Mineral Oil Demand Destruction Affects Market Revival during COVID-19 Pandemic

The survival of the oil industry is the key to revive global economy, since the COVID-19 (coronavirus) outbreak has caused a delay in supply chains. Although the supply side has not been materially impacted, manufacturers are witnessing a catastrophic mineral oil demand destruction. Oil storage facilities are brimming with supply but a slowdown in global economic activities has lowered the prices of oil. Thus, companies in the mineral oil & mineral spirit market are relying on COVID-19 vaccines to bring business activities to normal. Travel and trade restrictions are found to lower the demand for mineral oil.

Potential outcomes and ramifications of the COVID-19 pandemic are extending in the sector of mineral spirits. The staggered growth of economic activities in the construction, energy, and automotive sectors is driving the mineral oil & mineral spirit market.

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Are Acetone and Mineral Spirits Same?

Acetone and mineral spirits are used interchangeably. However, their differences are necessary to understand in order to enhance their application. For instance, mineral spirits are versatile and being extensively used in dry cleaning applications. However, these spirits need to be carefully disposed and can be recycled instead of discarding after single use. Acetone, on the other hand, is commonly used in cosmetics and plastic manufacturing industries. However, acetone is highly flammable in nature, and needs to be taken at the local hazardous waste treatment site for disposal.

Companies in the mineral oil & mineral spirit market need to create more awareness about the distinction between acetone and mineral spirits to effectively bolster sales. Brenntag AG— a Germany-based chemical distribution company is increasing efforts to create awareness about the same through knowledge sharing on its website.

Alternative Mineral Oil Products for Power Transmission Inhibiting Market Growth

Substitute products to mineral oil are causing an impediment in market growth. For instance, Cargill’s FR3 dielectric fluid— derived from 100% renewable vegetable oils, helps to overcome the drawbacks of devastating pool fires and dielectric failure during power transmission processes. Hence, companies in the mineral oil & mineral spirit market are increasing their focus in alternate end-use cases such as in biomedicines and textile to expand market growth.

Mineral oil is gaining increased popularity in hair care products. However, customers are becoming aware about its pros and cons. Hence, companies in the mineral oil & mineral spirit market are increasing awareness about cosmetic grade mineral oil to overcome the misconception that mineral oil is toxic. Rigorous purification of mineral oil is being conducted to increase the uptake of hair care products.

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Oil-based Paints Used in Construction Create Value-grab Opportunities for Manufacturers

The mineral oil & mineral spirit market is estimated to reach the valuation of US$ 8 Bn by the end of 2030, as manufacturers are establishing stable revenue streams via increased sales of paint thinners. In domestic and commercial construction applications, mineral spirits play a vital role to increase the durability of natural wood balcony bars. This has triggered the demand for mineral spirit, also known as white spirit or mineral turpentine, in oil coatings.

Companies in the mineral oil & mineral spirit market are increasing their production capabilities in paints. For instance, JSW Group— an Indian multinational conglomerate, is gaining strong business grounds via sales of oil-based paints involving mineral turpentine. However, water-based paints are affecting the sales of oil-based paints, owing to the former’s advantages of being recyclable and consisting of low volatile organic compounds (VOCs).

Adhesives, Coatings, Degreasers Help Expand Revenue Streams

Manufacturers in the mineral oil & mineral spirit market are extending the application of white turpentine as a lighter fluid component, degreaser, and a cleaning compound. Univar Solutions— a global chemical and ingredients distributor company is boosting its output and distribution capacities with the help of technical experts to meet the demanding needs of end users. Mineral spirits are being extensively used along with adhesives, coatings, degreasers, charcoal lighter fluids, and the likes.

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Analysts’ Viewpoint

COVID-19 vaccines hold promising potentials to revive the demand of oil. The mineral oil & mineral spirit market is projected to advance at a modest CAGR of 4.5% during the assessment period, as the U.S.-based regulations for hair care products are creating a small window for harmful and toxic products in the market. Hence, companies in the mineral oil & mineral spirit market need to increase awareness about cosmetic grade mineral oil to earn consumers. Manufacturers are expanding their output capacities in oil-based paints to broaden their revenue streams. They are extending their supply chains in washing agents for bearings and adhesives in the plastic industry.

