Global Mineral Oils Market - 2023-2030

Global Mineral Oils Market - 2023-2030

Global Mineral Oils Market reached US$ 5.1 billion in 2022 and is expected to reach US$ 7.1 billion by 2030, growing with a CAGR of 4.2% during the forecast period 2023-2030.

As a result of environmental concerns, the mineral oil market is shifting toward more environmentally friendly compositions. Low-viscosity mineral oils are gaining popularity as a means of improving fuel efficiency and lowering carbon emissions. Sustainability and eco-certification are increasingly important industry drivers.

Because soybean oils can be utilized in a variety of applications, supporters claim that they can improve the environmental friendliness of driving activities. The uses include asphalt for road building, rubber for all-weather tires and, most importantly for the lubricants sector, base stocks for motor oils. According to United Soybean Board's Market View Database, U.S. itself can farm 89 million acres of soybeans each year and around 4 million metric tons of soybean oil is diverted to industrial purposes. Therefore, U.S. is accounting for the more than 80.12% of the regional market shares.

Dynamics

Diverse Application of Mineral Oils

White oil is widely utilized in the chemical, pharmaceutical, cosmetics and food processing sectors. White oils are usually recognized as a class of highly refined and flexible mineral oils that are often derived from refinery paraffinic or naphthenic base stocks.

Furthermore, the industries that make rubber and plastics also use white oils extensively. It is vital to the synthesis of polystyrene, PVC and various rubbers, as well as to the softening of rubber products. It is essential for making plastic utensils and food packaging. It's also widely available in plastic toys, polishes, glues and cleaning supplies. With the emphasis on public safety, the range of applications for white mineral oils is expected to continue expanding in the future, having only increased during the last few decades.

Rising Demand for Personal Care and Pharmaceutical Products

he global market for mineral oil has seen unprecedented demand for personal care and pharmaceuticals. Mineral oil is a common ingredient in many major brands' products, including Loreal, which specializes in pharmaceutical and personal care items like creams, ointments and cosmetics. The need for these goods is also influenced by a few other factors. Some of the factors supporting the mineral oil market are population growth, shifting personal care practices and rising healthcare costs.

Furthermore, mineral oil is also being as a key ingredient for skin-hydrating creams. It also works well for both cleaning and makeup removal. It enhances the texture's quality. For skin care, white oil tends to shield the skin from the damaging elements outside. It is also widely used in the development of anti-aging products, which are in high demand, particularly in the nations of East and North Asia. Thus, rising investment in skin care has created a huge opportunity for mineral oil to grow in the forecast period

Potential Health Concerns

The presence of contaminants in some mineral oils, such as heavy metals and sulfur compounds, could lead to health issues. The contaminants can seep into mineral oil-based goods and their intake or exposure can be hazardous. For instance, as per the European Food Safety Authority (EFSA), mineral oil-saturated hydrocarbons (MOSH) do not constitute a health risk to people. It also confirmed that some mineral oil aromatic hydrocarbons (MOAH) are potentially hazardous to one's health.

Environmental Concerns

In applications where environmental considerations are crucial, the advent of bio-based and synthetic lubricants, which are often more environmentally benign and biodegradable, poses a competitive challenge to mineral oils. As part of their corporate social responsibility, many industries are implementing green and sustainable practices. It may choose lubricants and materials with a lower environmental impact, stifling the expansion of the mineral oils market.

The disposal and recycling of used mineral oils are hazardous to the environment. To prevent contamination of landfills and water bodies, effective waste management and recycling of spent mineral oils are required, which might raise the cost of using mineral oils. Environmental rules have become more stringent, requiring enterprises to meet greater standards for the safe use and disposal of mineral oils. Compliance with these regulations may result in increased expenses and complexity.

Segment Analysis

The global mineral oils market is segmented based on class, grade, application and region.

Machinery Lubrication and Cost Effectiveness

Machinery lubrication is the most typical application for industrial-grade mineral oils. It is essential to guaranteeing the smooth operation of industrial equipment, decreasing friction, dissipating heat and extending machinery lifespan. The ongoing expansion of industrial sectors, fueled by globalization and technical advancements, leads to an increase in the utilization of machinery and equipment.

