Lubricant packaging is used to package the lubricants during storage, transportation, and handling of lubricants in order to maintain their properties for a specific time period. They are widely used across the automotive industry in the manufacturing of passenger cars with IC engines. Lubricants packaging is mostly done by using plastic and metal products out of which plastic is the highly preferred material as it is inexpensive and provides durability as compared to metal. Stand-up pouches, drums, bottles, cans, pails, kegs, tubes, bag-in-box, and IBC are some of the packaging types that are used to store lubricants. Moreover, lubricants are also gaining huge demand for the power generation industry, oil & gas, machine industry, and metalworking sector.
The GCC lubricant packaging market is estimated to account for slightly less than US$ 172.6 million in terms of value in the year 2018 and it predicted to grow at a CAGR of 3.3% during the forecast period (2019-2027)
Drivers
Growing production of steel and therefore lubricants is projected to propel the market growth of GCC lubricant packaging. According to the Worldsteel data, the Middle East crude steel production increased by 11.80% in 2017, with a total output of 32.45 million tons, compared with 29.03 million tons in 2016. The countries in the total include the United Arab Emirates (UAE), Iran, Saudi Arabia, and Qatar. Hence, the growing production of steel will favor the market growth of lubricant packaging.
Market Opportunities
Expanding chemical industry in the GCC region due to rising production of petrochemical products and increasing government expenditure is projected to offer immense growth opportunity over the forecast period. According to the Gulf petrochemical and chemical association, The GCC chemical industry is projected to grow by 3.4% per year over the next decade (2017-2027), driven by investment activity on the back of rising export demand. Moreover, Production capacity in 2017 reached 166.8 million tons, up by 7% with expectations of further growth in 2018 to 170.9 million tons.
Market Restraints
Disposable lubricants are to be done in the correct manner to prevent environmental contamination and if not disposed of properly it can cause a threat to the environment and this expected to hamper the growth of GCC lubricant packaging market. Improper disposal of lubricants can contaminant underground soil and water. Moreover, the burning of lubricants releases toxic fumes in the surrounding. All of these factors are projected to hamper market growth.
Key Takeaways:
On the basis of lubricant type, engine oil segment dominated the GCC lubricant packaging market in 2018 with a 35.3% of market share in terms of value, followed by industrial oil and metal working fluid.