April 24, 2024
White Oil Market

The Global White Oil Market propelled by High Demand from Personal Care Products Industry

White oil, also known as liquid paraffin, is an odorless, transparent, breathable, and skin-friendly emollient widely used across pharmaceutical and personal care industries. Commonly used as a base ingredient in various topical pharmaceutical formulations such as ointments, creams, gels, and lotions, white oil helps improve the appearance and feel of skin. It forms an imperceptible film on the skin that protects it from atmospheric assaults while allowing the skin to breathe naturally. The global demand for moisturizers, cleansing products, sunscreens, and anti-aging creams has surged in recent years due to rising awareness about personal grooming and skincare routines, thereby driving volume sales of white oil as a key base ingredient.

The global White Oil Market is estimated to be valued at US$ 2.08 Mn in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends: One of the key trends prevailing in the pharmaceutical-grade white oil market is the demand for organic and natural personal care products. Consumers are increasingly wary of chemicals and preservatives used in personal care products and prefer natural and organic ingredients. Many personal care brands have launched natural and organic lines using plant-based extracts and emollients such as coconut, olive, and jojoba oils as alternatives to white oil. This has prompted manufactures to offer organic-certified white oil grades produced from natural feedstock through advanced distillation techniques. Such environment-friendly product positioning is believed to drive the future growth trajectory of the market.

Porter’s Analysis

Threat of new entrants: The threat is low as the white oil market Size is dominated by large multinational companies with strong brand presence, distribution networks and economies of scale.

Bargaining power of buyers: The bargaining power of buyers is moderate as white oil has substitute products and buyers can switch to other options easily. However, brand loyalty and performance keep buyers tied to some extent.

Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials used in white oil production such as mineral oil are commoditized and available from numerous suppliers globally.

Threat of new substitutes: The threat of substitutes is moderate as alternatives like vegetable and silicone oils are used for similar applications. However, white oil leads due to low price point and good performance.

Competitive rivalry: The competition is high amongst key players like Procter & Gamble (P&G) Chemicals, CREMER, Wilmar who often engage in pricing wars and new product development to gain market share.

Key Takeaways

The global white oil market is expected to witness high growth. The global White Oil Market is estimated to be valued at US$ 2.08 Mn in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 to 2031.

The Asia Pacific region currently dominates the white oil market and is expected to maintain its lead position throughout the forecast period. Factors such as rapid industrialization and increasing demand from personal care and pharmaceutical industries are driving the demand. Europe is also expected to show significant growth in the white oil market led by countries like Germany, UK, France etc. Stringent regulations regarding use of synthetic and vegetable oils along with high disposable incomes are supporting market expansion.

Key players: Key players operating in the white oil market are Procter & Gamble (P&G) Chemicals, CREMER, Wilmar, VVF Ltd., KLK OLEO, Inoue Perfumery MFG, Wuhan Yuancheng Gongchuang, Changsha Jianglong Chemicals, Godrej Industries. Players are focusing on new product launches, capacity expansions and mergers & acquisitions to strengthen their foothold.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraaged AI tools to mine informaation and compile it