The industrial oils market is estimated to be valued at USD 60.2 billion in 2019 and is projected to reach USD 80.7 billion by 2025, recording a CAGR of 5.0% during the forecast period. Increased demand in the biodiesel sector due to its reduced impact on environment pollution and expansion of industries such as energy, chemicals, thermal, cosmetics, and pharmaceuticals in the emerging Asia Pacific and South American regions.
Increasing demand from the biodiesel sector is projected to drive the industrial oils market in the Asia Pacific. Biodiesel is used as an alternative fuel for diesel engines. It attracts the attention of the users due to its renewability, purity, and low exhaust pollution. Biodiesel is produced from a variety of oilseeds. In the European region, rapeseed oil is mainly used for the production of biodiesel, whereas in the US, soybeans are dominant biodiesel feedstock.
Biodiesel has significantly lower emission levels than petroleum-based diesel when it is burned, whether used in its pure form or blended with petroleum diesel. It does not contribute to a net rise in the level of carbon dioxide in the atmosphere and also minimizes the intensity of greenhouse effects.
In developing countries, the demand for biodiesel is increasing due to the higher availability of land, favorable climatic conditions for agriculture, and lower labor costs. In addition, in these countries, there is a growing trend of adopting modern technologies and efficient bioenergy conversion using a range of biofuels, which are provided at affordable prices than fossil fuels.
Key players in global industrial oils market include Cargill (US), Bunge Limited (Netherlands), Wilmar International (Singapore), Louis Dreyfus Company B.V. (Netherlands), Archer Daniels Midland (ADM) (US), Buhler Group (Switzerland), CHS Inc. (US), Ag Processing Inc (US), A&A Fratelli Parodi Spa (Italy), Gemtek Products (US), AAK Kamani (India), and Soya Mills SA (Greece). These companies have undertaken expansions as one of the key strategies to expand their presence in this market.
