Lubricant Packaging Market Share, Growth, Opportunities 2030

Report Description

The global lubricant packaging market size was valued at around USD 10.24 billion in 2021 and is anticipated to reach USD 16.54 billion by 2030, expanding at a CAGR of around 5.4% during the forecast period, 2022 – 2030. The growth of the market is attributed to the rising usage and demand for lubricant packaging for various industrial purposes.

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Lubricant packaging refers to the safe and efficient packaging of lubricants oils and fluids. Lubricant packaging includes various packaging solutions, such as storing, packing, and transporting lubricant. Lubricants include various types of oils and fluids that have extensive usage across diverse industrial sectors. Lubricant oils and fluids are high in demand, as it has the potential of reducing friction. The increasing demand for lubricants from diverse manufacturing industries paved the way for the growth of the lubricant packaging market.

Packaging plays an important role in preventing damage to the product and keeping it safe. The lubricant packaging industry has registered robust growth in recent years, due to the rising engagement of manufacturing sectors across the globe. Packaged lubricants are often utilized by diverse end-user industries, such as automobile, machine industry, metal fabrication, oil & gas, chemical, power generation, and other manufacturing industries.

Most manufacturing companies employ various components such as pumps, turbines, compressors, and gearboxes which require frequent lubrication to operate smoothly. High demand for lubricants from these end-user companies influence the growth of lubricant packaging industries. The main available types of lubricant packaging are cans & bottles, kegs & drums, tubes, pails, intermediate bulk containers, bag-in-box, and stand-up pouches.

The key manufacturers have primarily used plastic and metal materials for packaging lubricants. For instance, pails, cans, and drums are made by using polyethylene terephthalate, polystyrene, and high-density polyethylene that offers high strength and desired sizes and shapes.

Manufacturers are increasingly contributing to developing innovative solutions in the lubricant packaging industry to meet the demands of customers. Different types of packages are used for different purposes. For instance, drum packages are generally used for large quantities and require a frequent supply of lubricants. Pouches and tubes are used to package small quantities. Bottles & cans are primarily used to pack engine oils.

Rapid urbanization along with increasing disposable income of consumers fuels the sales of automobile vehicles mainly cars, and bikes, which is contributing to the growth of the lubricant packaging market.

COVID-19 Impact

The COVID-19 crisis had an adverse impact on the global lubricant packaging market. Stringent restrictions and lockdowns were imposed by governments during the pandemic, which forced people to shut down marketplaces, shops, public spaces, and business activities, resulting in a halt of business around the world. The lubricant packaging industries registered a decline in growth during the pandemic, owing to less demand across various end-user industries.

The slowdown of the operational activities of industrial sectors disrupted the large-scale supply chain for lubricant packaging, leading to a decline in the growth of the market. The pandemic affected the packaging and material sectors with restrictions on traveling and transportation of goods across the borders, due to the increased risk of infection.

The poor performance of the automobile industry resulted in the reduced sales of lubricant packaging, which in turn, hampered the market growth. Governments took relaxation measures, and manufacturers were engaged in the development of innovative products and technological advancements in the post-COVID-19 period.

Market Dynamics

The lubricant packaging market report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

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Major Trends:

Bag-in-boxes are an ongoing market trend in the global lubricant packaging market

Bag-in-boxes are gaining significant popularity in the lubricant packaging market. They contain low-density polyethylene, ethylene vinyl alcohol, and ethylene vinyl acetate. These packages are ideal solutions that contribute to sustainability and reduce the environmental impact. Bag-in-boxes are more eco-friendly than traditional bottle packaging.

They are fully biodegradable, renewable, and recyclable. These boxes are highly used in the grease and lubricant packaging industry. Use of bag-in-boxes is an ongoing trend in the global lubricant packaging market. These flexible solutions are highly demanded across the lubricant packaging industries.

Color-coded bottles are a current trend

Newly designed color-coded bottles are trending in the global lubricant market. The manufacturing company, Shell, has launched its innovative color-coded packaging bottles for Aeroshell Piston Engine Oils. After its introduction, color-coded bottles featuring a new back label design for easy recognition among consumers, was a big hit in the global market. Moreover, this new bottle has content written in 14 languages for consumer convenience.

