The Global Food Grade Lubricant Market was valued at USD 0.34 Billion in 2022 and is projected to reach USD 0.59 Billion by 2030, registering a CAGR of 6.70% for the forecast period 2023-2030.
Market Definition
Food-grade lubricants must fulfill the same technical requirements as standard lubricants. They should also resist food degradation and have a neutral chemical behavior toward food processing equipment and food packaging materials, all while adhering to food and health safety requirements. Lubricants for use in food can be sourced from petroleum or synthesized. Bio-based grade lubricants are expected to drive market growth in the upcoming years. The raw material used in their production is white oil, which is a byproduct of petroleum distillation. In the long run, it will not be feasible or sustainable to produce lubricants using petroleum. Consequently, studies are being done on the use of vegetable and grain-based oil as a foundation for the production of emollients for the food and beverage sector. Fewer additives were added to these naturally occurring oils in the process of making emollients. The raw materials that go into making bio-based oils are environmentally friendly, renewable, and much more sustainable.
Market Size:
- 2022: USD 0.34 Billion
- 2030: USD 0.59 Billion
- CAGR (2023-2030): 6.70%
Food Grade Lubricant Market Dynamics
Drivers Propelling the Demand for Food Grade Lubricant include:
Increasing use in the food and beverage sector:
The growing use of food-grade lubricants in the food and beverage industry is one of the key factors propelling the market for these lubricants. Compared to other regions, the Asia Pacific region has a higher population (60% of the world's population), which contributes to the region's high rate of growth in the food and beverage industry. The middle class's rising income, particularly in nations like China and India, has raised demand for processed and convenience foods and drinks. The production of food has expanded dramatically in developing economies during the past few years. The US and Germany have very sophisticated food processing technologies. The expansion of sectors like animal feed, dairy products, drinks, meat processing, sugar, and baked goods. Food-grade lubricants are designed to work with materials and seals found in a lot of food processing equipment. This compatibility adds to the overall reliability of the equipment by ensuring that lubricants do not negatively impact the integrity of seals or other machine components. Food-grade lubricants frequently have corrosion-resistant additives in them. Using lubricants that resist corrosion helps protect equipment surfaces in the harsh and corrosive environments of food processing facilities, ensuring the longevity of machinery. In the food and beverage industry, quality control is highly valued. By guaranteeing that the lubricants fulfill particular requirements for purity, performance, and safety, the use of food-grade lubricants is consistent with the industry's dedication to upholding strict quality standards. Food-grade lubricants frequently have corrosion-resistant additives in them., due to this factor fueling the growth of the Food Grade Lubricant market.
For instance, in June 2020, according to Mondelez, Mondelēz International, Inc. announced an agreement to acquire Clif Bar & Company, a leading U.S. maker of nutritious energy bars with organic ingredients, for $2.9 billion with additional contingent earnout consideration. The acquisition of leading on-trend brands CLIF, LUNA, and CLIF Kid expands Mondelēz International’s global snack bar business to more than $1 billion.
Focus on food safety and hygiene to Continue Driving Market Growth:
Strict guidelines for the use of lubricants in food processing equipment have been set by regulatory agencies like the European Food Safety Authority (EFSA) and the Food and Drug Administration (FDA) in the United States. Food-grade lubricants are designed to abide by these rules, guaranteeing that the requisite safety and hygienic requirements are met. The HACCP principles, which include identifying and controlling potential hazards in the production process, are followed by many food processing facilities. To help prevent contamination and ensure food safety, HACCP programs must use food-grade lubricants. During processing, food may come into contact with lubricants used in machinery. Food-grade lubricants are made to reduce the possibility of contamination, making accidental contact with them safe. Food-grade lubricants are designed to be devoid of dangerous chemicals that could jeopardize the quality and safety of food items. This includes the lack of any additives or potentially dangerous ingredients. Food-grade lubricants are designed to effectively lubricate equipment used in the food sector. By lowering friction and wear and enhancing overall equipment reliability, proper lubrication guarantees the equipment's efficient and seamless operation. The longevity of food processing equipment can be increased by using premium food-grade lubricants. Food safety is less likely to be jeopardized by malfunctions or breakdowns in well-maintained machinery, this factor driving the growth of the Food-grade Lubricant market.
For instance, in October 2022, according to WHO, the vision of the WHO Global Strategy for Food Safety 2022-2030 is to ensure that all people, everywhere, consume safe and healthy food to reduce the burden of foodborne diseases. The strategy was adopted by the 75th World Health Assembly. With five interlinked and mutually supportive strategic priorities, the strategy aims to build forward-looking, evidence-based, people-centered, and cost-effective food safety systems with coordinated governance and adequate infrastructures.
Recent Developments
In October 2020, The FUCHS Group, which operates globally in the lubricants industry, acquired the lubricants business of WELPONER SRL in Bolzano, Italy, as of October 1, 2020, and will integrate it into its subsidiary FUCHS LUBRIFICANTI S.P.A. As a longstanding trading partner of FUCHS, WELPONER generated sales revenues of around EUR 4 million in the financial year 2019. The acquisition includes the customer base and the workforce in particular. WELPONER's business complements FUCHS' existing business in Italy. This bundling of sales channels makes FUCHS LUBRIFICANTI S.P.A. a central and authoritative partner for all lubricants and related specialties in Italy.
