Global White Oil Market Demand & Forecast Analysis, 2016-2036

White oil is colourless, odourless mixture of hydrocarbon mainly alkanes and cycloalkanes with an average carbon range of 14 to 45. White oil is also known as mineral oil, paraffin oil, liquid paraffin, and liquid petroleum. White oil market is quite a developed market since the product is in commercial use for the last century. Today white oil market is a part of base oil industry. Base oil is further divided into five API (American Petroleum Institute) classifications namely Group 1, Group 2, and so on till Group 5. Group 1 to 3 has viscosity index of 80 to 120 the only difference between them is the level of saturation. Group 1 has less than 90% of saturation, Group 2 has more than or equal to 90% of saturation and Group 3 has more than 90% of saturation. Group 4 and 5 are synthetic oil prepared from Polyalphaolefin and other materials. White oil can be categorized in Groups 1,2 and 3 due to its viscosity index. Similar to production process of these groups, white oil is produced by distillation base oil in a vacuum distillation unit and further treating them with processes like solvent extraction, hydrocracking, catalytic or solvent dewaxing, hydro finishing. Along with these processes white oils are also treated with a sweeting process or odour neutralizers and decolourizing process to give white oil is the distinguished characteristic of colourless and odourless.

 

In 2021, the total production capacity of white oil is estimated to be around 3,200 kilo tons. According to the Prismane consulting capacity data base, the global white oil capacity is expected to cross 3,900 kilo tons owing to major capacity additions in Asia Pacific. More than 50% of white oil capacity is currently located in China, followed by the U.S and India. Companies like Calumet, Sonneborn, Chevron, ExxonMobil, Shell, Petro Canada, H & R and Apar are prominent players in the white oil market. 

The global white oil demand was estimated to be around 2,500 kilo tons in 2021, and it is forecast to grow at a CAGR of 4% in the long-term forecast period. The global white oil market has witnessed significant growth in recent years. owing to the increasing demand from various end use industries. Factors such as urbanization, changing consumer lifestyles, population growth, technological advancements and stringent regulations are some of the key factors that have further propelled the white oil demand.

The Asia Pacific is one of the largest producer and consumer of white oil and it is estimated to continue its dominance in the forecast period. The strong growth of white oil market in the region can be attributed to the presence of strong pharmaceutical and personal care industry. China is the largest white oil market in the Asia Pacific, and it is projected to witness strong growth in the forecast period.

White oil is widely used in personal care & cosmetics, polymers, pharmaceutical, food & agriculture, textile, adhesives, and other applications. Within the personal care industry, it serves as an adjunct or foundational component in the formulation of lotions and creams. Additionally, white oil is a common ingredient in a wide array of cosmetic products such as bath oil, makeup remover, makeup products, baby oil, sun protection and sun tanning creams.

In the polymer industry, white oil is used as a lubricant while processing polymers. For instance, White Oil is used as PVC external lubricant and Polystyrene internal lubricant. It is also used as softening material in rubber processing, as a catalyst carrier and for plastic annealing. In pharmaceutical application white oil used as laxative agent. All these applications including personal care & cosmetics, polymers, and pharmaceuticals together account for more than 70% of the global white oil demand. In food, industry white oil is used as a lubricant in food processing. Food grade white oil used in the food industry relief the manufacturer from the concern of contamination. Food & Agriculture is forecast to be the fastest growing application on the back of increasing purchasing power and standard of living in developing economies.