White oil refers to highly refined mineral oils that are colorless, odorless and tasteless. It find various applications across industries such as pharmaceuticals, cosmetics, food processing, and others. White oils are preferred in the pharmaceutical industry where highest grade of purity and clarity is required. It is used as a lubricant and release agent in the production of tablets and capsules. In the cosmetic industry, white oils form the base for various lotions, creams and ointments. They provide hydration and protect the skin. Growth in population and rising disposable income has boosted the demand for personal care products which in turn is driving the white oil market.
The global white oil market is estimated to be valued at US$ 3.7 billion in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
White oil finds widespread application as a solvent in coatings, printing inks, rubber, polymers, textiles and many other industries. It is used as a thinning agent owing to its non-toxic nature. Expansion of end use industries such as construction, automotive and machinery is fueling the demand for industrial raw materials including white oil. Emerging economies are witnessing rapid industrialization which is boosting white oil consumption in these regions. Key market players are focusing on capacity expansion to cater to the rising needs of industrial raw material applications.
Porter’s Analysis
Threat of new entrants: The white oil market has moderate threat from new entrants due to established customers of existing brands and requirement of huge investment for setting up production units.
Bargaining power of buyers: Buyers have low to moderate bargaining power in the white oil market due to availability of substitutes. However, established buyers can negotiate on price with major suppliers.
Bargaining power of suppliers: A few large multinational companies dominate the supply market, giving them strong bargaining power over buyers. Suppliers can influence prices due to inelastic demand for white oil.
Threat of new substitutes: Threat from substitutes is moderate as white oil has applications across diverse industries. However, new green alternatives can pose threat in long run.
Competitive rivalry: The market is competitive with major players competing on basis of product differentiation, pricing and quality.
SWOT Analysis
Strength: Wide applications in personal care, pharmaceuticals, polymer etc. Allows production of value-added derivatives. Established supply chain provides advantage.
Weakness: Vulnerable to regulations on refining. Thin margins due to commoditized nature and intense competition. Dependence on crude oil prices.
Opportunity: Rising demand from emerging economies offer scope for expansion. Innovations in derivatives can boost growth.
Threats: Strict environmental laws can increase cost of compliance. Substitution risk from natural and bio-based alternatives.
Key Takeaways
The global white oil market is expected to witness high growth over the forecast period of 2023 to 2028. The growing personal care and pharmaceutical industries are projecting high demand for white oil.
Regional analysis: Asia Pacific dominates the global white oil market and is expected to maintain its lead over the forecast period. This is attributed to growing economies like India and China which are driving demand from personal care and pharmaceutical industries in the region. North America is also growing at a steady pace backed by well-established end-use industries.
Key players: Key players operating in the white oil market are ExxonMobil Corporation, Sinopec Corporation, Petro-Canada, Sonneborn LLC, Renkert Oil LLC, Sasol, Seojin Chemical Co. Ltd., Petrochina, JX Nippon Oil & Energy, and Royal Dutch Shell plc. ExxonMobil Corporation leads the market with established supply chain and wide application portfolio.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it