The global lubricant packaging market is estimated to top US$ 12.06 billion in 2023 and is projected to reach US$ 20.4 billion by 2033, moving forward at a CAGR of 5.4%.
As the need for oil and gas rises in regions across the globe, it is anticipated that the demand for lubricant packaging as well is going to be on a surge. For example, according to the International Association of Oil & Gas Producers (IOGP), three out of every four barrels of oil needed by Europe have been imported.
The market for lubricant packaging is expected to grow at a faster pace on account of several advances and advancements made by market players. In response to the growing need for lubricant storage and packaging, particularly in the automobile industry.
The global market is anticipated to gain traction due to the increasing demand for flexible strong solutions used for various applications across diverse industries.
According to Future Market Insights (FMI), the overall sales in the lubricant packaging market are projected to increase at 5.4% CAGR between 2023 and 2033. In comparison to the 4.7% CAGR registered from 2018 to 2022.
Flexible packaging is becoming more popular among packaging companies owing to its price and convenience. Increased demand for small-pack lubricant packaging has resulted in a paradigm shift in the lubricant packaging demand toward flexible packaging systems.
Due to its flexibility, the lubricant packaging format has a higher product-to-container ratio than a rigid plastic oil container or other packaging design. Flexible packaging products are significantly lighter than rigid plastic bottles and use 60% less plastic.
On the back of these factors, the lubricant packaging industry is expected to witness robust growth, surpassing US$ 20 billion by the end of 2033.
How Does the Expansion of the Automotive Industry Fuel the Demand for Chemical Oil Packaging?
Extensive research and development activities and rapid advancement in the automotive industry are fuelling the demand for lubricant packaging. Growing sales of automobiles are driving up demand for lubricants, which is boosting the demand for lubricant packaging forward.
The need for lubricant packaging in the automobile industry is increasing with the use of semi-liquid, liquid, and solid forms. Besides this, demand for product packaging solutions such as intermediate bulk containers used to store lubricants such as grease oil and others has surged.
Rising demand for vehicles in the automotive industry is resulting in high demand for lubricants. This is favouring the growth in lubricant packaging globally. Moreover, rising spending, particularly for fuel, compound, and power creation areas, is expected to aid the growth in the market.
How Does the Demand for Engine Oil Packaging Affect the Sales in the Market?
Over the forecast period, growing demand for lubricants from the automotive industry across China and India is expected to boost the market. In addition, increased automobile sales and development in the power generation industry likely drive growth in the market.
Increasing investments, especially in the oil and gas, chemical, and power industries, are anticipated to aid the growth of the market during the forecast period. Components such as pumps, gearboxes, and turbines are used regularly in industries, driving the demand for lubricant packaging.
Petrochemical derivatives are used as raw materials in diverse industries. As a result, fluctuating petrochemical feedstock prices might impede the growth of the lubricant packaging industry.
Country-wise Insights
Why the United States is considered the Top Lucrative Market for Lubricant Packaging?
Expansion of the Automotive Industry to Boost the Lucrative Packaging Market
According to Future Market Insights, the United States of America is anticipated to be the top lucrative pocket for lubricant packaging in North America. According to the study, the United States of America held about 20.9% market share in North America in 2022.
The United States has one of the world’s leading automotive industries. As lubricant packaging provides an airtight leak-proof solution, the market is likely to witness lucrative growth opportunities in the United States automotive industry over the coming years.
According to American Automotive Policy Council (AAPC) in 2018, FCA US, Ford, and Gm produced 508 million automobiles in the United States Likewise, these companies sold over 7.7 million automobiles thereby spiking the demand for lubricant packaging.
How is the United Kingdom Lubricant Packaging Industry Expected to Fare?
Expansion of the oil and gas industry in the United Kingdom likely boosts the demand for lubricant packaging across Europe. As per FMI, the overall sales in the United Kingdom were estimated to reach US$ 157.5 million in 2022.
The United Kingdom lubricant packaging market is expected to advance at 3% of CAGR from 2023 to 2033.
The exponential growth of the oil & gas industry in Europe likely augments the sales of lubricant packaging. According to the International Association of Oil & Gas Producers (IOGP), Europe has imported more than three out of four barrels of the oil it needs.
The United Kingdom consumed 14% of gas in Europe, or 79 billion cubic meters. Furthermore, this indicates that the growing production and consumption of the oil & gas industry in European countries increasing the demand for lubricant packaging.
Why is the Demand for Lubrication Oil Packaging Increasing in Japan?
Japan’s market for lubricant packaging is anticipated to expand 1.5x in the next ten years, opines FMI. Japan is anticipated to hold a substantial part of the Asia Pacific lubricant packaging market, accounting for 5.8% of the value share in 2022.
According to the International Council of Chemical Associations (ICCA) from 2019 to 2020. The chemical sector in the Asia Pacific made an annual contribution of US$ 2.6 trillion. Demand for lubricant packaging solutions in Japan is expected to surge due to:
· Expansion of chemical industries in the Asia Pacific.
· The creation of new and innovative technologies.
How big is the Opportunity in India?
According to the study, India is anticipated to grow at a rate of 6.9% from 2023 to 2033. Where the growth in the market is attributable to the expansion of the power generation industry across India.
