White Oil Market Size, Share & Trends Analysis Report By Application (Personal Care, Adhesives, Agriculture), By Region (North America, Europe, Asia Pacific, LATAM, MEA), And Segment Forecasts, 2022 - 2030

Report Overview

The global white oil market size was valued at USD 2.0 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030. The demand for the product is anticipated to be driven by the increased demand for the product in the personal care and pharmaceutical industries. Globally, rising product demand from medicinal and cosmetics applications is expected to be a major driver in the market. White oils are mineral oils that have been purified to be pure, stable, colorless, odorless, and non-toxic.

The product is a highly refined and colorless mineral oil made from the paraffinic crude feedstock. It has a variety of performance characteristics, including good hydrophobicity, low odor and taste, and bio-stability, making it suitable for a wide range of applications. The product also has a low aromatic and Sulphur content, making it ideal for blending with other oils to improve end-product finishing. The main product grades of the product accessible on the global market are technical, food, and medical.                                            

The product is manufactured from the refining of paraffinic and naphthenic crude oil feedstock and can be processed from natural gas by gas to liquid conversion technology. Royal Dutch Shell N.V. manufactures white oil from natural gas through the use of the Fischer-Tropsch process that converts natural gas to highly purified white oils with low aromatic hydrocarbon content. Volatile raw material prices, coupled with geophysical and political conflicts among key oil trading regions, are expected to affect the overall supply-demand scenario in the future. This, in turn, is anticipated to adversely influence the production and consumption of the product in the global market during the next few years.

A positive outlook toward the growth of the personal care, pharmaceutical, food, and polymer processing sectors has resulted in boosting the demand for the product in various developing and developed regions. Furthermore, rapidly mounting demand for the product in the agriculture, adhesives, and textile application markets are projected to be another significant factor supporting the growth of the market during the forecast period. Although the tight supply of raw materials, coupled with a drop in their prices, might hinder the market growth, a technological breakthrough is likely to contribute to the firm growth of the industry over the next couple of years.

The product is used in the production of pharmaceutical goods which include emollients, internal lubricants, ointments, and laxatives as an addition or as basic material. When combined with other synthetic goods, white oil has good antibacterial qualities and is chemically stable. The product is often used in medicinal applications due to its excellent mixing properties. As a result, the demand for the product is likely to rise in the forecast period as the pharmaceutical sector expands.

Application Insights

The personal care application segment dominated the market with a revenue share of over 25.0% in 2021. This is attributed to the increase in demand for personal care products owing to the increase in health awareness among people. White oil is utilized as a base ingredient and as an emollient during the processing of various personal care products. It is extensively consumed for the manufacturing of a wide range of personal care products such as cosmetics, skincare creams, moisturizers, baby products, body lotions, hair oils, shampoos, fragrances, and water-resistant creams.

The product exhibits inertness towards other chemicals in contact, color stability, and no odor owing to which it is used as a softening agent or as an emollient in creams. Furthermore, the product is utilized for the manufacturing of water-resistant creams owing to its excellent hydrophobicity. Royal Dutch Shell N.V. manufactures and distributes Ondina X, a medicinal-grade white oil, for use in the personal care industry due to its excellent binding characteristics.

The adhesives application segment is anticipated to register the highest revenue-based CAGR of 4.6% over the forecast period. The growth is attributed to the rise in the requirements of the product as diluents for the processing of hot melt and pressure-sensitive adhesives. White oil has good compatibility with human skin, induces transparency, and maintains the color stability that is required for obtaining the desired production yield of adhesives.

The consumption of white oil in the agriculture application segment is expected to increase significantly due to its performance characteristics. White oil is odorless, tasteless, and prevents dust when applied directly on grains to suppress dust formation. Furthermore, white oil is blended with crop protection chemicals or other natural oils to prepare a protective liquid spray or an insecticide required for the protection of plants.

Regional Insights

The Asia Pacific region dominated the market with a revenue share of more than 50.0% in 2021. The growth is attributed to the increase in demand for the product by the pharmaceutical industry in the region. The pharmaceutical industry has mainly been driven by improved purchasing power, increasing affordability, and rising awareness among consumers. Industry players are continuously spending on R&D and are coming out with new products and pricing these products to suit consumers across different levels of purchasing power.

The Middle East and Africa are anticipated to register a significant revenue-based CAGR of 4.4% over the forecast period. The growth is attributed to the growth of the pharmaceutical industry in the region. The pharmaceutical industry growth in the Middle East, especially Saudi Arabia, on account of rising health expenditure, coupled with government support, is expected to have a positive impact on the market growth over the forecast period.

Increasing usage of the product as a lubricant in several industries such as food, bakery, and textile will drive the industry demand. Growing demand for fast food and bakery products in North America on account of changing lifestyles will augment the demand for the product to be used for handling dough and for food handling machinery lubrication over the upcoming years. The growth of the pharmaceutical industry is expected to fuel the market expansion in North America. The growing pharmaceutical industry in the U.S. as a result of the increased spending on medicines is expected to have a positive impact on the market growth.

Key Companies & Market Share Insights

The market for white oil is highly competitive with the big international brands focusing on the development of a long-term relationship with the end-users. With the further growth in the personal care and pharmaceuticals sectors, the competition is anticipated to increase in the coming years.

Companies such as Exxon Mobil Corporation, British Petroleum, and Sinopec Corporation have a high degree of integration across the value chain as they are also engaged in the production of the product. These companies have established themselves as key manufacturers and they focus on research and development for novel uses of the product. Some prominent players in the global white oil market include:

• British Petroleum

• Renkert Oil, Inc.

• ExxonMobil Corporation

• JX Nippon Oil & Energy Corporation

• Nynas AB

• Petro-Canada

• Royal-Dutch Shell N.V.

• Sinopec Corporation

White Oil Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global white oil market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Adhesives

  • Agriculture

  • Food

  • Pharmaceutical

  • Personal Care

  • Textile

  • Polymers

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • Russia

  • Asia Pacific

    • China

    • India

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa