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Mineral Oil Market

Mineral Oil Market: Information by Type (Paraffinic Oil, Naphthenic Oil, Aromatic Oil), Grade (Technical Oil, White Oil), End-User (Personal Care, Food and Beverages, Industrial, Pharmaceutical), and Regions—Forecast Till 2031

The global mineral oil market was valued at USD 4.11 billion in 2022. It is estimated to reach USD 5.70 billion by 2031, growing at a CAGR of 3.71% during the forecast period (2023–2031). The anticipated rise in lifestyle-related disorders and
Report Code: SRCH55252DR

Market Overview

The global mineral oil market was valued at USD 4.11 billion in 2022. It is estimated to reach USD 5.70 billion by 2031, growing at a CAGR of 3.71% during the forecast period (2023–2031). The anticipated rise in lifestyle-related disorders and skin ailments is projected to drive the demand for technical oil, hence stimulating growth in the mineral oil market.

Mineral oil is any colorless, odorless, light compound of higher alkanes acquired from a mineral source, especially a distillate of petroleum, in contrast to the typically edible vegetable oils. Typically, mineral oil is a liquid produced by refining crude oil to create gasoline and other petroleum products. Base oils are the specific term for lubricating lubricants derived from minerals.

Mineral oil is a laxative and lubricant. It has a density of approximately 0.08–0.87 g/cm3 (0.029–0.031 lb/in3). Mineral oil is a staple in many households as a remedy for various afflictions, including dry skin and constipation, for which it is frequently lauded. It is frequently present in cosmetics removers. Mineral oil is generally considered safe, but it should be consumed cautiously.

Report Scope

Report Metric Details
Base Year 2022
Study Period 2021-2031
Forecast Period 2023-2031
CAGR 3.71%
Market Size USD 5.70 billion by 2031
Fastest Growing Market North America
Largest Market Asia Pacific
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
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Market Dynamics

Global Mineral Oil Market Drivers

Increasing Prevalence of Chronic Diseases

An aging population, lifestyle changes, food consumption habits, and socio-economic changes are leading to a continuous rise in expensive long-term health issues. Obesity rates and occurrences of illnesses like diabetes are rising. Due to population growth, chronic illness prevalence is anticipated to climb by 57% by 2022, as per the World Health Organization (WHO). This is expected to be greatest in developing countries, and emerging markets will be the worst affected. Eating choices and physical activity levels resulted in a surge in diet-related chronic illnesses, particularly in the US.

Additionally, dietary patterns are changing as a result of an increase in the intake of meals that are high in fat, primarily saturated fat, and low in carbs. These patterns are accompanied by a downward trend in the energy expended due to a sedentary lifestyle. The growth of sedentary lifestyles, obesity, a higher number of elderly, and lifestyle changes lead to stomach-related problems, necessitating laxatives, digestion wellness medicines, and other related OTC drugs, thereby propelling the demand for mineral oils in their formulation.

Increasing Use of Technical Oil 

Technical oil is non-acnegenic and non-comedogenic. It is non-irritating, non-invasive, and hypoallergenic. Chemically, it is inert, stable, and resistant to high temperatures. Technical mineral oils have positive effects on dry skin. In addition, these oils act as a barrier to the skin, preventing moisture loss. It works well as a skin emollient and cannot block pores because its structure is too large to permeate the skin.

Technical oil is safe for most skin types, even sensitive skin. Technical mineral oils are effective in relieving symptoms of eczema, characterized by dry, discolored, itchy, and inflamed skin. These oils are also effective in treating localized xerosis and cracked feet. Cosmetic-grade technical oil is finer and is utilized in cosmetics and skin care products. Increasing lifestyle-related diseases and skin problems are expected to boost technical oil consumption, propelling the mineral oil market.

Global Mineral Oil Market Restraint

Price Uncertainty of Mineral Oil

Crude oil, which experiences significant supply and demand fluctuation, is the source of mineral oil. Globally, crude oil prices in 2020-21 were among the most volatile. With lockdowns and travel restrictions in many areas, crude oil demand and prices fell intensely in the first months of the year. On April 21, 2021, Brent crude prices, the international standard for oil prices, fell to USD 9.12 a barrel, the lowest level since December 10, 1998. The US Energy Information Administration (EIA) forecasted Brent prices to stay around USD 60.67 per barrel in 2022 compared to USD 67.23 per barrel in February 2020. Therefore, the price uncertainty of mineral oil is expected to restrict market growth.

Global Mineral Oil Market Opportunities

Increasing Demand from the Pharmaceutical Industry

In the pharmaceutical sector, mineral oil is used for particular formulations such as bulk medications, lotions, ointments, laxatives, etc. The pharmaceutical sector saw significant upheavals in 2020. The demand for (OTC) medications, antibiotics, flu-related medications, and other items increased in the industry. Pharmaceutical businesses' main approach involves creating novel goods to satisfy various consumer demands.

Companies in this sector experienced significant revenue growth in 2020 and 2021. For instance, in 2021, Johnson & Johnson's OTC franchise sales witnessed an 8.4% increase in 2020. Similarly, the company's overall revenue jumped by 4.1% in 2021. The industry is projected to expand significantly in 2022 because of diverse consumer needs and fluctuating market demand. All the above factors are expected to drive the pharmaceutical industry, thereby increasing the demand for OTC medicines, ointments, vaccine formulations, lotions, wound care, etc. This is projected to create opportunities for the growth of the mineral oils market.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global mineral oil market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global mineral oil market shareholder and is anticipated to exhibit a CAGR of 3.98% during the forecast period. The region is the largest market for mineral oil products and has experienced significant development in recent years due to the emergence of new economies and rising per capita incomes. Several government policies and tax reductions have made Asia-Pacific a mineral oil center. It has the lowest labor costs compared to other regions, allowing many businesses to relocate their operations there in recent years. In addition, the region's countries are the major markets for personal care, mainly because of emerging economies like India, Malaysia, Thailand, Vietnam, and Indonesia. Asian countries like China, India, and Indonesia have a huge population growing exponentially. Younger people in Asia-Pacific countries are purchasing personal care and wellness products as awareness has recently increased.

Asia-Pacific also has considerable growth opportunities for the pharmaceutical sector. These countries have the highest number of manufacturers and are growing exponentially. Asia-Pacific countries ' government regulations and manufacturing infrastructure are the most suitable for pharmaceutical-grade mineral oil manufacturers due to low labor costs and taxes on manufacturing.

North America is estimated to exhibit a CAGR of 3.53% over the forecast period. North America consists of the US and Canada, developed nations and among the largest economies in the world. North American consumers are very much aware of the importance of personal care and wellness among individuals. The region is highly fragmented, and many global and regional participants are in the market. Due to high competition, the profit margins are lower, but brands and manufacturers focus on innovation and increasing the efficiency of their products to gain a larger market share.

Europe's mineral oil market registered high growth over the past five years due to growing demand, strengthening distribution channels and promotional campaigns, and consumers' surging interest in personal care and wellness. Europe has been a traditional growing market for many years. In addition, Europe has many developed countries and some developing countries, resulting in increased spending on personal care products. European nations are also seeing significant growth in consumer awareness of personal care and wellness. Innovation and technology will drive growth in the European Region. The EU has one of the most stringent regulations for manufacturing mineral oil-based products.

In Latin America, the market for mineral oils is a developing one. In recent years, consumers in Latin America have placed a greater emphasis on personal hygiene and health. Due to political stability and pharmaceutical sector investments, the market has experienced expansion in recent years. In recent years, there has been an increase in the number of healthcare facilities in Latin America and the emergence of several minor manufacturers.

Middle Eastern and African countries contributed a 4.73% market share in 2021 to the total mineral oil market. The mineral oil market in the region will be dictated by personal care and pharmaceutical development growth. Mineral oil is also widely used in cosmetics and skincare products, whereas mineral oil is used in laxatives and as an ingredient in many medicines. The growing pharmaceutical and personal care products industry will increase the consumption of mineral oil in the region.

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Segmental Analysis

The global mineral oil market is segmented by type, grade, and end-user.

Based on type, the global mineral oil market is segmented into paraffinic oil, naphthenic oil, and aromatic oil. 

The paraffinic oil segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 3.94% over the forecast period. The process of crude oil distillation yields paraffin oil. It is a colorless, odorless oil utilized in a variety of ways. Paraffin oil is mostly made up of high-boiling alkane derivatives. In addition, the density of paraffin oil is approximately 0.8 g/cm3. It is also water-insoluble and is noted for its minimal reactivity. Currently, paraffin oil and paraffin wax have a wide range of industrial and aesthetic applications. The two most common types are high-boiling liquid paraffin oil and low-boiling liquid paraffin oil.

Mineral oils with naphthenic characteristics are specialist products with desired features for certain uses, such as electrical insulating oils. Mineral oils derived from naphthenic crudes are refined or purified. Hydroprocessing is used to create naphthenic mineral oils. As per the Energy Information Administration (EIA), while naphthenic crudes account for about 5% of global crude production, naphthenic mineral oils account for roughly 10% of global base oil capacity. Naphthenic oils offer excellent low-temperature qualities, are compatible with a wide range of polymers, and have a strong solvent power.

