WHITE OIL MARKET ANALYSIS

White Oil Market Size and Trends

The global white oil market is estimated to be valued at USD 1.74 Bn in 2024 and is expected to reach USD 2.41 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.8% from 2024 to 2031.

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Factors such as increasing application in personal care products such as makeup remover, skin creams, and moisturizers is expected to drive the market growth. Further, rapid urbanization coupled with rising disposable income of consumers is also anticipated to augment the demand for white oil. New product launches catering to skin and hair care needs of the evolving demographic are projected to present lucrative opportunities for the players in the white oil industry. However, stringent regulations regarding mineral oil in personal care may hamper the market growth during the analysis period.

 Rising Industrial Applications

The white oil market has been witnessing significant growth over the past few years due to its extensive industrial applications. White oil or mineral oil is used across various industries such as paints and coatings, pharma and cosmetics, food, and polymers among others. In the paints and coatings industry, white oil acts as a plasticizer and extender to improve gloss, flexibility, and durability of the finished paint product. It is also used as a rust preventive oil in the metalworking industry. Pharmaceutical and cosmetic companies utilize white oil as an emollient and lubricant in ointments, lotions, makeup products, and others. The widespread use of white oil has been rising due to its superior properties such as high thermal and oxidative stability, transparency, and colorlessness. Manufacturers are also favoring white oil as it provides a cost-effective solution for various industrial applications compared to alternatives. With rapid industrialization and growing consumption across diverse industries globally, the demand for white oil is expected to proliferate in the coming years.

Market Concentration and Competitive Landscape

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The usage of personal care products globally has seen significant rise in recent years which has propelled the demand for white oil as a key ingredient. White oil, which is a by-product of petroleum refining, is used as a base in numerous cosmetic and topical formulations due to its non-allergenic, non-toxic and moisturizing properties.  Rising health awareness coupled with increasing disposable incomes have led to higher spending on skin, hair, dental and other hygiene products across regions. According to estimates by the World Health Organization, people are spending more on personal hygiene items that promise skin nourishment and care. This surge in preventive healthcare approach has boosted the white oil market. Skin care segments such as moisturizers, sunscreens and anti-aging creams constitute the major application areas. Furthermore, growing obsession with appearance and physical beauty worldwide has fueled the cosmetics business.  Changing lifestyles, especially in developing nations, along with growing media influence have also heightened self-grooming and aesthetics. The millennial population is increasingly experimenting with innovative personal care styles and trends. This evolving consumer demographic will keep propelling novel product launches utilizing white oil as the vehicle. Looking ahead, sustained expansion of e-commerce and direct-to-consumer brands is likely to open newer opportunities. However, concerns around petrochemical synthesis might impact commercialization prospects to a degree.  Overall, as the global populace becomes more affluent and image-conscious in the future, their spending on grooming and skincare essentials is expected to remain robust. This will ensure continued healthy demand for white oil from the personal care industry.

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The global white oil market is facing challenges due to fluctuating crude oil prices and increasing regulations related to volatile organic compound (VOC) emissions. Majority of white oil is produced from crude oil refining which affects its prices. Recent price swings in crude oil create uncertainty for manufacturers. Additionally, stringent environmental norms by agencies like EPA regarding VOC emissions from white oil-based products are forcing companies to invest in newer extraction technologies to produce low-VOC varieties.

Opportunities: Rising consumer demand for personal care products

Rising consumer demand for personal care products is driving volumes across the cosmetics and pharmaceutical sectors. Additionally, Fast expanding applications in plastics, rubber, and polymer industries as a process oil is another positive. Southeast Asian countries with strong GDP growth and rising disposable incomes represent emerging lucrative consumer markets. Innovation in low-cost, low-emission extraction techniques can help players counter challenges and tap new opportunities.

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In terms of grade, pharmaceuticals grade is expected to contribute 64.5% share of the global white oil market in 2024 owing to strict purity standards. Pharmaceutical-grade white oil is purified to meet stringent specifications and quality requirements for medicinal use. It must be free of contamination, odorless, tasteless, and chemically inert to safely blend with other pharmaceutical ingredients. The growth in the pharmaceuticals industry has significantly increased the demand for high-quality excipients and lubricants. As more medications are developed to treat chronic conditions, manufactures require pure and reliable carriers for active pharmaceutical ingredients. Compared to lower grades, pharmaceutical-grade white oil offers superior lubricity and flow properties to facilitate industrial production processes like tablet compression and capsule filling. Its purity allows for direct contact with drugs without risk of negatively impacting medicinal potency, stability, or safety. With an aging global population susceptible to many diseases, pharmaceutical R&D continues to yield new drug therapies. This drives the need for appropriate inactive components that meet pharmacopeial standards. White oil purified for pharmaceutical applications has gained widespread adoption as a valued excipient. Its abundance, low cost, and compatibility with many drug formulations contribute to its popularity in the manufacturing of tablets, capsules, creams, and other medicinal products. As healthcare expenditure rises worldwide, pharmaceutical-grade white oil is poised to experience ongoing strong demand.

