Global food grade lubricants market was valued at USD 309.7 Million in 2020. It is expected to grow at an 8.6% compound annual growth rate (CAGR), between 2021 and 2028. Food-grade lubricants will be in demand due to the rising consumption of processed foods and beverages.
Over the forecast period, the demand for lubricants in the end-use sector such as food, beverage, pharmaceuticals and cosmetics is expected to continue growing. The forecast period will also see an increase in food-grade grease demand due to increased consumption of dairy products, meats, and beverages.
British Petroleum, Total SA and Exxon Mobil Corporation are just a few of the integrated lubricant producers. They ensure that they have enough raw materials to make the additives and oils necessary for the production of lubricants. Other lubricant manufacturers also have agreements with suppliers and raw material manufacturers. These companies can avoid price fluctuations and time losses in procuring these materials.
Bio-based lubricants are now being recognized as an alternative to petroleum-based products in many applications, such as the automotive and food industries. These lubricants are made from vegetable oils or animal fats. Natural oils can be chemically modified through esterification, transesterification and oxidation to form bio-lubricants. Natural oils are cheaper, more readily available, and have a better biodegradability than mineral oils. Standard base oils for biodegradable greases are now made from high-oleic sunflower, soybean, canola, and soybean oils.
Bio-based lubricating oils are in high demand. Due to strict environmental protection policies and growing awareness, North America and Europe are the top consumers of these products. Asia Pacific, on the other side, is lagging in the segment of bio-lubricants but is leading the market for synthetic oils. The Asia Pacific market has begun to follow the American and European regulatory systems. Countries such as South Korea and Japan are emphasizing eco labeled lubricating product.
In 2020, the largest share of revenue was held by the mineral product segment in the food-grade lubricants market. It accounted for more than 61% of the total market. For machinery such as hydraulic systems, which operate at temperatures between 120degF and 150degF, mineral food grade lubricant has been preferred. Because of its low cost, mineral-based lubricants are expected to continue to be in demand across many applications, including food, beverage and cosmetic.
In 2020, the synthetic-based lubricants were the second largest product segment in terms both of revenue and volume. Synthetic Lubricants have high performance at extreme low and high temperatures. These products are safe, non-toxic and tasteless. This helps reduce downtime, protects metal surfaces from wear and corrosion, and improves their durability. All of the above factors are expected to lead to a significant increase in demand for synthetic products types over the forecast period.
The market for food-grade oils is currently in transition. This involves adapting to new lubricants and legal regulations. These are expected to gain high recognition owing to increasing demand for natural/environment-friendly lubricating products in the food and beverages and cosmetics industry. Bio-based lubricants are expected to grow at 9.7% CAGR in terms of revenue from 2021-2028.
Food applications dominated the market in food-grade lubricants. They accounted for the highest revenue share at 62.2% in 2020. The product's high market share can be attributed to its increased use in bakery, confectionery and dairy as well as meat and seafood, sauces, dressings and other applications. The global meat, poultry and seafood industries are expected to grow due to increasing consumer awareness and preference for high-quality meat.
Beverage includes beverages such as carbonated soft drinks (CSD), fruit drinks, functional beverages, alcoholic beverages, or other applications. The demand for alcohol beverages is rising significantly due to the significant increase in demand from the millennial generation. Demand for fruit beverages is increasing due to the growing importance of a healthy lifestyle. A growing number of health concerns, such as obesity and nutritional deficiencies, will likely increase the demand for fruit drinks, creating demand.
For pharmaceutical applications, FDA and ISO allow the use of food grade lubricants. The rise in health concerns and increased R&D spending on new product innovation is expected to drive growth in the pharmaceutical industry. This will in turn lead to increased demand for the product.
The increasing demand for skin care products is due to growing awareness about healthy skin rituals and inclination towards maintaining a even skin tone. This is driving the market for skincare products. The market for food-grade oils is forecast to grow steadily over the forecast period due to increased demand for lipsticks, eyeshadows, and other skincare products.
Europe was the market leader in food grade lubricants and held the largest revenue share at 42.0% in 2020. From 2021 to 2028, the region will experience a 7.3% CAGR. Manufacturers have shifted their focus to developing bio-based lubricants due to strict REACH and EPA regulations in many parts of Europe. The region's mineral-based products will continue to be threatened by the increasing penetration of bio-based lubricants.
North America's demand for food-grade oils is driven mainly by Mexico's massive industrialization. Mexico has been a major manufacturing center since the past decade. Mexico is becoming a major growth market due to the influence of BRICs markets. It has seen steady growth, mainly in the food and beverages industry.
Due to strict regulatory norms in the US regarding environmental deterioration, the U.S. will see a rise in demand for food-grade oils. For decades, the U.S. has used high-quality food-grade lubricants. They have longer oil drain intervals which results in lower consumption and higher efficiency.
To gain an advantage in the highly competitive market, market players continue to focus on capacity expansions and signing partnerships with distributors. Manufacturers are trying to reach potential customers by using these strategies. Companies such as Dow, Chevron Corporation and Royal Dutch Shell dominate the market, offering a wide range of products that suit each market, and a global brand presence.
Over the forecast period, the demand for lubricants in the end-use sector is expected to continue growing. Manufacturers are working hard to improve their product lines and introduce new products that meet future needs. Exxon Mobil's Mobil SHC series of lubricants for the renewable sector will be the main focus of innovation. The market leader in food grade lubricants is:
Exxon Mobil Corporation
CITGO Petroleum Corporation
Petro-Canada Lubricants Inc
Royal Dutch Shell
Up Market Research published a new report titled “Food Grade Lubricants Market research report which is segmented by Application (Beverage, Pharmaceuticals, Food), by Product Type (Synthetic, Bio-based, Mineral), By Players/Companies Chevron Corporation, CITGO Petroleum Corporation, Lanxess Corporation, Dow, Royal Dutch Shell, Total SA, Fuchs Group, Exxon Mobil Corporation, Petro-Canada Lubricants Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
|Report Attributes||Report Details|
|Report Title||Food Grade Lubricants Market Research Report|
|By Application||Beverage, Pharmaceuticals, Food|
|By Product Type||Synthetic, Bio-based, Mineral|
|By Companies||Chevron Corporation, CITGO Petroleum Corporation, Lanxess Corporation, Dow, Royal Dutch Shell, Total SA, Fuchs Group, Exxon Mobil Corporation, Petro-Canada Lubricants Inc|
|Regions Covered||North America, Europe, APAC, Latin America, MEA|
|Historical Year||2018 to 2019 (Data from 2010 can be provided as per availability)|
|Number of Pages||239|
|Number of Tables & Figures||168|
|Customization Available||Yes, the report can be customized as per your need.|
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Application (Beverage, Pharmaceuticals, Food), by Product Type (Synthetic, Bio-based, Mineral).
Food Grade Lubricants Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Food Grade Lubricants Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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