White oil is a highly refined and colorless oil derived from petroleum distillates comprising of long-chain aliphatic hydrocarbons with mild or no characteristics. White oil is commonly used for various industrial applications as well as pharmaceutical, cosmetic, aromatherapy and personal care products due to its high lubricating properties and chemical inertness. It acts as an excellent emollient and leaves the skin smooth while keeping it hydrated.
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 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing demand from the personal care industry is expected to drive the growth of the white oil market size during the forecast period. White oil is widely used as an emollient in the formulation of creams, lotions, ointments, balms and other skincare products owing to its non-allergenic and non-comedogenic properties. It is a preferred replacement for mineral oil due to its cleaner composition. Expanding skin and personal care industry around the world accompanied with rising consciousness among consumers regarding natural ingredients is propelling the demand for white oil. Rising income levels in emerging countries along with increasing expenditure on skincare and personal care products is anticipated to present lucrative opportunities for white oil manufacturers over the coming years.
Porter's Analysis
Threat of new entrants: Low as significant capital investments are required to set up operations and compete with existing large players with strong brands.
Bargaining power of buyers: High as the market is fragmented with many buyers and few substitutes available. Buyers can negotiate on price and quality standards.
Bargaining power of suppliers: Moderate as there are few key raw material suppliers but suppliers also have high fixed costs of production and switch to alternative suppliers require compliance with different quality standards.
Threat of new substitutes: Low as white oil has wide array applications and no direct substitutes are available for end-use industries like pharmaceutical, personal care, etc.
Competitive rivalry: High as the market is occupied by few large players with strong brands and private labels from retailers pose significant threat. Players compete based on price, product differentiation, quality, and distribution networks.
SWOT Analysis
Strengths: Wide applications, no viable substitutes available, manufacturing processes are automated reducing production costs.
Weaknesses: Commoditized product with undifferentiated offerings, increasing raw material prices, vulnerable to demand fluctuations.
Opportunities: Expanding end-use industries like pharmaceuticals and personal care driving volumes, scope for product innovation, emerging markets yet to achieve potential.
Threats: Stringent regulations over quality compliances increases compliance costs, trade barriers and policies affecting supply chains.
Key Takeaways
The global white oil market is expected to witness high growth over the forecast period supported by increasing demand from end-use industries like pharmaceuticals, personal care, etc. 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 2024-2031.
Regionally, Asia Pacific dominates currently owing to presence of large consumer markets like India and China. The region is anticipated to maintain its lead with China, India and other southeast Asian countries expected to drive future volumes. North America and Europe also projected to record significant growth amid increasing per capita spending on personal care and pharmaceutical products across the regions. Asia Pacific excluding Japan is likely to be the fastest growing regional market propelled by burgeoning demand from the healthcare and cosmetics sectors in the region over the forecast period.
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. Procter & Gamble (P&G) Chemicals dominates the global market with strong product portfolio sold across geographies. However, private labels from retailers like Walmart, Target, etc. pose threat to leading brands.
