Market Trends of Process Oils Industry
Rubber Applications to Dominate the Market
- Rubber process oil is manufactured using petroleum after the more volatile petrol, and heating oil fractions are separated using the distillation process.
- Both natural and synthetic process oils are commercially used in producing several rubber products, including rubber bands, toys, and tires. They are also used in the mixing process for rubber compounds as they increase the dispersion of fillers and enhance the flow characteristics of the mixture.
- The expansion of the global rubber industry is promoting the use of rubber process oils across various application industries. Some typical rubber applications include tires, construction materials, white goods, biomedical, and textiles.
- According to the Malaysian Rubber Council, in 2022, 24.5 million metric tons of rubber were imported worldwide. It registered growth when compared to 24 million metric tons in the previous year.
- According to data from the Bureau of Labor Statistics, the synthetic rubber price index in the United States achieved a level of 200.3, showing a growth rate of 12.3% in comparison to the previous year's figure of 178.3.
- Based on the factors above, the rubber oil application for process oils is expected to dominate the market.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific is an area of immense potential due to the extensive demand for textiles and personal care products in countries, including India and China.
- China continued to be the biggest textile and apparel exporter in the world since 1994. The country dominates the global low-to-medium-end market by mainly engaging in OEM manufacturing and processing.
- According to the National Bureau of Statistics of China, in 2022, approximately 859.2 million rubber tires were produced in China, increasing from around 807.5 million in the previous year.
- The market of personal care products in India is comparatively low compared to developed and other developing economies.
- Nevertheless, the anticipated enhancement in the economic landscape and the rising purchasing capacity of the Indian populace are likely to boost the usage of personal care items in the nation.
- According to NIPFA India, the Indian beauty and personal care industry is currently worth USD 26.8 billion and is expected to grow to USD 37.2 billion over the next three years. The growth of the Indian market is expected to boost the development of the process oil market during the studied period.
- According to the Korea International Trade Association, the number of rubber tires imported into South Korea in 2022 reached around 115.3 thousand metric tons. Automobile tire imports in the country have steadily increased in recent years. The main reasons behind this were the growing imported foreign car market and the increasing demand for affordable tires from China and Southeastern Asian countries.
- Due to the factors above, the market for process oils in the Asia-Pacific region is expected to dominate the global market during the forecast period.
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