Mineral Oil & Mineral Spirit Market: Overview

  • Mineral oil is a clear, odorless, colorless, and insoluble mixture of higher alkanes from a mineral source. It is produced from refined, processed, and purified petroleum. Mineral oil is widely used in the manufacture of lubricants and cosmetics. This oil is also used as a laxative in medicine.
  • Mineral spirit, also known as mineral turpentine, turpentine substitute, and petroleum spirit, is a petroleum-derived clear liquid used as a common organic solvent in painting. Mineral spirits are made of 100% petroleum distillates and have no additives. Mineral spirit-based paint thinners are often blended with additives such as trimethyl benzene (benzene).
  • Around 50% of mineral oil & mineral spirit are used in the manufacture of paints & coatings and printing inks. Oil dissolves or disperses different components such as binders, additives, pigments, and extenders that are used in the formulation of paints and coatings. It also helps accelerate the curing and drying process. As a result, the demand for oil has been increasing in the paints & coatings industry.
  • Increase in urban population across the globe, specifically in Asia Pacific, is driving the demand for new residential construction. Paints and coatings are integral parts of the global building & construction industry. Therefore, growth in residential construction is augmenting the global paints & coatings industry. The global construction industry is anticipated to expand at a rate of around 7% to 8% during the forecast period.
  • Demand for industrial paints has also been increasing due to ongoing industrialization across the globe. This is anticipated to boost the demand for quick-drying paints, thereby augmenting the mineral oil & mineral spirit market during the forecast period.
  • Mineral oil is widely used as a carrier in printing inks. It disperses and transfers other substances on the substrate. Printing inks are widely used in the packaging industry, primarily for labeling, cardboard cartons printing, etc. Rise in trading activities and increase in industrial output are likely to drive the demand for packaging, thereby boosting the demands for printing inks in the near future. China and India are among the major import-export countries where trading activities are growing exponentially.
  • Industries such as food & beverages, personal care, pharmaceuticals, and home care are investing significantly in innovation and unique packaging in order to create product differentiation and expand their consumer base. Thus, expansion of the packaging industry across the globe is propelling the demand for printing inks. In turn, this is driving the global mineral oil & mineral spirit market.

Rise in Demand for Mineral Oil as Extraction Solvent

  • In terms of application, extraction solvent was the leading segment with more than 25% share of the global mineral oil market in 2019. The segment is projected to continue its dominance between 2020 and 2030. Flavors and fragrances play an important role in food, feed, cosmetics, personal care, perfumery, chemical, and pharmaceutical industries. Mineral oil & mineral spirit are extensively employed as aroma chemical in the flavor & fragrances sector.
  • Mineral oil is a purified product of petroleum, characterized by odorlessness and colorlessness.  It is a liquid byproduct composed of cycloalkanes and alkanes, extracted from refining of crude oil. Mineral oil is primarily used in making petroleum-based products including biomedicine, pharmaceuticals, food products, cosmetics, and textiles. It is also used in various mechanical and industrial processes, including thermic fluid, as it serves the purpose of a lubricant. This is estimated to propel the demand for mineral oil, which is used in the production of various mechanical and industrial products. In turn, this is projected to drive the mineral oil market during the forecast period.
  • Mineral spirit is an essential ingredient in the production of solvent-based paints & coatings. It is utilized as a thinner primarily to reduce the viscosity of paint and offer slower rate of evaporation. Hence, paints that are thinned with mineral spirit dry to a smoother surface and form a leveled coat on surface that they are being applied. Rise in demand for new houses due to growth in number of nuclear families has led to construction of new commercial and residential buildings. Growth of the construction industry is fueling the demand for paints & coatings across the globe. This is anticipated to impact the demand for mineral spirit across the globe.

