What is White Oil or Paraffin Oil?
White oil is a colorless, odorless, and tasteless mineral oil that is used to indicate highly refined liquid hydrocarbons derived from petroleum distillates, which are used in pharmaceutical applications, cosmetic applications, food packaging applications, food contact applications, and the food itself. It is specially refined to obtain the highest degree of purity. White oil is a combination of naphthenic and isoparaffins. White oil is also called paraffin oil because of its primary paraffin oil content. The characteristics of white oil are biostability, hydrophobicity, low oxidation rate, and thermal and chemical stability and it has low odor and taste which is helpful for many industries.
It is produced from purifying paraffinic oil and naphthenic crude oil and prepared from natural gas to liquid conversion method. The application of white oil includes Cosmetics, Plant Spray Oil, Aerosols, Dye Intermediates, Textile Auxiliaries, Agrochemicals, Inks, Perfumery, Paper Industry, Specialty Lubricants, Plastics - used as Lubricants Plasticiser, Specialty Chemicals, Incenses, Personal Care Products, Food Industry, Bulk Drugs, etc. It is used for making chemicals because of its mixing property with polymer. Paraffin oil is used for lighting lamps, Today, paraffin fuel is still a commonly used oil and is considered one of the cleanest burns available.
Here are some driving factors that increase the opportunity of the white oil market:
Increasing demand for personal care products:
The growing awareness of the need for cleanliness and personal health protection has raised the global demand for personal care products. Rising fashion trends, a growing female workforce, and the popularity of social media sources are driving product demand across the country. It is commonly found in cream and lotion formulas, sun tan lotions, baby oil, sun protection creams, makeup removers, makeup products, depilatories, and bath oils. Paraffin oil for hair has a high demand in the market. In cosmetics, paraffin oil is used as a softening and film-forming ingredient. Increasing demand for personal care products is boosting the white oil market.
Enlarging pharmaceutical industry:
In the pharmaceutical industry, White oil is used for the manufacturing of balm, creams, jellies, pomades, emollients, massage oil, capsule lubricants, and vaccination. As it has the highest degree of purity, white oil is used in applying pharmaceutical products. It is useful for medical applications due to its light to medium viscosity. In medicine, liquid paraffin is most commonly used as a pediatric laxative and is a popular therapy for constipation and encopresis.
Demand for plastic and polymer manufacturing:
The worldwide white oil market is expanding due to increased plastic and polymer manufacturing demand, where white mineral oils are widely utilized to produce polystyrene, polyolefins, thermoplastic elastomers, and other polymers. White oils are also commonly used in the plastics and rubber sectors. This mineral oil helps soften rubber goods and is required in the manufacturing of polystyrene, PVC, and other rubbers. This is crucial for creating plastic food packaging and utensils.
Here are some restraining factors that may hinder the growth of the white oil market:
Instability in price:
Lack of raw materials, volatile raw material prices, and geopolitical conflicts regarding trading impacted the price of white oil, hindering the growth of the white oil market. Fluctuating price forces the market to shift demand on other goods and is anticipated to hamper the market growth.
Availability of a substitute product:
Refined avocado oil, sesame oil, canola oil, and fruit and vegetable oil are substitute products for white oil. The substitution results limit a company's pricing power or capability to raise prices. The use of substitute products is hindering the growth of the white oil market.
Established and emerging economies have boosted their investments in the pharmaceutical sector, which may raise demand for white oil to produce a wide range of medicinal formulations. The growing need for specialty petrochemicals, refined oil products, and the global personal care and pharmaceutical industries. Furthermore, increased demand from the beauty sector due to white oils' excellent moisture-resistant ability, and white oils are widely utilized in the manufacture of specialty adhesives and elastomers, which are helping to drive the growth of the white oil market.
Kalyani Raje LinkedIn
Working as a research analyst in the Chemical & Materials domain. I gained experience in formulating strategic insights, trend analysis, market estimations, competitive landscapes, M&A analysis, DRO, report writing, secondary research, and quantitative research. I also have experience in using a range of statistical and analytical tools to analyze data.
With a work experience of over 10+ years in the market research and strategy development. I have worked with diverse industries, including FMCG, IT, Telecom, Automotive, Electronics and many others. I also work closely with other departments such as sales, product development, and marketing to understand customer needs and preferences, and develop strategies to meet those needs.