The global lubricants packaging market to grow at a CAGR of 2.29% during the period 2017-2021.
Global Lubricants Packaging Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
One trend in the market is growth of innovative packaging technology for lubricants. Stringent government regulations and increased environmental concerns are prompting the lubricant packaging industry to develop alternative products to the present plastic packaging material. According to the regulations of ASTM D-6400, biodegradable plastics and compostable plastics should be used as encasing materials.
According to the report, one driver in the market is low price of crude oil. Crude oil prices directly affect the energy value chain, especially in exploration and the production companies. Since 2014, crude oil prices have declined by almost 50%. This decline in the crude oil prices has offered attractive opportunities for downstream companies to increase their revenue and profit growth. The plunge in the oil prices has reduced the feedstock cost and increased the volume and profit margin of companies operating in downstream operations.
Further, the report states that one challenge in the market is fragmented market place and crude oil prices leading to increased competition. The lubricants packaging manufacturing industry is highly fragmented with the presence of large and domestic vendors in the market. The lubricants packaging industry is facing concerns with respect to customers' demand for low-cost packaging material.