White Oil Market

White Oil Market Outlook from 2024 to 2034

The global white oil market is estimated to reach a valuation of US$ 1,983.1 million in 2024. The market is expected to register a consistent CAGR of 3.8% from 2024 to 2034. By the end of the forecast period, the market size is expected to have reached US$ 2,879.5 million.

Key Market Growth Drivers

Cosmetics is one such industry that is making extensive use of white oil in the formulation of products. As personal care and beauty trends continue to rise among people, the cosmetics industry is seeing rapid progress, which also benefits the white oil market.

The demand for white oil is accelerating due to various industries using the product. Food & beverage is another industry whose growth the white oil market is tagging along with. White oil is used in the production of various food products such as candy, beef jerky, and smoked fish. As the population increases, the demand for food is only getting vaster. Thus, white oil is seeing increasing application in the food & beverage industry.

Apart from the cosmetics and food & beverage industries, several other industries are propagating market growth. White oil is being used in pharmaceuticals, automobiles, textiles, and other products. The gears of industrial production are shifting towards oil-based processing instead of polymer-based processing, fueling the market for white oil.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 1,983.1 million
Forecasted Market Value (2034F)	US$ 2,879.5 million
Global Market Growth Rate (2024 to 2034)	3.8% CAGR
Naphthenic Segment Growth Rate (2024 to 2034)	3.4%
North America Market Share (2024)	28.6%
East Asia Market Share (2024)	36.5%
Key Companies Profiled	British Petroleum Renkert Oil, Inc. ExxonMobil Corporation JX Nippon Oil & Energy Corporation Nynas AB Petro-Canada Royal-Dutch Shell N.V. Sinopec Corporation

Which Factors Have Driven the Global Surge in White Oil Demand?

“Demand for Non-toxic Ingredients in Cosmetics and Beauty Products Helping the Growth of the White Oil Market”

White oil is recognized for its non-toxic nature. With the inclination of consumers of cosmetic products shifting from artificial and chemical ingredients to natural and organic ones, the use of mineral ingredients is increasing. White oil is one such mineral product, being derived from mineral oil, which is finding increasing usage in cosmetics and beauty products.

Beauty products such as lip balms, lotions, and detergent creams are using white oil. The usage of the oil in the cosmetic industry is varied, too, as products as diverse as those used for diaper rash and eczema irritation are making use of it. Thus, the non-toxic nature of the product is making white oil a hit in the cosmetic industry.

“Colorless and Odorless Feature of White Oil Makes it Ideal for Use in the Food & Processing Industry”

White oil is refined to be a colorless and odorless substance, which is seeing it earn the confidence of manufacturers in the food & beverage industry. White oil does not considerably alter the taste of the food either, and combined with the stability provided by the product, the use of it in food production is increasing.

Which Factors Present Challenges to the Expansion of the White Oil Market?

“Volatility in Raw Materials Prices, Conflicts in Oil-producing Regions and the Availability of Alternatives are Slowing Down the Growth of the Market”

The raw materials used for the production of white oil are often hard to come by, and their prices have the potential to be extremely volatile. Geopolitical conflicts in petroleum-supplying regions are one of the key factors hampering the acquisition of raw materials for white oil production. Thus, the sporadic unavailability of raw materials, combined with their often pricey nature, limits the growth of the market.

There are alternatives to white oil available. For example, in industrial processing, polymers are an alternative to oil usage, while in the food & beverage industry, vegetable oils are used instead of white oils despite their unstable and smelly nature. Thus, the presence of alternatives is hampering the growth of the white oil industry.

Country-wise Insights

North America holds a significant share of the market and is set to continue to be a lucrative region for the sales of white oil. For 2024, the value of the market in North America is estimated to be US$ 567.2 million, for a market share of 28.6%. The market is expected to progress at a solid rate in North America from 2024 to 2034, with a CAGR of 4.0%. By 2034, it is projected that the industry value for North America is likely to cross US$ 837.9 million, with an industry share of 29.1%.

