The global food grade lubricants market is expected to generate $516.5 million revenue by 2030, advancing at a CAGR of 7.9% during 2021–2030. This will be on account of the rising food safety concerns, growing food and beverage industry, increasing consumer awareness, and surging incidence of foodborne diseases.
The rising use of food-grade lubricants in the food and beverage sector is one of the primary drivers for the market. The spurring growth of the food and beverages industry in the APAC region is on account of its high population compared to other regions, and the rising disposable income of the middle-class population, majorly in countries like China and India. This is leading to the high demand for convenience and processed beverages and food. Moreover, the demand for food-grade lubricants is being highly generated by the growing sectors like dairy, animal feed, drink, meat processing, sugar, bakery, and processed fruit and vegetable.
Also, the need for food-grade lubricants is increasing as food safety laws and quality checks become more strict. Food-grade lubricants are increasingly being used by major food manufacturers to maintain food quality and safety, which has contributed significantly to the market growth. Food-grade lubricants work as an effective corrosion inhibitor, preventing food from being damaged or altered in any way. These lubricants also act as effective viscosity modifiers, assisting in the preservation of food viscosity at high temperatures.
The food category accounted for the largest revenue share, of more than 60%, and it is expected to grow at a CAGR of 8.1% during 2021–2030. This is attributed to the strict food safety regulations across the developing as well as the developed countries. Food safety regulations all over the world mandate the use of food-grade lubricants, owing to the high sources of contamination from the oils being used in grinders, slicers, conveyors, mixers, sealing equipment, bottling machines, and numerous other packaging machines. In addition, in May 2019, around 296 cold chain projects were approved in the food processing industry in India, intensifying the application for food-grade lubricants during the manufacturing and packaging processes.
Globally, the European food grade lubricants market generated the largest revenue, of $89.1 million, in 2021, and it is expected to advance at a CAGR of 8.1% during 2021–2030. This is on account of the stringent REACH and EPA regulations in the European countries, which are encouraging manufacturers to shift their focus toward developing food-grade lubricants.
Companies operating in the market have been involved in product launches to remain competitive. For instance, in February 2022, Metalube Ltd. launched its next-generation food high-performance chain oils. These products increase thermal stability, reduce carbon deposits in food products, optimize performance-enhancing additives, and increase overall equipment effectiveness.
The major players operating in the food grade lubricants market are ExxonMobil Corporation, TotalEnergies SE, FUCHS Petrolub AG, BP plc, Petro-Canada Lubricants Inc., Chevron Corporation, The DOW Chemical Company, Kluber Lubrication Munchen SE & Co. KG, SKF GmbH, and Illinois Tools Works Inc.