Global process oil demand predicted to grow 1.4% per year to 7.2 million metric tons in 2021

The global process oil demand is predicted to grow 1.4% per year to 7.2 million metric tons in 2021, making its growth the fastest in the Africa/Mideast region

The rate of growth is expected to be lower than the global average in North America and Western Europe – where manufacturing growth will be the slowest – and higher than average in all other regions. The factors driving the market are: an increase in world rubber consumption which is forecast to accelerate, particularly in developing countries as a result of expanding vehicle park; fast population growth in developing regions which will boost the level of food and beverage manufacturing and the maturity of the manufacturing industries and the offshoring of operations to utilize cheaper labor costs which will limit process oil requirements in developed areas of the world.

Growth for process oil demand will be fastest in the Africa/Mideast region due to expected above average increases in African manufacturing. While the Asia/Pacific is home to the country expected to undergo the biggest growth – India – countries with mature manufacturing markets, such as Japan and South Korea, will limit aggregate growth outlook for the region. These and other trends are presented in Global Industrial Lubricants, a new study from The Freedonia Group, a Cleveland-based industry research firm.

Global demand for all types of industrial lubricants is expected to increase 1.6% per year through 2021. The major driving factors will be the increase in manufacturing activity, particularly in developing regions; a heightened level of global trade and the growing level of global energy consumption.