Southeast Asia: Green lubricant market to be developed

Southeast Asia, which is rich in palm oil, accounts for 90% of the world's palm oil production. Despite abundant sources of raw materials, the market for environmentally friendly lubricants in Southeast Asia does not reflect its resource advantages. “At present, the environmental protection lubricant industry in Southeast Asia is still immature, but adequate supply of raw materials will increase the competitiveness of its products, and as the environmental awareness of users increases and the government’s support increases, the market demand will increase day by day and show a scale. Advantages.” The US consulting firm Frost & Sullivan is very optimistic about this regional market.

Environment-friendly lubricants are grease lubricants that are distinguished from mineral lubricants. Due to their low toxicity, their safety levels are classified by the National Science Foundation as food grades. They are mainly used for mineral oils that may cause environmental pollution. Occasionally, it is used as hydraulic oil, gear oil, lubricants, and electric saw lubricants. The end-use industries include food manufacturing, subsea oil and gas exploration, and beverages, pharmaceuticals, and agriculture. In Southeast Asia, because the government does not have adequate support policies, this environment-friendly lubricant has not been widely used. Currently, it is mainly used in the food industry and submarine oil and gas exploration industries.

The U.S. government has already imposed the use of bio-lubricants, and Germany has also drafted environmental protection policies to support the use of bio-lubricants. At present, Southeast Asia still lacks such a policy. Frost & Sullivan analysis, due to higher production costs, the current price of environmentally friendly lubricants is 3 to 5 times higher than the average mineral lubricants. Due to the low degree of acceptance in Southeast Asia, products cannot be produced on a large scale, and small-scale production costs are higher than traditional mineral lubricants. At the same time, the lack of environmental awareness among customers also hinders market development. They often only consider the immediate interests. Even if they know that they are harmful to the environment, they still favor cheap products. Therefore, traditional mineral lubricants still have a large market share. In addition, the lack of support from original equipment manufacturers has also affected the development of the industry. The lube industry is in great need of support from original equipment manufacturers. Some well-known automotive brands such as BMW and other end customers only use lubricants recommended by original equipment manufacturers. Although major oil companies such as Shell, ExxonMobil, and BP provide environmentally friendly lubricants, due to lack of market demand, environmentally friendly lubricants are not their main products in terms of sales.

In spite of this, in the long run, environmental-friendly lubricants still have good prospects for development in Southeast Asia. Because Southeast Asia is rich in palm oil, it has the advantage of raw materials. At present, environmental-friendly lubricants are mainly used in marine industries in Southeast Asia, such as exploration of oil and gas on the seabed. With the increasingly stringent legal restrictions in the future, they can be extended to hydropower stations and other fields. Although Southeast Asia has not yet enacted legislation requiring the use of environmentally friendly lubricants, it has been required for food exporting countries such as Thailand, Malaysia, and the Philippines to meet HACCP (Hazard Analysis Critical Control Point) standards before entering the international market. It must use environmentally friendly lubricants.

The concern of leading food manufacturers for environmental protection will also increase the use of environmentally friendly lubricants. Multinational food manufacturers are increasingly inclined to use edible lubricants to ensure food safety. With the development of the food manufacturing industry, food-grade lubricants will be more and more recognized by multinational corporations. The market has great potential.

With the increase of public awareness, the promotion of environmentally friendly lubricants will be faster and faster. The use of environment-friendly lubricants that end-users are concerned about is not as effective as mineral lubricating oils, which can reduce the misunderstanding of production efficiency. Manufacturers need to popularize the use and maintenance methods. In order to promote the application of environmentally friendly lubricants, manufacturers should also provide users with the necessary technical support, so as to avoid unnecessary equipment operation abnormalities. Of course, government support is also indispensable and users should be encouraged to use tax incentives, and mandatory use of environmentally friendly lubricants.

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