Based on grade, the global mineral oil market is bifurcated into technical oil and white oil. 

The white oil segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 3.58% over the forecast period. Technical mineral oils are used in the plastics sector to make polymers, thermoplastic elastomers, polyolefins, and polystyrene. This is done to regulate and enhance the produced polymer's melt flow rate to change its physical features or release qualities. Food-grade technical mineral oils are used as lubricants in food-handling equipment for regulating froth in vinegar production, beet sugar, enhancing the leather tanning process, and food wrapping paper to preserve food crisp in packing.

White mineral oils comprise saturated aliphatic and alicyclic nonpolar hydrocarbons and are highly purified. They have no odor, taste, or color, are hydrophobic, and do not change color with time. The oil is widely utilized in most sectors since it is physiologically and chemically stable and does not promote the growth of hazardous germs. In addition, white mineral oils are ideal for use as a blending foundation in pharmaceutical and personal care products, but their inert character makes them valuable. In most formulations, the oils repel moisture, soften, and lubricate. Most items, such as antibiotics, sunscreens, and baby oils, employ NF and USP-grade white mineral oils.

Based on end-users, the global mineral oil market is bifurcated into personal care, food and beverages, industrial, pharmaceutical, and others. 

The pharmaceutical segment dominates the global market and is projected to exhibit a CAGR of 3.74% over the forecast period. Pharma-grade white oil is used in the pharmaceutical sector to develop new formulations. White mineral oil pharma grade is an important raw ingredient in the pharmaceutical, cosmetic, and food industries. During the cultivation of oocytes and embryos in IVF and similar procedures, high-purity mineral oil is frequently employed as an overlay covering micro drops of culture media in Petri plates.

In addition, oil has various advantages over an open culture system, including the ability to culture multiple oocytes and embryos simultaneously, the reduction of concentration and pH fluctuations due to the prevention of medium evaporation, and the ability to use significantly less medium overall. As a temperature buffer, it protects the cells from thermal shock while the dish is removed from the incubator for observation.

Food-grade mineral oils are permitted for accidental contact with foods and beverages under FDA standards. In any food, these products should not exceed ten parts per million. The Dietary Supplementary Health and Education Act of 1994 mandates that food-grade goods, including mineral oil, be safe and that producers, not the FDA, are responsible for product safety. In baby oil, food-grade mineral oil with a fragrance enhancer is employed. Foam suppressants, corrosion inhibitors, and anti-wear agents are all included in food-grade mineral oil lubricants, which must also meet USP standards for contact with food.

Top Key Players of Mineral Oil Market

  1. Mobil Corporation
  2. British Petroleum
  3. Shell
  4. Sinopec
  5. Clariant
  6. Petro-Canada Lubricants
  7. BASF
  8. Dow
  9. Eastman
  10. JXTG Nippon Oil & Energy Corporation
  11. Eni Fuchs
  12. Addinol

Recent Developments

  • March 2023- Uno Minda, a Tier 1 supplier of automotive solutions to original equipment manufacturers (OEMs), introduced BS VI-compliant engine lubricants for two-wheelers in the aftermarket. Launched under three distinct grades: mineral, semi-synthetic, and wholly synthetic, these oils feature a high viscosity that provides superior engine wear protection and reduces maintenance costs, according to the manufacturer.

Mineral Oil Market Segmentations

By Type

  • Paraffinic Oil
  • Naphthenic Oil
  • Aromatic Oil

By Grade

  • Technical Oil
  • White Oil

By End-User

  • Personal Care
  • Food and Beverages
  • Industrial
  • Pharmaceutical
  • Other

By Regions

  • North America
  • Europe
  • APAC
  • Middle East and Africa

Frequently Asked Questions (FAQs)

How big is the mineral oil market?
The global mineral oil market size was valued at USD 4.11 billion in 2022. It is estimated to reach USD 5.70 billion by 2031, growing at a CAGR of 3.71% during the forecast period (2023–2031).
North America has the highest growth in the global market.
Key verticals adopting the market include: Mobil Corporation, British Petroleum, Shell, Sinopec, Clariant, Petro-Canada Lubricants, BASF, Dow, Eastman, JXTG Nippon Oil & Energy Corporation, Eni Fuchs, Addinol,
Increasing prevalence of chronic diseases and increasing use of technical are the key driver for the growth of the global market.
Increasing demand from the pharmaceutical industry is one of the upcoming key trends in the global market.

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