WHITE OIL MARKET ANALYSIS

The global white oil market size was valued at USD 2106.80 Mn in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.61% from 2022 to 2030. Growth in this market is expected to continue due to a growing demand for personal care products and an expanding application base in the textile and pharmaceutical industries. In addition to its growing demand, the market is also expected to grow due to the growing adoption of innovative technologies, including group II base oils and group III base oils. Its properties make it an ideal blending base for a range of applications, including skin care, fragrances, and cosmetics.

Global White Oil Market: Regional Insights

Regionally, Asia Pacific is projected to dominate the global white oil market over the forecast period owing to the increasing demand from textile industry. According to the National Bureau of Statistics of China, the textile production volume in China accounted for 12.4 billion meters in the first four months of 2022, compared to 11.8 billion meters during the same period in the previous year.

At the same time, North America is also expected to witness fastest growth in the global over the forecast period owing to the increasing demand from cosmetic and personal care industry. According to the Coherent Market Insights analysis, United States is one of the largest consumers of personal care and cosmetics in the North America region. The US cosmetic products market was valued at USD 17217.1 million in 2021, and it is expected to reach USD 21003.1 million by 2025.

Figure 1. Global White Oil Market Value (US$ Mn), by Region, 2021

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Global White Oil Market Drivers:

Growing demand from cosmetic and personal care industry is a prime factor driving growth of the white oil market. White oil is majorly used in hand and body care cosmetics at levels ranging from 1% to 99%, based on the requirement. For example, pressed powders, mascara, eyeliner, and foundations have up to 60% white oil, and eye make-up removers contain 99% white mineral oil.

Rising pharmaceutical industry is another key factor propelling growth of the white oil market. As per AstraZeneca, global pharmaceutical sales have been witnessing an increasing trend since 2013 itself. The 2021 sales stood at USD 1,186 billion, almost an increase of 8% in comparison to the previous year’s total which stood at USD 1,101 billion. Furthermore, as per the annual report of AstraZeneca, Latin America and the Indian Subcontinent are projected for the highest growth rates in the pharmaceutical market till 2025, with 12.6% and 10.9% respectively.

Global White Oil Market Opportunities:

Increasing use of white oil in food and beverage industry is expected to hold potential market opportunities. As per US Census Bureau, the monthly sales of the US food and beverage stand at ~USD 75,000 million, an approximate USD 5,000 million higher than January data.  It is used for pan oils, bakery oils, divider oils, machinery lubricants/cleaners, protective coating, and food packaging materials.

Growing adoption of partnership and agreement among key players for market expansion is also projected to present significant growth opportunities. For instance, in February 2021, The Estée Lauder Companies Inc. (ELC) announced that it has entered into an agreement to increase its investment in the Canadian-based, vertically integrated, multi-brand company, DECIEM Beauty Group Inc. from approximately 29% to approximately 76%. Such trends are projected to fuel the cosmetics market in the country, which in turn is projected to benefit the demand for white oils in the country.

Global White Oil Market Trends:

Rapid industrialization and increasing disposable income of consumers are key factors acting as a trend for white oil market. For instance, China-backed Tanzania has experienced a significant growth in its industrial sector, resulting in sustained demand for white mineral oil. Other countries that have shown significant industrial growth include the Maldives, Myanmar, Bangladesh, and the Philippines.

Increasing spending on food products is fueling food &beverage industry expansion. This is again augmenting demand for white oil which in turn augmenting market growth.

Global White Oil Market Restraints:

Availability of substitute is projected to restrict the global white oil market growth. Recently, there has been a shift toward using vegetable oils in cosmetic products.

Absence of high-quality crude oil and fluctuating price are other major factors expected to hinder the market growth.

Figure 2. Global White Oil Market Share, By Metals, 2021

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Global White Oil Market Segmentation:

The global white oil market report is segmented into application, grade, base oil, and geography

Based on application, the market is segmented into Plastics and Elastomers, Adhesives, Personal Care, Agriculture, Textile, Food and Beverage, Pharmaceutical, Metalworking Applications, and Other Applications. Out of which, Adhesives is expected to dominate the global market over the forecast period and this is attributed to the growing demand from hot-melt adhesives as a diluent and plasticizers.

Plastics and Elastomers segment is also expected to witness significant growth in the near future and this is owing to the increasing use of white oil in the manufacturing of plastics and elastomers due to its colorless, tasteless, odourless, and hydrophobic properties.

Based on grade, the market is segmented into Technical/Industrial Grade and Pharmaceuticals Grade. Out of which, Technical/Industrial Grade is expected to dominate the global market over the forecast period and this is attributed to the growing demand from petroleum chemical, textile, electric power, chemical fiber, and agriculture industries

Pharmaceuticals grade segment is also expected to witness significant growth in the near future and this is owing to its biologically and chemically stable property that does not promote pathogenic bacterial growth.

Based on base oil, the market is segmented into Group I, Group II, Group II, and Naphthenic. Out of which, Group II is expected to dominate the global market over the forecast period. Group II base oil are more refined than Group I base oil. Moreover, these base oils have at least 90% saturates and no less than 0.3% sulfur. Due to the higher percentage of saturates, these lubricants have much better antioxidation properties than Group I base oils.

Group I segment is also expected to witness significant growth in the near future and this is owing to the growing demand from high lubricant consumption applications.

Global White Oil Market: Key Companies Insights

The global white oil market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global white oil market are 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, and Savita Oil Technologies Limited

*Definition: White mineral oil is widely used in the pharmaceutical industry. It is used in the production of penicillin, eye lubricants, and emollients. It is also used in the production of laxatives and other medications. Furthermore, it is a staple in the manufacturing of plastics. Its properties include lubricity and moisture prevention, which make it a valuable material for many different applications.