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)
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.
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.
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.
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.
Increasing export of oil from GCC countries to other countries especially India is projected to accelerate the market growth of lubricant packaging in the GCC region. According to the Arabian Business, India’s imports from GCC countries registered 24.37 percent jump during April-March 2019 compared to the same period of FY18, to reach US$ 79.70 billion. Among the GCC countries, UAE accounted for the major chunk of India’s exports and imports with $30.08 billion and US$ 29.77 billion respectively in FY19.
Growing usage of disposable plastic produced from polyethylene and polypropylene due to rising implementation of strict rules and regulations regarding the environment is projected to foster market growth. Hence, the rising production of disposable plastic is expected to accelerate the growth of GCC lubricant packaging.
Key players operating in GCC are Pampa Industries International (Corp), Siddco Plastics Industries Ltd, Neelkamal Plastics Factory LLC, Eterna Plastics, First Press Plastic Moulders, Mold-Tek Packaging Ltd, Rising Plastics Industry LLC, National Plastic Factory, and DUPLAS AL SHARQ L.L.C and key players operating in KSA (Saudi Arabia) region are Saudi Can Manufacturing Company Ltd, Saudi Plastic Factory, Zamil Plastics Industries Ltd, Al Watania Plastics, and Arabian Gulf Manufacturers Ltd.
Few Recent Developments
Takween Advanced Industries
Mold Tek Packaging Ltd
Joining thousands of companies around the world committed to making the Excellent Business Solutions.