The global white oil market is expected to witness an exponential growth at a CAGR of 3.86%. The market was valued at US$1.662 in 2017 and is expected to reach US$2.064 billion by 2023, due to escalating demand for personal care and pharmaceutical products, and polymers among others. The global white oil market growth is also complemented by advancements in the production process that allows complete removal of dust particles, superior purity, odourless, and tasteless products. However, the growth of white oil in the global market will observe restraint due to strict government policies in developed nations, economic uncertainty, and fluctuating petroleum prices.
The global white oil market is divided into various segments on the basis of purity of product for diverse consumption across various verticals. The pharmaceutical grade segment is expected to grow at a moderate CAGR due to a wide acceptance of white oil in the industry over the forecast period. Technical grade was the dominant segment in the year 2017 owing to application of technical grade white oil in food processing and food packaging due to strict government guidelines in developed countries.
The white oil market in pharmaceutical is projected to grow at a significant rate over the next five years. The demand for white oil in pharmaceutical is mainly driven by its increased application as a lubricant in medical or pharmaceutical industry instruments, base materials for oil and ointments and others. Growth in the global healthcare industry as result or diversification of products and ongoing advancements will provide impetus to the global white oil demand.
Asia Pacific region was the major market for white oil in 2017 accounting for a significant share of the global white oils market. North America region is also expected witness considerable demand for white oil by personal care and cosmetics manufacturers owing to technical advancements in production and product innovation.
The major companies indulged in the production of white oil are Exxon Mobil, China Petroleum & Chemical Corporation, Sonneborn, EC21 Inc., Nynas AB, and Petro-Canada among others. Mergers, new product launches, and product innovation are the major strategies being adopted by the companies for boosting their existing market share. Due to strong positioning and stable branding, the industry has high barriers for new entrants.
The global white oil industry is segmented on basis of grade, application, and geographical regions.
Middle East and Africa (MEA)
Asia Pacific (APAC)