The collective revenue of glycine is expected to generate USD 12,585.82 Mn. (2019-2027). Glycine is available naturally in large quantities. Glycine is used in the food industry, pharmaceuticals industry, personal care industry and animal feed industry. It is used as a sweetener or ingredient in food supplements, in protein shakes, and energy drinks. It is used in treating many health issues and disorders like sleep problems, metabolic syndrome, etc. As demand for the food industry and pharmaceuticals industry is growing rapidly which will boost the demand of the glycine market in the forecasted period and a large number of players are participating in this industry. With surging demand and a growing number of manufacturers across the globe,the glycine market is heading towards a more competitive level. To sustain in the glycine market major manufacturers are introducing new products on a regular basis with competitive prices against their competitors. The key players are adopting various strategies such as product launches, mergers & acquisitions, partnerships, and collaborations, which are contributing to the growth of the glycine market globally. For instance, in April 2019, Henderson launched a new product HyperGH 14X, an all-natural HGH supplement system intended for bodybuilding and sports performance enthusiasts. The key ingredients of the product which make it unique are Ingredients includes are L-Tyrosine, L-Lysine, L-Glycine, L-Glutamine, L-Arginine, GTF Chromium, L-Ornithine, Phosphatidylcholine, Pituitary Powder, L-Valine, Colostrum, Gaba, Deer Antler Velvet, Astragalus Root Extract, and Tribulus Terrestris Extract. In September 2019, CPS Performance Materials ("CPS"), a diversified specialty chemicals manufacturer of performance polymers, fine chemical and chemical illumination solutions, acquired the GEO Specialty Chemicals ("GEO").
Market Dynamics
Drivers
- Rising Meat Consumption
- Growth of Pharmaceutical Industry
Restraints
- Volatility in raw material prices
- Stringent trade regulations
Rising Meat Consumption
The growing market for global beef and veal production is a major factor boosting the global glycine market. Glycine provides essential protein, fiber, and energy to the livestock in the form of feed additives, which results in increased yield and also helps save costs incurred on adding additional protein and supplement additives. According to OECD, overall world meat production increased by 1.25% to 323 Mt in 2017, with moderate increases in the production of bovine and poultry meats and more modest gains in pig and sheep meat. Much of the world meat production expansion originated in the United States but other main contributors were Argentina, India, Mexico, the Russian Federation and Turkey. Also, Globally 10% of meat output will be traded in 2025, up from 9% in 2015, with most of the increase coming from poultry meat. Further, global meat production is projected to be 16% higher in 2025 than in the base period (2013-15). This compares with an increase of almost 20% in the previous decade. According to the statistics published by the US department of Agriculture, the global beef and veal production increased from 59,710 tons in 2015 to 60,478 tons in 2016. This value increased to 61,624 tons in 2017 finally reaching 62,878 tons in 2018. Owing to these factors, the global glycine market is anticipated to grow at a healthy rate in the future.
Geographical Analysis
The North America market for glycine was valued at USD 420.98 million in 2018 and the market is estimated to grow at a CAGR of 3.20% during the forecast period to reach a market value of USD ** million by 2027.
In the US, glycine is typically sold in two grades United States Pharmacopeia (USP), and technical grade. USP grade sales account for major percent of the U.S. market for glycine. Technical grade glycine, which may or may not meet USP grade standards, is sold at a lower price for use in industrial applications, such as an agent in metal complexing and finishing. The U.S. glycine market is negatively impacted due to imports of glycine from India and Japan that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value and imports that are subsidized by the governments of China and India. As a result the United States government has imposed anti dumping duty over the glycine imports from these countries to protect domestic manufacturers. In 2017 the U.S imported 23.68 million dollars worth glycine from China, India, Japan and Thailand and other countries. Pharmaceutical, chemicals and food processing industries are the major industries in Canada that drive the glycine consumption in the country.
The pharmaceutical industry is growing rapidly, with many generic pharmaceutical manufacturers and name-brand producers operating in Canada. Leading pharmaceutical companies have production and R&D facilities and distribution offices in many locations across Canada. The chemicals industry is another top industry, concentrated mainly in Alberta and Quebec. Canada's skilled workforce, low tax rates, and dynamic business environment attracts major investors in the chemical sector. Therefore the progress in the end use sectors to drive the demand for glycine in Canada.
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