Asia Pacific to Lead Mineral Oil & Mineral Spirit Market

  • In terms of volume, Asia Pacific constituted prominent share of the global mineral oil & mineral spirit market in 2019. The mineral oil & mineral spirit market in the region is estimated to continue to expand at a rapid pace during the forecast period. Asia Pacific held more than 50% share of the global mineral oil & mineral spirit market in 2019.
  • Demand for mineral oil & mineral spirit is high in Asia Pacific, particularly in China and India, owing to increase in consumption of mineral oil & mineral spirit products in paints & coatings, construction, and automotive applications in these countries. Mineral oil & mineral spirit are increasingly used in pharmaceuticals, food products, cosmetics, and textile industries in Asia Pacific. This is expected to drive the mineral oil & mineral spirit market in Asia Pacific during the forecast period.
  • Rise in research and development activities and applications of mineral oil & mineral spirit is projected to boost the demand for mineral oil & mineral spirit in Asia Pacific during the forecast period

Mineral Oil & Mineral Spirit Market: Competition Landscape

  • Manufacturers are continuously focusing on expanding their production capacities in order to meet the demand for mineral oil & mineral spirit in various end-use industries in developed and developing countries
  • Prominent players operating in the global mineral oil & mineral spirit market are
    • Royal Dutch Shell plc
    • Pon Pure Chemicals Group
    • Total SE
    • Exxon Mobil Corporation
    • Idemitsu Kosan Co., Ltd
    • Ganga Rasayanie Private
    • NewAge Industrial Oil Pvt. Ltd.
    • PETRO-CANADA LUBRICANTS
    • Eagle Petrochem
    • Tavoil
    • BP Global

Mineral Oil & Mineral Spirit Market – Scope of the Report

Transparency Market Research’s recent report on the global mineral oil & mineral spirit market provides readers with an assessment of the landscape of the market with the help of a comprehensive outlook. This study on the global mineral oil & mineral spirit market analyzes the market for the period from 2020 to 2030, wherein 2019 is the base year. The report enables readers to make important decisions regarding their business, with the help of a wealth of information enclosed in the study.

This TMR study on the global mineral oil & mineral spirit market also provides data on developments made by important players and stakeholders in the market, along with a competition analysis. The report also provides understanding of drivers, restraints, opportunities, and market trends.

Key Questions Answered in Mineral Oil & Mineral Spirit Market Report

  • How much revenue is the global mineral oil & mineral spirit market expected to generate by the end of the forecast period?
  • Which region currently accounts for the maximum share of the global mineral oil & mineral spirit market?
  • What are the factors anticipated to drive the global mineral oil & mineral spirit market during the forecast period?
  • Which region is likely to be highly lucrative for the mineral oil & mineral spirit market during the forecast period?
  • What are the essential strategies adopted by key stakeholders of the global mineral oil & mineral spirit market to expand their geographical presence?
  • What are major advancements in the global mineral oil & mineral spirit market?

This report answers these questions about the global mineral oil & mineral spirit market, aiding major stakeholders and key players in making correct decisions and strategizing for expansion of their business.

Mineral Oil & Mineral Spirit Market: Research Methodology

This TMR report on the global mineral oil & mineral spirit market is based on a complete and comprehensive evaluation of the market, supported by secondary and primary sources. The competition scenario of the global mineral oil & mineral spirit market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the global mineral oil & mineral spirit market arrived at predictions and estimations and calculated the market forecast.

This report uses an analytical triangulation method to estimate the global mineral oil & mineral spirit market by using bottom-up and top-down approaches.

This detailed assessment of the global mineral oil & mineral spirit market, along with an overview of the market, is provided on the basis of a careful examination of growth opportunities. Analysts’ conclusions on how the global mineral oil & mineral spirit market is set to expand are based on carefully vetted primary and secondary sources.

Mineral Oil & Mineral Spirit Market – Segmentation

This report on the global mineral oil & mineral spirit market segments the market based on application and region. This study also discusses the underlying trends and the impact of various factors that are driving the global mineral oil & mineral spirit market, along with their influence on the growth of the market.

This study also offers Porter’s Five Forces analysis and value chain analysis of the global mineral oil & mineral spirit market in order to elaborate on crucial growth strategies of players operating in the regional market.

Application

  • Mineral Oil
    • Biomedicine
    • Pharmaceuticals
    • Textile
    • Food Products
    • Cosmetics
    • Others (including Forestry and Agriculture)
  • Mineral Spirit
    • Paint Thinner
    • Extraction Solvent
    • Cleaning
    • Degreasing
    • Fuel
  • Others (including Disinfectant)

Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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Mineral Oil Mineral Spirit Market

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