Food Grade Lubricants Market Size, Share & Trends Analysis Report By Product Type (Mineral, Synthetic, Bio-based), By Application (Food, Beverage, Pharmaceuticals), By Region, And Segment Forecasts, 2021 - 2028

Report Overview 

The global food grade lubricants market size was valued at USD 309.7 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2021 to 2028. The demand for food-grade lubricants is anticipated to be driven by the increasing consumption of processed food and beverages.

The demand for lubricants from the end-use industry such as food, beverages, pharmaceuticals, cosmetics, and others is anticipated to show a continuously growing trend over the forecast period. Additionally, increased consumption of food products such as dairy, meat, and beverages is anticipated to fuel the demand for food-grade greases over the forecast period.

Major oil and gas companies such as British Petroleum, Total SA, and Exxon Mobil Corporation, are some of the integrated lubricant manufacturers, which ensure steady raw material supply to produce additives and mineral oils needed for the production of lubricants. However, other lubricant manufacturers have definitive contracts with suppliers as well as raw material manufacturers. This strategy enables these companies to avoid the impact of price fluctuations as well as time loss in procuring these materials. 

Bio-based lubricants have gained recognition as an alternative to conventional petroleum-based products in numerous applications such as the food and automobile industry. These are derived from animal fats or vegetable oils. To form advanced bio-lubricants, natural oils are chemically modified by esterification, transesterification, and oxidation. Natural oils are inexpensive, widely available, and exhibit better biodegradability as compared to mineral oils. High oleic varieties of sunflower, canola oil, soybean, and rapeseed are now becoming standard base oils for biodegradable greases.

The demand for bio-based lubricating products is growing at a rapid pace. North America and Europe have emerged as the largest consumers of these products owing to stringent environmental protection policies and rising awareness among consumers in the region. Asia Pacific, on the other hand, lags in the bio-lubricants segment but leads the market for synthetic lubricants. The markets in the Asia Pacific region have started mirroring the American and European regulatory systems and countries such as Japan and South Korea are emphasizing eco-labeled lubricating products.

Product Type Insights

The mineral product segment dominated the market for food-grade lubricants and accounted for the largest revenue share of more than 61.0% in 2020. Mineral food grade lubricant is preferred for machinery like hydraulic systems that operate at temperatures between 120°F to 150°F. The demand for mineral-based lubricants in various applications including food, beverage, cosmetics, and others is anticipated to maintain its dominance owing to its low cost.

The synthetic-based lubricants emerged as the second-largest product segment in terms of both volume and revenue in 2020. Synthetic lubricants are preferred for high performance in both extreme low and high temperatures. These products are non-toxic, odorless, colorless, and tasteless. It helps to reduce downtime and better protect metal surfaces from corrosion and wear.  Thus, all the above-mentioned factors together are anticipated to create substantial demand for synthetic product types during the forecast period.

The market for food-grade lubricants is currently passing through a transition phase that involves coping with legal regulations for products, and the influx of bio-based lubricants.  These are expected to gain high recognition owing to the increasing demand for natural/environment-friendly lubricating products in the food and beverages and cosmetics industry. The bio-based lubricant segment is poised to ascend at the fastest CAGR of 9.7%, in terms of revenue, from 2021 to 2028.

Application Insights

The food application segment dominated the market for food-grade lubricants and accounted for the largest revenue share of 62.2% in 2020. Its high share is attributable to increased consumption of the product in bakery, confectionery, dairy, meat, poultry and seafood, sauces and dressings, and others applications. The growing consumer awareness and preferences for high-quality attributes of meat are expected to fuel the growth of the global meat, poultry, and seafood industry.

The beverage segment includes the consumption of the product in Carbonated Soft Drinks (CSD), fruit beverages, functional beverages, sports drinks, alcoholic beverages, and other applications. A significant rise in demand for alcoholic beverages from the millennial population across the globe is substantially propelling the demand for alcoholic beverages. The rising importance of leading a healthy lifestyle is propelling the demand for fruit beverages. Additionally, increasing concerns regarding various health issues, including nutritional deficiencies and obesity, is anticipated to boost the demand for fruit beverages, thereby creating demand for the product.

Food grade lubricants permitted by regulatory agencies such as FDA and ISO are used in pharmaceutical applications. Increasing R&D spending for new product innovation along with the rise in health concerns is likely to drive the growth of the pharmaceutical industry, which in turn is further anticipated to create demand for the product in the near future.

The rising demand for skincare products owing to increasing awareness regarding healthy skin rituals, inclination toward maintenance of an even skin tone, and efforts taken to look beautiful, and young is fueling the demand for skincare products. Inclusion in the cosmetic application is projected to witness steady growth during the forecast period owing to rising demand for eye shadow, lipstick, and other skincare products is expected to drive the market for food-grade lubricants over the forecast period.

Regional Insights

Europe dominated the food grade lubricants market and accounted for the largest revenue share of 42.0% in 2020. The region is anticipated to witness a CAGR of 7.3% from 2021 to 2028. Stringent EPA and REACH regulations in most parts of Europe have prompted manufacturers to shift their focus toward developing bio-based lubricants. Increasing penetration of bio-based alternatives is expected to remain a major threat to mineral-based product growth in the region.

In North America, demand for food-grade lubricants is mainly driven by the massive industrialization in Mexico. Mexico has emerged as a major manufacturing hub in the last decade. Mexico is gaining attention as a new growth market following the footprints of BRIC markets. It continues to experience stable growth centered on the food and beverage industry.

The growth of bio-based products in the U.S. owing to the tight regulatory norms in the region regarding environmental deterioration is expected to drive food-grade lubricants demand. The U.S. has been using good quality food-grade lubricants for decades having longer oil drain intervals, resulting in lower consumption which leads to higher efficiency.

Key Companies & Market Share Insights

The market players are continuously focusing on capacity expansions, signing partnership agreements with distributors, and various other operational strategies to gain an edge in the competitive market space. Through these strategies, manufacturers are trying to reach out to potential customers of the products. For instance, companies such as Royal Dutch Shell, Chevron Corporation, and Dow, dominate the market with a range of products for each application market and their global brand presence.

The demand for lubricants from the end-use industry is anticipated to show a continuously growing trend over the forecast period. Manufacturers are focusing intensely on improving their product portfolios along with the introduction of new products aimed at keeping pace with future requirements. Lubricants that are used in the renewable sector, such as Mobil SHC series by Exxon Mobil, are expected to be the major focus of innovation for a large number of manufacturers. Some of the prominent players in the food grade lubricants market include:

• Exxon Mobil Corporation

• CITGO Petroleum Corporation

• Total S.A.

• Petro-Canada Lubricants Inc

• Chevron Corporation

• Dow

• Royal Dutch Shell

• Lanxess Corporation

• Fuchs Group

Food Grade Lubricants Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global food grade lubricants market report on the basis of product type, application, and region:

• Product Type Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)

  • Mineral

  • Synthetic

  • Bio-based

• Application Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)

  • Food

    • Bakery

    • Confectionery

    • Dairy

    • Meat, Poultry, & Seafood

    • Sauces & Dressings

    • Others

  • Beverage

    • Carbonated Soft Drinks

    • Fruit Beverages

    • Sports Drinks

    • Alcoholic Beverages

    • Others

  • Pharmaceuticals

  • Cosmetics

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • South East Asia

  • Central & South America

    • Brazil

    • Argentina

    • Columbia

    • Peru

  • Middle East & Africa

    • Saudi Arabia

    • South Africa