Europe White Oil Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the Europe White Oil Market is expected to grow with a CAGR of 2.9% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 376.9 million. By 2032, the valuation is anticipated to reach USD 495.3 million.

The Europe white oil market includes production, distribution, and sale. White oil is a highly refined mineral oil used in various applications such as plastics & polymers, pharmaceuticals, personal care & cosmetics, the food industry, and others. This oil is a colourless, doorless, and tasteless liquid derived from petroleum.

The white oil market is characterized by a diverse range of players, including manufacturers, distributors, and retailers. Europe white oil finds extensive use in industries such as cosmetics, pharmaceuticals, personal care, and food processing.

Increasing demand from end-user industries, technological advancements in production processes, product innovation, and sustainability initiatives such factors surge the market demand for white oil in Europe. Moreover, competition among companies is fuelled by differentiation in product quality, design, and distribution channels.

Europe White Oil Market – Significant Growth Factors

The Europe white oil market presents significant growth opportunities due to several factors:

• Product Innovation: Continuous product innovation, which includes the development of specialized grades of white oil for specific application needs drives the market growth of the Europe white oil market. Additionally, manufacturers invest in research and development to enhance properties, such as improved stability, viscosity, and compatibility with various formulations, to improve the performance and quality of white oil to evolving customer requirements.

• Emerging Applications: Apart from traditional industrial use, white oil is being utilized in areas such as food processing, agriculture, and textile manufacturing. The exploration of these emerging applications drives the market growth of Europe white oil.

• Regulatory Compliance: Regulatorys like EMA and ECHA have imposed strict regulations and standards over the production of white oil, compliance with these regulations ensures product safety and quality, creating a demand for white oil suppliers who can meet the required standards such factors surge the market demand for the Europe white oil market.

• Growing Disposable Income: The rise in disposable income among consumers in Europe enables higher spending on premium personal care and cosmetic products that incorporate white oil. This increased purchasing power boosts the demand for white oil in the region.

• Sustainability Initiatives: A growing focus on sustainability and environmental consciousness has led to increased demand for eco-friendly products. White oil manufacturers are adopting sustainable practices, such as using renewable feedstocks or incorporating recycled materials, to meet the demand for environmentally friendly alternatives.

Europe White Oil Market – Mergers and Acquisitions

The Europe white oil market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Europe white oil market include:

• Sonneborn Refined Products B.V.: In 2017, Sonneborn acquired Nynas’ white oils business, expanding its product portfolio and customer reach. Sonneborn has made several acquisitions to strengthen its position in the white oil market.

• Sasol Germany GmbH: In 2018, Sasol completed the acquisition of the white oils business of Canada, a subsidiary of RWE, consolidating its market position in Europe. Sasol has engaged in mergers and acquisitions to enhance its presence in the white oil market.

• Nynas AB: In 2019, Nynas formed a joint venture with Petronas to enhance its global footprint in the white oils market. Nynas has been involved in strategic partnerships and mergers to expand its market presence.

• TotalEnergies SE: In 2016, the company acquired Fina Antwerp Olefins NV, which included a white oils production unit, enabling TotalEnergies to enhance its offerings in the European market. TotalEnergies has pursued acquisitions to strengthen its position in the white oil market.

• H&R Group: In 2015, the company acquired Petrochem Carless, a leading supplier of white oils, gaining access to new customer segments. H&R Group has been active in mergers and acquisitions to expand its product portfolio and market reach.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Europe white oil market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Europe White Oil Market – Significant Threats

The Europe white oil market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Volatile Crude Oil Prices: Europe white oil market is influenced by fluctuations in crude oil prices. As white oil is derived from petroleum, price variation in crude oil prices impacts the manufacturing costs of white oil, leading to potential price fluctuations and affecting profit margins.

• Environmental Concerns: White oil manufacturers face pressure to adopt sustainable practices due to increasing concern about environmental sustainability and reducing the carbon footprint across industries. Reducing emissions, and exploring alternative feedstocks require significant investments which impact profitability.

• Substitution Threats: White oil faces substitution threats from alternative products or materials that may offer similar properties or performance characteristics. Manufacturers need to continuously innovate and differentiate their products to stay ahead of potential substitutes.

• Economic fluctuations: Economic fluctuations, such as recessions or downturns, can impact the Europe white oil market. During these periods, consumers may have less disposable income to spend on home decor, which can reduce demand for Europe white oil.

• Impact of COVID-19: The COVID-19 pandemic has had a significant impact on the Europe white oil market, with disruptions in supply chains, reduced consumer spending, and changes in consumer preferences. The long-term impact of the pandemic on the Europe white oil market is still unclear. Overall, the Europe white oil market faces several significant threats that could impact its growth and profitability. Companies that can adapt to changing consumer preferences, manage raw material costs, and respond to economic and market fluctuations are likely to be more successful in the long term.

Report Scope

Category-Wise Insights

By Grade:

• Food: In food-grade white oil is a highly refined and purified mineral oil that is colourless, odourless, and tasteless, which ensures the oil doesn’t impart any unwanted characteristics to food products. There is an increasing demand for food-grade white oil in the food industry. Food manufacturers and consumers attach the greatest importance to the use of quality and safe ingredients by making white oils specially designed for food use. This trend is driving companies to invest in research and development to comply with food safety regulations and sustainable practices.

• Pharmaceuticals: In Europe white oil market, pharmaceuticals include drugs and medicinal products used for the treatment, or management of diseases and any medical conditions. In the Europe white oil market, there is a growing demand for incorporating white oil in pharmaceutical formulations due to its desirable properties such as lubrication, purity, and stability. White oil is used in various pharmaceutical products, including creams, ointments, lotions, and oral medications, which surges the market demand for white oil in the pharmaceuticals segment.

