US White Oil Market Size, Share, Trends, Growth 2032

US White Oil Industry Prospective:

The US white oil market size was worth around USD 578.23 million in 2023 and is predicted to grow to around USD 855.61 million by 2032 with a compound annual growth rate (CAGR) of roughly 4.45% between 2024 and 2032.

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US White Oil Market: Overview

The highly refined mineral oil left over after sulfonates are produced is referred to as "white oil." It is created when sulfuric acid is applied to paraffinic or naphthenic base oils. It is also referred to as paraffinum perliquidum or liquid paraffin. Natural oxidation inhibitors, nitrogen, and sulfur impurities, as well as unsaturated, poisonous, aromatic, and color-forming chemicals, are all eliminated during the process. Pure, colorless, odorless, stable, non-toxic, and chemically inert, white oil is found in nature. Additionally, a wide range of feedstocks can be used to make it, depending on procedures like the two-stage hydrotreating method.

Key Insights

• As per the analysis shared by our research analyst, the US white oil market is estimated to grow annually at a CAGR of around 4.45% over the forecast period (2024-2032).
• In terms of revenue, the US white oil market size was valued at around USD 578.23 million in 2023 and is projected to reach USD 855.61 million by 2032.
• The increasing demand from the pharmaceutical sector is expected to propel the US white oil market growth over the projected period.
• Based on the product grade, the pharmaceutical segment is expected to dominate the market over the forecast period.
• Based on the application, the personal care segment is expected to grow at a significant rate over the projected period.
• Based on the state, California is expected to dominate the market over the projected period.

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US White Oil Market: Growth Drivers

Growth in the pharmaceutical industry drives market growth

White oil is a laxative in medicine and the base for lotions and ointments. The pharmaceutical business in the United States is expanding due to the aging population and rising health concerns, and there is a significant need for safe, premium chemicals like white oil. The number of Americans 65 and older is expected to rise to 82 million by 2050, a 47% increase from the 58 million forecast by the Population Reference Bureau in 2022. Their share of the total population is expected to climb from 17% to 23%. Thus, the aforementioned statistics are expected to drive the growth of the US white oil market over the analysis period.

US White Oil Market: Restraints

Fluctuations in crude oil prices impede market growth

The prospects for the oil and gas industry are difficult because of things like low oil prices and the introduction of new hydrocarbon sources. Supply and demand, along with regular oil-related events, dictate the long-term direction of oil prices. The WTI price in 2022 averaged $5/b cheaper than Brent crude oil, according to the U.S. Energy Information Administration. Due to European nations replacing Russian imports with alternative supplies, this spread grew from $3/b in 2021. Additionally, according to forecasts by the U.S. Energy Information Administration, Brent crude oil would average $81/b by December 2024 and drop to $78/b by December 2025. Therefore, the fluctuation in crude oil prices might negatively impact the US white oil industry during the projected period.

US White Oil Market: Opportunities

Growing product demand from the food processing sector provides a lucrative opportunity for market growth

The white oil's vital significance in the food processing industry is driving up its demand in the United States. Its ability to function as a colorless, odorless, and tasteless lubricant and release agent makes this oil an indispensable component in food applications, where it helps to ensure product safety and quality. In addition, a wide range of food products, such as baked goods, confections, and snack foods, are produced using it. This kind of oil acts as a lubricant to assist the ingredients process smoothly and keep materials from adhering together when molding and shaping. Products can be easily removed from molds while retaining their integrity and aesthetic due to their use as a release agent. Furthermore, this oil complies with strict regulatory norms for food safety due to its inert nature. Throughout the projection period, the United States food processing industry is anticipated to expand, propelling the growth of the country's white oil market concurrently.

US White Oil Market: Challenges

Stringent government regulation poses a major challenge to market expansion

High purity, highly refined mineral oils are known as white oils. A liquid byproduct of refining crude oil to produce gasoline and other petroleum products is mineral oil. Because the food, cosmetic, and pharmaceutical industries are heavily regulated, these oils are used in these sectors. Since this sector of the economy directly affects consumers, restrictions have been strengthened to prevent any negative effects on their health. Thereby, the stringent regulations pose a major challenge for the US white oil market.

US White Oil Market: Segmentation

The US white oil industry is segmented based on product grade, application, and state.

Based on the product grade, the US white oil market is bifurcated into pharmaceutical and technical. The pharmaceutical segment is expected to dominate the market over the forecast period. Multipurpose excipients like white oil are becoming more and more in demand as pharmaceutical businesses concentrate on developing innovative products. White oil is becoming more and more popular in cutting-edge pharmaceutical applications because of its use in creative drug delivery systems, especially in topical treatments and emulsions. Furthermore, there are additional chances for white oil providers as a result of the increased investments in the healthcare infrastructure, particularly pharmaceutical research and development. The United States government's efforts to improve healthcare have also led to an increase in the usage of white oil in pharmaceutical and medical products, which has increased its revenue.

Based on the application, the US white oil industry is bifurcated into adhesives, agriculture, food, pharmaceutical, personal care, textile, polymers, and others. The personal care segment is expected to grow at a significant rate over the projected period. Owing to its non-reactive, odorless, and moisturizing qualities, white oil is widely used in healthcare and cosmetic formulations, including lotions, creams, infant oils, and cosmetics products. White oil is still in high demand as the personal care market in the United States expands, particularly due to growing consumer awareness of skincare practices and cosmetics. Despite having a petroleum base, white oil is suitable in many "clean beauty" formulas due to its great purity and non-toxic nature. Because highly refined white oils are non-comedogenic and hypoallergenic, many recipes still rely on them as clean beauty trends gain traction in the United States.

US White Oil Market: Report Scope

US White Oil Market: State Analysis

California is expected to dominate the market over the forecast period

California is expected to dominate the US white oil market over the forecast period. Manufacturers of cosmetics and personal hygiene products are heavily concentrated in California, particularly in Los Angeles and San Francisco. Because white oil is utilized in lotions, creams, hair products, and other skincare formulas, there is a high demand for it in this industry. The white oil market gains from elevated demand in product formulations as the personal care industry grows with trends like clean beauty and natural cosmetics. Furthermore, there is a strong need for pharmaceutical-grade white oil in California due to the state's thriving pharmaceutical sector, especially in biotech and healthcare. Uses for this highly refined white oil include topical treatments, ointments, and lotions. California's elderly population and high healthcare costs mean that the pharmaceutical industry is still growing in terms of revenue.

US White Oil Market: White Oil Competitive Analysis

The US white oil market is dominated by players like:

• Exxon Mobil Corporation
• Resolute Oil LLC
• S.A. White Oil Company
• Santie Oil Company
• Phillips 66 Company
• British Petroleum
• Renkert Oil Inc.
• Royal-Dutch Shell N.V.
• Chevron USA Inc.

The US white oil market is segmented as follows:

By Product Grade

• Pharmaceutical
• Technical

By Application

• Adhesives
• Agriculture
• Food
• Pharmaceutical
• Personal Care
• Textile
• Polymers
• Others

By State

• California
• Florida
• New York
• Washington
• Texas
• New Jersey
• Georgia
• Oregon
• Arizona
• Colorado
• Others