The global bio-lubricants market size reached USD 2.40 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.21 Billion by 2033, exhibiting a growth rate (CAGR) of 3.3% during 2025-2033. The market is experiencing stable growth driven by the increasing awareness among individuals about the benefits of bio-based products on health, stringent environmental regulations to curb pollution levels, and rising focus on maintaining vehicle performance.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 2.40 Billion |
Market Forecast in 2033 | USD 3.21 Billion |
Market Growth Rate 2025-2033 | 3.3% |
Stringent environmental regulations
The increasing demand for bio-lubricants due to stringent environmental regulations across the globe is propelling the growth of the market. Traditional lubricants are manufactured from fossil fuels and pose risks to ecosystems due to their non-biodegradable nature and potential for environmental contamination. In addition, bio-lubricants offer a greener alternative as they are derived from renewable resources, such as vegetable oils or animal fats. Their biodegradability and lower toxicity make them an attractive solution in various applications. Furthermore, people are facing severe respiratory issues due to harmful pollution levels. According to Statista, the Indian state of Rajasthan had the highest number of people affected with acute respiratory infections at over 3.6 million cases in 2021.
Rising awareness about the benefits of bio-based products
The increasing awareness among individuals about the benefits of bio-based products is supporting the bio-lubricants market growth. Bio-lubricants are usually safer to handle and use as compared to petroleum-based lubricants. They are less toxic and pose fewer health risks to workers and individuals. They have a high VI, lubricity, and flashpoint and superior shear resistance than mineral oils. Furthermore, the rising production of bio-lubricants to fulfil the demand of various industries is bolstering the market growth. Besides this, the production value of bio-based lubricants was 38.8 million euros in 2021 in Europe as reported by Statista.
Increasing focus on maintaining vehicle performance
The escalating demand for bio-lubricants on account of the rising focus on maintaining vehicle performance is strengthening the market growth. There are many uses of bio-lubricants market but is mainly used to reduce friction between two mechanical parts, primarily to lower wear and deterioration of metal surfaces and to ensure smooth operation and the absence of contaminants. They minimize the risks of frequent failures and accidents and enhance the durability or life cycle of vehicles. Besides this, the Ministry of Road Transport and Highways claims that there were 4,12,432 unfortunate incidences of road accidents during 2021. Moreover, in 2020, the country saw an unprecedented decrease in accidents, fatalities, and injuries.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on base oil type, application, and end use industry.
Animal fats account for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the base oil type. This includes vegetable oils and animal fats. According to the report, animal fats represented the largest segment.
Animal fats bio-lubricants are sourced from livestock processing by-products, such as beef tallow, poultry fat, and pork lard. These animal fats undergo refining and processing to produce bio-lubricants. These lubricants assist in reducing reliance on finite fossil fuels and contributing to environmental sustainability. In addition, the growing adoption of eco-friendly products due to the rising environmental pollution is offering a positive bio-lubricants market outlook. People are increasingly suffering from various severe diseases due to poor air quality. According to the European Environment Agency, there were about 253,000 premature deaths from chronic exposure to fine particulate matter in 2021.
Two-cycle engine oils hold the largest share of the industry
A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes hydraulic fluids, metalworking fluids, chainsaw oils, mold release agents, two-cycle engine oils, gear oils and greases, and others. According to the report, two-cycle engine oils accounted for the largest market share.
Two-cycle engine oils are special oils that are designed for use in two-stroke engines. They benefit in avoiding the formation of deposits on the exhaust ports, spark plugs, and pistons, thereby keeping the engines clean while ensuring enhanced lubrication. The rising adoption of two-cycle engine oils, as they reduce wear and lower emissions, is supporting the market growth. Furthermore, on 5 July 2021, Delhi-based automotive component maker ‘Steelbird International’ expanded its product range with the launch of engine oil and lubricants for two-wheelers.
Automotive represents the leading market segment
The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes power generation, automotive, heavy equipment, food and beverage, metallurgy and metalworking, chemical manufacturing, and others. According to the report, automotive represented the largest segment.
The increasing utilization of bio-lubricants in the automotive sector due to their low toxicity, improved performance, and regulatory compliance is impelling the market growth. Bio-lubricants are used in engines to reduce friction between moving parts, such as pistons, crankshafts, and bearings. They provide enhanced lubrication properties, ensuring smooth operation, reducing wear and tear, and extending engine life. Apart from this, the escalating demand for bio-lubricants on account of the rising number of vehicles around the world is propelling the market growth. For instance, the Society of Indian Automobile Manufacturers (SIAM) states that the overall passenger vehicle sales increased from 30,69,523 to 38,90,114 units in the financial year 2022-2023 as compared to the previous year.
North America leads the market, accounting for the largest bio-lubricants market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for bio-lubricants.
The growing demand for bio-lubricants due to rising environmental issues is offering a positive market outlook. In addition, governing agencies in the region are encouraging the adoption of eco-friendly products by implementing stringent environmental regulations, which is bolstering the market growth. Apart from this, people are increasingly preferring sustainable products that benefit in lowering greenhouse gas (GHG) emissions. Furthermore, in 2022, GHG emissions totaled 6,341.2 million metric tons of carbon dioxide equivalents in the United States. Emissions increased in 2022 by 1% as compared to the previous year, as stated by the United States Environmental Protection Agency (EPA).
The Asia Pacific region has tremendous growth potential in the market for bio-lubricants with rising environmental laws, industrialization, and growing awareness of sustainability. China, India, and Japan are experiencing an accelerated shift toward eco-friendly options in the manufacturing and automobile industries. The increasing involvement of automotive OEMs, along with government efforts to decrease carbon emissions, is driving the use of bio-based lubricants in transport and industrial equipment. The agriculture and marine industries are also increasingly interested in biodegradable lubricants to prevent soil and water pollution. Nevertheless, the production costs are high, and there are restricted domestic production capacities within a number of developing nations. However, developments in feedstock technology and conducive policy environments are increasingly closing the gap. In light of increasing pressure on industries to comply with environmental norms and green public procurement policies, Asia Pacific is likely to emerge as a leader in the world's bio-lubricants market.
Europe is still a leader in the use of bio-lubricants, fueled by strict environmental policies, including REACH and the EU Ecolabel, and the continent's tradition of sustainability. Germany, France, and Nordic countries are the leaders in embracing bio-based lubricants in the automotive, industrial, and marine applications. The government has actively promoted and provided incentives for adopting biodegradable and non-toxic lubricants, which has inspired industries to move away from petroleum-derived substitutes. The area also has access to a well-developed feedstock supply chain, with rapeseed oil and other vegetable oils being easily available for production. Moreover, consumer awareness of environmental responsibility and business sustainability objectives is driving product choices in various segments. Europe's established infrastructure, research and development (R&D) investment, and favorable regulatory environment continue to support innovation in the sector. With industries driving for reduced emissions and cleaner working environments, Europe should continue to lead the development of the future of the bio-lubricants market.
North America is a robust and continually rising market for bio-lubricants, supported by environmental consciousness, governmental backing, and sophisticated industrial bases. The United States and Canada are prominent contributors, mostly in applications like automotive, agriculture, marine, and industrial machinery. Government agencies like the U.S. Environmental Protection Agency (EPA) encourage the utilization of environmentally acceptable lubricants (EALs), and as a result, there has been greater adoption in government and private sectors. Increased concern regarding dependence on fossil fuels and greenhouse gas emissions is also encouraging companies to seek renewable and biodegradable alternatives. Although price sensitivity and scarce availability of high-performance bio-lubricants have been challenges, continuous R&D activities are ensuring the cost effectiveness and product performance improve. The presence of leading market players and robust technological capabilities also ensure innovation. As there is an increasing trend toward sustainable operations and more corporate environment commitments, North America remains a key driver in the progress of the bio-lubricants market.
Latin America is becoming an interesting region in the bio-lubricants market, aided by its agricultural wealth and growing emphasis on environmental sustainability. Brazil, Argentina, and Chile are capitalizing on their availability of vegetable oils and other bio-based feedstocks to create domestically sourced lubricants. Growth in industrial activity and development in the mining, agriculture, and transportation sectors are creating a demand for environmentally friendly alternatives to lubricants derived from petroleum. Government initiatives toward encouraging green technologies and minimizing environmental deterioration are increasingly facilitating the uptake of bio-lubricants, particularly in vulnerable regions like water bodies and agricultural ecosystems. Nevertheless, weaker technological infrastructure and decreased awareness in some regions are challenges to the adoption in many areas. Despite this, the escalating international collaborations, investment in renewable technology, and expanding demand for environmentally friendly industrial solutions are opening up new opportunities. With further policy consistency and investment in education and innovation, Latin America will see significant progress in bio-lubricants in the future.
