Process Oil Global Market Report 2024

Process oils are specialized oils derived from petroleum, serving as carriers for other products and finding application as a component in various industries.

The primary types of process oils include naphthenic, paraffinic, non-carcinogenic, and aromatic. Paraffinic denotes a waxy crystalline flammable substance obtained from distillates of wood, coal, petroleum, or shale oil. It is a complex mixture of hydrocarbons and is utilized primarily in coating and sealing, candles, rubber compounding, as well as in pharmaceuticals and cosmetics. These oils serve various functions such as extender oil, plasticizer, solvent, defoamer, among others, and find applications in rubber processing, adhesives and sealants, consumer products, paints and coatings, pharmaceuticals, polymers, and various other industrial applications.

The process oil market research report is one of a series of new reports that provides process oil market statistics, including process oil industry global market size, regional shares, competitors with a process oil market share, detailed process oil market segments, market trends and opportunities, and any further data you may need to thrive in the process oil industry. This process oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The process oil market size has grown strongly in recent years. It will grow from $5.2 billion in 2023 to $5.5 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth observed in the historical period can be attributed to industrial expansion, the automotive sector's development, a surge in construction activities, and the effects of globalization.

The process oil market size is expected to see strong growth in the next few years. It will grow to $6.81 billion in 2028 at a compound annual growth rate (CAGR) of 5.5%. The anticipated growth in the forecast period can be attributed to the rise of emerging economies, the influence of environmental regulations, ongoing innovations in the automotive industry, and increased activity in construction and infrastructure projects. Significant trends in the forecast period encompass technological advancements, a shift towards bio-based process oils, and a heightened emphasis on specialty process oils.

The anticipated growth in the automotive industry is poised to drive the expansion of the process oil market in the future. The automotive industry, responsible for the creation, production, and sale of automobiles, extensively utilizes process oils in the manufacturing of various components such as tires, tread rubber, conveyor belts, automotive parts, and floor mats. For example, the European Automobile Manufacturers Association (ACEA) reported that in 2021, the global production of motor vehicles reached 79.1 million units, reflecting a 1.3% increase from the previous year. Consequently, the progression of the automotive industry is a significant catalyst for the growth of the process oil market.

The rising demand for personal care products is expected to be a driving force behind the growth of the process oil market in the coming years. Personal care products encompass a diverse range of items used for personal hygiene, grooming, and overall well-being. Process oils play a crucial role in skincare products, such as lotions, creams, and moisturizers, contributing to skin softening and hydration. McKinsey & Company reported in May 2023 that the beauty market in the United States generated approximately $430 billion in revenue in 2022, with a projected annual growth rate of 8% for the premium beauty tier between 2022 and 2027. This escalating demand for personal care products is expected to fuel the growth of the process oil market.

Major companies in the process oil industry are introducing innovative products, including alternatives like Palmless, a palm oil substitute. For instance, in November 2022, C16 Biosciences, a US-based startup specializing in innovative fermentation processes for oil and fat production, developed a palm oil alternative using a fermentation process based on food waste. The alternative, branded as Palmless, contains as many fatty acids as its plant-derived counterpart and is initially being launched in the beauty sector.

Strategic partnerships are a key focus for major companies in the process oil market to expand their market reach and capitalize on business opportunities. In August 2022, Cross Oil Refining & Marketing Inc., an American oil refinery, and Process Oils Inc., a US-based supplier of process oils and base oils, entered into a strategic marketing agreement. This collaboration involves Process Oils taking on the responsibility of selling Cross Oil's product range, enhancing customer benefits such as cost savings on shipping, a wider product selection, and a reliable supply chain. Additionally, it facilitates Cross's outreach to new customers, providing access to technical expertise, resources, and an extended logistics network.

In December 2021, Slicker Recycling Ltd., a UK-based oil collection and recycling company, acquired Hydrodec for an undisclosed amount. This acquisition positions Slicker as a leading player in oil recycling in Europe, aligning with its commitment to environmentally responsible practices. Hydrodec, a US-based company in the process oil sector, is part of this strategic move by Slicker Recycling Ltd.

Major companies operating in the in the process oil market report are Shell plc, Exxon Mobil Corporation, TotalEnergies SE, Indian Oil Corporation Limited, National Petroleum Limited(PETRONAS), Repsol S. A, Hindustan Petroleum Corporation Limited, Idemitsu Kosan Co. Ltd., Orlen Unipetrol, Panama Petrochem Ltd., Nynas AB, H&R GROUP, Apar Industries Ltd., Gandhar Group, HF Sinclair Corporation, CPC Corporation (Taiwan Chinese Prtroleum Co. ), Chevron Corporation, Ergon Inc., HollyFrontier Refining & Marketing Co., PJSC Gazprom, Saudi Aramco, Devon Energy Corporation, Calumet Specialty Products Partners L. P., The Phillips 66 Company, Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited, PJSC Rosneft Oil Company, JX Nippon Oil & Energy, PT Pertamina, Thai Oil Public Company Limited

Asia-Pacific was the largest region in the process oil market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the process oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the process oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The process oil market consists of sales of finished lubricants, greases, thermal oils, hydraulic fluid, metal working fluids. 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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