"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global white oil market size was valued at USD 2.88 billion in 2022 and is projected to grow from USD 2.43 billion in 2023 to USD 3.26 billion by 2030, exhibiting a CAGR of 4.3% during the forecast period. Asia Pacific dominated the white oil market with a market share of 59.37% in 2022.
White oil is a complex mixture of hydrocarbons refined intensively from mineral oils. These mineral oils primarily consist of paraffin. They are highly pure, have low toxicity, and possess chemical stability, making them an ideal choice for industries such as personal care, pharmaceuticals, and food. Given that products from these industries come into contact with human skin or are ingested, mineral oils with high purity find widespread use.
Supply Chain Disruptions Caused by COVID-19 Pandemic Restricted Market Growth
The COVID-19 pandemic had a detrimental impact on this market. The effects of the global lockdown restrictions enforced during the early phases of the pandemic were not uniform across different end-use industries that use these types of oils. Due to the restrictions, non-essential end-use industries, such as personal care & cosmetics, plastic & polymer, and textile experienced a significant decline in demand. On the other hand, essential end-use industries, such as pharmaceutical and food demonstrated a relatively less decline in demand during this period.
Rising Demand for Safe Beauty and Personal Care Products to Offer New Market Growth Opportunities
The rising demand for safe beauty and personal care products is likely to create new growth opportunities for the market. In recent times, there is a greater emphasis on using non-toxic and naturally derived ingredients in personal care and beauty products. Despite the fact that these types of oils are derived from petroleum, it is inert and non-toxic in nature. Companies can develop natural and organic formulations using this oil as a base. Mineral oil can be used as a clean and safe ingredient for the production of beauty and personal care products. As the popularity of clean consumerism increases, more shoppers are likely to gravitate toward naturally derived and cruelty & toxin-free products. This shift in consumer preference is expected to create new opportunities for the white oil market growth.
Request a Free sample to learn more about this report.
Rising Demand from Pharmaceutical Industry to Fuel Market Growth
White oil plays a crucial role in the pharmaceutical industry as it is used as an ingredient in various formulations and medications. Typically employed as inert pharmaceutical substances, these oils are added to medicinal products to act as carriers or enhance the stability and texture of the formulation. They find use in oral medications, ointments, creams, lotions, and other medical formulations. This oil provides lubrication, aids in drug solubility, and improves the overall effectiveness of pharmaceutical products. Considered safe, stable, and non-irritating, pharmaceutical manufacturers are likely to continue its use in existing as well as new formulations. With the global population increasing and aging, the demand for this oil - an essential component in various medications and personal care products - is expected to rise in tandem. Hence, these factors are poised to drive market growth during the forecast period.
Fluctuating Raw Material Prices to Hinder Market Growth
White oil, a refined form of mineral oil derived from petroleum, is susceptible to fluctuations in crude oil prices. The direct impact of fluctuating oil prices affects the production cost of this oil. During periods of high oil prices, the production and refining of oil products become expensive, potentially diminishing profitability for manufacturers. Fluctuating oil prices can also significantly influence consumer behavior and the demand for these oil products. Consumers may seek alternative products or reduce their consumption of petroleum-based products, including this oil. This shift in demand can exert a negative influence on market growth.
Pharmaceutical Segment Dominates Owing to Its Demand from Various Applications
Based on grade, the market is categorized into pharmaceutical and technical.
The pharmaceutical segment dominated the market in 2022 and is expected to maintain its dominance until 2030. Pharmaceutical-grade white oil is tailored specifically for pharmaceutical and personal care products, meeting strict purity standards mandated by regulatory authorities. In contrast, technical-grade oil finds primary use in industrial applications and has less stringent quality requirements. However, the minimal price difference between both grades does not act as a cost inhibitor. Consequently, most end-users have shifted toward using pharmaceutical-grade oil, regardless of the application.
To know how our report can help streamline your business, Speak to Analyst
Personal Care & Cosmetics Gained Traction Owing to White Oil Use in Several Consumer Products
Based on end-use industry, the market is segmented into pharmaceutical, personal care & cosmetics, food & beverages, textile, plastic & polymer, and others.
The personal care & cosmetics segment held the largest white oil market share in 2022 and is anticipated to maintain its dominance throughout the forecast period. With global consumers increasingly mindful of their personal grooming and appearance, the demand for cosmetics, skincare, and personal care products has been steadily rising. White oil serves as a key ingredient in many of these products due to its unique qualities, such as being colorless, odorless, and skin-safe, making it a preferred choice for formulations ranging from lotions and creams to lipsticks and baby oils.
