The Total Addressable Market (TAM) for food grade lubricants was valued at USD 353.91 million in 2022. It is estimated to reach USD 719.35 million by 2031, growing at a CAGR of 8.20% during the forecast period (2023–2031).
Food-grade lubricants or food-safe lubricants are used in industrial machines to function devices smoothly. It plays a vital role in protecting the machines from rust, corrosion, oxidation, breakdown, and heat. Furthermore, the food industry prevents health hazards in the event of incidental or accidental contact with food. Food-grade lubricants are often used in the food and beverage, cosmetics, animal and pet food, and pharmaceutical industries since they do not alter the color or flavor of the final product. It is manufactured from mineral or synthetic base oil. However, bio-based base oil is derived from vegetable oil and renewable resources that are gaining importance due to the rising environmental concern and sustainability aspect.
|Market Size||USD 719.35 million by 2031|
|Fastest Growing Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Globally, there is a considerable shift in the buying patterns of consumers from essential foods to packaged and processed foods, snacks, meat, and desserts. Factors such as changing lifestyles, time constraints for preparing food, urbanization, expanding populations, and increasing purchasing power, especially in the economies of China and India, are stimulating the demand for processed and packaged food worldwide.
The outbreak of the coronavirus pandemic also played a vital role in promoting the need for packaged food. The temporary lockdown across the world triggered panic buying among consumers, leading to the buying of foods in bulk quantities. People preferred buying packaged food, such as snacks, biscuits, cookies, and frozen food products, such as vegetables, fruits, and dairy. Thus, an increase in the consumption of packaged food is driving the demand for food-grade lubricants.
Bio-based lubricant products are based on vegetable and renewable oils like fatty oil. Vegetable oils are more productive than traditional lubricants as they are biodegradable, less toxic, renewable, and have fewer adverse environmental effects. Globally, the use of bio-based lubricants in food and beverage processing machines and other industries has significantly increased in recent years. The increasing price of petroleum products, environmental and sustainability aspects, and harmful effects of petroleum lube oil are driving manufacturers across the globe to emphasize bio-based lubricants over petroleum-based lubricant products, as they can fulfill the safety standard in the food production unit. In addition, a federal government program, such as the Bio Preferred program, an initiative by the USDA (US Department of Agriculture) that intends to develop and expand bio-based products, is another factor driving the demand for bio-based lubricants.
The primary raw materials used in manufacturing different food-grade lubricants H1, H2, and H3 include mineral and synthetic base oils. Mineral base oils are derived from crude oil, whereas synthetic base oils are PAOs made by polymerizing an alpha-olefin molecule like ethylene. Presently, the prices of these raw materials are witnessing a rise, thus impacting the productivity of the vendors. Due to the higher cost of raw materials, companies are increasing lubricant costs, which, in turn, is driving the cost of the products.
Base oil is mainly produced from crude oil, so the price of crude oil is one of the critical factors affecting raw material costs, making it very volatile. The base oil and ethylene are subjected to price variations, including supply deficiencies and changes in natural gas prices, crude oil, and other petrochemical intermediates. In addition, geopolitical and environmental issues also affect the demand and supply of crude oil, resulting in a rise in prices and hampering the market growth.
The consumption base of food (poultry, meat, animal feed, and dairy), beverages, cosmetics, and beverage products is high in the Asia-Pacific. It is flourishing due to the enormous population, increasing purchasing power due to the growing disposable income, and the expanding middle-class population. Thus, all these factors contribute to an increasing consumer inclination toward premium and different essential products. In terms of population, Asia-Pacific ranks number one among all regions. The region is home to around 60% of the world's people and constitutes the most heavily populated countries, such as China and India. In 2019, China had an estimated population of 1.43 billion people, followed by India with 1.37 billion.
Similarly, Indonesia is the third most populated country in the region and the fourth most populated country in the world. So, being one of the most populated regions in the world, the APAC market represents an enormous opportunity for Food-grade lubricant vendors. The lubricant products are essential for the smooth functioning of machinery. Therefore, the massive population in the Asia-Pacific is one of the prime factors responsible for the vast demand for food-grade lubricants for pharmaceuticals, food and beverage, cosmetics, and industry.
By region, the global food grade lubricants market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Europe Dominates the Global Market
Europe is the most significant shareholder in the global food grade lubricants market and is anticipated to grow at a CAGR of 5.24% during the forecast period. The region's growth is led by Germany, France, Italy, the U.K., and Russia, where the penetration of food-grade lubricants is high, and the market revenue has been increasing steadily. The prime reason is the intense penetration of the food and beverage manufacturing industry. The food and beverage segment is the largest manufacturing industry in Europe and is engaged in producing meat, and bacon, chiefly beef and pork. In addition, Europe is the world's largest cosmetics producer and creates diverse products. The European cosmetic industry is experiencing a shift from conventional ingredients to natural ingredients in consumer care products. Natural ingredients, such as vegetable oils for body and face products, are highly used in skin care products, followed by hair care products. Thus, the increasing demand for cosmetics products globally is expanding the use of cosmetic processing machines, which is expected to fuel the demand for Food-grade lubricant products during the forecast period.
