Process Oil Market to Grow with a CAGR of 2.18% through 2030

Rising Global Demand from the Tire & Rubber Industry and Rising Infrastructure Growth and Industrialization in Emerging Markets are expected to drive the Global Process Oil Market growth in the forecast period, 2026-2030

According to TechSci Research report, “Process Oil Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the Global Process Oil Market stood at USD 5.15 Billion in 2024 and is anticipated to grow with a CAGR of 2.18% in the forecast period, 2026-2030.

Process oils play a pivotal role in the polymer manufacturing value chain, particularly in the production of thermoplastic elastomers (TPEs), polyethylene (PE), and polypropylene (PP). These oils are essential for modifying polymer rheology, improving processing efficiency, and delivering desired mechanical properties such as enhanced elasticity and reduced hardness. As flexible plastics gain broader adoption across consumer goods, automotive interiors, construction materials, and high-performance packaging, demand for process oils continues to scale accordingly.

A notable shift is underway toward high-purity, non-carcinogenic process oils, especially in response to evolving environmental and safety standards. These oils are increasingly favored in recyclable and clean-label polymer formulations, aligning with regulatory mandates and sustainability-driven innovation in the plastics industry.

In the personal care and cosmetics segment, white oils and specialty-grade process oils are integral as base fluids in a wide array of formulations ranging from moisturizers and hair care products to baby oils. These oils are prized for their chemical inertness, skin compatibility, and high purity, and are attributed critical to dermatologically safe product development. The expanding middle-class population, particularly in Asia-Pacific, coupled with rising disposable income and wellness awareness, is accelerating demand for premium skincare and hygiene products. This has, in turn, intensified the need for pharmaceutical-grade, non-toxic process oils.

There is increasing momentum behind the adoption of bio-based, synthetic, and renewable oil alternatives. Driven by end-user priorities around sustainability and ESG compliance, manufacturers in sectors such as personal care, polymers, and packaging are reevaluating their material inputs. FMCG and automotive OEMs are embedding stricter criteria into their procurement frameworks, favoring non-mineral oil-based solutions.

Large corporates are updating vendor specifications to favor low-toxicity, renewable, or synthetic oil alternatives reducing reliance on conventional mineral-based oils. The emergence of advanced synthetic plasticizers and engineered materials threatens to displace traditional process oils in certain high-performance and regulated applications. As market fragmentation intensifies and new entrants offer greener alternatives, legacy process oil producers face the dual challenge of price competition and eroding premium positioning necessitating rapid innovation and portfolio realignment. To stay competitive, process oil manufacturers must strategically pivot toward value-added, compliance-ready, and ESG-aligned solutions, supported by transparent sourcing, traceability, and application-specific performance.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Process Oil Market”

The Global Process Oil Market is segmented into type, function, application, production technology, regional distribution, and company.

Based on the category of Production Technology, the Conventional Route segment emerged as the dominating segment in the market for Process Oil in 2024. The conventional route of producing process oils involves distillation and solvent extraction from petroleum crude oil in traditional refineries. This method benefits from an extensive, well-established global infrastructure refineries in every major region of the world are equipped to produce conventional process oils as part of their standard operations. Due to the sheer scale and global reach of these facilities, conventional process oils are more readily available in the market and are produced at a lower marginal cost compared to alternative methods such as GTL.

One of the primary reasons for the continued dominance of the conventional route is cost advantage. Conventional process oils are significantly cheaper to produce, especially in regions with abundant access to crude oil. In contrast, GTL production requires complex and capital-intensive technology that drives up product pricing. For industries such as tire manufacturing, rubber processing, textiles, and industrial lubricants, where large volumes of process oils are used regularly, price sensitivity is high. This makes conventionally produced process oils the preferred choice for cost-effective operations, especially in price-driven markets across Asia, Africa, and Latin America.

North America is well-positioned to experience the fastest growth in the global process oil market, driven by a convergence of industrial expansion, regulatory shifts, and technological innovation. The key growth catalysts is the robust resurgence of manufacturing activity in the region particularly in sectors such as automotive, tire & rubber, plastics, personal care, and chemicals. The U.S. automotive industry, supported by onshoring trends and increased EV production, is driving sustained demand for process oils used in tire formulation, interior components, and plastic systems. Simultaneously, the rising demand for high-performance polymers and thermoplastic elastomers (TPEs) in North American infrastructure, packaging, and consumer markets is accelerating the consumption of process oils as key processing aids and plasticizers. North America is also witnessing a marked shift toward specialty, non-carcinogenic, and regulatory-compliant process oils, aligned with growing pressure from environmental and safety standards set by bodies like the EPA, FDA, and Health Canada. These regulatory dynamics are pushing end-users across personal care, healthcare, and food-grade packaging industries to switch to high-purity white oils and non-toxic formulations, thereby expanding the addressable market for premium process oil variants.

Major companies operating in Global Process Oil Market are:

• Royal Dutch Shell PLC
• Exxonmobil Corporation
• Total S.A.
• Indian Oil Corporation Limited
• Petronas Group
• Repsol S.A.
• Hindustan Petroleum Corporation Limited
• Idemitsu Kosan Co., Ltd.
• Unipetrol Group
• Panama Petrochem Ltd

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“The Global Process Oil Market is undergoing a structural evolution transitioning from a commodity-driven model to a value-oriented ecosystem shaped by sustainability, regulatory compliance, and application-specific performance. As end-user industries demand higher purity, enhanced functionality, and environmentally responsible solutions, market participants must innovate across feedstock selection, production technologies, and downstream integration. Companies that proactively align their portfolios with emerging trends such as bio-based formulations, non-carcinogenic oils, and digitalized supply chains will be best positioned to unlock long-term growth and secure competitive differentiation in this dynamic industrial landscape.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Process Oil Market - Global Industry Size, Share, Trends, Opportunity & Forecast, Segmented By Type (Naphthenic, Paraffinic, Aromatic, Non-Carcinogenic Others), By Function (Extender Oil, Plasticizer, Solvents, Deformers, Others), By Application (Tire & Rubber, Polymer, Personal Care, Textile, Paints & Coatings, Pharmaceuticals, Others), By Production Technology (Convention Route, Gas to Liquid), By Region, & Competition, 2020-2030F”, has evaluated the future growth potential of Global Process Oil Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Process Oil Market.

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