Global Bio-based Lubricants Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Global Bio-based Lubricants Market Segmentation, By Raw Material (Plant Oil, Animal Oil and Others), Application (Hydraulic Oil, Metal Working Fluids, Penetrating Oils, Grease, Transformer Oil, Crankcase Oils Engine Oils, Elevator Hydraulic Fluid, Bar and Chain Oil, Firearm Lubricant and Others), End User Industry (Power Generation, Automotive and Other Transportation, Heavy Equipment, Food and Beverage, Metallurgy and Metalworking, Chemical Manufacturing, and Other End-user Industries) - Industry Trends and Forecast to 2032

Bio-based lubricants market Size

• The Global Bio-based Lubricants Market size was valued at USD 2.50 Billion in 2024 and is expected to reach USD 3.38 Billion by 2032, at a CAGR of 3.4% during the forecast period
• The market growth is largely fueled by  rising of customers’ awareness about the profits of natural and organic ingredients in bio-based lubricants products
• Furthermore, the growing knowledge about personal grooming both in men and women. Because of the noticeable increase in the count of fashion aware people around the globe are further anticipated to propel the growth of the bio-based lubricants market

Bio-based lubricants market Analysis

• Bio-based lubricants are the lubricants that are manufactured by using biological ingredients and components.
• The bio-based lubricants are manufactured by chemical modification of plant-based oils and are used by a wide range of industry verticals.
• Like any other lubricant, the bio-based lubricants are used to reduce the frictions between the surfaces and further exhibit non-toxic and eco-friendly properties.
• North America dominates the bio-based lubricants market with the largest revenue share of 40.01% in 2025, characterized by strict environmental regulations and a growing preference for sustainable industrial solutions.
• Asia-Pacific is expected to be the fastest growing region in the Bio-based lubricants market during the forecast period due to rapid industrialization, increasing environmental awareness, and supportive policies in emerging economies       
• The plant oil segment is expected to dominate the Bio-based lubricants market with a market share of 71.4% in 2025, driven by its superior lubricity, biodegradability, and low toxicity. Vegetable oils such as rapeseed, soybean, and sunflower are widely adopted due to their renewability and compatibility with environmental regulations   

Report Scope and Bio-based lubricants market Segmentation

Bio-based lubricants market Trends

“Technological Advancements Enhancing Performance and Sustainability”

• A significant trend in the bio-based lubricants market is the continuous technological advancement aimed at improving product performance and sustainability.
• Innovations in bio-based formulations, including synthetic esters and vegetable oil derivatives, are enhancing product quality and expanding applications.
• These advancements are pivotal in expanding their application range, making them a viable option in more demanding and diverse industrial applications.
• Such innovations are making bio-lubricants more competitive with conventional alternatives, thereby fueling market growth.

Bio-based lubricants market Dynamics

Driver

“Stringent Environmental Regulations and Sustainability Goals”

• Governments worldwide are implementing strict environmental laws to lower pollution and promote sustainability, which is a major factor driving the growth of the bio-lubricants market.
• For instance, the renewable energy directive of the European Union promotes the use of bio-based products to meet climate goals.
• In the U.S., the USDA BioPreferred Program focuses on increasing the production and use of bio-based products, boosting demand for sustainable products, including bio-lubricants.
• With rising energy prices, many companies are shifting toward bio-lubricants to align with sustainability objectives and reduce environmental impact.

Restraint/Challenge

“High Production Costs and Limited Raw Material Availability”

• The cost of producing bio-lubricants is significantly higher than traditional petroleum-based lubricants due to expensive raw materials and complex refining processes.
• Obtaining certifications such as the EU Ecolabel adds to the financial burden for manufacturers, further increasing production costs.
• Limited availability of raw materials like vegetable oils, rapeseed, soybean, and palm oil, which are susceptible to seasonal fluctuations and geopolitical conflicts, hinders market growth.
• Increased competition from the biofuel industry's high usage of these oils makes it more challenging for lubricant producers to obtain reasonably priced raw materials, affecting long-term pricing and production planning.

Bio-based lubricants Market Scope

The market is segmented on the basis of raw material, application, and end user industry.

• By Raw Material

On the basis of raw material, the Bio-based Lubricants Market is segmented into plant oil, animal oil, and others. The plant oil segment dominates the largest market revenue share of 71.4% in 2025, driven by its superior lubricity, biodegradability, and low toxicity. Vegetable oils such as rapeseed, soybean, and sunflower are widely adopted due to their renewability and compatibility with environmental regulations. Their excellent oxidative stability and thermal performance support broad industrial and automotive adoption.

