Although U.S is anticipated to dominate the North America glycine market, the Canada glycine market is likely to witness a healthy CAGR in terms of both value and volume
Demand for glycine in North America is likely to witness stagnant growth in the near future as the market has relatively matured. Sales revenue stood at close to US$ 300 Mn in 2016 and is projected to demonstrate a CAGR of 3.5% and reach more than US$ 350 Mn by 2024, representing an incremental opportunity of more than US$ 90 Mn. It has been witnessed that the growth rate of domestic production, capacity utilization and financial performance has been declining since past few years. Consumption of glycine in North America stands at more than 100,000 Tonnes and is slated to record a CAGR of 2.6% and amount to more than 150,000 Tonnes by 2024. Key players in this region are focusing on developing glycine tailored to specific applications.
Sales revenue of glycine in the U.S. is projected to cross US$ 300 Mn by 2024 end. This country dominates the glycine market in North America and is likely to remain attractive in the years to come. In the U.S., exponential growth rates will be hard to sustain in the long run as the market will eventually mature. However, the growing applications of glycine in cosmetic products coupled with the growth of the feed industry is likely to support the glycine market in the U.S. In Canada, the import of glycine is continuously rising. To avoid the antidumping duty from the U.S., many glycine producers from China export their material to the U.S. through Canada as Canada does not apply any import duty on glycine.
Increasing usage of glycine in personal care products and in products for animal consumption drive the demand in the North America glycine market
Increasing meat consumption in North America, coupled with high livestock production, such as broiler, swine and cattle leads to an increase in the demand for animal feed additives. This trend is forecasted to become a key driving factor for the market growth of glycine over the forecasted years. Growing meat consumption (owing to meat being a source of protein) in North America region is slated to positively influence the market growth of glycine. For instance, in the U.S., around 60% of protein is consumed through animal meat, as compared to the global average of about 30%. Glyphosate, a synthetic amino acid is the most widely used biocide in North America. The demand for glyphosate is projected to remain high throughout the forecast period, driven by the growing adoption of herbicide tolerant (HT), genetically modified (GM) crop, which in turn fosters the demand for glycine. Further, the shift towards sophisticated farming practices, increased emphasis on enhancing crop yields and rising demand for crop protection solutions in agriculture in North America are other driving factors.
In personal care products such as antiperspirants and cosmetics, glycine is used to reduce the acidity of other ingredients. Increasing application of glycine in personal care products is expected to be one of the major growth factors for the glycine market in North America. The cosmetic industry is one of the biggest end users of glycine. Increasing demand for cosmetic products due to change in the lifestyle of consumers has a positive impact on the glycine market in the region. For example, it has been estimated that in the U.S glycine is used more than 30% as an additive in cosmetics and personal care products, most notably deodorants and antiperspirants.
Glycine is also used as an intermediate material in products intended for animal consumption, such as vitamins and other nutraceuticals and pet food. It has been estimated that in the U.S., glycine is used as an intermediate material in around 55% of the products intended for animal consumption. This increasing usage is expected to fuel the growth of the glycine market in North America.
Tech and feed grade applications likely to dominate the North America glycine market during the projected period
Tech grade and feed grade are expected to show high growth in the North America region. The tech grade segment was estimated to account for a market value share of more than 15% by 2016 end and is projected to gain 30 basis points by 2024. The feed grade segment is estimated to account for a market value share of more than 65% by 2024 and is likely to witness steady growth throughout the forecast period.
The U.S is a large consumer of glycine, while the largest producer of glycine is China. Persistence Market Research highlights that the cost of glycine depends largely on the cost of chemicals and energy. In addition, analysts of this market research company have also observed that volatile raw material prices are affecting the prices of glycine. While targeting different geographies in the drafting of a new report titled “Glycine Market: Global Industry Analysis and Forecast, 2016–2024,” Persistence Market Research analysts have come to a conclusion that the North America region’s demand for glycine is very high, which creates opportunity for market players from different countries in the region. On the other hand, Asia Pacific holds a high market share and is expected to create high incremental opportunity in the global glycine market. Another observation is that by importing tech grade from countries where the cost of production is low and purifying it into food grade will help in significant reduction of cost. The analysts have also noticed further that importing glycine at low rates from China to the U.S. and routed through Canada can avoid anti-dumping duties.
The principal objective of this report is to present insights into the many advancements that have already been made in the global glycine market. The report provides updates on drivers, restraints, opportunities and trends in the global glycine market. The report demarcates market dynamics that are predicted to influence the current market situation and the future status of the global glycine market over the forecast period.
Inclusion of primary verbatim data is the uniqueness of this report
A highly placed official in one of the key glycine companies in Eastern Europe has stated that prices of cheap drugs from the list of vital medicines may significantly increase in Russia this year due to a recent decision by the Russian government to refrain from implementing further state regulation of prices for drugs from this segment. This means that the government will allow pharmaceutical companies to set their own prices for such vital and cheap drugs as aspirin, ibuprofen, glycine, and water for injection. Another official from a leading glycine company from the APAC region has explained that the Chinese glycine industry has always witnessed overcapacity in the past few years, but the capacity of glycine in China will keep increasing in the coming five years. Another official further stated that glycine and glyphosate manufacturers already have their own ambitions in the global glycine market.
The report commences with a market overview that highlights the market scenario and provides key insights into the global glycine market. The report further discusses market dynamics including market drivers, restraints, opportunities, trends and key regulations in the global glycine market. This is followed by a comprehensive analysis of value and supply chain analysis along with the highlighting of key participants and associated process components. In addition, location analysis, production vs. consumption analysis and the listing of key producers, consumers and traders has been provided across all regional levels. The report provides detailed market share analysis, Y-o-Y growth and market attractiveness analysis on the basis of various segments. In the final section of the report, a competitive landscape has been provided to present the business operations of some of the key players along with a dashboard containing market share and competitive analysis. Detailed profiles of some of the manufacturers have also been included within the scope of the report to estimate their strengths, weaknesses, opportunities, and threats along with long-term and short-term strategies, recent developments and offerings in the global glycine market.
A detailed analysis has been provided for every segment in terms of market size for the global glycine market. It is important to note that in an ever changing economy, the report not only conducts forecasts in terms of CAGR but also analyzes the market based on key parameters like Y-o-Y (year-on-year) growth to interpret the predictability of the market as well as to identify the right opportunities for market players operating in the global glycine market. Another key feature of this report is that it includes the analysis of all key market segments in terms of absolute dollar opportunity. Absolute dollar opportunity analysis is critical in evaluating the level of opportunity that a provider can look to achieve in the global market. Absolute dollar opportunity analysis of the global glycine market will help identify potential resources from a sales and delivery perspective in the global glycine market. The report also provides strategic recommendations and key success factors for new entrants in the global glycine market.