South America Bio-Lubricants Market

• SURGING DEMAND FOR AUTOMOTIVE APPLICATION

The automotive industry is a major consumer of lubricants, and the increasing awareness about the environmental impact of traditional lubricants has led to a shift towards bio lubricants. These bio lubricants, derived from renewable or biomass feedstock, offer several advantages such as biodegradability, reduced toxicity, and good lubricating qualities. Thus, the advancement of automotive industry in the region is anticipated to drive the demand for bio-based lubricants used in automotive parts. According to the European Automobile Manufacturer Association, South American automobile production increased by 11.2% in 2021.

Moreover, the International Organization of Motor Vehicle Manufacturers (OICA) reports that automobile production in South America increased by 28% climbing from 23,18,523 units in 2020 to 29,58,117 units in 2022 with Brazil and Argentina accounting for maximum growth of 4% and 24% respectively in 2022. Furthermore, carmakers are investing considerable amounts in South America. As a growing automotive market rich in raw materials, manufacturers from across Europe, the US, and increasingly China, are turning their attention to the vast continent. For instance, Volkswagen (VW) announced it would make a USD 1.07 billion investment in South America by 2026.

Additionally, in Brazil, the largest automotive market in the region, the German manufacturer hopes to grow by 40% by 2027. Thus, the increasing investment and the expansion of automotive industry in South America is anticipated to drive the demand for bio-based lubricants in the region over the forecast period.

HIGH DEMAND IN THE CONSTRUCTION INDUSTRY IN SOUTH AMERICA

ABUNDANT AGRICULTURAL RESOURCES IN SOUTH AMERICA TO BOOST BIO-LUBRICANTS MARKET

According to the Chamber of Exporters and Traders of Cereals and Oilseeds (Capeco), the soybean production in Argentina, Brazil, Paraguay, and Uruguay accounted for 6,887 million bushels, up 416 bushels from last crop season.

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the South America Bio-Lubricants Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The South America Bio-Lubricants market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the South America Bio-Lubricants Market are TENSAC, Petronas Petroleo Brasil Ltd, FUCHS LUBRIFICANTES DO BRASIL LTD, Klüber Argentina, BIOLUB QUÍMICA LTDA., TotalEnergies EP Brasil, Shell Brasil Petróleo Ltd, ExxonMobil Paulínia, Castrol Argentina. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

TENSAC: TENSAC is a leading company in the field of sustainable chemistry, offering bio-based solutions for various industries and markets. With more than 30 years of experience, TENSAC has a vision of “Efficient and Sustainable Production”, which aims to create a positive impact on the environment, society, and economy throughout the value chain. TENSAC’s products are 100% biodegradable and comply with the highest quality standards. TENSAC’s portfolio includes solutions for the sugar, textile, bio-lubricant, construction, paper, leather, paint, agricultural, food, and cosmetic industries.

TENSAC’s solutions are designed to meet the specific needs of its clients, providing them with innovative, efficient, and cost-effective alternatives.

Biolub Química Ltd: Biolub Química is a 100% Brazilian company that specializes in manufacturing biodegradable industrial lubricants and chemical specialties. Founded in 2000, Biolub Química has grown from a small company with a line of only 8 items to a successful enterprise with more than 200 products. Biolub Química’s products include maintenance products, industrial oils, and biodegradable lubricants that are suitable for various applications, such as industrial lubrication, degreasing, and corrosion prevention. Biolub Química’s main clients are metallurgical industries that require high-quality and eco-friendly lubricants for their operations.

Biolub Química is committed to innovation and sustainability, aiming to provide solutions that meet the needs of its customers and the environment.

The trend of business expansion is accelerating in bio-lubricants market in South America, for instance, Shell Brasil Petróleo Ltda., a subsidiary of Shell plc, has made a significant move in the Brazilian oil industry by finalizing the Production Sharing Contract (PSC) to acquire a 25 percent stake in the Atapu field. The acquisition, formalized through a $1.1 billion payment to Petrobras, marks a substantial investment by Shell in the region.