The animal oil segment is anticipated to witness the fastest growth rate of 9.2% from 2025 to 2032, fueled by improved refining techniques and circular economy initiatives. Derived from beef tallow and fish oils, these lubricants are gaining acceptance in niche industrial applications. Rising demand for cost-effective and biodegradable alternatives and expanding R&D into novel animal oil derivatives drive adoption across sectors such as machinery maintenance and marine applications.

• By Application

On the basis of application, the Bio-based Lubricants Market is segmented into hydraulic oil, metal working fluids, penetrating oils, grease, transformer oil, crankcase oils, engine oils, elevator hydraulic fluid, bar and chain oil, firearm lubricant, and others. The hydraulic oil segment held the largest market revenue share in 2025, attributed to high-volume consumption in industrial, construction, and agricultural equipment. Bio-based hydraulic oils provide excellent wear protection, corrosion resistance, and thermal stability, helping companies comply with sustainability standards and reduce environmental risk.

The metal working fluids segment is expected to witness the fastest CAGR from 2025 to 2032, driven by increased use in automotive and manufacturing processes. Bio-based metalworking fluids offer reduced skin irritation, lower VOC emissions, and enhanced tool life. These benefits are prompting a shift from petroleum-based fluids to plant-derived alternatives, especially in Europe and North America, where worker safety and environmental impact are highly prioritized.

• By End User Industry

On the basis of end-user industry, the Bio-based Lubricants Market is segmented into power generation, automotive and other transportation, heavy equipment, food and beverage, metallurgy and metalworking, chemical manufacturing, and other end-user industries. The automotive and other transportation segment captured the largest market revenue share in 2025, driven by stringent CO₂ emission regulations, OEM mandates, and increased EV manufacturing. Bio-based lubricants are increasingly used in engine oils, transmission fluids, and gear oils to support sustainable mobility goals.

The heavy equipment segment is anticipated to witness the fastest growth rate from 2025 to 2032, supported by robust demand from construction, mining, and agriculture sectors. Bio-based lubricants minimize environmental contamination, especially in sensitive ecosystems. Their high viscosity index and biodegradability make them ideal for outdoor machinery and remote operations. Government initiatives promoting green lubricants and industry pressure to lower carbon footprints are accelerating adoption in this sector.

Bio-based lubricants market Regional Analysis

• North America dominates the Bio-based lubricants market with the largest revenue share of 40.01% in 2024, driven by strict environmental regulations and a growing preference for sustainable industrial solutions.
• Consumers and industries in the region prioritize eco-friendly alternatives, prompting the substitution of conventional petroleum-based lubricants with bio-based options in automotive, industrial machinery, and marine applications.
• This growth is further supported by advancements in feedstock processing technologies, favorable government policies such as the EPA’s EPP program, and a strong focus on corporate sustainability goals among leading manufacturers and end users.

U.S. Bio-based lubricants market Insight

The U.S. Bio-based lubricants market captured the largest revenue share of 83.15% within North America in 2025, fueled by increasing industrial automation and the use of high-performance, biodegradable lubricants in agriculture, transport, and military sectors. Federal incentives and the USDA’s BioPreferred Program are playing a crucial role in adoption. Moreover, the U.S. automotive sector’s push toward sustainability, coupled with consumer awareness around carbon reduction, is spurring demand for engine oils, greases, and hydraulic fluids derived from renewable sources.  

Europe Bio-based lubricants market Insight

The European Bio-based lubricants market is projected to expand at a substantial CAGR throughout the forecast period, primarily driven by stringent REACH regulations and the European Green Deal’s carbon neutrality targets. Countries across the region are seeing increased demand from manufacturing, marine, and automotive sectors, particularly for lubricants that reduce water and soil contamination. Industrial players are aligning their operations with circular economy principles, enhancing the attractiveness of bio-based formulations, especially in Germany, France, and the Nordics.

U.K. Bio-based lubricants market Insight

The U.K. Bio-based lubricants market is anticipated to grow at a noteworthy CAGR during the forecast period, driven by heightened focus on eco-label certifications and the government’s push for green procurement in public transport and defense sectors. Adoption is also supported by consumer demand for clean technologies and lubricants with minimal ecological footprint. The U.K.'s advanced manufacturing and automotive sectors, along with its drive toward net-zero emissions, are expected to further stimulate bio-lubricant demand.