In June 2023, The Saudi Arabian Oil Company (“Aramco”) announced the signing of an equity purchase agreement to acquire Valvoline Inc.'s global products business (“Valvoline Global Products” or “VGP”) for US$2.65 billion. The transaction is subject to certain customary adjustments outlined in the equity purchase agreement. Valvoline Global Products is a leading worldwide independent producer and distributor of premium branded automotive, commercial, and industrial lubricants, and automotive chemicals.
Restraint
Lack of proper training and awareness impedes market growth:
Users might not be fully aware of the particular needs and uses of food-grade lubricants if they are not properly trained. This raises the possibility that lubricant selection, application, and maintenance in food processing machinery will be done incorrectly. One of the most important factors in the food and beverage industry is food safety. Food products may be contaminated if lubricants are applied improperly, which is more likely to happen when operators and maintenance staff lack proper training. Strict rules are in place for the food industry to guarantee the quality and safety of food products. Non-compliance can result in legal and regulatory problems since people may not be aware of these regulations or how important it is to use compliant lubricants. Food-grade lubricants are made to fulfill certain functional requirements. Users who are not properly trained may use conventional lubricants that don't adhere to the required standards. Increased downtime and difficulties with equipment performance may result from this. Producers of food-grade lubricants must inform final consumers about the attributes, advantages, and appropriate usage of their goods. A lack of knowledge could result in the dissemination of crucial details regarding the benefits and features of lubricants that are suitable for food use. The resources available to small and medium-sized businesses (SMEs) in the food and beverage industry for training initiatives may be restricted. This may lead to a slower rate of food-grade lubricant adoption in these companies, which could affect the growth of the market as a whole., this factor hinders the growth of Food food-grade lubricant market.
For instance, in June 2022, According to STLE, food contamination incidents are not as devastating as this listeriosis outbreak, even a small issue can instantly damage a product reputation that has taken many years and much money to establish. Among the contamination risks that food manufacturers must consider is exposure of food to lubricants. Risk management centers on choosing safe lubricants for the right components. Food-grade lubricants are available for a wide variety of applications and equipment used in food processing, such as compressor fluids, hydraulic fluids, gear oils, chain lubricants, hook and trolley oils, seamer oils (for the equipment that crimps tops onto cans), greases, heat transfer fluids and release agents (for cooking/baking surfaces).
Challenges
Higher cost compared to conventional lubricants.
Companies in the food and beverage sector sometimes have limited resources. A deterrent for small and medium-sized enterprises (SMEs) or businesses with limited funding is the higher initial costs linked to food-grade lubricants. The food business is frequently very competitive and price-sensitive. Businesses may put cost concerns ahead of other considerations in price-competitive markets, which could lead them to choose conventional lubricants with lower initial costs. The return on investment for food-grade lubricants may seem difficult to some businesses, particularly if they are unaware of the long-term advantages in terms of equipment dependability, food safety compliance, and decreased risk of contamination. Businesses may undervalue food-grade lubricants because of a lack of knowledge or instruction about their advantages. It could be difficult for producers and suppliers in the food-grade lubricant industry to explain the lubricants' long-term benefits and affordability.
Opportunities
Ongoing advancements in lubricant technology present an opportunity
Performance characteristics are improved by advances in lubricant formulations. Better lubrication, wear resistance, and thermal stability are a few of these, and they all help to increase the efficiency of machinery. The overall productivity of food processing operations can be positively impacted by food-grade lubricants that perform better. Advanced lubricant formulations can help prolong the life of equipment by lowering wear, corrosion, and friction. This is especially important for the food industry, where product quality and safety depend on equipment being kept in top working order. An extended equipment lifespan also lowers maintenance expenses. Harsh operating conditions, including high pressure, temperature extremes, and exposure to chemicals for cleaning or water, are common in food processing environments. Modern food-grade lubricants are made to endure these demanding circumstances, offering dependable lubrication and corrosion protection. The goal of ongoing lubricant technology research and development is to create products that work well with a variety of materials found in food processing machinery. Compatible lubricants lower the chance of material deterioration and promote trouble-free operation in seals, gaskets, and other components. Lubricant additives are essential for improving lubricant performance. Continuous advancements in additive technology enable producers to create lubricants suitable for food use with customized attributes.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 0.34 Billion |
| Market Forecast in 2030 | USD 0.59 Billion |
| Compound Annual Growth Rate (CAGR) | 6.70 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Application & By Region |
| By Type |
|
| By Application |
|
| By Region |
|
| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Food Grade Lubricant Market
The Food Grade Lubricant Market is segmented by Type, application and region.