The white oil market is expected to progress at a faster pace in East Asia than in North America. For 2024, the industry share for East Asia is estimated to be 36.5%, with a market value of US$ 723.8 million. The market is expected to register a normal CAGR of 4.3% over the forecast period in the region. By 2034, the market value in East Asia is anticipated to have shot up to US$ 1,105.7 million, with an increased share of 38.4%.

What Makes South Korea Such a Promising Country for the White Oil Market?

“Ramping Up of Oil Refining is Helping the Production of White Oil in South Korea”

South Korea is set to be one of the promising countries for the white oil industry. While the 2024 market value for South Korea is estimated to be US$ 85.4 million, the market is projected to rise at a promising CAGR of 6.1% over the forecast period. By 2034, the value of the market is forecast to rise to US$ 153.7 million.

South Korea is witnessing enhanced amounts of white oil production due to the expansion of the oil refining industry in the country. Oil refining levels have reached such a quantity in South Korea that considerable amounts of refined oil are being exported to countries like Japan and the United States. Thus, the use of white oil in various industries in South Korea is helped by the prominent production of the material.

Why is China Emerging as a Lucrative Country for the White Oil Market?

“Humungous Size of the Textile Industry in Addition to Demand for Non-Toxic Products is Driving the Market in China”

China is another lucrative Asian country for the white oil industry. The 2024 market valuation for the country is anticipated to be US$ 411.9 million. From 2024 to 2034, the market is expected to progress at a modest rate in China, with a CAGR of 4.4%. By 2034, the market valuation is expected to reach US$ 633.6 million.

China is claimed to be the leading textile-producing and textile-exporting country in the world. With the considerable size of the textile industry in China, there is an ever-increasing scope for white oil in the country. The Chinese consumers’ clamor for non-toxic substances in cosmetics and food is also paving the way for the progress of the market in China.

Category-wise Insights

Naphthenic white oil is among the common types of products in the market, with an expected market share of 44.8% in 2024. The second popular product type is heavy paraffinic, which is expected to account for 31.5% of the share in 2024.

Why is Naphthenic White Oil the Common Product Type in the Market?

“Use of Naphthenic Oil in the Production of Plastics is Helping the Product Dominate the Product Type Segment”

Naphthenic oil leads the product type segment, with an anticipated share of 44.8% in 2024. The product is expected to register a CAGR of 3.4% over the forecast period, and by 2034, the share of naphthenic in the product type segment is expected to be 42.9%.

Plastic is still the go-to material for a considerable amount of industrial production. As such, materials used in the production of plastic have high amounts of demand. Naphthenic white oil is one such product that is used in the making of plastic and resins and is enjoying considerable demand. However, both light paraffinic and heavy paraffinic oil’s growth in the forecast period is set to eclipse the growth of naphthenic. The former is set to progress at a CAGR of 4.3%, while the latter’s CAGR is pegged to be 3.9%. In 2034, the share of light paraffinic and high paraffinic is forecast to be 24.3% and 32.8%, respectively.

Competitive Landscape

The white oil market is competitive, with room to grow for both multinational companies and smaller players. Many market players are focusing on collaborations with companies in the industries that use white oil, such as textiles and pharmaceuticals.

Some leading market players are also focused on acquisitions to have a more integrated value chain. Some of the key companies in the market include British Petroleum, Renkert Oil, Inc., ExxonMobil Corporation, JX Nippon Oil & Energy Corporation, Nynas AB, Petro-Canada, Royal-Dutch Shell N.V., and Sinopec Corporation.

Recent developments in the market:

• In May 2023, Hemisphere Ltd. LLC acquired bulk-fuel distributor White Oil Co., further cementing its position in the market.
• In April 2022, Indorama Ventures Public Company Limited (IVL) announced it had completed the acquisition of Oxiteno SA. Through the acquisition, Indorama aims to penetrate further into the United States and Latin America.

Segmentation of White Oil Market Research

• By Product Type:

  • Light Paraffinic
  • Heavy Paraffinic
  • Naphthenic

• By Grade:

  • Pharmaceutical
  • Industrial

• By Application:

  • Pharmaceutical
  • Personal Care and Cosmetics
  • Polymers
  • Textiles
  • Adhesives
  • Food and Beverages
  • Others

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • The Middle East & Africa