The Middle East and Africa (MEA) market is slowly turning to bio-lubricants as sustainable options, primarily spurred by environmental issues and economic diversification efforts away from petroleum. Whereas conventionally dependent on mineral oil-based lubricants, some GCC countries, including the UAE and Saudi Arabia, are launching green policies and promoting environmentally friendly industrial practices. In Africa, areas with high agricultural production, including South Africa and Kenya, offer opportunities for local bio-based feedstocks. Mining, transportation, and marine industries are of specific interest, where the application of biodegradable lubricants helps reduce environmental damage. Infrastructure development, availability of products, and cost competitiveness remain the challenges. Nevertheless, global cooperation, campaigns, and government-sponsored environmental programs are slowly liberalizing the market. As green industrial change gathers pace in MEA, the region can anticipate having a more organized and regionally aligned bio-lubricants market in the future.
Key players in the market are introducing eco-friendly lubricants to reduce carbon footprint in the environment while maintaining their social responsibility. They are also engaging in partnerships, which is increasing bio-lubricants market demand. For example, RSC Bio Solutions and Standard Sekiyu Osaka Hatsubaisho Co., Ltd (SSOH) announced a new distribution partnership on 6 December 2021 to meet the growing demand for environmentally acceptable lubricant (EAL) offerings in Japan for marine and industrial applications. Apart from this, major manufacturers are focusing on expanding their facilities to cater to the needs of diverse sectors. On 31 March 2023, ExxonMobil unveiled that it is investing nearly USD $110 million to build a lubricant manufacturing plant at the Maharashtra Industrial Development Corporation’s Isambe Industrial Area in Raigad. As a result, these initiatives by companies enhance the bio-lubricants market price worldwide.
The report provides a comprehensive analysis of the competitive landscape in the global bio-lubricants market with detailed profiles of all major companies, including:
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Base Oil Types Covered | Vegetable Oils, Animal Fats |
Applications Covered | Hydraulic Fluids, Metalworking Fluids, Chainsaw Oils, Mold Release Agents, Two-Cycle Engine Oils, Gear Oils and Greases, Others |
End Use Industries Covered | Power Generation, Automotive, Heavy Equipment, Food & Beverage, Metallurgy & Metalworking, Chemical Manufacturing, Others |
Regions Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered | United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico |
Companies Covered | Bechem, Castrol Limited, Cortec Corporation, Emery Oleochemicals, Fuchs, Kluber Lubrication, Kuwait Petroleum, Polnox Corporation, Shell plc, TotalEnergies, etc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The global bio-lubricants market was valued at USD 2.40 Billion in 2024.
We expect the global bio-lubricants market to exhibit a CAGR of 3.3% during 2025-2033.
The rising utilization of bio-lubricants in heavy machineries, such as railroad flanges, chainsaw bars, two-stroke engines, etc., as they are non-toxic, eco-friendly, bio-degradable, renewable in nature, etc., is primarily driving the global bio-lubricants market.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations, resulting in the temporary halt in numerous production activities for bio-lubricants.
Based on the base oil type, the global bio-lubricants market can be divided into vegetable oils and animal fats. Currently, animal fats account for the majority of the global market share.
Based on the application, the global bio-lubricants market has been segregated into hydraulic fluids, metalworking fluids, chainsaw oils, mold release agents, two-cycle engine oils, gear oils and greases, and others. Among these, two-cycle engine oils currently exhibit clear dominance in the market.
Based on the end use industry, the global bio-lubricants market can be bifurcated into power generation, automotive, heavy equipment, food & beverage, metallurgy & metalworking, chemical manufacturing, and others. Currently, the automotive industry holds the largest market share.
On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market.
Some of the major players in the global bio-lubricants market include Bechem, Castrol Limited, Cortec Corporation, Emery Oleochemicals, Fuchs, Kluber Lubrication, Kuwait Petroleum, Polnox Corporation, Shell plc, and TotalEnergies.