'Process Oil Demand to Grow Fastest in Africa/Mideast Region'
The global process oil demand is forecast to grow 1.4% per year to 7.2-mt in 2021, according to a research report by The Freedonia Group. The rate of growth is expected to be lower than the global average in North America and Western Europe – where manufacturing growth will be slowest – and higher than average in all other regions.
Process oils are special oils used in a variety of industries either as raw material component or as an aid to processing. Key factors driving the market include:
• Increase in world rubber consumption, which is forecast to accelerate, particularly in developing countries as a result of expanding vehicle usage;
• Fast population growth in developing regions, which will boost the level of food and beverage manufacturing;
• and Mature manufacturing industries and the offshoring of operations to utilise cheaper labour costs, which will limit process oil requirements in developed world.
Growth for process oil demand is forecast to be fastest in the Africa/Mideast region due to expected above average increases in African manufacturing. “While the Asia/Pacific is home to the country expected to undergo the biggest growth – India – countries with mature manufacturing markets, such as Japan and South Korea, will limit aggregate growth outlook for the region,” the report noted.
Global demand for industrial lubricants is expected to increase 1.6% per year through 2021. The major driving factors will be:
• Increased manufacturing activity, particularly in developing regions;
• A heightened level of global trade; and
• Growing level of global energy consumption.
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