Bio-Lubricants Market Report 2026

The bio-lubricants market size has grown strongly in recent years. It will grow from $3.21 billion in 2025 to $3.41 billion in 2026 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to rising environmental regulations on petroleum lubricants, increasing use of vegetable oil derivatives, expansion of industrial machinery usage, growing awareness of eco-friendly lubricants, availability of renewable feedstocks.

The bio-lubricants market size is expected to see strong growth in the next few years. It will grow to $4.34 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to increasing adoption of bio-lubricants in electric vehicles, rising focus on carbon-neutral industrial operations, expansion of sustainable manufacturing practices, growing investments in bio-refining technologies, increasing demand for high-performance green lubricants. Major trends in the forecast period include increasing adoption of bio-based industrial lubricants, rising demand for environmentally friendly hydraulic oils, growing use of ester-based lubricants, expansion of bio-lubricants in automotive applications, enhanced focus on biodegradability and toxicity reduction.

Rising environmental awareness is anticipated to drive the growth of the bio-lubricants market in the coming years. Environmental awareness refers to an understanding of the natural environment and the decisions that either support its protection or contribute to environmental harm. This awareness supports the expansion of the bio-lubricants market due to the products’ high viscosity index and flash point, strong resistance to shear, and high level of biodegradability. For example, in April 2024, according to the Department for Environment, Food, and Rural Affairs, a UK-based government body responsible for environmental protection and improvement, urban background ozone (O₃) concentrations reached 66.8 µg/m³ in 2023, reflecting a 3% increase compared with 2022. As a result, growing environmental awareness is contributing to the expansion of the bio-lubricants market.

Key companies operating in the bio-lubricants market are emphasizing the development of innovative solutions, such as high-performance specialty bio-lubricants, to address the increasing demand for environmentally friendly lubrication products that perform effectively under extreme operating conditions. Bio-lubricants produced from renewable or biodegradable base materials offer lower environmental impact and enhanced safety compared with conventional petroleum-based lubricants, while also delivering durability and efficiency advantages for industrial use. For instance, in January 2023, Kluber Lubrication, a US-based chemical manufacturing company, introduced specialty lubricants for the oil and gas industry that are capable of withstanding severe environmental conditions, including saltwater, rain, wind, and extreme temperatures. These characteristics result in reduced lubricant consumption, minimized downtime related to maintenance and repairs, and extended component lifespan. These lubricants are distinctive and were developed following extensive research and development activities in India.

In September 2024, BioBlend Renewable Resources, a company based in the U.S., acquired Environmental Lubricant Manufacturing (ELM) for an undisclosed amount. This acquisition aims to strengthen BioBlend Renewable Resources' manufacturing capabilities, expand its product offerings, and accelerate growth in the sustainable lubricants market. Environmental Lubricant Manufacturing (ELM) is also a U.S.-based company that specializes in producing biodegradable and biobased lubricants and greases derived from renewable resources, primarily soybean oil.

Major companies operating in the bio-lubricants market are Binol Biolubricants Ltd., Cargill Corporation, Klüber Lubrication München SE & Co. KG, TotalEnergies SE, Castrol India Ltd., Millers Oils Ltd., Petronas Lubricant International, Renewable Lubricants Inc., Solution Biogen Sdn Bhd, Fuchs Petrolub AG, Panolin AG, Emery Oleochemicals, Biosynthetic Technologies LLC, RSC Bio Solutions, Green Earth Technologies LLC, BioBlend Renewable Resources LLC, Bio‑Lub Canada Inc., Bio‑Lubricants Inc., Biofriendly Corporation, BioPure Technology Ltd., Carl Bechem GmbH, Croda International plc.

North America was the largest region in the bio-lubricants market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bio-lubricants market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the bio-lubricants market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The biolubricant market consists of sales of vegetable oils, animal products, esters. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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