White Oil Market Report and Forecast 2025-2034

The global white oil market size reached approximately USD 1.50 Billion in 2024. The market is projected to grow at a CAGR of 3.00% between 2025 and 2034 reaching a value of USD 2.02 Billion by 2034.

White oils are highly refined oils made up of paraffinic or naphthenic base stocks. They are colourless, odourless mineral, or synthetic oils that are utilised in a spread of applications, are chemically and biologically stable, and don't allow pathogenic bacterial growth, which makes them a typical staple in numerous industry verticals.

The white oil market growth is driven by its growing applications in the pharmaceutical sector where white oils are used as bases for ointments, laxatives, and various topical formulations due to their purity and inertness. White oils are also readily used in the food sector as lubricants for machinery in food processing and as release agents for baking and food packaging materials. Their colourless, odourless, and tasteless properties, along with their compliance with food safety standards, make them ideal for these applications. Moreover, economic growth in emerging markets leads to increased demand for consumer goods, pharmaceuticals, food products, and industrial applications, all of which require white oils.

Key Trends and Developments

Innovation in applications; e-commerce and online sales growth; technological advancements in production; and rising health and safety standards are the major trends impacting the white oil market expansion

White Oil Market Trends

The advancements in refining and production technology have enabled the creation of higher-purity white oils at more competitive costs. Modern refining techniques have become more efficient and effective, enabling manufacturers to produce white oils with higher purity levels. Techniques such as hydrocracking, hydrotreating, and solvent extraction remove more impurities and contaminants from the petroleum base stocks. The result is a product that is colourless, odourless, tasteless, and free of unwanted chemicals, making it safer and more acceptable for a wide range of applications, including in sensitive areas like food processing, pharmaceuticals, and cosmetics.

Chevron Lummus Global LLC (CLG), a renowned player in the oil and gas sector, made a significant announcement in January 2024 regarding the initiation of operations for the world's largest white oil hydroprocessing unit. This state-of-the-art facility has been established for Hongrun Petrochemical (Weifang) Co., Ltd., which is based in Weifang, Shandong Province, China. The facility's designation as the largest of its kind in the world underscores the significant scale and technological advancement that CLG and Hongrun Petrochemical are bringing to the white oil market.

Market Segmentation

“White Oil Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Grade

• Industrial Grade
• Pharmaceutical Grade

Market Breakup by Product Type

• Light Paraffinic
• Heavy Paraffinic
• Naphthenic

Market Breakup by Application

• Personal Care and Cosmetic
• Pharmaceutical
• Adhesive
• Textile
• Polymers
• Agriculture
• Food and Beverage
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The light paraffinic segment maintains its dominance in the market due to its rising applications in multiple end-use sectors

Light paraffinic white oils typically hold the highest share in the white oil market. They are preferred for applications requiring oils with less tackiness and where easy application or absorption is necessary. They are widely used in the pharmaceutical, personal care, and food industries for products such as lotions, creams, and ointments, and as release agents in food packaging and processing. Their high purity and ability to meet stringent regulatory standards make them a preferred choice in sensitive applications, contributing to their dominant market share.

Meanwhile, heavy paraffinic white oils are commonly used in applications such as lubricants for machinery, protective coatings for fruits and vegetables, and in various industrial and automotive applications, thereby supporting the white oil market development. Their demand is driven by the need for high-performance lubricants and protective barriers in a range of industrial processes.

The personal care and cosmetic sector accounts for a major white oil market share due to its growing usage in hair care, skincare, and cosmetic products

The personal care and cosmetic sector occupies a significant market share as white oils are used as a base oil for products, like hair oils, hair creams, makeup products, facial creams, and body lotions. Rising demand for personal care products, coupled with the expanding personal care sector around the globe, has led to a rise in demand for white oils. Rising demand from the cosmetic sector due to the strong moisture-resistant properties of white oils is also expected to propel the market during the forecast period.

In the pharmaceutical sector, this oil is utilised in the manufacturing of ointments, emollients, and eye lubricants, and within the penicillin production process. White oil acts as an excipient in various medicinal formulations, where it is used to dilute the active ingredients, making them safer and more effective for patient use. Its inertness ensures that it does not interfere with the medicinal properties of the active ingredients.

Competitive Landscape

The market players are developing production facilities and establishing partnerships to gain a competitive edge in the market

Other major players in the white oil market include Sasol LTD, Petro-Canada Lubricants Inc., Panama Petrochem Ltd., and Apar Industries Ltd., among others; these companies are also involved in the exploration and production of oil.

White Oil Market Analysis by Region

The Asia-Pacific region is the fastest-growing market for white oil. China is one of the largest consumers of white oil within the Asia-Pacific region as the country is a key market for cosmetics and skincare products, globally. In India, the most important application of white oils lies within hairdressing, which may be a part of the cosmetics and private care sector. The general cosmetics and pharmaceutical sector accounts for around three-fourths of the white oil consumption within the country.

Although Japanese demographics are shrinking, a surge in consumer confidence and the demand from incoming tourists are driving the expansion of the cosmetics market and consequently the white oil. Moreover, due to the increasing demand for textiles, plastics polymers, cosmetics, pharmaceuticals, and adhesives, the white oil market is expected to grow during the forecast period.

The Middle East and Africa (MEA) is expected to witness sizeable growth in the forecast period. Many countries in the MEA region are experiencing industrial growth and diversification, and white oil is crucial in numerous industrial applications, including as a lubricant in manufacturing processes, in plastics and textiles, and in the production of personal care products. The ongoing industrial expansion increases the demand for white oil as a raw material and process agent.