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MENA White Oil Market Overview
MENA white oil market size is
forecast to reach US$166.8 million by 2027 after growing at a CAGR of 3.7% during
2022-2027. Enhanced longevity, purity, and consistency in medical, personal
care, and cosmetic applications, as well as the growing acceptance of
innovative technologies and a surge in the use of group II base oil by various
manufacturers, have sparked a massive increase in the white oil market demand. Currently,
one of the major factors driving the growth of the white oil market is the
upliftment of the personal care and pharmaceutical industries in the MENA
region. The UAE government has announced two significant plans in the previous
five years the Dubai Industrial Strategy 2030 and Abu Dhabi Vision 2030
targeted at bolstering the country's high-growth sectors. The pharmaceutical
business has been identified as a priority for development in both the
country's two main cities' economic agendas.
Impact of Covid-19
In the year 2021 COVID-19 had
impacted all the industries in the MENA region. The demand for white oils in
the personal care and textile industries slightly increased as customers
started purchasing more personal care and clothing products. Additionally, the
re-opening of restaurants and bars resulted in a rise in demand for white oils
in the food industry. Moreover, it is estimated that with the continuous
investments and upliftment of several end-use industries in the MENA region,
the demand for white oil will increase in the upcoming years.
Report Coverage
The report “MENA White Oil Market – Forecast (2022-2027)”,
by IndustryARC, covers an in-depth analysis of the following segments of the MENA
white oil industry.
By Product Type: Naphthenic,
Paraffinic, and Aromatic Oil
By Grade: Technical/
Industrial Grade, Pharmaceutical Grade, and Food Grade
By Viscosity: Low, Medium,
and High
By Packaging: Drums, IBC and
Flexitank, and Others
By Application: Pharmaceutical,
Personal Care & Cosmetics, Household, Industrial, and Institutional, Food
& Beverages, Textile Manufacturing, Adhesives and Elastomers, Polymers, Agrochemicals,
Animal Feed Industry, Industrial Lubrication, Metal Working, and Others
By Country: Middle East
(UAE, Saudi Arabia (KSA), Qatar, Israel, Kuwait, Oman, and Rest of Middle East)
and North Africa (Egypt, Libya, Morocco, Algeria, and Rest of North Africa)
Key Takeaways
- Middle East region dominated the MENA white oil market due to the increasing growth of the personal care and cosmetics industry. For instance, According to Beautyworld Saudi Arabia, Saudi Arabia accounts for 16% of the total Middle East & Africa beauty and personal care market, while the skincare sector of Saudi Arabia is valued at US$689.6 million in 2020 and growing at a CAGR of 3.6%.
- Rising investments and inclining growth of the pharmaceutical sector would also drive the market growth in the forecast period. According to the International Trade Administration, in 2020 to help modernize Algeria's pharmaceutical industry, the Algerian government established the Ministry of Pharmaceutical Industry (MOPI) and the National Agency for Pharmaceutical Products (ANPP).
- Rapidly rising usage of white oil in hair care products as an essential ingredient for nourishing hair, stimulating faster hair growth and preventing dandruff by moisturizing the scalp has also uplifted the market growth.
- Additionally, rising acute and chronic health effects due to the exposure to mineral oil (white oil) is likely to affect the demand for white oil in the forecast period.
MENA White Oil Market Segment Analysis – By Product Type
The paraffinic segment held the
largest share in 2021 and is expected to grow at a CAGR of 4.2% during the
forecast period 2022-2027. The
paraffinic is the molecular structure of long chains of hydrocarbons that
differentiate paraffinic oils from other mineral oils. The paraffinic oils
contain paraffin wax and are the most commonly used base for lubricating oil
products. Paraffinic oils are widely used in the cosmetics industry, as
processing oils in the rubber, textile, and paper industries, as industrial
lubricants and for manufacturing engine oils owing to the higher resistance to
oxidation, viscosity index, and low volatility. According to the Saudi Arabia General Authority of Statistics
October 2021, industrial production has been increased by 7.7% in October 2021
relative to the same month of 2020 with most of the production being from the
mining and quarrying sector with a weight of 74.5%. White oil is widely used as
an industrial lubricant in industries and also used in metalworking. Therefore, the increase in industrial
production will help to boost the demand for paraffinic oils during the forecast
period.