Key Drivers:

Developmental activities are driving the market

Lubricant packaging solutions are widely used in diverse industrial settings, as it controls and maintains friction, and aids in the smooth functioning of the machines. Market players are increasingly investing in developing product capabilities and business expansion. Rapid developments and extensive research activities among manufacturing companies led to technological advancements in the lubricant packaging industry, which is expected to create lucrative opportunities in the lubricant packaging market.

For instance, in July 2022, Kraton Corporation highlighted its approach towards sustainable packaging solutions. The company promotes sustainability through huge investments in technologies and innovative solutions. Its polymers are widely applied in lubricants, adhesives, coatings, roofing, sealants, and automotive, among other applications

Availability of flexible packaging solutions increases market revenue

Lubricant packaging industries are switching towards flexible packaging solutions, as this packing format offers cost-effectiveness, convenience, and affordability. Flexible packaging solutions improve palletization efficiency and reduce plastic waste. They are ideal alternatives to the rigid type of packages, as they are much lighter and more effective in transportation as compared to rigid packages. Flexible packages contain low density of plastic, accounting for 60% percent less plastic, hence it is highly adopted in the lubricant packaging market.

The development of these sustainable packaging options generates growth opportunities in the global lubricant packaging market. Flexible packaging solutions, including stand-up pouches and bag-in-boxes, are generating high demand from lubricant packaging industries. Increasing requirements of small lubricant packaging have led to a paradigm shift towards a flexible packaging setup. Use of mechanical components in automotive, chemicals, power generation, and oil & gas industries raises the demand for lubricants for smooth functioning of the components.

These factors influence the growth of the lubricant packaging market. For instance, in February 2022, The Fuchs Group redesigned its packaging and developed new bottles for automotive lubricants. These new bottles were made from 30% of recycled materials. The rising usage of sustainable and eco-friendly packaging formats is expected to drive the market in the forecast period.

Rising construction and mining activities are propelling the market

Rapid industrialization and urbanization coupled with growing disposable income of people are increasing the rate of construction activities. Additionally, growing mining, as well as large-scale construction projects taken up by governments, have increased the usage of heavy machinery equipment, which in turn, increases the demand for industrial lubricants and drives the market.

Existing Challenges

Uncertain prices of raw materials pose challenges to the market

The lubricant packaging manufacturing industries are dealing with various challenges, including sales competition among market players, handling consumer preferences, and fluctuating prices of raw materials. High-density polyethylene and polyethylene terephthalate are used to manufacture lubricant packaging bottles. The volatile prices of derivatives of petrochemical feedstocks used in the production of lubricants cause uncertainties in the market valuation. Any fluctuations in the availability of raw materials causes vulnerabilities in commodity pricing, which poses challenges to the manufacturers, limiting the market growth.

Environmental impacts regarding the packaging industry restrain the market growth

Plastic is highly preferred in the packaging industry, as it is lightweight, durable, and low in cost. However, plastic waste is a major risk factor for environmental degradation and pollution. This is expected to hamper the lubricant packaging market. Plastic packaging products are not biodegradable and have a negative impact on natural resources. Governments and other related concerned authorities, including the EPA and United Nations Environment Program (UNEP), passed several laws and set standards for the packaging industry. Compliance with such laws and norms is challenging for the market players.

Emerging Opportunities:

Growing leasing to SMEs to create opportunities in the lubricant packaging market

The increasing prevalence of leasing lubricant packaging by small and medium business enterprises is expected to create growth opportunities in the market. Key manufacturers prefer to lease lubricants to SMEs, as they can capitalize while serving the requirements of the consumers.

Surging usage of pouches and tubes offers growth opportunities for the market players

The availability and surging usage of packaging solutions such as pouches and tubes offer growth opportunities for the players in the global lubricant market. Pouches and tubes are used for storing automotive fuels, including process oil, industrial oil, and engine oils. They are used for packing small quantities of lubricants. This factor is fuelling the sales of these packaging solutions, which is expected to create growth opportunities for the market players during the forecast period.

Increasing demand from oil & gas industries to create opportunities in the market

The increasing demand for lubricant oils and fluids across the oil & gas industry is expected to create opportunities for expansion of the lubricant packaging market. According to the International Association of Oil & Gas Producers (IOGP), rising consumption of lubricant oils is registered in Europe, along with the massive presence of heavy-machinery industries in the region.

The study emphasized that three out of every four barrels of oil used in Europe is imported. High demand for lubricant packaging in Europe is attributed to the expanding output and consumption of various industries, particularly the oil & gas industry. This provides incremental opportunities for the expansion of the global lubricant packaging market.

