The global lubes market for independents will grow, but faces constraints according to new data.
The latest stats, from Transparency Market Research, predict the market for independent lubes producers is set to reach $8.5bn before the end of the decade, driven mainly by the automotive and industrial sectors.
According to the report, entitled Independent Lubricant Manufacturers' Market Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013-2019, producers such as Fuchs, Liqui Moly, Motul and Carlube are set to benefit from the continued expansion of the global car parc - particularly in the US where significant growth in car sales in 2012 indicate a long-term trend which is likely provide further opportunities for the independents. Unsurprisingly, the Asia-Pacific region is also set to be a highly lucrative market, particularly for lube supply to the heavy industries such as mining, steel and agriculture.
However, the research indicates it won't all be plain sailing over the next five years, with volatile mineral oil prices and bio-based products commanding high manufacturing premiums amongst the challenges that will be faced by the independent sector.