White oil market to register exceptional gains via food applications over 2018-2024, Asia Pacific to emerge as a profitable investment avenue
Boasting of a wide-ranging application portfolio, the global white oil market, of late, has emerged as one of the fastest growing niche verticals of the bulk and specialty chemicals industry. Increasing uptake of white oil by foremost lubricant manufacturers along with the implementation of innovative technologies is positively favoring the white oil market sphere in the recent times. As per reliable estimates, the remuneration portfolio of this industry is slated to surpass USD 6 billion by 2024.
North America White Oil Market, By Application, 2017 & 2024 (USD Million)
A brief overview of recent trends shaping the application landscape of the global white oil industry
Speaking of the application spectrum, as per a research report collated by Global Market Insights, Inc., the plastic and polymer segment accounted for more than USD 750 million of the white oil market share in 2017. The paraffinic base, low volatility, and high purity are some of the characteristics of white oil which make it ideal to manufacture PVC, LDPE, TPE products. In addition to this, the increasing demand for extrusion aids and mold release agents in plastic manufacturing has augmented the pace of product adoption in the recent times.
Apart from the plastic and polymer segment, two major rapidly expanding application segments of the white oil industry are personal care & cosmetic and food sector. In fact, reliable sources state that the personal care & cosmetic applications apportioned a remuneration of more than USD 1.5 billion in 2017. White oil is chiefly used as a base material in baby oils, lotions, and skin creams as it provides exceptional lubricity, resistance to moisture, and superior smoothness.
Reliable estimates claim that the food industry segment is set to apportion more than 6 percent of the total revenue share of the white oil market by the end of 2024. Usage of white oil in the food industry is further likely to gain traction, given the product has robust application scope in packaging and food grade lubes, release agents, and processing-related activities. Additionally, prominent regulatory organizations such as U.S. FDA have been approving the utilization of white oil in applications that require direct and indirect contact with food, essentially boosting the growth potential of white oil industry.
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One of the major factors that has been strongly driving the expansion of the white oil market is the increasing consolidation of the established players who have been focusing on acquisitions lately. For instance, Fuchs Petrolub SE had acquired the white oils and food machinery specialty lubricants business of energy giant Chevron Corporation in the year 2016. The objective of the takeover was to strengthen the FUCHS Lubricants Co., the subsidiary of Fuchs Petrolub SE which is regarded as the world’s largest independent manufacturer of lubricants.
Although the commercialization matrix of the white oil market appears highly promising in the years ahead, there exist a few aspects that may prove to be quite detrimental to the product price trends and subsequently impact the industry negatively. In this regard, it is prudent to take note of the fact that geopolitical events often result in output loss, supply disruption, and harm steady market functioning. Moreover, constant fluctuation in crude oil prices due to political and economic uncertainties can decelerate the pace of white oil market expansion in the times to come.
In terms of geographical penetration, the Asia Pacific region is one of the most lucrative growth avenues for the white oil industry players. Owing to favorable FDI policies and ease of doing business, the APAC nations are transforming themselves into large manufacturing hubs – a factor that has helped market participants to expand their reach in this region. Moreover, the high adoption rate of white oil in food processing, plastic, textile, and agricultural sectors has fostered business growth. For the record, the APAC white oil market recorded a revenue collection of USD 2.5 billion in 2017, cite authentic estimates.
Owing to the presence of numerous prominent firms and regional manufacturers, the overall competitive hierarchy of the white oil market can be termed as moderately fragmented. Encompassing a wide range of product and application domains, the global white oil industry comprises of major companies along the likes of Sasol, British Petroleum, Royal Dutch Shell, JX Nippon, Sonneborn, Chevron, Exxon Mobile, Sinopec Corporation.
Author Name : Saif Ali Bepari