Insights, by Application: Personal Care Products Rely on Skin-friendly Emollience

When analyzing the global white oil market by application, personal care and cosmetics is expected to contribute 36.4% of the market share in 2024. Within this segment, white oil plays a key role as an emollient ingredient in skin care, hair care, color cosmetics, and fragrance products. Its chemical structure allows it to soften and smooth skin and hair without clogging pores. The rising global affluence has increased consumer spending on personal appearance. Modern lifestyles and environmental stresses make hydrating, anti-aging skin care more desirable. This growing focus on skin health and aesthetics boosts demand for effective, multi-benefit cosmetic formulations. As an emollient, white oil delivers superior moisturization and helps suspend pigments and fragrances. Its non-comedogenic properties and lack of odor or color tone make it compatible across a wide range of personal care formats.  White oil's skin compatibility earned it a respected role in products marketed for sensitive or baby care. Strict regulations regarding ingredient safety further raise the attractiveness of this naturally-derived oil for personal care manufacturers. Looking ahead, demographic and economic trends point to continued expansion in the global personal care industry, translating to ongoing important demand for white oil as a versatile, gentle emollient ingredient.

Regional Insights

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North America has been the dominant region in the global white oil market for several years. The region is expected to account for 37.6% of the market share in 2024. The U.S. accounts for the major share due to the high demand from various end-use industries such as pharmaceuticals, personal care, and cosmetics. The pharmaceutical industry has a strong presence in the region, especially in the U.S., and uses white oil as an inactive ingredient in ointments, tablets, and other medical formulations. The personal care industry is also well-established and growing, driving consumption of white oil as it is utilized as a base ingredient in products like skin creams, lotions and beauty aids.  Stringent FDA regulations in North America have driven companies to use only top-grade white oil to avoid health issues. This has benefited suppliers producing high-quality white oil. Further, several pharmaceutical and personal care giants are headquartered in the region which secures significant domestic demand and market share. Export opportunities are also high for North American white oil producers to sell to international personal care product manufacturers.

The Asia Pacific region is poised to emerge as the fastest-growing market for white oil in the coming years. Countries like China, India, Indonesia, and Vietnam have shown strong growth and are anticipated to significantly drive the regional market. This is attributed to rapid industrialization, rising disposable incomes, and population growth. The personal care sector is booming in Asia Pacific with consumers increasingly spending on skin and hair care products.  Rising pharmaceutical production in Asia Pacific, especially generics in India, is also propelling white oil consumption. Being a cost-competitive region provides an advantage to local personal care companies to use white oil as base oils and expand product ranges. This will support Asia Pacific in gaining market share. Further, booming e-commerce has opened new markets and sales channels for personal care brands to increase penetration in the fast-growing region.

Market Report Scope

White Oil Industry News

• In February 2024, CLG Launches White Oil Processing Unit in China
• In February 2024, Chevron Lummus Global commissions world's largest white oil hydroprocessing for Hongrun Petrochemical
• In 2022, Indorama Ventures completes acquisition of Brazil-based Oxiteno, extending growth profile into attractive surfactant markets

*Definition: The global white oil market consists of mineral oil-based products that are refined from petroleum through vacuum distillation. White oils have various industrial applications such as ingredients in cosmetics, pharmaceuticals, food products, and mechanical lubricants. The white oil market has seen steady growth due to increasing demand from the personal care and pharmaceutical sectors worldwide. Key properties of white oils including purity, stability, and emolliency have contributed to their widespread use across many end-use industries globally.

Market Segmentation

• Grade Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Technical/Industrial Grade
  • Pharmaceuticals Grade
•  Application Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Plastics and Elastomers
  • Adhesives
  • Personal Care & Cosmetics
  • Agriculture
  • Textile
  • Food and Beverage
  • Pharmaceutical
  • Metalworking Applications
  • Other Applications
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Bharat Petroleum Corporation Ltd. (BPCL)
  • Calumet Specialty Products Partners
  • China Petrochemical & Chemical Corporation (Sinopec)
  • Columbia Petro Chem Pvt Ltd.
  • Exxon Mobil Corporation
  • H&R GROUP
  • HF Sinclair Corporation
  • Nynas AB
  • Oxiteno (Indorama Ventures)
  • Renkert Oil
  • Shell PLC
  • Sasol
  • Savita Oil Technologies Limited
  • VELVEX
  • Gandhar Oil Refinery (India) Limited
  • Raj Petro Specialities Pvt. Ltd