Scope of the Report

The global lubricant packaging market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Plastic segment holds a major share of the global lubricant packaging market

Based on materials, the global lubricant packaging market is bifurcated into plastic and metals. The plastic segment holds a major share of the global lubricant packaging market and is estimated to expand at a CAGR of around 4.1% during the forecast period, 2022-2030. This is attributed to the increasing preference for plastic materials for various packaging solutions, on account of its existing properties such as resistance to pressure, durability, high strength, portability, and cost-effectiveness.

The plastic segment is sub-segmented into PET; PE; PP, and PVC. High-density polyethylene, a type of polyethylene, is highly used in the packaging industry, as it has the potential to act as a moisture barrier, is low in cost, light, easy to process, and is an opaque packaging solution.

Drums segment accounts for a major market share

On the basis of packaging types, the global lubricant packaging market is segmented as cans & bottles, kegs & drums, tubes, pails, intermediate bulk containers, bag-in-box, and stand-up pouches. The drums segment accounts for a major market share and is anticipated to expand at a high CAGR during the forecast period. It is expected to hold 1/3rd of the market share by the end of 2022.

Drums are widely used in various industries to store a large number of lubricants. They are made from both metals and plastic materials. Drum packaging is a cost-effective packaging solution. Factors such as simplicity of storage, durability, and user-friendly ergonomics are contributing to the market expansion.

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Engine oil segment leads the global lubricant packaging market

Based on lubricant types, the global lubricant packaging market is divided into engine oils, process oils, marine oils, gear oils, transmission & hydraulic fluids, metalworking fluids, greases, and general industry fluids. The engine oil segment leads the global lubricant packaging market. Engine oil is highly used in the automobile sector, and is primarily designed for controlling and maintaining various components, including compressors, gear, turbines, electrostatic rotors, engines, and other processing equipment.

The growth of automobile vehicles with IC engines across the globe is raising the demand for engine oils. These oils are used in components of the aviation industry, such as piston rings, bearings, and gears, which contributes to the growth of the lubricant packaging market. Economic development and rising disposable income of people in developing countries are raising the demand for automobiles, which in turn, is driving the demand for engine oils. Marine lubricant oils are increasingly being utilized in marine engines. They are usually designed to maintain and control slow and medium-speed marine engines.

 Automobile segment accounted for high market revenue in 2021

On the basis of end-users, the global lubricant packaging market is fragmented as automobile, machine industry, metal fabrication, oil & gas, chemical, power generation, and other manufacturing industries. The automobile segment accounted for high market revenue in 2021 and is projected to expand at a high CAGR during the forecast period. This is attributed to the growing demand for lubricants across the global automobile sector. Rising adoption of various vehicles such as cars, bikes, buses, and others is raising the demand for lubricant packaging.

Automobile industries highly use lubricants such as gear & engine oils, transmission oils, chassis grease, and penetration lubricants in order to protect engines and reduce the friction of the machines. These lubricants provide improved performance and longevity, and reduce the repair costs to the vehicles.

This creates incremental opportunities in the lubricant packaging market. High adoption of solid, semi-liquid, and liquid lubricant oils in the automobile sector is attributed to the high requirement for lubricant packaging for storing and transporting the oils. As a result, high demand for intermediate bulk containers for storing lubricants, including grease oils and others, is driving the global lubricant packaging market.

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Asia Pacific remained dominant in the global market

In terms of regions, the global lubricant packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific remained dominant in the global lubricant packaging market in 2021. The market in Asia Pacific is expected to expand at a CAGR of around 4.1% during the forecast period, 2022-2030.

Lubricants are required for the smooth operation of industrial works in the mining industry, machining, and plastic industry, which is expected to create growth opportunities in the market in the region. Rapid industrialization and urbanization are facilitating the growth of emerging marketplaces in the region.

Major manufacturing companies, including Alibaba and JD.com, supply lubricants through their e-commerce sites. Rising per capita income and changing lifestyles of consumers are motivating them to spend on luxury cars and vehicles in the region, which is driving the lubricant packaging market.

The lubricant packaging market in Europe is expected to register robust growth during the forecast period, owing to the presence of a large number of heavy machinery industries in the region. The high development of the automobile industry in Europe contributes to the lubricant packaging market growth.