White Oil Market Expected to Reach $3.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “White Oil Market," The white oil market was valued at $2.2 billion in 2021, and is estimated to reach $3.1 billion by 2031, growing at a CAGR of 3.7% from 2022 to 2031.

 White oil or white mineral oil is a colorless, tasteless, and odorless oil that is hydrogenated and separated into paraffin, naphthenes and aromatics by adsorption on a solid adsorbent. It is widely used as catalyst carrier, lubricant, and anti-rust agent in textiles, plastic & polymer manufacturing, food packaging, and others.

An increase in the severity of diseases has led the pharmaceutical sector to witness significant growth where white oil is used for producing various medicinal formulations. In addition, increasing awareness toward skincare, beauty, and lifestyle has surged the demand for personal care & cosmetic products where white oil is used in various cosmetic formulations. These factors are predicted to contribute toward global market growth.

However, the high costs associated with the formulation of white oil in personal care products, unavailability of quality white oil, volatility in prices of white oil, and others are few of the restraints that may hamper the growth of the white oil market during the forecast period. On the contrary, the increasing trend toward packaging food products is anticipated to open up new opportunities for the white oil market in the coming future.

The white oil market is segmented on the basis of grade, application, and region. By grade, the market is segregated into technical, and pharmaceutical. The pharmaceuticals grade segment dominated the global market in terms of revenue in 2021, with 55.6% of the total share. Pharmaceutical/medicinal grade white oil is a highly saturated paraffin oil that is free of aromatic hydrocarbons. It is widely used in medicinal applications for producing various pharmaceutical formulations. Furthermore, pharmaceutical grade white oil finds application in producing various personal care products such as baby oil, suntan oils, hair products, creams & lotions, and others.

By application, the market is divided into plastic & polymer, pharmaceuticals, the food industry, personal care & cosmetics, textiles, and others. The pharmaceuticals segment dominated the global market in terms of revenue in 2021, with 33.1% of the total share. This is attributed to increasing in the severity of diseases which in turn has surged the R&D activities in the pharmaceutical sector where white oil is widely used to produce various medicinal formulations. Furthermore, both developed and developing economies have increased their spending for the development of the pharmaceutical sector which in turn may surge the demand for white oil for producing a wide range of pharmaceutical formulations.

Region-wise, the white oil market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific white oil market is projected to grow at the highest CAGR during the forecast period, and accounted for a major white oil market share in 2021, owing to the fact that China's food packaging sector is increasing rapidly which has forced the white oil manufacturers to increase their manufacturing capacities. Furthermore, the personal hygiene & beauty sector in India is witnessing significant growth owing to an increasing number of newborns and a rise in awareness regarding self-beauty and self-grooming activities where white oil is widely used to produce various cosmetic formulations such as baby oils, creams & shampoos, suntan oils, and others.

Key players operating in the global white oil market include Adinath Chemicals, Asian Oil Company, Castrol Limited, Chevron USA Inc., China Petroleum & Chemical Corporation (Sinopec), Eastman Chemical Company, Exxon Mobil Corporation, Lanxess, Lodha Petro, Nandan Petrochem Ltd., RENKERT OIL, Royal Dutch Shell Plc, Savita, Sonneborn LLC, and TOTAL ENERGIES.

COVID-19 analysis

The white oil market was negatively impacted due to the wake of the COVID-19 pandemic. However, the pharmaceutical sectors have shown impressive growth during the COVID-19 period where pharmaceutical grade white oil is used for producing various medicinal formulations. For instance, according to a report published by India Brand Equity Foundation, the pharmaceutical sector is expected to reach $372 billion by 2022, driven by rising health awareness and increasing income. This may enhance the performance of the white oil market post-COVID-19 period.

Furthermore, factors such as rise in disposable income and healthy eating habits have led the food industry to recover rapidly post COVID-19 period where white oil is used to soften the food packaging items. Furthermore, increasing popularity of white oil as a food grade lubricant among key food producing players such as Nestle, Parle, and others may surge the demand for white oil in the food industry

Key Findings Of The Study:

• By grade, the pharmaceutical grade segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 3.9% from 2021 to 2031.
• By application, the pharmaceuticals application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.1% from 2021 to 2031.
• By region, Asia-Pacific garnered the highest share of more than 50% in 2021, in terms of revenue, growing at a CAGR of 4.1%.