• Technical: In technical grade, white oil refers to a highly refined mineral oil used for its performance and purity characteristics. In the Europe white oil market, there is a growing demand for white oil in technical sectors which includes lubricants, coatings, adhesives, and polymers. White oil’s low volatility, high stability, and excellent lubrication properties make it a sought-after ingredient, contributing to its increasing adoption and market growth in technical applications across Europe.

By Application:

• Plastics & Polymer: In the Europe white oil market, there is a notable trend of using white oil as a crucial additive and processing aid in the production of plastics and polymers. White oil enhances the flow properties, lubrication, and stability of polymer formulations, resulting in improved processability, mould release, and end-product quality. This trend showcases the importance of white oil in optimizing the performance and processing efficiency of plastics and polymers in the European market.

• Pharmaceuticals: The pharmaceutical segment refers to the use of white oil in the formation and manufacture of pharmaceutical products and medicinal preparations. White oil is widely used in medicine, such as creams, lotions, creams, and oral medications. Europe labelling trends for white oils show that white oils are preferred because of their purity, stability, and compatibility with chemical components.

• Personal Care and Cosmetics: White oil is a versatile ingredient in personal care and cosmetics, appearing in a variety of products such as lotions, face creams, moisturizers, sunscreens, lip balms, and lotions. It acts as a lubricant, emollient, and humectant to soften, moisturize, and protect the skin. Due to its high purity, non-comedogenicity, and compatibility with many models, white oil is increasingly being used in personal care and cosmetics in the Europe white oil market. It offers benefits like improved texture, enhanced product stability, and a non-greasy feel, driving its increasing popularity and market demand in the region.

• Food Industry: In the food industry, white oil is utilized as a food-grade lubricant and release agent. It serves various purposes such as preventing food products from sticking to equipment during processing, enhancing the flow of ingredients, and providing a protective barrier. Moreover, there is a trend in increasing focus on food quality, hygiene, and the need for efficient production processes in the European food industry, which surge the market demand for white oil in food processing and packaging due to its purity, odor-lessness, and compliance with food safety regulations.

• Others: The other segment includes textiles, agriculture, and pest control. Textiles represent an application where white oil is used as a lubricant for yarn and fiber processing for improving smoothness and efficiency. In agriculture and pest control, white oil is employed as a horticultural spray oil for pest management, suffocating, and controlling insects. The trend in Europe showcases increased adoption of white oil in textiles for enhanced processing, as well as in agriculture for sustainable and eco-friendly pest control solutions.

Europe White Oil Market – Country Analysis

The Europe white oil market is segmented into various countries, including Germany, France, U.K., Italy, Spain, and the Rest of Europe. Here is a brief overview of each country:

• Germany: The Germany white oil market is experiencing steady growth, driven by increasing demand from vast industries such as pharmaceuticals, cosmetics, and food processing. The market is shifting towards eco-friendly and sustainable white oil products to align with environmental regulations and consumer preferences.

• France: The white oil market in France is witnessing a surge in demand, fuelled by the cosmetics and personal care industry. In France, growing preference towards natural and organic white oil products, with sustainability and environmentally friendly alternatives surges the market demand in the country. One of the major white oil players operating in France is TotalEnergies.

• U.K.: The U.K. white oil market is witnessing a surge in demand due to an increase in the number of manufacturers entering the market. An increase in the use of white oil in the automotive, textiles, and plastics, industries boosts the market growth in the country.

• Italy: Major manufacturers in the country are focusing on product innovation, expanding their distribution networks, and adopting sustainable practices to capture market share and meet consumer preferences for environmentally friendly products.

• Spain: Repsol is a leading energy company and has made significant innovations in its white oil products by introducing eco-friendly formulations that comply with environmental regulations and meet consumer preferences for sustainable products. This innovation has helped Repsol capture a larger share of the market and meet the growing demand in the country.

Competitive Landscape – Europe White Oil Market

The Europe white oil market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• Sonneborn Refined Products B.V.
• Sasol Germany GmbH
• Nynas AB
• H&R Group
• Repsol Chemicals
• TotalEnergies SE
• Afton Chemical Limited
• AB Petrochem Pvt. Ltd.
• Renkert Oil Inc.
• Gulf Oil Corporation Ltd.
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships. For example, in 2018, Sonneborn Refined Products B.V. was acquired by H&R Group. Sonneborn Refined Products B.V. is a leading manufacturer of white oils, while H&R Group is a prominent player in the specialty chemicals industry.

This helps H&R Group to expand its product portfolio and strengthen its position in the Europe white oil market. The merger brought together the expertise and resources of both companies, enabling them to better serve the evolving needs of customers in the Europe market.

The market is also witnessing the entry of several new players, through innovative product offerings and market strategies. For example, a startup called EcoLube is introducing a biodegradable white oil made from plant-based materials, appealing to environmentally conscious consumers.

Meanwhile, established players like Shell are investing in research and development to enhance their product performance and expand their market share. They are introducing advanced formulations with improved lubricity and extended service intervals, such as Shell Helix Ultra ECT C2/C3 motor oil, to maintain their dominance in the market.

The Europe White Oil Market is segmented as follows:

By Grade

• Food
• Pharmaceutical

By Application

• Plastics & Polymer
• Pharmaceuticals
• Personal Care & Cosmetics
• Food Industry
• Others