Lubricants, particularly industrial-grade mineral oils, are in high demand as industrial operations expand. Industrial-grade mineral oils are frequently more cost-effective than synthetic lubricants. It cost benefit is particularly enticing to firms looking to cut operational expenses while maintaining performance. Therefore, the industrial grade segment captures more than 1/3rd of the global segmental shares.

Geographical Penetration

Growing Regional Exports Drives the Asia-Pacific Market

Some of the world's largest ports and marine commerce routes are located in Asia-Pacific. For ship engines and equipment, the marine industry relies on specialist lubricants comprising mineral oils and the development in maritime traffic fuels demand for these lubricants.

According to United Nations COMTRADE database on international trade, China's exports of mineral fuels, oils and distillation products to the Philippines totaled US$ 2.79 billion in 2022. China's exports of mineral fuels, oils and distillation products to the Philippines in larger amount, therefore the China, leading exports of these products drives the growth of the Asia-Pacific mineral oils market.

COVID-19 Impact Analysis

The global outbreak of coronavirus has shown a negative impact on the growth of the lubricants market and mineral oil being a key lubricant in various industries has seen the same impact. The severity of impact varies for different end-users. Lockdowns and other measures to stop the virus's spread resulted in a sharp decline in mineral oil production and demand across numerous industries. Mineral oil sales were directly impacted by decreased manufacturing, restrictions on automobile travel and a slowdown in international trade.

The demand for products made with mineral oil hampered drastically as a result of the pandemic. Lockdowns and other restrictions reduced transportation and industrial activity, which in turn decreased demand for automotive and industrial lubricants. However, white oils are a type of mineral oil and the demand for them in medicine and pharmaceuticals increased at the same time.

Russia-Ukraine War Impact Analysis

The geopolitical and economic repercussions of the Russia-Ukraine war have had a major effect on the mineral oil market. One of the main effects on the market is price volatility. The region's geopolitical unrest has led to fluctuations in the prices of vital raw materials, including crude oil. Crude oil is the base for any lubricant production and war has a significant impact on crude oil production, consumption and transportation leading to a hamper all overall lubricant industry including mineral oil. Furthermore, Trade restrictions and sanctions brought about by geopolitical tensions made it more difficult to import and export mineral oil and related products. It could restrict access to markets and have an impact on global trade.

By Class
Paraffinic Oil
Aromatic Oil
Naphthenic Oil

By Grade
Industrial Grade
Pharmaceutical Grade
Cosmetic Grade
Food Grade

By Application
Lubricants
Pharmaceuticals
Cosmetics and Personal Care
Electrical
Automotive
Agriculture
Others

By Region
North America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Italy
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
Middle East and Africa

Key Developments
On September 6, 2022, Sitio Royalties Corp. and Brigham Minerals, Inc. have announced a definitive agreement to combine in an all-stock merger, with an aggregate enterprise value of approximately US$ 4.8 billion based on the closing share prices of STR and MNRL on Friday, September 2, 2022). The merger brings together two of the largest public companies in the oil and gas mineral and royalty sector, as well as complementary high-quality assets in the Permian Basin and other oil-focused regions, resulting in an industry leader with a proven track record of consolidating oil and gas mineral and royalty interests held by a diverse set of E&P companies.
In October 2023, a panel of international experts informed the inaugural session of IMARC 2023 that Australia has a significant chance to contribute to the growing demand for key minerals by enhancing global supply chains and increasing strategic national collaboration.
On May 23, 2023, Exxon acquired lithium rights as oil companies expanded into vital mineral extraction. The US$ 100 million transaction is the latest in a series of investments by oil majors in crucial resource mining.

Competitive Landscape

The major global players in the market include ExxonMobil, Royal Dutch Shell, Chevron Corporation, Total Energies, BP, Sinopec Group, Nynas AB, Repsol, Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOCL).

Why Purchase the Report?
To visualize the global mineral oils market segmentation based on class, grade, application and region, as well as understand key commercial assets and players.
Identify commercial opportunities by analyzing trends and co-development.
Excel data sheet with numerous data points of mineral oils market-level with all segments.
PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
Product mapping available as excel consisting of key products of all the major players.

The global mineral oils market report would provide approximately 61 tables, 61 figures and 184 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies