Biolubricants Market Research Report and Outlook by 2028

The biolubricants sector is projected to expand from US$ 1,551.15 million in 2022 to US$ 1,902.41 million by 2028, reflecting a compound annual growth rate (CAGR) of 3.5% during this period.

Biolubricants, which are produced from biomass and various waste materials, play a significant role in minimizing the carbon emissions associated with manufacturing and energy production. Their non-toxic, sustainable, and eco-friendly characteristics are contributing to their increasing acceptance and popularity globally. These lubricants are primarily sourced from renewable plant-based oils. The growing awareness of environmental issues and health risks associated with traditional mineral oils is driving the demand for biolubricants.

The biolubricants market is categorized based on the type of base oil into vegetable oils, animal fats, and other categories. In 2022, the vegetable oils segment accounted for the largest market share. These oils are derived from the extraction, refinement, and processing of plant materials such as seeds, fruits, and stems. They exhibit superior lubricating properties compared to mineral oils. Vegetable oils are commonly utilized in their natural state as biolubricants to minimize friction between surfaces and reduce machinery wear. They hold significant potential to replace petroleum-based lubricants, which are produced through the refining of crude oil. Additionally, vegetable oils are biodegradable, generally less harmful, and renewable in nature.

The market is divided into five key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. Europe led the biolubricants market in 2022, while the Asia Pacific region is anticipated to experience the highest CAGR during the forecast period. The increasing environmental awareness and rising crude oil prices are key factors driving the demand for biolubricants in Europe. In Asia Pacific, the demand correlates directly with the region's industrial growth and vehicle production. The surge in construction activities and the expansion of the industrial and automotive sectors are further propelling market growth.

The COVID-19 pandemic had a detrimental impact on the biolubricants market in 2020, primarily due to the closure of manufacturing plants and transportation restrictions. Supply chain disruptions significantly affected the availability of biolubricants. To adhere to national and regional health guidelines, manufacturers had to implement extensive changes to their operations to safeguard their workforce from SARS-CoV-2. The pandemic severely disrupted the historically stable biolubricants industry, leading to a labor shortage that slowed down production and distribution. Lockdowns in various countries hindered industries from maintaining adequate inventory levels. Furthermore, health protocols and other COVID-19-related measures drastically reduced production capacity, resulting in a shortage of vegetable oils and animal fats.

Despite these challenges faced by end-use industries, the biolubricants market began to recover in late 2020, aided by the easing of social restrictions and effective vaccination campaigns initiated by governments worldwide to control the virus's spread. The resurgence of various end-use sectors is fueling the growth of the biolubricants market in the post-pandemic recovery phase.

Key players in the biolubricants market include Emery Oleochemicals LLC, Fuchs Petrolub SE, Carl Bechem GmbH, PANOLIN AG, Renewable Lubricants Inc, TotalEnergies SE, Shell Plc, RSC Bio Solutions LLC, Crevier Group Inc, and Kluber Lubrication GmbH & Co KG. These companies are employing strategies such as mergers and acquisitions, along with new product launches, to enhance their market presence and expand their customer base. Collectively, they dominate a significant portion of the global biolubricants market.

The overall size of the biolubricants market has been determined through a combination of primary and secondary research methods. The research process commenced with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Numerous primary interviews were conducted with industry stakeholders to validate the findings and obtain deeper analytical insights. Participants in this research included VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the biolubricants sector.