U.S. White Oil Market Size, Share & COVID-19 Impact Analysis, By Product Grade (Pharmaceutical and Technical), By End-use Industry (Pharmaceutical, Personal Care & Cosmetics, Food & Beverages, Textile, Plastic & Polymer, and Others), and Country Forecast, 2023-2030

The U.S. white oil market size was worth USD 536.4 million in 2022 and is projected to grow at a CAGR of 4.2% during the forecast period.

White oil, also known as a refined form of mineral oil or liquid paraffin, is a colorless and odorless petroleum derivative. It finds applications across various industries, including pharmaceuticals, cosmetics, and food processing. Due to their non-toxic and hypoallergenic properties, these oils are employed as a base fluid in the formulation of personal care products. In the pharmaceutical sector, the product is used as a laxative and as an ingredient in ointments. Its high purity and inert nature make it a valuable component of different food processing units.

The effect of the COVID-19 pandemic on the U.S. white oil market was different for various end-use industries. For instance, the non-essential end-use industries such as personal care & cosmetics, plastic & polymer and textile witnessed a major decline in demand due to supply chain disruptions caused by the pandemic. In comparison, essential end-use industries such as the food industry and pharmaceuticals witnessed a relatively low decline in demand for white oils.

U.S. White Oil Market Trends

Rising Demand for Safer Cosmetic Products to Fuel Market Growth

White oil’s inert nature is crucial in the cosmetic industry. Its compatibility with diverse ingredients preserves formulation stability, preventing undesirable reactions. The inertness is especially vital for maintaining the true scent of added fragrances and ensuring color stability over a product’s shelf life. In addition, oil’s non-allergenic and non-reactive properties minimize the risk of skin irritation, making it suitable for sensitive skin formulations. As a carrier for active ingredients, its inert nature allows it to perform effectively without interference. Overall, the product’s consistency, reliability, and non-reactive qualities make it an essential component in cosmetics, which support the safety and performance of various products. Thus, the rising demand for safe personal care and cosmetic products among consumers is likely to create new growth opportunities for the market.

U.S. White Oil Market Growth Factors

Rising Product Demand in Food Processing Due to its Versatile Nature to Drive Market Growth 

In the U.S., the demand for the product is increasing due to its critical role in the food processing industry. This oil serves as a crucial component in food applications, where its properties as a colorless, odorless, and tasteless lubricant and release agent make it an ideal choice for ensuring product safety and quality. Moreover, it is also widely employed in the production of various food items, including baked goods, confectionery, and snack foods. As a lubricant, this type of oil aids in the seamless processing of ingredients and helps prevent sticking during molding and shaping processes. Its use as a release agent ensures easy removal of products from molds, maintaining their integrity and appearance. In addition, the inert nature of this oil makes it compliant with stringent regulatory standards for food safety. The food processing industry in the U.S. is expected to grow during the forecast period, driving the U.S. white oil market growth in tandem.

RESTRAINING FACTORS

Fluctuations in the Raw Material Prices May Hamper Market Growth

The product is typically derived from petroleum and any changes in the prices of these raw materials can have a direct impact on the oil production cost. Fluctuations in these material prices directly influence the pricing of white oil products. Increased production costs due to rising raw material prices can lead to higher product prices and potentially a reduction in demand. Conversely, lower production costs due to lower raw material prices may increase demand. Moreover, the balance between price changes, consumer preferences, and competition with alternative products collectively influences the overall demand. This change in demand can have a negative influence on market forecasts and hinder market growth.

U.S. White Oil Market Segmentation Analysis

By Product Grade Analysis

Based on product grade, the market is categorized into pharmaceutical and technical.

The pharmaceutical segment dominated the market in 2022 and is likely to maintain its position during the forecast period. Pharmaceutical grade is used in personal care and pharmaceutical products. The growing pharmaceutical and personal care industries are expected to drive the segment expansion.

Technical product grade is employed in industrial applications with less stringent regulatory standards. However, the small price difference between both grades has prompted different end-users to use pharmaceutical grade, irrespective of the application. Hence, the technical segment is expected to grow at a slower rate during the forecast period.

By End-use Industry Analysis

On the basis of end-use industry, the market is segmented into pharmaceutical, personal care & cosmetics, food & beverages, textile, plastic & polymer and others.

The personal care & cosmetics segment accounted for a major market share in 2022 and is likely to maintain its position during the forecast period. The product, due to its inert nature and unique properties such as colorlessness, is a preferred choice for formulations ranging from baby oils and lipsticks to lotions and creams. Amid the rising awareness regarding safety, consumers are expected to adopt skin-friendly products with inert ingredients such as white oil. This factor is poised to benefit and drive the U.S. white oil market growth.

The pharmaceutical segment accounts for a significant market share. There are strict regulatory compliance standards regarding the raw materials used in pharmaceutical formulations. The product is highly pure and inert in nature, making it an ideal choice as an excipient in medicines.

List of Key Companies in U.S. White Oil Market

In terms of the competitive landscape, the majority of the U.S. white oil market share is captured by a few well-established players operating in the market.  These key players include Exxon Mobil Corporation, Renkert Oil, and S.A. and White Oil Company, among others. Existing players benefit from economies of scale, established distribution networks and long-term relationships with key customers. Although product differentiation is limited in the market, companies can focus on providing specialized products for niche applications to gain a competitive advantage.

LIST OF KEY COMPANIES PROFILED

• Exxon Mobil Corporation (U.S.)


• Calumet Specialty Products Partners, L.P. (U.S.)


• Petro‐Canada Lubricants LLC (Canada)


• RENKERT OIL (U.S.)


• S.A. White Oil Company (U.S.)


• Sage Oil LLC (U.S.)


• Sonneborn LLC (U.S.)


• Phillips 66 Company (U.S.)

REPORT COVERAGE

The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.

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Report Scope & Segmentation