LATAM’s lubricants market is recovering from the COVID-19 crisis and nearing pre-pandemic volumes, but further growth will differ depending on the lubricants segment itself.
“Industrial lubricants markets will have a stronger recovery in some countries as halted investments resume because of easing lockdowns,” says David Tsui, Project Manager in our Energy sector. “Also, industries will begin looking to nearshore production from traditionally Asia-focused offshoring, after facing supply chain issues stemming from trade disputes and the pandemic lockdowns.”
Bolivia, for instance, is projected to witness greater than 4% growth in its industrial lubricants market, spurred by high crude oil and gas prices.
As far as commercial lubricants, solid growth is being witnessed in other countries as exports and domestic consumption pick up with the reopening of global economies, Tsui says. The Jamaican commercial lubricants segment is projected to grow at over 4% as tourism resumes and the country continues to expand into medical device production, which has surged due to COVID-19.
Consumer lubricants, meanwhile, have generally lagged behind in recovery and depend on how each country has handled the pandemic. Shorter lockdowns and higher vaccination rates have helped some countries recover faster than others, though nearly all country markets are expected to recover.
“Overall, the Latin American lubricants market is ripe for growth,” Tsui notes. “The area’s lubricants tend to lag behind North America because they’re of lower service category and higher viscosity, but consumer education and marketing can help develop the lubricants market share in this cost-conscious region.”
For more information on the subject, refer to Kline’s Opportunities in Lubricants: Latin America and Caribbean Market Analysis. The study dives into 17 key country markets and provides a comprehensive, in-depth analysis of automotive and industrial finished lubricant products, end-use industries and trade classes, major suppliers, and market trends in the leading country markets in this region. Thus far, profiles on Ecuador, Costa Rica, Panama, Bolivia, and Honduras have been published, with others to follow.
