The white oil market size will reach 1.69 million tons by 2031, according to the latest report from Mordor Intelligence. Analysts expect the market to grow from 1.58 million tons in 2026 at a CAGR of 1.36% during the forecast period. Notably, Asia-Pacific (APAC) will account for 63.44% of global volume in 2025, strengthening its leadership position.
As industries demand higher purity standards, manufacturers increasingly shift toward Group II and Group III hydrocracked grades. These grades meet strict U.S. and European pharmacopeia limits on sulfur and aromatic compounds more efficiently. Therefore, suppliers that offer advanced refining capabilities gain a competitive advantage.
High-Purity Grades Accelerate Market Growth
Pharmaceutical and food packaging sectors continue to drive demand for refined white oils. In Asia-Pacific, pharmaceutical companies actively secure long-term contracts to ensure consistent access to USP-grade oils. As a result, suppliers benefit from stable demand and predictable procurement cycles.
Meanwhile, European packaging manufacturers respond to tighter MOAH and MOSH regulations. They now replace conventional processing aids with certified food-grade white oils. Consequently, compliance requirements increasingly shape purchasing decisions across the region.
European Food Safety Rules Reshape Supplier Landscape
Stricter food safety standards across Europe push packaging producers to adopt refined white oils. At the same time, brand owners demand faster testing turnaround and certified raw materials.
Because of this shift, specialty refiners with in-house analytical capabilities strengthen their market position. However, smaller players struggle to match regulatory expectations and technical requirements. Thus, the competitive landscape continues to evolve.
Herbal Beauty Growth Boosts Demand in India
In addition, India’s expanding herbal and natural personal-care sector supports steady consumption of light paraffinic white oils. Manufacturers prefer these oils for their neutrality, formulation stability, and compatibility with natural ingredients.
Furthermore, export-oriented brands require specific cultural and quality certifications. Since white oils meet these standards, producers increasingly rely on them in traditional and herbal formulations. Consequently, local production growth reinforces India’s role as a regional supply hub within Asia-Pacific.
APAC Continues to Dominate Global Volume
Overall, Asia-Pacific remains the largest contributor to global white oil consumption. Strong pharmaceutical manufacturing, expanding personal-care industries, and tightening regulatory frameworks sustain regional demand.
Looking ahead, APAC will continue to shape supply chains and pricing trends through 2031. Therefore, the white oil market size will expand steadily as regulatory compliance, purity standards, and end-use diversification drive long-term growth.
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