The pharmaceutical segment accounted for the second-largest share of the market. In the pharmaceutical sector, consistency, quality, and adherence to strict regulatory guidelines are paramount. White oil, owing to its purity and inertness, plays a crucial role in pharmaceutical formulations. It acts as a lubricant, an excipient in tablet coatings, and a base for various ointments. This ensures the effectiveness and safety of medicines for consumption.
Asia Pacific White Oil Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
In Asia Pacific, the personal care and cosmetics industries are experiencing substantial growth, propelled by factors such as the rising middle-class population and increasing urbanization. Both local brands and international players are capitalizing on this trend, integrating these oils into a wide range of skincare and cosmetic products. Simultaneously, the pharmaceutical industry in the region is rapidly expanding due to a growing population and heightened healthcare awareness.
Given the region's robust industrialization, the manufacturing sector requires effective lubricants to maintain its machinery and equipment. This oil serves as a lubricant in various industrial processes, including metalworking, textile manufacturing, and plastic production. China leads in the region, and its rapid economic growth, population expansion, and evolving consumer preferences are expected to drive product demand across various industries. These industries encompass key sectors such as pharmaceuticals, personal care & cosmetics, food processing, industrial manufacturing, and agriculture.
To know how our report can help streamline your business, Speak to Analyst
The demand for these types of oils in North America is primarily propelled by the robust growth of the cosmetics & personal care industry. Consumers in this region prioritize skincare and grooming products, resulting in a consistent demand for these oils in cosmetic products. Additionally, the pharmaceutical sector in the region significantly contributes to the increasing product demand, emphasizing the production of high-quality, FDA-compliant medications and healthcare products. The high purity and inert properties of white oil position it as a preferred ingredient in these products, fulfilling the demand for clean label and safe formulations.
Europe places a strong emphasis on food safety and quality standards. The exceptional purity and inertness of white oil make it an ideal choice for various food-related applications. Widely used as a food-grade lubricant in machinery involved in food processing, it ensures smooth production lines while meeting stringent safety regulations. As the food industry in the region continues to innovate and adapt to changing consumer needs, the versatile and compliant nature of white oil as an ingredient and lubricant is expected to maintain its importance, thereby driving market growth.
The market in Latin America is anticipated to experience steady growth due to the region’s expanding industrial and manufacturing sectors. These oils serve as high-quality lubricants and coolants in various machines within these sectors. The strong focus on industrialization and infrastructure development in Mexico and Brazil is likely to propel the demand for these types of oils during the forecast period.
Business Expansion in Electronic Industry to Emerge As Key Strategy Employed by Market Players
The market is majorly occupied by key players such as Exxon Mobil Corporation, Calumet Refining, LLC, Repsol, Sasol, Shell plc, and TotalEnergies. These companies operate globally, engaging in competition focused on price, product quality, and service. Established players leverage economies of scale, established distribution networks, and longstanding relationships with key customers. Despite limited product differentiation in the market, companies can enhance their competitive edge by focusing on specialized products for niche applications.
An Infographic Representation of White Oil Market
To get information on various segments, share your queries with us
The research report provides a detailed analysis of the market and focuses on crucial aspects, such as leading companies, applications, and products. It also offers insights into the key white oil market trends and highlights vital industry developments. In addition, the report encompasses various factors that have contributed to the growth of the market in recent years.
ATTRIBUTE | DETAILS |
Study Period | 2019-2030 |
Base Year | 2022 |
Estimated Year | 2023 |
Forecast Period | 2023-2030 |
Historical Period | 2019-2021 |
Growth Rate | CAGR of 4.3% from 2023-2030 |
Unit | Value (USD Billion), Volume (Kiloton) |
Segmentation | By Grade
|
By End-use Industry
| |
By Geography
|
Fortune Business Insights says that the global market size was valued at USD 2.88 billion in 2022 and is projected to reach USD 3.26 billion by 2030.
Registering a significant CAGR of 4.3%, the market will exhibit considerable growth during the forecast period of 2023-2030.
The personal care & cosmetics segment is the leading end-use industry in the market.
Rising product demand from the pharmaceutical industry is expected to fuel market growth.
Asia Pacific held the highest share of the market in 2022.
Exxon Mobil Corporation, Calumet Refining, LLC, Repsol, Sasol, Shell plc, and TotalEnergies are the leading players in the market.
Rising demand for safe beauty and personal care products are likely to drive the products adoption.
Related Reports
US +1 833 909 2966 ( Toll Free )