Mineral Oil Market Size, Share & Trends Analysis Report By Grade (Technical Oil, White Oil), By Region (North America, Europe, APAC, LATAM, MEA), Competitive Landscape, And Segment Forecasts, 2019 - 2025

Report Overview

The global mineral oil market size was valued at USD 3.14 billion in 2017. It is likely to expand at a CAGR of 4.0% from 2018 to 2025. Surging demand for white oil has been helping the overall market gain momentum. It is widely used in the personal care and pharmaceutical industries.

The market is poised to witness steady growth over the forecast period due to spiraling demand from end-use industries such as automotive, textile, construction, industrial, medical, pharmaceuticals, electronics, and consumer goods. This can be coupled with favorable government regulations, particularly in emerging economies of Asia Pacific, Latin America, and the Middle East.

Mineral oils such as ethylene, propylene, and benzene are widely used in various end-use industries such as rubber, plastics, electronics, and packaging. Rising shale gas exploration in countries in North America such as the U.S. and Canada is projected to further stoke market growth.

Pharmaceutical is anticipated to be the fastest-growing application segments for mineral grade category. In the industry, they are used in wide application scopes such as laxatives and ointments and for the preparation of tablets and capsules. Animal skin contact grade white oils can be used for the treatment of several species such as cats, beef cattle, goats, sheep, swine, dogs, and horses.

White oils are extensively used in the personal care industry and their demand is slated to remain strong throughout the forecast horizon. Rising consumer spending on personal care products such as make-up and cosmetics, skincare, and hair care products especially in developing countries such as India, South Africa, Brazil, and Southeast Asian nations is estimated to boost the growth of the overall market during the forecast period.

Grade Insights

Between the two major grades of mineral oils, the demand for a white type is higher. The white oil segment is expected to register a CAGR of 3.2% in terms of volume during the forecast period. It finds its application in several industries, including the food and feedstock industries, as they contain minimum fatty acids. Cold-pressed products comprise nominal chemical substances and abundant unsaturated fatty acids, which makes them convenient for use in various applications across the food industry.

White oils are widely used across diverse scopes, including adhesives, animal vaccines, pharmaceuticals, and polystyrene. They are processed from paraffinic counterparts and possess minimal odor and taste. They are of high purity and simultaneously cost-effective, which in turn, increases their demand for use across numerous end-use industries.

They are also significantly used as a blending base for cosmetic products such as ointments, creams, laxatives, and lotions. This grade type is also applicable in the industrial segment, which includes polystyrene manufacturing, protective coatings for fruits & vegetables, veterinary preparations, and food packaging industries.

Furthermore, pharmaceutical-grade white oils are extensively used for laxatives as well as topical ointments. Companies producing pharmaceutical grade products comply with the U.S. Pharmacopoeia and British Pharmacopoeia, as per their regional jurisdiction. FDA takes charge of quality analysis in terms of purity and potency. Liquid paraffin, which is used in eyebrow vitamin creams and shiny makers, among others, is a widely used medical white oil that is transparent, tasteless, odorless, and hydrophobic.

On the other hand, the technical oil segment is likely to post a CAGR of 2.2% in terms of volume during the forecast period. Forestry and agriculture are also two of the prime application sectors of this grade type, wherein it is used as a carrier of pesticides, insecticides, and fungicides. It is also extensively used for various applications in the textile industry, depending on the type of amines, due to its anti-rust and anti-tear characteristics. These characteristics are used to produce rayon products, washable textile lubes, lubricants for textile machines, and emulsifiable.

Regional Insights

The Asia Pacific dominated the global mineral oil market by accounting for approximately half of the overall revenue in 2017. The region is poised to witness a CAGR of 4.7% during the forecast period. Surging demand for mineral oils across India and China is anticipated to remain a key trend propelling the market in the region. Rapidly increasing demand from the food sector is leading to an increase in the production of food-grade lubricants.

North America is projected to witness high growth during the forecast period owing to the presence of several global companies such as Procter & Gamble; Maybelline; Avon; Colgate-Palmolive; Johnson & Johnson; and Unilever. The growing focus of companies on developing new products in the cosmetic and personal care sectors has been positively influencing the growth of the regional market. The U.S. is one of the major food processing hubs and accounts for more than 10% of the overall food manufacturing shipments.

Besides, the market in Europe is anticipated to be driven by growing demand for cosmetics and other personal care products, especially in countries such as Germany, Italy, France, Spain, and the U.K. This can be attributed to rising consumer inclination towards personal grooming. Also, sun care products are witnessing high demand in European countries majorly due to rising concerns regarding skin cancer and exposure to harmful rays.

Key Companies & Market Share Insights

White grade extracts are produced with catalytic hydrogenation of crude oil. They can be traditionally extracted by solvent refining, which is followed by the treatment of sulfuric acid. After the treatment is complete, it is dewaxed and hydrotreated. Among recent extraction processes, hydrocracking is gaining importance wherein it is followed by dewaxing and hydrotreating. This leads to the elimination of all impurities and the final extracted product is free from sulfur and is odorless, water-white, pure, and tasteless. Various white oil grades are produced, which includes technical grade, medicine grade, and food grade.

A technological breakthrough, especially in the field of refining and ultra-purification, is likely to offer better growth prospects for the white oil industry in the coming years. Prominent market players, such as Bechtel Corporation and Axens Group, offer proprietary processing technologies that enable the manufacturing of high-quality end products.

Some of the key industry participants in the field are Renkert Oil Inc.; Sonneborn; Royal Dutch Shell; Petro-Canada; and Seojin Chemical. These companies have integrated their supply chain and focus on constant innovations to cater to increasing demand from diverse end-use industries globally.

The key suppliers in the industry include ChemCeed, Zenith Suppliers, and Star West Petroleum Ltd. from North America, Unicorn Petroleum Industries, and Star West Petroleum Ltd. from Europe, and Kandla Energy Chemicals and Savita Oil Technologies Limited from the Asia Pacific.

Mineral Oil Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global mineral oil market report based on grades and region:

• Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Technical Oil

  • White Oil

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • Belgium

    • France

    • Italy

    • Holland

  • Asia Pacific

    • China

    • India

    • South Korea

  • Latin America

    • Brazil

    • Argentina

    • Colombia

    • Ecuador

    • Chile

  • Middle East & Africa