The market for food-grade lubricants is expected to witness a CAGR of over 5% globally during the forecast period. Major factors driving the market studied are increasing food safety regulations and the growing applications in various industries. On the flip side, the shortage of awareness among manufacturers is hindering the growth of the market studied.
- The increasing applications in the food and beverage industry are expected to drive market growth during the forecast period.
- Europe is expected to dominate the market across the world with the most substantial consumption from countries, such as Germany, the United Kingdom, and France.
Key Market Trends
Increasing Application in Food and Beverage Industry
- Food grade lubricants are synthetic lubricants specially designed for industrial machinery in which incidental contact may occur between food and lubricants.
- These oils also comply with food/health and safety regulations, as well as be physiologically inert, tasteless, odorless, and internationally approved.
- The lubricants are susceptible to accidental contact with the food and beverages produced in the machinery, following a leak, overflow, or a lubrication fault, where these food grade lubricants play a vital role featuring their neutral property.
- Food safety regulations mandate the use of food-grade lubricants due to the high sources of contamination from the oils used in slicers, grinders, mixers, conveyors, bottling machines, sealing equipment, and various other packaging machines; thereby, reducing the risk of contamination.
- About 296 cold chain projects in the food processing industry were approved in India by May 2019, creating an increasing application for food-grade lubricants during manufacturing and packaging.
- Hence, due to the growing food and beverage manufacturing, especially in the Asia-Pacific and European regions, the demand for food-grade lubricants is expected to increase over the forecast period.
Europe Region to Dominate the Market
- Europe is expected to dominate the market for food-grade lubricants during the forecast period. Due to the high demand application from countries like Germany, the United Kingdom, and France, the market for food-grade lubricants is growing.
- The most significant application of food-grade lubricants is found in Europe. Some of the leading companies in the production of food-grade lubricants in Europe are CONDAT Group, Matrix Specialty Lubricants BV, Dow, and Clearco Products Co. Inc.
- In Europe, the sales of food and beverages rose by 10%, from EUR 110,270 million in 2018 to EUR 120,386 million in 2019, alternately witnessing an increase in the production where the scope of application for these food grade lubricants is attributed.
- According to the EU Food & Drinks Industry statistics, there are about 240,000 food and beverage manufacturing companies in Europe, with the maximum application of food-grade lubricants.
- The factors, as mentioned above, coupled with government support, are likely to contribute to the increasing demand for food-grade lubricants market during the forecast period.
The food-grade lubricants market is fragmented, with players accounting for a marginal share in the market. Some of the significant companies include Dow, The Chemours Company, The Lubrizol Corporation, CONDAT Group, and Matrix Specialty Lubricants BV.
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