food-grade lubes

Demand for Food-Grade Lubricants Could Explode in These Regions

Consumption of food-grade lubricants could hit new highs in China and India, according to research from our first-ever dive into the industry. 

“Rapid growth in consumption of food-grade lubricants is expected to occur over the next five years,” says Sushmita Dutta, Project Manager of our Energy sector. “Increasing consumer awareness, strengthening supervision and enforcement of regulations by the governments in these countries, and the rise in the number of food and beverage processing plants in 2020 represent only a few of the factors driving growth in these two markets.”  

In addition to their use for foods and beverages, food-grade lubricants are found in significant quantities in the pharmaceuticals and packaging industries.  India witnessed growth during the year in its pharmaceutical industry  which is the third-largest in the world in terms of production volume, the 14th largest in terms of value, and the 12th largest for export of medical goods. The nation also boasts a strong presence in the packaging industry, with more than 22,000 registered packaging enterprises. 

COVID-19 Impact 

None of the food-grade lubricants categories was impacted by COVID-19 in 2020. While the growth rate in food-grade lubricants was down slightly compared to previous years, this was solely due to pandemic-related supply-chain disruptions. The products that food-grade lubricants are used for  processed food and beverages, and pharmaceuticals, among others  all meet basic needs and are required in everyday life. Thus, food-grade lubricants are considered recession-proof. 

The pandemic, and resulting lockdowns, caused a shift in consumer behavior toward readymade, frozen, packaged, and instant/prepared food. Not only does this trend show no sign of abating, but demand will likely only grow stronger. Consequently, the processing and production of these food products are expected to increase, further fueling growth in demand for food-grade lubricants over the coming years.  

 Who Will Reap the Rewards? 

Strong growth opportunities exist for food-grade lubricants suppliers in China and India, where the market is in its nascent stage.  

 In India, the leading suppliers are FUCHS, Klüber Lubrication, and ExxonMobil. As they already have certified products and long-standing relationships with end-use companies, they will benefit the most.  

In China, FUCHSHollyFrontier (through Petro-Canada Lubricants), ExxonMobil, Klüber Lubrication, and TotalEnergies are the leading suppliers. In addition, China-based lubricants giants Sinopec and CNPC  have begun to produce some of the food-grade lubricants. Both companies have a considerable share in China’s overall lubricants market. JAX Inc and Lubriplate, United States-based suppliers with expertise in food-grade lubricants, have been successful in supplying not only in the United States and Europe but also in China. 

For additional assessments of the food-grade lubricants market and opportunities in China and India — along with our insights on five other leading markets across the world — subscribe to Kline’s inaugural report on the industry, Food-Grade Lubricants: Analysis of Major Markets.  

About this blog: 

Demand for Food-Grade Lubricants Could Explode in These Regions contains insights from Sushmita Dutta, a project manager in the Energy Practice at Kline & Company. She is based in the company’s India office and works on its syndicated market research reports in the areas of finished lubricants, lubricant basestocks, used oil and re-refined lubricants, waxes, and lubricant additives. 

Dutta has worked for some of the leading oil and gas clients in the lubricants industry and has conducted research segments in different geographical markets including North America, Asia, Europe, and the Middle East. 

Press inquiries: 

Lance Debler 

Content Marketing Manager 
Kline & Company
+1-973-435-3425 
Lance.Debler@klinegroup.com  

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