White Oil Market Trends

Growth Drivers

• Growing Sales of Automobiles – White oil is used in the fabrication of automotive tires and in the formulation of the lubricants for the engine. Before the epidemic, it was predicted that 80 million cars would be sold internationally. Even after the pandemic, the recovery of the automotive sector was impressive, around 66 million cars were sold globally in 2022, and about 67 million units in 2021.

• Rising Production in Pharmaceutical Industry – Premium white oils are utilized to manufacture the adjuvants used in animal immunization; these adjuvants account for up to 50% of the final product. In order to seek maximum effectiveness, it is essential that adjuvant be produced from the purest white oil possible.

• Rising Demand for Insecticide – White oil is used to manage a variety of insect pests in gardens by working as an insecticide. The spray stops insects from breathing, which results in their asphyxia and eventual death. According to the Food and Agriculture Organization of the United States estimates, pests are responsible for up to 40% of annual losses in global crop production. Around USD 220 billion is lost to plant diseases each year, and at least USD 70 billion is lost to invasive insects.

• Rising Need for Cosmetics & Personal Care Products – It is typically utilized as a principal or supporting ingredient in the creation of personal hygiene products, including bodywash, cream and lotion formulations, baby oil, sunblocks, cosmetics, depilatories, and bath oils. Around 80% of American women use cosmetics daily, which translates to 161 million people spending nearly USD 15,000 on them over the course of a lifetime. Moreover, the typical woman spends approximately between USD 200,000 and USD 300,000 on skincare and cosmetics.

• Increasing Demand for Plastic – White oil is employed in the manufacture of expandable polystyrene, PVC, and thermoplastic rubber. The output of plastic rose exponentially, reaching 400 MT by 2020. If things continue as they are, plastic manufacturing may have doubled by 2040 and is likely to increase 2.5 times by 2050.

Challenges

• Environmental Concerns associated with white oil production - A mining boom has been sparked by the need for lithium supplies for electric cars, and wherever it is found, the hunt for "white oil" poses a threat to the environment. To reduce carbon emissions, countries are pushing electric cars into the market and even turning fuel cars into electric ones. Anyone owning an electric vehicle entails a significant amount of mining, refining, and other harmful operations. The mining procedure harms humans, animals, and their habitat.

• Availability of Alternative Products
• Lack of Sufficient Raw Materials