South America Bio-Lubricants Market Research Report Information By Base Oil Type (Vegetable Oil, Synthetic Esters, Animal Fats), By Application (Hydraulic Fluids, Mold Release Agents, Chainsaw Oil, Grease, Automotive Engine Oils, Others), By End- Use Industry (Automotive, Construction, Marine, General Industrial, Food, Others) and By Country( Brazil, Argentina, Peru, Bolivia, Paraguay, Uruguay, Chile, Rest of South America)- Forecast to 2032

South America Bio-Lubricants Market Overview

South America Bio-Lubricants Market Size was valued at USD 148.80 million in 2023. The South America Bio-Lubricants industry is projected to grow from USD 161.74 million in 2024 to USD 315.26 million by 2032, exhibiting a compound annual growth rate (CAGR) of 8.70% during the forecast period (2024 - 2032). Bio-lubricants are frequently utilized in the processing industries and automobile parts, such as engine oils, hydraulic fluids, and others. Additionally, bio-lubricants are also used in electric vehicles in important electrical components such as coolants for car batteries, gear oils for differentials, chassis, gear reducer, wheels, braking fluids, and grease for other EV components, thus growth in the automotive industry will drive the growth in the South America bio-lubricants market. Furthermore, the high demand from the construction industry and presence of abundant agricultural resources in South America might propel the growth in the South America bio-lubricants market in the forecast period.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

South America Bio-Lubricants Market Trends

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  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

Bio lubricants have gained significant importance in the construction industry due to their numerous benefits and sustainable nature. These environmentally-friendly lubricants, derived from renewable sources, are being adopted in various construction applications, providing effective lubrication while reducing environmental impact. One key application of bio lubricants in the construction industry is in heavy machinery and equipment. They are used to lubricate critical components such as engines, gears, and hydraulic systems. By using bio lubricants in heavy machinery, construction companies can minimize the release of harmful substances into the environment, promoting a greener and more sustainable approach to construction operations.

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

South America is blessed with abundant agricultural resources, making it a fertile ground for the production of feedstock for bio-lubricants. Some of the key renewable resources in South America that can be utilized as feedstock for bio-lubricants include soybeans, rapeseed, palm, and sunflower. Soybeans are a major crop in South America, with Brazil being one of the largest producers in the world. Soybean oil, derived from soybeans, can serve as a valuable feedstock for bio-lubricants. 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.

South America Bio-Lubricants Market Segment Insights

South America Bio-Lubricants by Base Oil Type Insights

The South America Bio-Lubricants Market segmentation, based on base oil type has been segmented as Vegetable Oil, Synthetic Esters, Animal Fats. Among these, the Vegetable Oil segment is projected to dominate the South America Bio-Lubricants market revenue through the projected period. Vegetable oils have high lubricity, viscosity, and flash point, which make them suitable for various applications, such as hydraulic fluids, metalworking fluids, and greases.

South America Bio-Lubricants by Application Insights

Based on Application, the South America Bio-Lubricants Market is segmented as Hydraulic Fluids, Mold Release Agents, Chainsaw Oil, Grease, Automotive Engine Oils, Others. Out of which the Hydraulic Fluids segment dominated base year market and is also projected to dominate the South America Bio-Lubricants market revenue through the projected period. Automotive engine oils are used to lubricate the internal combustion engines of vehicles, such as cars, trucks, buses, motorcycles, and tractors. The main drivers of this segment are the increasing demand for fuel-efficient and eco-friendly vehicles. South America Bio-Lubricants by End Use Industry Insights

Based on Application, the South America Bio-Lubricants Market is segmented as Automotive, Construction, Marine, General Industrial, Food, Others. Out of which the Automotive segment dominated base year market and is also projected to dominate the South America Bio-Lubricants market revenue through the projected period. The increasing focus on sustainability, coupled with stringent environmental regulations, has led to a growing demand for bio-based lubricants in the automotive industry. Bio-lubricants offer reduced environmental impact, improved fuel efficiency, and enhanced engine protection, aligning with the industry's goals of reducing carbon emissions and promoting sustainable practices.

South America Bio-Lubricants Country Insights

Based on Country, the South America Bio-Lubricants market is segmented into Brazil, Argentina, Peru, Bolivia, Paraguay, Uruguay, Chile, Rest of South America. The Brazil Bio-Lubricants market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. Brazil is the leading producer and consumer of bio-lubricants in the region, as it has abundant availability of raw materials, such as soybean oil, palm oil, and castor oil, which are the main sources of bio-lubricants. Brazil also has a strong automotive and transportation industry, which is the major end-user of bio-lubricants.

South America Bio-Lubricants Key Market Players & Competitive Insights

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.

Key Companies in the South America Bio-Lubricants Market includes

• TENSAC


• Petronas Petroleo Brasil Ltda.


• FUCHS LUBRIFICANTES DO BRASIL LTDA


• Klüber Argentina


• BIOLUB QUÍMICA LTDA.


• TotalEnergies EP Brasil


• Shell Brasil Petróleo Ltda.


• ExxonMobil Paulínia


• Castrol Argentina

South America Bio-Lubricants Industry Developments

In September 2022, the Legislatures in Argentina passed Ley de Promocion de Inversiones en la Industria Automotriz-Autopartista y su Cadena de Valor which provides promotion of investment in the automotive as well as its value chain. The law seeks to promote investment in the automotive industry as well as its value chain.

In May 2022, Disinvestment of such nature will decrease the Brazilian market presence of lubricants of Shell plc Raizen acquired the lubricants division in Brazil of MOGAS Group.

In June 2021 Chevron completed the acquisition of Puma Energy's fuels and lubricants business for Latin America across eight countries. With this strategic decision, Chevron was able to widen its regional operational activities in the area and strengthen the marketing of lubricants.

In July 2022, Chevron Corporation developed a new lubricant that fits the requirements of the Vessel General Permit thumb 3 environmental alternates’ thumb 2013. It is a very positive development in the realm of sustainable lubricants and helps modern-day centralized lubrication systems the best.

In November 2020, Chevron and Novvi LLC told of the first fully renewable base oil production ever achieved from Novvi's Deer Park facility in Houston, Texas. The company also included the basic technological processes and terseness of thermal processing in order to create an independent unit of the Deer Park plant and grant the capacity to craft 100 clean and sustainable product lines.

In May 2020, FUCHS and BASF were known to have engaged each other in a project for the formulation of lubricants that were environmentally safe. Until recently, they performed Eco-Efficiency Analysis of hydraulic fluids based on mineral oil and reasoned the obvious need for such studies in the case of mineral oil substitutes. The body of such cooperation shall be utilized in the development of formulations and devices containing lubricants that rely on logical solutions to challenges in the area of environmental protection.

South America Bio-Lubricants Market Segmentation

South America Bio-Lubricants Base Oil Type Outlook

• Vegetable Oil


• Synthetic Esters


• Animal Fats

South America Bio-Lubricants Application Outlook

• Hydraulic Fluids


• Mold Release Agents


• Chainsaw Oil


• Grease


• Automotive Engine Oils


• Others

South America Bio-Lubricants End-Use Industry Outlook

• Automotive


• Construction


• Marine


• General Industrial


• Food


• Others

South America Bio-Lubricants Country Outlook

• Brazil
  
  
  
  • Argentina
  
  
  • Peru
  
  
  • Bolivia
  
  
  • Paraguay
  
  
  • Uruguay
  
  
  • Chile
  
  
  • Rest of South America