MENA White Oil Market Segment Analysis - By Application
Personal Care and Cosmetic sector held the largest share with 28% in the MENA white oil market in 2021 and is anticipated to grow at a CAGR of 4.3% during the forecast period 2022-2027. As one of the key ingredients in the personal care & cosmetics industry, white oil is used in a wide variety of ways such as lubricators, moisturizers and protective layers which helps in moisturizing the skin and with the treatment of dry, flaky skin. According to Beautyworld Middle East (Messe Frankfurt GmbH), the Personal Care & Cosmetics market of Middle East & Africa is valued at US$35 billion in 2020, with the Gulf Cooperation Council (GCC) accounting for US$9.2 billion. Among the Middle East & North Africa countries, Israel, Turkey, the United Arab Emirates (UAE) and Saudi Arabia presents the most opportunities for growth in the Personal Care & Cosmetics sector. According to the Wisconsin Economic Development Corporation, one in every ten consumers in UAE spends about US$16,000 every year on personal care & cosmetics. The gradually rising growth of the personal care & cosmetics sector in the MENA region is anticipated to drive the growth of the market.
MENA White Oil Market Segment Analysis – By Country
Middle East region dominated the MENA
white oil market in terms of revenue
with a share of 85% in 2021 and is projected to dominate the market during the
forecast period (2022-2027). In the Middle East region countries such as UAE,
Saudi Arabia (KSA), and Israel dominates the white oil market due to the rising growth of the personal care and
cosmetics, pharmaceutical, food and beverage, and other end-use industries. According
to USDA, the processed vegetables consumption has been increased by 6% in 2020.
The increase in the processed food will increase the demand for food lubricants
widely used in the storage of food for the longer period. The increase in the
demand for food lubricants will boost the demand for white oil during the
forecast period. Also, increasing government initiatives and the rising growth
of the pharmaceutical industry will uplift the white oil market. As per the
Hellenic Federation of Enterprises in Qatar, the pharmaceuticals market is
expected to increase at a compound annual growth rate (CAGR) of 3.9 percent in
both local currency and US dollar terms between 2020 and 2025, reaching a value
of QAR3.9 billion (USD1.1bn). The pharmaceuticals market is estimated to reach
QAR4.8 billion (USD1.3 billion) by 2030, representing a 10-year CAGR of 4.2
percent in local currency and US dollar terms. Thus, the increasing demand for
white oil in various end-use industries will drive the growth of the market in
the Middle East region.
MENA White Oil Market Driver
Rising growth of the pharmaceutical industry in MENA region will drive the white oil market growth
The rising growth of pharmaceutical industries is the key driver for MENA white oil market growth. Pharmaceutical grade white oils are chemically and physiologically stable, and they do not support the growth of microorganisms. They come in a variety of viscosities that have been carefully chosen to provide optimum performance in a wide range of applications. White oil is generally used in laxatives, pomade formulations, gelatin capsules, and excipients in pharmaceutical formulations. The white oil market is expected to grow due to rising product usage in ointment formulations due to its benefits in mending skin injuries. Additionally, the demand for white mineral oil may be fuelled by the pharmaceutical industry's continued expansion as a result of product variations and advancements. Major firms are also continually expanding their manufacturing capacity for medicines, tablets, syrups, ointments, and other medical products, in the MENA region which is further estimated to drive the market growth. For instance, in May 2020, a new pharmaceutical manufacturing plant was launched in Dubai Science Park (DSP). The US$34 million plants, operated by Pharmax Pharmaceuticals (Pharmax), plans to produce more than 200 million tablets and medicines to address the growing number of lifestyle diseases and chronic conditions that have emerged in recent years.
MENA White Oil Market Challenges
Availability of Substitutes
A key concern for the MENA white oil market is the availability of substitute such as vegetable oil. Mineral oils or vegetable oils are used in the majority of cosmetics. In recent years, mineral oils were the only option, but there has recently been a shift toward using vegetable oils in cosmetics. Mineral oil comes from a non-renewable resource. As a result, it is believed that it is not sustainable and cannot be used in cosmetic items indefinitely since it has harmful effects. Additionally, when compared to vegetable oil mineral oil is impure, including contaminants, and perhaps carcinogens. As a result of the overwhelming opposition to mineral oil, there has been a change in cosmetics to use vegetable oils instead. Thus, due to the availability of substitutes, the white oil market in Middle East and North Africa region is projected to face challenges in the forecast period.
MENA White Oil Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the MENA white oil market. Major players in the MENA white oil market are
- Exxon Mobil Corporation
- Royal Dutch Shell PLC
- Chevron
- FUCHS
- APAR Industries Limited
- Texol Lubritech FZC
- Asia Petrochemicals LLC
- Panol Industries RMC FZE
- Sonneborn, LLC
- Qatar Lubricants Co. (QALCO) and Others.
Recent Developments
- In October 2019, Texol Lubritech FZC, a joint venture of Gandhar Oil Refinery India Ltd, opened its first overseas manufacturing unit in the Hamriyah Free Zone, Sharjah, making its first expansion move outside of India, to produce white oils, LLP, HLP, transformer oils, rubber processing oils, industrial automotive lubricants.
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