Bio-Lubricants Market Size & Outlook, 2025-2033

Bio-Lubricants Market Overview

The global bio-lubricants market size was valued at USD 2.16 billion in 2024 and is projected to grow from USD 2.24 billion in 2025 to reach USD 3.02 billion by 2033, growing at a CAGR of 3.8% during the forecast period (2025-2033). Growth is led by increased regulatory enforcement, better awareness of biodegradable alternatives, and rising demand from transportation and industrial users seeking greener lubricants.

Key Market Insights

• North America dominates the bio-lubricants industry and accounted for a 43% share in 2024.
• By base oil type, the vegetable oil segment dominates the market with 88% share in 2024 due to its excellent lubricity, biodegradability, and viscosity-temperature characteristics.
• Based on application, hydraulic fluids hold the largest market share.
• Based on end-use, commercial transportation is the growing segment in the market.

Market Size & Forecast

• 2024 Market Size: USD 2.16 Billion
• 2033 Projected Market Size: USD 3.02 Billion
• CAGR (2025–2033): 3.8%
• North America: Largest market in 2024
• Europe: Fastest-growing region

Bio-lubricants are natural products used to lubricate engines; they are mainly used in two-stroke engines, railroad flanges, dust suppressants, cables, marine lubricants, chainsaw bars, and chains. These lubricants are used in applications where the lubricant undergoes total loss (i.e., where the lubricant is either burned or ejected). Bio-lubricants are also used in sensitive environments such as waterways and national parks. Bio-lubricants are biodegradable, renewable, environment-friendly, and economical, reducing pollution.

Bio-lubricants are oil-based lubricants made of either vegetable oil or animal fat. Vegetable oils such as linseed, soybean, rapeseed, canola, palm, and coconut produce bio-lubricants. Lubricants produced using vegetable oil are mainly used in environmentally sensitive areas such as forests, rivers, and mountains. In the case of animal fats, the oil collected as a by-product of the meat packaging industry is used as a lubricant. Animal fat is collected from fats derived from sheep, cattle, and hogs. Animal fat lubricants are used not only in petroleum and metal processing but also in the chemical and pharmaceutical industries. Additives are often added to lubricants to enhance their characteristics.

Due to high viscosity, bio-lubricants can be used in a wide temperature range. They have lower emissions than mineral oils and esters with a wetting tendency, which leads to a decrease in friction and provides an equal or higher tool life. Bio-lubricants also provide safety, better skin compatibility, less oil mist, and reduced oil vapor, which means less inhalation into the lungs. Bio-lubricants have a high flash point, which prevents them from quickly catching fire.

To get more insights about this report Download Free Sample Report

Bio-Lubricants Market Drivers

Government Regulations

Governments are mandating the use of environmentally friendly lubricants in places such as forests, aquatic areas, mountains, agricultural lands, and places where mineral-based oil can harm employees.

• For instance, bio-lubricants introduced in the market must follow biodegradable criteria issued by the OECD (Organisation for Economic Co-operation and Development). Many companies are taking cognizance of the importance of sustainability. The E.U. roughly estimates that 3 million tonnes of oil, including lubricating oil, is wasted each year, leading companies to adopt bio-lubricants to achieve sustainability goals.

Growing Acceptance

The growing acceptance of bio-lubricants by end-use industries is driving the market considerably. High-quality bio-lubricants provide improved efficiency and better durability. Green public policies in the field of construction have also spurred the growth of the bio-hydraulic fluids market. Employee health has also become a significant factor contributing to the increase in the use of bio-lubricants in the metalworking industry, automobile industry, and general manufacturing.

Market Restraint

High Cost

Organic and largely biodegradable lubricants made of vegetable oil offer a potential substitute for traditional lubricants. However, their low oxidative properties, thermal and hydrolytic stability, poor low-temperature properties, and wide range of accessible viscosities limit their direct use as base oils. These downsides can be reduced through appropriate chemical modifications, formulations with antioxidants, and combinations with mineral oils. However, they play a part in rising expenses, pollution, and declining biodegradability. Producing cost-effective bio-based lubricants with a novel synergy of high lubricating characteristics and biodegradability is a significant problem. 

One major obstacle is the price of these bio-lubricants. A bio-based lubricant will cost you between $30 and $4 more than a conventional lubricant. Most bio-based products are priced to be competitive with mid to high-performance mineral oil products. Higher-priced goods can also be justified for use in numerous applications where biodegradability, lubricity, viscosity, and fire protection are particularly important.

Market Opportunity

Green Planet Trends

From sustainable lubrication to green construction, there are chances for sustainable solutions. A bio lubricant is a non-toxic substance that is renewable by nature, quickly biodegrades (by at least 60% in 28 days), and contains at least 25% carbon from bio-sourced sources.

Alternatives to traditional lubricating oils that harm the environment by releasing toxic vapors include bio-based lubricant alternatives. The industry is rapidly expanding among environmental activists due to its unique "environmental benignity."

In recent years, bio-based lubricating oils have advanced significantly across various applications that aim to benefit from their unique and superior qualities, such as biodegradability, lower flammability, toxicity, and volatility.