By Type
The mineral oil segment held the largest market share in 2022:
By Type is sub-segmented into synthetic oil, mineral oil, and bio-based. The Synthetic Oil segment accounted for the highest market share 61% in the global Food Grade Lubricant market for 2022. Mineral oil-based lubricants have long been accepted as safe for use in applications in food processing and food. They frequently adhere to international regulatory bodies' standards, including those established by the European Food Safety Authority (EFSA), the U.S. Food and Drug Administration (FDA), and others. Mineral oil is more affordable and easily accessible than certain other food-grade lubricants. Cost is frequently a crucial factor for businesses, particularly in those with extensive food processing operations. Good lubricating qualities of mineral oil enable it to effectively lubricate food processing machinery. It contributes to less wear and friction, increasing equipment longevity and facilitating smooth operation. Mineral oil-based lubricants work well with most seals and materials found in equipment used in food processing.
On the other hand, the synthetic oil segment has a significant market share over the forecast period, due to optimal performance in both extremely cold and high temperatures, synthetic lubricants are recommended. These products have no taste, smell, color, or texture and are non-toxic. It lessens downtime and improves the resistance of metal surfaces to wear and corrosion. Therefore, it is projected that the combination of the aforementioned factors will significantly increase demand for synthetic product types throughout the forecast period.
By Application
.png)
The Food segment was the leading segment in 2022:
By Application, which is divided into Food, Beverage, Pharmaceutical and Cosmetics, others. The food segment accounted for the largest share of the global Food Grade Lubricant market in 2022. Strict regulations are in place for the food and beverage sector to guarantee the security and caliber of food products. Food-grade lubricants are designed to abide by these rules, offering a suitable and safe alternative for lubricating machinery used in the production and processing of food. The machinery used in baking, dairy, meat processing, and other food manufacturing processes comes into direct contact with lubricants used in the food industry frequently. Food-grade lubricants are made to comply with food safety regulations and avoid contamination. A system called Hazard Analysis and Critical Control Points (HACCP) is used to identify, assess, and manage risks to food safety. Food-grade lubricants guarantee that lubricants do not endanger food, which is essential to HACCP compliance in the food industry.
The beverage segment is anticipated to register rapid growth in the forecast period, The beverage segment covers the use of the product in fruit drinks, sports drinks, alcoholic beverages, carbonated soft drinks (CSD), and other applications. An important factor driving the global demand for alcoholic beverages is the millennial generation's marked increase in consumption. The market for fruit drinks is growing as people realize how important it is to live a healthy lifestyle. Furthermore, it is projected that growing concerns about a range of health problems, such as obesity and nutritional deficiencies, will increase demand for fruit drinks and consequently increase demand for the product.
Regional Analysis
North America occupied the largest market share in 2022:
North America has the largest revenue market share 37% in 2022, motivated by the strict regulatory framework enforced by agencies like the Canadian Food Inspection Agency (CFIA) and the Food and Drug Administration (FDA) in the United States and Canada, respectively. To ensure adherence to strict safety and hygiene standards, these regulations require the food processing industry to use food-grade lubricants. The food processing industry in North America is thriving and includes several different industries, including dairy, meat processing, and baked goods. The demand for food-grade lubricants is rising as a result of this industry's ongoing expansion and the region's strong emphasis on food safety and quality.
On the other hand, Asia Pacific accounted for a significant share over the forecast period, The food and beverage industry has experienced significant growth in the Asia Pacific region as a reult of shifting consumer preferences, urbanization, and population growth. Food-grade lubricants are more in demand as this industry grows since they are necessary for the upkeep of the machinery in food processing facilities. Food safety is a top priority for governments and regulatory agencies in the Asia Pacific area. To ensure compliance with stringent regulations and standards, the food industry has adopted a greater number of food-grade lubricants. There has been a rise in consumer awareness of food safety and product quality. Consequently, there is an increasing need for lubricants that are specifically made to meet the strict specifications of the food industry, known as food-grade lubricants.
List of the prominent players in the Food Grade Lubricant Market:
- Exxon Mobil Corporation,
- CITGO Petroleum Corporation,
- Total S.A.,
- Petro-Canada Lubricants Inc.,
- Chevron Corporation,
- Dow,
- Royal Dutch Shell,
- Lanxess Corporation,
- Fuchs Group,
By Type
- Synthetic Oil
- Mineral Oil
- Bio-Based
- Food
- Beverages
- Pharmaceutical and Cosmetics
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
The production and distribution of food products as well as associated machinery were impacted by the pandemic's disruption of the global supply chain, which initially caused a downturn in the market for food-grade lubricants. Food-grade lubricants became much less in demand as a result of the temporary closure of several food processing facilities and disruptions in manufacturing activities. However, the demand for processed and packaged foods increased as the food industry adjusted to the new normal and put strict health and safety protocols in place. Consequently, food manufacturers started to prioritize maintaining the hygienic and safety standards of their production processes, which in turn drove the demand for food-grade lubricants. Furthermore, the pandemic raised public awareness of food safety and hygiene regulations, which underscored the significance of utilizing certified food-grade lubricants in food processing machinery.
