White oil market: An overview of the application spectrum impacting the industry growth
Published Date: June 22, 2017 Author: Satarupa De
The white oil market is critically important to the global economy, subject to its enormous contribution toward the GDP of the emerging and developed economies across the world. This can be credited to the incredibly diverse application landscape of this market. This product is an indispensable part of the domestic scenario and finds widespread usage in day-to-day applications. Commonly called mineral oil, white oil falls under the category of highly refined oils and is made from naphthenic and paraffinic base hydrocarbons. Owing to their ubiquity and versatility, these colorless, odorless minerals are extensively deployed in diversified domains - from food processing to plastics and cosmetics to pharmaceuticals, where highly refined products are in demand. Earlier, manufacturing these oils was limited to paraffinic Group I, however, technological advancements over the past few years have significantly increased its production from paraffinic Group II and Group III hydrocarbons. Though white oil market demand is expected to grow at a fairly a steady pace in the developed nations, an appreciable upswing will be witnessed in the developing economies, especially the Asia Pacific belt.
Asia Pacific has always been at the forefront of the regional landscape of the White oil market, subject to its massive product demand. In fact, as per estimates, APAC accounted for almost 60% of the overall consumption in 2015. Rapid scale of industrialization and urbanization in China, India, and Taiwan is escalating the commercialization of the regional market via end use applications. Concurrently, favorable regulatory mandates coupled with flexible taxation laws initiated in this belt, particularly in India have significantly captivated the interest of many investors in the region. In this transformative scenario, another profound factor influencing the APAC white oil market dynamics is the remarkable reshaping of the regional pharmaceutical industry over the past few years. Pharma Vision 2020 in India, for instance, is likely to step up the growth trajectory of the market.
A white oil market analysis report put together by Global Market Insights, Inc., states that from a valuation of USD 1.1 billion in 2015, the industry will record a revenue over USD 2 billion by 2024, with a CAGR expectation of more than 4% over 2016-2024. Worldwide, the industry is highly fragmented with impressive valuation in terms of volume in U.S., China, and India, given the presence of an extensive number of key players in these topographies. Despite the fact that the industry has already gained significant popularity, it is currently facing a period of flux. Volatile crude oil price trends and economic uncertainty are the two major crucial aspects that can negatively impact white oil market price trends. However, intensive research and rising consumer spending on durable, high-quality products are expected to keep the market afloat. Not surprisingly, the unprecedented pace of innovation in the business model will scale up new opportunities for the white oil market players in the coming time frame.
Below is the in-depth analysis of application landscape pertaining to the global white oil market:
White oil market trends in Personal care and cosmetics sector
The personal care and cosmetics sector, has, in the recent years, emerged as one of the dominating segments thriving the overall industry share, subject to the increasing usage of white oil in cleansers, moisturizers, creams, and lotions. Today, the cosmetics industry is facing challenges with issues related to product’s consistency, purity, and longevity, to which white oil provides an ideal solution. Excellent skin compatibility, low allergens & irritants, and bacteria barrier are some of the prime characteristics of white oil that will boost the industry demand from the personal care sector. Statistics depict that white oil market size from personal care and cosmetics applications will grow at an annual rate of 2.5% over the coming seven years. In the ensuing years, increasing proliferation of the product in bath oil, baby oil, massage oil, and related products is expected to boost the profit margin of white oil industry.
White oil market trends in Pharmaceutical sector
Constant technological developments have already brought about a diversification in the product portfolio. Currently, technological advancements have significantly helped white oil market to stay abreast with the changing pharmaceutical industry dynamics. With a projected CAGR of 2.8% over 2016-2024, pharmaceutical sector is another niche segment which is actively partaking in white oil market. A large consumption of white oil is being observed in the manufacturing of ointments, laxatives, emollients, and several excipients. Asia Pacific white oil market is also expected to exhibit an extensive development from this application sector, subject to the increasing prevalence of diseases in the region.
White oil market trends in Plastic & polymer sector
Post the approval by the PPI (Plastic Pipe Institute) and the National Sanitation Foundation, the market demand has observed a considerable surge in the plastic and polymer sector. White oils are widely used in the processing of polymers which include polyolefin, polyolefin, and thermoplastic elastomers. Dominating the industry share with a revenue contribution of USD 450 million in 2015, the penetration of white oil market in the plastic and polymer sector is likely to widen over the coming years.
White oil market trends in Food and Beverage sector
The overall white oil market share from the food & beverages segment is forecast to project a lucrative growth chart over the years ahead. Exemplified by the product’s extensive usage in food packaging materials, sugar refining, release agents, and wrapping papers, food and beverage application will continue to grow and will positively favor the growth prospects of white oil market.
Does white oil market fall under regulatory compliance?
Subject to the huge application horizon of the market, it would be prudent to check the credibility of these mineral oils related to safety standards. Since white oil was first produced in U.S. at the onset of World War I in 1914, FDA applies the following code of federal regulations to white oil:
• 21 CFR 172.878, is applied to white oil application subject to direct food contact
• 21 CFR 178.3620, is applied to white oil application subject to indirect food contact
• 21 CFR 573.680, is applied to white oil application subject to animal feed
The importance of white oil has been identified globally and efforts are continuously being taken by white oil market players to improve the product portfolio. The industry has already established a strong foothold across North America, MEA, and Asia Pacific. With its application array slated to experience a wide expansion, white oil market undoubtedly will chalk out an even more profitable road map in the years ahead.
Global Market Insights, Inc. has a report titled “White Oil Market Size By Application (Plastic & Polymer, Pharmaceuticals, Personal Care & Cosmetics, Food Industry, Textile), Industry Analysis Report, Regional Outlook (U.S, Canada, Germany, UK, France, Russia, China, India, Taiwan, South Korea, Brazil, Saudi Arabia, UAE, South Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024” available at https://www.gminsights.com/industry-analysis/white-oil-market