Germany Bio-based lubricants market Insight

The German Bio-based lubricants market is expected to expand at a considerable CAGR during the forecast period, fueled by the country’s strong industrial base and long-standing commitment to sustainability. Germany’s stringent bio-degradability standards and support for renewable raw material innovations have positioned the country as a key hub for bio-based lubricant R&D and adoption. Applications in wind energy, railways, and heavy-duty equipment are expanding, further accelerating the growth trajectory.

Asia-Pacific Bio-based lubricants market Insight

The Asia-Pacific Bio-based lubricants market is poised to grow at the fastest CAGR of over 24.37% in 2025, driven by rapid industrialization, increasing environmental awareness, and supportive policies in emerging economies such as China, India, and Southeast Asia. Government efforts to reduce carbon footprints and local production of vegetable oil-based lubricants are facilitating cost-effective and widespread adoption. APAC’s growing automotive and construction sectors also present significant opportunities for lubricant suppliers.  

Japan Bio-based lubricants market Insight

The Japan Bio-based lubricants market is gaining momentum due to stringent emission reduction policies, technological innovation, and a strong culture of environmental responsibility. Japan’s machinery and precision tools industries are turning to high-performance bio-lubricants for efficiency and lower toxicity. The aging industrial workforce is also prompting a shift toward safer, cleaner alternatives. Integration of bio-lubricants in OEM-approved applications is accelerating across automotive and electronics manufacturing.    

China Bio-based lubricants market Insight

The China Bio-based lubricants market accounted for the largest market revenue share in Asia Pacific in 2025, driven massive industrial output, rising consumer awareness, and supportive green manufacturing policies. The government's focus on reducing pollution and the availability of local raw materials like castor and palm oils are boosting domestic production. China's industrial, marine, and transport sectors are rapidly transitioning toward bio-lubricants, aided by state subsidies and a strong manufacturing ecosystem.

Bio-based lubricants market Share

The Bio-based lubricants Industry is primarily led by well-established companies, including:

• Shell (U.K.)
• BP (U.K.)
• Chevron Corporation (U.S.)
• Exxon Mobil Corporation (U.S.)
• CASTROL LIMITED (U.K.)
• FUCHS (Germany)
• Total (France)
• Green Earth Technologies, Inc. (U.S.)
• Magna International Pte Ltd. (Singapore)
• Polnox Corp. (U.S.)
• KLÜBER LUBRICATION INDIA Pvt. Ltd. (India)
• MMXIX DSI Ventures, Inc. (U.S.)
• Biosynthetic Technologies (U.S.)
• Carl Bechem Lubricants India Private Limited (India/Germany)
• CITGO Petroleum Corporation (U.S.)
• ROCOL (U.K.)
• RSC Bio Solutions (U.S.)
• Albemarle Corporation (U.S.)
• Emery Oleochemicals (Malaysia/U.S.)
• PANOLIN AG (Switzerland)

Latest Developments in Global Bio-based Lubricants Market

• In April 2023, Exxon Mobil announced plans to invest USD 110 million in establishing a lubricant manufacturing facility in India. This plant, set to become operational by the end of 2025, will have the capacity to produce up to 159 million liters of lubricants annually. It aims to meet increasing demand across a variety of industries, including manufacturing, steel, power, mining, construction, and both commercial and passenger vehicle sectors.
• In July 2022, Chevron Corporation introduced a new synthetic grease that meets the 2013 Vessel General Permit (VGP) requirements for environmentally acceptable lubricants. This biodegradable grease is designed for broad applicability and features excellent flow properties, making it well-suited for centralized lubrication systems and supporting sustainability efforts.
• In December 2020, Axel Christiernsson launched ALASSCA 762 BD, a biodegradable heavy-duty grease that adheres to both the VGP regulations and the Swedish Standard 155470.0, providing a greener option for demanding industrial applications.
• In November 2020, Chevron and Novvi LLC revealed the production of their first fully renewable base oil at Novvi’s Deer Park facility in Houston, Texas. By upgrading processing systems and removing bottlenecks, the facility now operates independently, enabling the manufacture of entirely clean and sustainable base oils.
• In May 2020, FUCHS partnered with BASF to develop environmentally responsible lubricant solutions. As part of their collaboration, the companies conducted an Eco-Efficiency Analysis on mineral oil-based hydraulic fluids to support data-driven sustainability assessments. Their joint effort focuses on creating lubricants that support ecological stewardship.

SKU-33769