North America is expected to grow at a CAGR of 5.01% over the forecast period. The food-grade lubricant market in North America is mainly driven by the high disposable income of citizens, the presence of established end-user industries (such as cosmetics, food and beverages, pharmaceuticals, and animal feed), and an increasing number of households. The rising number of patients with chronic diseases, the popularity of grooming products for men, and the demand for natural and organic foods and cosmetics are also boosting the food-grade lubricant market. In line with the growing trend of healthy lifestyles and consumption of quality and hygienic food, manufacturers across the country are revamping their operations amidst the regulations set by the US FDA, which plays a crucial role in monitoring and enforcing laws and policies regarding incidental food contact lubricants. The region follows strict regulations regarding the handling, processing, and formulation of food-grade lubricants compared to China and Europe.
Brazil, Mexico, Colombia, and Argentina are the leading countries in Latin America. In Latin America, the food-manufacturing industry drives the food-grade lubricant market. According to the Brazilian Association of Food Industries data, food manufacturing is the largest industry in Brazil, contributing about 65% of the Brazilian trade balance. In addition, strong government regulation concerning lubricants is also driving the market. For instance, food-grade lubricants manufactured, imported, or exported in Brazil should follow the ISO 21469 standards, which specify the hygiene requirements for the formulation, processing, use, and handling of incidental food lubricants.
The global food grade lubricants market is segmented into base oil, grade, and application.
By base oil, the global market is divided into mineral, synthetic and bio-based oil.
The mineral-based oil segment owns the market share and is anticipated to grow at a CAGR of 4.96% over the forecast period. Mineral base oil is formulated from crude oil through distillation processes, crystallization, purification by acid treatment, and hydrogenation processes. Mineral oils are used to develop food-grade lubricants, especially H1. It is known for its excellent lubricating properties and offers certain advantages, such as thermal stability and availability at a low cost, and it is compatible with grease thickeners. Mineral base oil is categorized into formulated, non-formulated, and dust suspension. Non-formulated mineral oil, i.e., white mineral oil, is widely used in food processing plants, cosmetics, and pharmaceutical machines where there is a possibility of incidental food contact. It is a highly refined premium quality base oil with no additives, offers excellent protection against rust and corrosion, offers oxidative stability, and protects the equipment from wear and tear.
Food-grade lubricants formulated with synthetic base oil are based on PAOs, and PAG, along with high-performance anti-wear and antioxidant additives. Synthetic base oil is expensive compared to mineral base oil due to its high-performance functions, such as preventing the machine from corrosion, low pour point, high flash points, high oxidation stability, and extending the life of devices. For instance, a test conducted in a laboratory over the drive chain reveals that the life of PAOs is almost twice that of white mineral oil. Moreover, PAG base oil has a service life five times better than white mineral oil. Therefore, the demand for synthetic base oil is increasing rapidly, despite the high cost.
By grade, the global market is divided into H1, H2, and H3.
The H1 grade segment is the highest contributor to the market and is expected to grow at a CAGR of 6.0% during the forecast period. H1 food-grade lubricants are the principal components of food-processing plants and form a significant source of lubricating oil for machines. H1 lubricants are a globally recognized certification used in the food and beverage industry where there is a possibility of incidental food contact. It is used in food and beverage processing machines, such as conveyor belts, pumps, and mixers, for blending, canning, cutting, cooking, slicing, peeling, brewing, and bottling. Over the last few years, H1 food-grade lubricants have been used globally as standard lubricants for the food and beverage industry.
H2-grade lubricants are an indispensable part of machines used in that equipment or positions where there is no possible direct contact with food, beverages, or pharmaceutical products. In other words, H2-grade lubricants are used in food production facilities rather than food processing equipment. It includes a forklift or conveyor running under the bottom of the food line. Unlike H1 food grade, H2 Food-grade lubricants do not have a specific list of ingredients for their formulation. However, the lubricants do not contain toxic chemicals or heavy metals, such as arsenic, lead, cadmium, mercury, antimony, selenium, mineral acids, mutagens, or teratogens. The H2 category of food-grade lubricants is experiencing moderate growth due to its use in non-food production lines.
By application, the global market is divided into food, beverages, pharmaceuticals, cosmetics, and others.
The food segment is the highest contributor to the market and is expected to grow at a CAGR of 6.26% during the forecast period. Food-grade lubricants are essential for the smooth functioning of food processing equipment. They protect the bearings, chains, mixers, pumps, conveyor belts, and other processing equipment from corrosion, offer oxidation stability, and reduce the oil change intervals. Lubricants in the food processing industry are highly regulated. They should comply with H1 lubricants because there is a high possibility of food products coming into contact with lubricated components. Therefore, to ensure the safety of products, H1-certified lubricants must be used. Furthermore, they should also be ISO 21469-certified, ensuring adherence to hygiene requirements and preventing contamination during manufacturing of H1 lubricants. Lastly, they should be physiologically inert, odorless, and colorless.
Food-grade lubricants in the cosmetic or personal care industry are commonly used in machines to prevent rust, corrosion, and contamination from microbes and dust. Synthetic and mineral base oil is used to formulate food-grade lubricants for the cosmetic industry. In the cosmetic industry, lubricants produce personal-care products, such as makeup removers, shampoo, soap, sun protection cream, baby oil, and lotion. Food-grade lubricants used in the cosmetic industry should meet the NSF-H1 regulatory standards of lubricants to prevent contamination of dust and microbe contamination on cosmetic products and should not be harmful to human health. In the cosmetic-manufacturing industry, food-grade lubricants are used for container cleaning equipment, capping machines, labeling equipment, packaging equipment, and filling equipment.