Food grade lubricants are a class of industrial lubricants to protect against friction and wear and transfer power to the equipment where contamination and hygiene are of deep concern. According to BlueQuark Research & Consulting, the global Food grade lubricants market is expected to witness a moderate growth rate during the forecast period. The demand for food-grade lubricants is being driven by the growing food processing industry globally and the stringent food safety regulations in Europe and North American regions. However, the market's growth is expected to be hindered by awareness among the manufacturers and consumers.

Modern-day manufacturing and food processing involve highly complex automated machines, innovative technologies, and a safe environment. Therefore, the equipment used by the food processing units needs to be lubricated regularly to ensure smooth and efficient operations. Since there is a scope of food getting contaminated by the lubricants used, it is critical to finalize the class of lubricants. Food grade lubricants in various classes come to the rescue in these scenarios, meeting the regulations and ensuring minimal contamination of food. However, contamination in PPM measures cannot be ruled out and is likely to remain a challenge for the lubricant producers soon.

In 2018, the global retail value of food & beverage sales stood at USD 2.43 trillion, increasing from USD 2.27 trillion in 2013. The value is expected to reach USD 2.73 trillion in 2023, witnessing a CAGR of 2.1%. There has been a growing trend of the food processing industry across the globe, supported by multiple factors, including increasing population, urbanization in developing nations, and growing trade of processed food-grade products among the regions/countries. The emerging countries, including India, China, Indonesia, and Malaysia, are driving the global market growth of the food processing industry. Manufacturing & processing is likely to shift to these markets to be close to a growing customer base. For instance, India's food processing industry will attract USD 33 billion investments by 2024. And by 2025, the food processing sector in the country is expected to be worth around USD 500 billion. About 65% of the world's middle-class population is expected to be living in the Asia Pacific region by 2030. The ongoing growth in disposable income in emerging economies is anticipated to drive demand for manufactured food products in the area. The food & beverage industry's market growth is slow in North American and European regions. In contrast, Asia-Pacific, the Middle East, and African regions are expected to witness a significant change in the coming years. The consistent growth in the global food processing industry is likely to continue to drive the market for food-grade lubricants in the forecast period.

End users are demanding more bio-based food-grade products, which opens up an opportunity for bio-based food-grade lubricants in the coming years. Usage of low toxicity bio-based food lubricants is likely to be enforced in environmentally sensitized areas and the food industry.

The global Food Grade Lubricants Market is segmented based on Grade, Product Type, and End-User Industry. The End-User Industry segment is further segmented as Food and Beverage, Pharmaceutical, Cosmetics, and Others. Among the end-user industries of food-grade lubricants, the food and beverage industry was the dominating industry and is likely to continue its prominence during the forecast period.

Regular lubricants produced with organic and synthetic compounds are not permitted to be used in pharmaceutical applications. There are several moving parts in the pharmaceuticals' production in the compression machine, coating machine, rapid mix granulator, colloid mill, and packing machine, among others. There is always a probability of leakage of lubricants that could result in the lubricant contamination of drug products, which is not acceptable by regulatory bodies. Thus, food-grade lubricants are used in pharmaceutical manufacturing machines. These lubricants must have ISO21469 certification, and the lubricant manufacturer should have National Sanitation Foundation (NSF) H1 registration for the product.

In 2018, the global pharmaceutical market was valued at USD 1,204.8 billion, and the North American pharmaceutical market accounted for about 49% of the revenue share. In 2019, the global sales from exported drugs and medicines were valued at USD 392.9 billion, increasing 3.2% compared to 2018. Europe accounted for about 80% of the total global exports, with shipments valued at USD 317.1 billion. Major countries in the export of drugs and medicines include Germany, Switzerland, the Netherlands, Belgium, France, Italy, the United States, United Kingdom, Ireland, and Denmark. The top 10 countries account for about 75% of total exports. However, with the restrictions on the movements of goods and public coupled with the halted operations of the manufacturing facilities during the imposed lockdowns, the pharmaceutical industry faced sluggish supply issues (the majority of pharmaceutical industry key ingredients are supplied by China). This trend of inconsistent supply is also expected to promote the domestic production of crucial components for several countries with abundant raw materials.

The global Food Grade Lubricants Market is segmented into Asia Pacific, North America, South America, Europe, and Middle East & Africa based on geography. Europe was found to be dominating the global food grade lubricant market, and countries including Germany, the United Kingdom, and France are anticipitated to drive the market within the region.

United Kingdom suffered a 5.8% drop in March and a 20.4% collapse in its GDP in April 2020 due to the Covid-19 pandemic. This is the sharpest decline the country has seen after the 2008 recession. The food and beverage sector is the largest manufacturing industry in the United Kingdom, with an annual turnover of around USD 136 billion in 2018. About 450,000 people in the U.K. are employed in food and beverage manufacturing and sales jobs. The U.K. is an important market for global food and beverage companies. Food retailing and food service in the region are dynamic and sophisticated. In 2019, food and beverage exports exceeded USD 23 billion to over 220 countries globally. The top three export markets include Ireland, the United States, and France. In 2018, the manufacture of food products increased by USD 2.4 billion, a growth of 2.7% compared to 2017.

Globally, the United Kingdom has the seventh-largest cosmetics market. The cosmetics market in the country is enormous. In 2019, the cosmetic market was the third-largest market operating in the U.K. Approximately one-fifth of the cosmetics market in the country comprises skincare products. U.K. cosmetic industry made GBP 920 million from sales in 2018, out of which skincare shares acquires a considerable portion. The pharmaceutical sector of the U.K. is one of the largest across the globe. The pharmaceutical trade in the country has a high potential in terms of exports and imports, and a large portion of revenue is derived from exports. In 2018, the pharmaceutical industry in the country performed the most R&D, worth GBP 4.5 billion among other sectors. The market for food-grade lubricants is likely to witness a moderate growth rate in the United Kingdom during the forecast period, supported by the region's saturated and well-established end-user industries.

In the year 2019, the market was found to be fragmented. Some of the key players in the market are The Lubrizol Corporation, Fuchs Petrolub SE, Matrix Specialty Lubricants B.V., Total S.A., among others.

On 26th Mar 2018, AXEL acquired the operating assets and most other assets of Royal Mfg Co, L.P. The business is now carried forward as AXEL Royal LLC, a subsidiary of AXEL Americas LLC, a well-established supplier of lubricating greases and lubes in the U.S. market and abroad.

On 28th Oct 2019, AXEL has developed a particular product designed to lubricate chains used in round baler agricultural machines. BIOFOOD 46 is an ISO 46 chain oil formulated with highly biodegradable raw material and also meets the requirement of NSF H1 lubricants.

Our Global Food Grade Lubricants Market report provides deep insight into the current and future state of the Food Grade Lubricants Market across various regions. The study comprehensively analyzes the Food Grade Lubricants Market by segments based on Grade (H1 Lubricants, H2 Lubricants, H3 Lubricants, and Others), By Product Type (Grease, Gear Oil, Hydraulic Fluid, and Others), By End-user Industry (Food and Beverage, Pharmaceutical, Cosmetics, and Others), and by Geography (Asia Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market drivers and restraints, along with the impact of Covid-19 are influencing the market growth in detail. The study covers & includes emerging market trends, market developments, market opportunities, market size, market analysis, market dynamics, and challenges in the industry. This report also covers extensively researched competitive landscape sections with profiles of prominent companies including their market share and projects.