process. This is anticipated to propel the growth of the market during the forecast period.

Glycidol Market – Drivers

An increase in demand from the cosmetics and personal care industry is most likely to increase demand for the product

Glycidol is primarily used in the synthesis of glycerol, esters, and amines that are used in cosmetics and skincare products as it helps in protecting the skin from irritants while keeping the skin smooth by adding moisture to the surface of the skin. Glycerol helps in increasing skin hydration and relieves dryness while maintaining the moisture of the skin, which makes it ideal for use in cosmetics and personal care products. For instance, according to a study published on Fashion Network, skincare and sun care products produced an average annual growth of 5.6% in 2020. Furthermore, countries like France, Singapore, South Korea, and the U.S sold some of the largest amounts of exported beauty and skincare goods during 2020 with shipments valued at US$ 9 billion, US$ 6.2 billion, US$ 6.1 billion, and US$ 5.1 billion respectively. Hence, such surging demand for cosmetics and personal care products is expected to increase the demand for glycidol for the synthesis of glycerol, esters, and amines required during their production. This is expected to drive the growth of the market in the upcoming years.

An increase in paints and coatings production is most likely to increase demand for the product

Glycidol is used in the production of industrial paints and coatings since it offers properties such as flexibility, elasticity, and toughness in surface coatings while giving it a viscous texture. For instance, Nippon Paints Group made medium to long-term investments in 2021 for upgrading and streamlining industrial facilities in Japan from 2021 to 2023 to boost the production of paints and coatings to secure its position in the market. According to the British Coatings Federation (BCF), the first 5 months of 2021 achieved significant sales results in both industrial and decorative coatings in the United Kingdom, owing to strong consumer demand for DIY commodities such as paints and coatings in the country. Furthermore, in 2020, the government of Vietnam announced its plan to develop the paint and coating industry with a vision for 2030. The average growth rate in the production value of the paint and coating industry is expected to reach up to 14% during the period from 2021 to 2030. In this way, an increase in the production of coatings is expected to increase the demand for glycidol required during its production, owing to its above-mentioned properties. This is anticipated to drive the growth of the market in the upcoming years.

Glycidol Market Challenges

Health hazards associated with the use of glycidol can cause an obstruction to the market growth

Prolonged exposure to glycidol is known to cause irritation and burning in the eyes and skin. In case of skin contact, it may cause mild to severe skin irritation. In case of inhalation, irritation of the nose, throat, and upper respiratory tract may occur that causes coughing and wheezing. Furthermore, glycidol is reported to be carcinogenic in humans since the results of its test have shown to cause skin, lungs, and mammary gland cancer in animals. In the case of occupational exposure, the permissible exposure limit is 25 ppm- 50 ppm over an eight-hour work shift. Thus, such health hazards associated with exposure to glycidol may confine the growth of the market.

Glycidol Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Global Glycidol Market. Global Glycidol top 10 companies are:

1. LGC Group
2. HBCChem Inc.
3. Acros Organics
4. Fujifilm Wako Pure Chemical Corporation
5. Nacalai Tesque Inc.
6. Meryer Chemical Technology
7. Kanto Chemical Co. Inc.
8. Hangzhou Dayangchem
9. The Good Scents Company
10. Finetech Industry Limited

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