Regional Analysis

North America dominates the bio-lubricants industry, holding the largest market share of 43% in 2024 and is anticipated to keep that position throughout the forecast period. Along with the increased regulatory intervention by the U.S. government regarding the use of conventional lubricants, a rejuvenated automobile industry in the U.S. and Canada is anticipated to drive the global market. The U.S. Air Force also promotes plant-derived biodegradable products as a strategic and fundamental approach to national security, which is another market-guiding factor. Government spending on bio-lubricants in the maritime and automotive industries is expected to increase, opening up attractive market potential.

• The implementation of the Vessel General Permit (VGP) in 2013 by the U.S. Environmental Protection Agency compelled vessels flying in and around the U.S. to use environment-friendly lubricants in oil-to-sea interfaces, which are non-toxic and non-bio-accumulative. This increased the use of bio-lubricants and created awareness, prompting the International Maritime Organization (IMO) to use environmentally friendly lubricants in the Polar region from January 2017.

Europe Bio-Lubricants Market Trends

The use of bio-based chemicals in Europe is encouraged by strict legislation and the ongoing shift toward a bio-economy in Germany, Italy, the Nordic countries, Benelux, and France. The European Union's Ecolabel, Sweden's SS 155434, and Germany's Blue Angel scheme have all made policies regarding hydraulic fluids and greases. In contrast, the Nordic Swan developed by Denmark, Norway, Iceland, Sweden, and Finland has strict biodegradability, toxicity, technical performance, and renewability criteria. In Italy, there are additional taxes if mineral-based oil is used.

Asia-Pacific Market Trends

• China is rapidly increasing its wind power capacity. The Gansu wind farm project under construction is expected to reach 20,000 MW potential by 2020, which aligns with its aim to reach 250 GW of wind power. This strongly indicates bio-lubricants market growth, as wind turbines need lubrication.

LAMEA is still more relaxed than developed economies in terms of sustainability. In the coming years, environmental concerns will see these economies enforcing more regulations, positively influencing the bio-lubricants industry.

Base Oil Type Insights

The market is bifurcated into vegetable oil and animal fats, with the vegetable oil segment dominating at 88% share in 2024 due to its excellent lubricity, biodegradability, viscosity-temperature characteristics, and low volatility, making it a promising base fluid for eco-friendly lubricants. Animal fats: These comprise chicken fat, pork lard, and cattle tallow. Because they are much less expensive than vegetable oils, animal fats are desirable feedstocks for biodiesel.

Application Insights

The market is sub-segmented into Chainsaw oils and hydraulic fluids. This comprises chicken fat, pork lard, and cattle tallow. Because they are much less expensive than vegetable oils, animal fats are desirable feedstocks for biodiesel.

The largest market share belonged to the hydraulic fluids category. Bio-based lubricants are frequently utilized as hydraulic fluids to enhance operations such as harvesters, cranes, tractors, or load carriers in forests. Many producers of bio-based lubricants are aware of this market opportunity. They have goods that reflect the region's most susceptible to spills and applications lost in use, or they are designing such products.

Bar and chain oil is another lost-in-use application that necessitates further lubrication of chainsaw bars and chains. Given that most chainsaws are used outside and mainly in environmentally sensitive regions like woods and farmland, this is a small but potentially lucrative market. Bio-based lubricants are used to lubricate chainsaws. Oil is spread across the forest floor during the instrument's operation and subjected to a centrifugal force.

End-Use Insights

The market is sub-segmented into Industrial, Commercial Transport, and Passenger Vehicles, where Commercial transportation dominates the market. The automotive and other transportation segments held the lion's share of the market in terms of volume. Maximizing the energy efficiency, performance, longevity, and environmental friendliness of lubricant materials is of significant concern to the automotive and equipment industries. Other-based lubricants are prospective replacement lubricants in the automobile sector due to their low toxicity, solid lubricating qualities, and high viscosity index.

List of key players in Bio-Lubricants Market

1. Shell International B.V.
2. Exxon Mobil Corporation
3. B.P.
4. Klüber Lubrication München SE and Co. KG
5. Pangolin AG
6. Fuchs Petrolub SE
7. Biol Bio-lubricants
8. Total S.A.
9. Emery Oleochemicals Group
10. RSC Biosolutions
11. Houghton and Quaker Chemical Co.,

To get more findings about this report Download Market Share

Recent Developments

• In February 2025, BP announced that it was exploring strategic options for its Castrol lubricants division, including a potential sale. This development underscores BP’s broader strategy of rebalancing its portfolio toward energy transition priorities. For the lubricants market, such potential divestment signals restructuring activity that could lead to shifts in competitive dynamics, particularly if new ownership brings altered growth strategies or regional expansion priorities.
• In February 2025, Klüber released updated sustainability commitments, including progress toward green electricity targets and increased visibility at industry exhibitions. These initiatives reinforce the company’s positioning as a sustainability-driven lubricant supplier. By aligning with the rising demand for environmentally responsible and bio-based lubricants, Klüber strengthens its market relevance and appeal to industrial buyers increasingly focused on ESG criteria.