The global white oil market is projected to grow at a CAGR of 3.29% during the forecast period to reach US$2.118 billion by 2027, from US$1.689 billion in 2020.
White oils are paraffinic or naphthenic base oils that are highly refined and have minor aromatic components. These oils, also termed light mineral oils, light liquid paraffin, and light paraffin oils in different regions, are colorless, tasteless, odorless, and hydrophobic and do not change color over time. When paraffinic or naphthenic base oils are treated with sulfuric acid, white oils are produced as by-products of sulfonate production. All unsaturated and aromatic chemicals, nitrogen and sulfur impurities, hazardous substances, and color-forming compounds are removed during this process. Natural oxidation inhibitors are also removed. Because the product is non-toxic and chemically inert, it is widely used as an insecticide in gardens to control a variety of insect pastes. Furthermore, the white oil market share is expected to grow due to a positive outlook in the cosmetics, polymer, pharmaceutical, and food industries.
A significant reason driving the growth of the global white oil market is the rising demand for personal care across the world.
White oils are extensively used in practically all sorts of cosmetic and personal care products, from emulsions to anhydrous cosmetics, such as lotions, baby oil, skincare, lip balm, hair care, creams, and emollients. It can be used to relieve eczema and diaper rash. Liquid paraffin is also widely used in the cosmetics business. The ingredient is included in various beauty products, including detergent, cold and hydrated creams, bronzed oils, and makeup. This oil is utilized in hand and body care cosmetics in concentrations varying from 1% to 99%, relying on the product quality required. White oil can be found in pressed powders, mascara, eyeliner, and foundations. For example, eye makeup remover comprises 99 percent white mineral oil, whereas foundations consist of up to 60 percent white oil. This application uses cosmetic-grade white oil that has been refined to satisfy standards.
Laxatives, pomade formulations, gelatin capsules, and excipients in pharmaceutical formulations frequently employ white oil. Furthermore, demand for white oil may be fueled by the pharmaceutical industry's continued expansion as a result of product variations and advancements. The white oil market is expected to grow due to rising product usage in ointment formulations owing to its benefits in mending skin injuries. Major firms are continually expanding their manufacturing capacity for medicines, tablets, syrups, ointments, and other items, which is likely to drive market growth. For instance, Nynas AB, a Swedish producer of specialist naphthenic oils and bitumen products, launched NYFLEX® 2120B, a new white oil, and a range of additional naphthenic specialty oils for sealant formulators in November 2021.
However, several flaws in the global white oil market could stifle its expansion. High costs connected with the formulation of consumer care products, a lack of high-quality crude oil, price fluctuation in crude oil, and oil price volatility that affects white oil production are a few restrictions limiting the global white oil market's growth.
By region, Asia Pacific is expected to hold a notable share in the global white oil market during the forecast period.
Due to the rising use of white oil and its derivatives, the Asia Pacific region is expected to witness significant demand for white oil. This region's personal care and pharmaceutical businesses are snowballing. In addition, Asia Pacific is exhibiting growth in demand for cosmetics products, which has accelerated white oil use in the area over time. The region's production capacity is likely to rise in the next few years as a result of investments from various businesses and government measures to boost the production of various grades of white oil. For example, in September 2019, Weifang Hongrun Petrochemical Technology Co. Ltd. awarded Chevron Lummus Global LLC a contract for the license and design of its 500,000 ton per annum white oil hydroprocessing unit and its 200,000 ton per annum food grade white oil unit in Shandong, China. Similarly, in 2019, Chevron Lummus Global signed a contract with Bharat Petroleum Corporation Limited (BPCL) to deliver the license and design of its hydrocracker in Mumbai, India, to manufacture high-quality clean fuel, white, and superior lubricating base oils.
COVID-19 has a varied influence on different industries. Many countries employed a range of restrictive measures to stop the virus from spreading, which had a negative impact on demand and, as a result, on industrial production in many enterprises. Furthermore, the steel industry has been one of the pandemic's major victims. Due to production halts and lower demand from several end-use industries because of the COVID-19 issue, steel production shrank in 2020. According to the World Steel Association, global crude steel output totaled 1,864.0 million tonnes (Mt) in 2020, down 0.9 percent from 2019. Meanwhile, the closure of restaurants and bars resulted in a drop in demand for white oils in the food industry, as did the temporary closure of plastics, adhesives, and sealants manufacturing facilities. However, demand for white oils increased in the pharmaceutical industry as customers purchased more pharmaceuticals than usual during the pandemic.
|Market size value in 2020||US$1.689 billion|
|Market size value in 2027||US$2.118 billion|
|Growth Rate||CAGR of 3.29% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Grade, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Bharat Petroleum Corporation Limited (BPCL), Calumet Specialty Products Partners LP, China Petrochemical & Chemical Corporation (Sinopec), Exxon Mobil Corporation, H&R GROUP, HollyFrontier Corporation, Nynas AB, Oxiteno, Renkert Oil, Royal Dutch Shell PLC, Sasol, Savita Oil Technologies Limited|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the white oil market size by 2027?
A1. The global white oil market is projected to reach a total market size of US$2.118 billion by 2027.
Q2. What is the size of the global white oil market?
A2. White Oil Market was valued at US$1.689 billion in 2020.
Q3. What are the growth prospects for the white oil market?
A3. The white oil market is projected to grow at a CAGR of 3.29% over the forecast period.
Q4. What factors are anticipated to drive the white oil market growth?
A4. A significant reason driving the growth of the global white oil market is the rising demand for personal care across the world.
Q5. Which region holds the largest market share in the white oil market?
A5. The Asia Pacific is expected to hold a notable share in the global white oil market due to the rising use of white oil and its derivatives.
Bharat Petroleum Corporation Limited (BPCL)
Calumet Specialty Products Partners LP
China Petrochemical & Chemical Corporation (Sinopec)
Exxon Mobil Corporation
Royal Dutch Shell PLC
Savita Oil Technologies Limited
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