MENA White Oil Market - Forecast(2024 - 2030)

MENA White Oil Market Overview

MENA white oil is forecast to reach $284 million by 2030, after growing at a CAGR of 4.1% during 2024-2030. The MENA White Oil refers to a wide range of highly refined petroleum products that are colorless, odorless, and tasteless. These products are extensively utilized across various industries due to their purity and unique characteristics. White oils find significant applications in pharmaceuticals, personal care products, food processing, cosmetics, and textiles. Moreover, The cosmetics and toiletries industry alone accounts for more than one-fourth of total white oil demand. Nearly 70 percent of the demand for white oil in these main markets is currently for Group II-based products. White oils have historically been derived from paraffinic Group I and naphthenic base stocks and are misnomer as they are not white at all, but crystal clear. However, due to the decrease in Group I supply, the use of Group I has been shrinking, although Group II, III, and GTL supply have been increasing. With a growing emphasis on health and personal hygiene worldwide, there has been a substantial increase in the demand for pharmaceuticals and personal care products. White oils play a crucial role in these industries as essential ingredients for formulating creams, lotions, ointments, and various medicinal products. Furthermore, as environmental concerns continue to gain prominence, industries are increasingly focusing on sustainability and eco-friendliness. This trend is influencing the formulation of products in sectors where white oils are used. Manufacturers are opting for eco-friendly and biodegradable formulations, leading to the development of green alternatives to traditional white oils. Additionally, there is a rising demand for white oils derived from renewable sources, such as plant-based oils, driving innovation in the market.

Report Coverage

The report “MENA White Oil Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the MENA white oil industry.

By Grade: Technical Grade, Pharmaceutical Grade, and Food Grade.

By Application: Coatings, Packaging, Plastics & Polymers, Cosmetics, Food Preservatives, Drugs, and Others.

By End-Use Industry: Pharmaceuticals, Personal Care & Cosmetics, Food & Beverages, Paints and Coatings, and Others.

By Geography: Middle East (Saudi Arabia, UAE, Qatar, Israel, Iran, Iraq, Bahrain, Others), Africa (South Africa, Nigeria, Egypt, Morocco, Algeria, Others)

Key Takeaways

• Middle East dominates the MENA White Oil owing to increase in demand from personal care and the pharmaceutical industry.
• In order to decrease manufacturing costs and time to achieve an expanded market share, influential industry players concentrate more on process innovation.

MENA White Oil Market Segment Analysis – By Grade

Technical Grade held the largest share of 48% in the MENA White Oil in 2023. In different industrial-grade applications, Technical Grade refines the use of colorless & odorless paraffinic mineral oil. This oil is derived from high-grade paraffinic base oils. White Oils are a biologically stable substance with no level of tolerance for pathogenic support for bacteria. It is free of aromatic hydrocarbons and has a high degree of lubrication and insulation. Due to their colorless, odorless, tasteless, and hydrophobic properties, these products are used in many different end-use industries. 

MENA White Oil Market Segment Analysis - By Application

Cosmetics has been the primary market for White Oil in 2023 growing at a CAGR of 5.6%. The growing emphasis on skincare and nourishing products for hairstyling, coloring products, and suntan products are augmenting the industry's growth. In varied applications, including cosmetics and personal care, white oil has become an important ingredient. For laxative applications in the pharmaceutical industry, pharmaceutical white mineral oils are used as internal lubricants. Furthermore, these products are used as a foundation for ointments and creams, as a carrier for solid and semi-solid ingredients, and as a capsule and tablet separator.

MENA White Oil Market Segment Analysis – By End-Use Industry

The personal Care & Cosmetics industry has been the primary market for White Oil in 2023 growing at a CAGR of 9.3%. The personal care industry is diverse and is growing at a steady pace, mainly due to the high concentration of many manufacturers of cosmetic products in various countries. Europe's cosmetics and personal care industry thrives as a global leader, boasting $95.18 billion in retail sales in 2022. Key markets include Germany ($15.47 billion), France ($ 13.95 billion), Italy ($12.44 billion), the UK ($11.36 billion), Spain ($10.06 billion), and Poland (€4.5 billion). This sector's economic significance underscores Europe's pivotal role in shaping beauty trends and consumer preferences worldwide. The increasing demand for personal care goods in these nations has made it easier for cosmetic formulators to innovate and produce new products. In addition, white oil represents high demand from manufacturers of polymers as it is extremely necessary as a melt flow controller as well as to provide polymers with release characteristics. This helps to impart enhanced polymer physical conditions.

MENA White Oil Segment Analysis - Geography

Middle East dominated the MENA White Oil with a share of more than 84% in 2023, followed by Africa. There is a growing demand for pharmaceutical-grade white oils due to increasing healthcare awareness and stringent quality standards. Secondly, the region's expanding cosmetics and personal care industry is driving demand for high-purity white oils used in skincare, haircare, and cosmetics formulations. Additionally, the food processing sector is witnessing a rise in the use of white oils as lubricants and release agents in food packaging and processing equipment. Lastly, sustainability initiatives are leading to the development of eco-friendly white oils to meet the region's evolving regulatory requirements and consumer preferences.

MENA White Oil Market Driver

Rising Emerging Economies and Investment by Suppliers. 

Inside emerging economies, substantial growth potential lurks. A High Up in countries like India, China and South Korea, the market for white oil is which is more likely to drive the worldwide white oil demand in these regions. Since the MENA White Oil is consolidated, investment in the commodity and development by key producers could create a major opportunity for end-use industries that would lead to an increase in demand for thermoplastic polymers, personal care & cosmetic products and pharmaceutical products. Thus, raising the demand and consumption for white oil.

MENA White Oil Market Challenges

Stringent Government Regulations can restrict market growth.

White oils are high purity severely refined mineral oils. Mineral oils are a liquid by-product of refining crude oil to make gasoline and other petroleum products. As these oils are used in food, cosmetic products and in pharmaceuticals which is highly regulated industry. As this industry is directly connected with the consumer and to not have any adverse effect on the health of consumers the regulations has been made stricter.

Fluctuations in Crude Oil Prices and alternative materials can restrict the market.

The outlook of oil and gas is challenging owing to factors such as low oil prices, and the emergence of new hydrocarbon sources. The long-term trend of oil prices is determined by supply and demand, which is accompanied by frequent oil-related events. According to the U.S. Energy Information Administration, in 2022, the WTI price mirrored Brent crude oil, averaging $5/b less. This spread widened from $3/b in 2021 due to European countries substituting Russian imports with alternative sources. Also, The U.S. Energy Information Administration predicts Brent crude oil to average $81/b in December 2024, decreasing to $78/b by December 2025.

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

1. Total S.A
   
2. Exxon Mobil
   
3. Chevron
   
4. Royal Dutch Shell
   
5. Sasol
   
6. Bahrain Petroleum Company (BAPCO)
   
7. PetroChina
   
8. Abu Dhabi National Oil Company (ADNOC)
   
9. Saudi Aramco 
   
10. Kuwait Petroleum Corporation (KPC)

For more Chemicals and Materials Market reports, please click here