The global White Oil Market is estimated to be valued at USD 1.74 Bn in 2024, exhibiting a CAGR of 4.8% over the forecast period (2024-2031). Significant growth in end-use industries such as personal care and pharmaceuticals has been a major market trend. Moreover, growing consumption in Asia Pacific due to large population base will further drive the white oil market growth.
Growing demand from personal care & pharmaceutical industries as well as increasing consumption in Asia Pacific are the major drivers propelling the growth of global white oil market. White oil has wide applications in pharmaceutical formulations and personal care products owing to its emollient and lubricating properties. It is extensively used as base oil in ointments, creams, and other pharmaceutical formulations. Further, massive population and improving healthcare infrastructure have boosted the growth of pharmaceutical industry in Asia Pacific. Rising disposable income has also augmented the demand for personal care products, thus positively impacting the white oil market growth.
Growing Demand from Personal Care and Cosmetic Products is driving the Global White Oil Market
The personal care and cosmetic industry has seen tremendous growth over the past decade. An aging population that is more focused on self-care and appearance has increased the demand for various cosmetic products such as skin care creams, lotions, hair care products, and others. White oil is a key ingredient in many of these products due to its emollient and moisturizing properties. It helps create a smooth texture and protects the skin from dryness. The expansion of the cosmetics industry, especially in developing markets, has significantly raised the consumption of white oil.
Increasing Usage in Pharmaceutical Products is Fueling the Market Growth
Along with cosmetics, white oil also finds wide applications in pharmaceutical products such as laxatives, antacids, and others. It is used as an inactive ingredient or excipient in these medications due to its lubricating and softening properties. The pharmaceutical industry has been growing at a healthy pace globally driven by an aging population, rising income levels, and increasing access to healthcare. This is translating into higher consumption of over-the-counter drugs and medicines where white oil has applications.
Strength of Substitute Products Hampers Market Expansion
White oil faces competition from various substitute products that are used in cosmetic formulations and as pharmaceutical excipients. Products like petroleum jelly, liquid paraffin, and vegetable oils can replace white oil in certain applications due to their similar properties. Especially in price-sensitive markets, customers may prefer cheaper substitutes over white oil. The easy availability of close substitute products acts as a restraint on the prices that white oil manufacturers can charge. This weakens their grip on the market to some extent. Managing substitute competition remains a challenge for white oil sellers.
Environmental Regulations Curtail the Market Growth
Being a petroleum-based product, white oil has to adhere to various environmental regulations regarding its production and disposal. Concerns have been raised about the potential health hazards of some residual aromatic compounds present in white oil. Stringent emission norms and disposal standards mandated by authorities increase operational costs for white oil producers. Additionally, the ‘green’ consumer today is more inclined toward natural and bio-based products over petrochemical ones. Such regulatory pressures and changing customer preferences inhibit the white oil market scope to a degree.
Rising GDP and Disposable Incomes in Developing Nations Present Opportunities
Many developing Asian, African, and Latin American countries have grown economically in the last decade at an impressive pace. This has boosted the spending power of consumers in these markets. As discretionary spending rises on personal and healthcare products, the demand for key ingredients like white oil also increases. These emerging economies thus offer lucrative expansion opportunities. Additionally, their huge untapped population presents a major growth prospect for industries relying on white oil, including cosmetics and pharmaceuticals. Market players could capitalize on opportunities in developing markets.
Increasing Adoption in Industrial Applications Will Drive Future Growth
White oil finds usage as a metalworking fluid, component of paints and coatings, and in various industrial manufacturing processes due to its lubricating and moisture displacing properties. With resurgent industrial activity across sectors such as automotive, machinery, and construction post-COVID, the consumption of white oil in industrial applications is expected to pick up pace. Moreover, its growing adoption as a dielectric fluid in transformers and high-voltage capacitors also bodes well.
Link - https://www.coherentmarketinsights.com/market-insight/white-oil-market-5318
Key Developments
- In February 2024, the Chinese company CLG (China Lubrication Group) launched a new white oil processing unit in China. This is a significant development in the country's lubricants and specialty chemicals industry.
- In February 2024, Chevron Lummus Global (CLG), a joint venture between Chevron and Lummus Technology, commissioned the world's largest white oil hydroprocessing unit for Hongrun Petrochemical in China.
- In 2022, Indorama Ventures, a global chemical company, acquired Oxiteno, a Brazil-based company, extending Indorama's growth profile into attractive surfactant markets.
Key Players
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, and Raj Petro Specialities Pvt. Ltd
