SEA Opportunities for Specialty Lubricants for Food Grade and Subsea Sector - How Viable is it?

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Frost & Sullivan analyst briefing on the specialty lubricant market for food grade and subsea sector in South East Asia and its opportunities

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SEA Opportunities for Specialty Lubricants for Food Grade and Subsea Sector - How Viable is it?

  1. 1. SEA Opportunities for Specialty Lubricants for Food Grade and Subsea Sector- How viable is it?<br />SushmitaMahajan Research Analyst<br />Chemicals Materials & Food<br />1st June 2011<br />
  2. 2. Agenda<br />What is Food Grade Lubricant<br />Market Overview <br />Opportunities and Challenges<br />Market Drivers and Restraints<br />Market Trends in Specialty Lubricants<br />Role of Local association like MPOB <br />
  3. 3. What is Food Grade Lubricant<br />Food-grade lubricants perform the same technical functions as any other lubricant: <br />It’s function is to provide protection against wear, friction, corrosion and oxidation, dissipate heat and transfer power<br />It has to be compatible with rubber and other sealing materials, as well as provide a sealing effect in some cases<br />The Food Grade Lubricants currently used in Southeast Asia are Ester-based lubricants without any renewable raw material content. <br />
  4. 4. Overview of Specialty Lubricants for Food Grade<br />While we regularly see processed food products in the supermarkets. <br />Hardly ever do we think of a scenario where the fresh products come in close contact with the processing machineries. <br />
  5. 5. Overview of Specialty Lubricants for Food Grade<br />Merits of Food Grade Lubricants<br />Provide the food manufacturer with an effective tool to control the risks caused by contamination of lubricants (chemical hazards)<br />Food manufacturers can select lubrication points as Critical Control points (CCPs) in their Hazard Analysis and Critical Control Points (HACCP) plans.<br />Food Grade Lubricant Categories<br /><ul><li>H1 lubricants are food-grade lubricants used in food-processing environments where there is the possibility of incidental food contact.
  6. 6. H2 lubricants are nonfood-grade lubricants used on equipment and machine parts in locations where there is no possibility of contact.
  7. 7. H3 lubricants are food-grade lubricants, typically edible oils, used to prevent rust on hooks, trolleys and similar equipment. </li></li></ul><li>Opportunities and Challenges of Specialty Lubricants <br />Specialty Lubricants For Food Grade and sub-sea application Market : Percent of Revenues by Segment (Southeast Asia),2009<br />The market for food grade lubricants and lubricants for subsea applications was estimated as US$39.2 million in 2009. <br />There is a very good potential for growth as traditionally the market is dominated by mineral oil based lubricants. <br />There is potential for bio-lubricants in the future because of the assured source of feedstock supply from palm oil, which is produced abundantly in Southeast Asia. However, this is a long-term prospect and will need a strong push from the government and regulatory bodies to put regulation in place to mandate the usage of bio-lubricants. <br />$39.2 million<br />Note: All figures are rounded; the base year is 2009.Source: Frost & Sullivan<br />
  8. 8. Opportunities and Challenges of Specialty Lubricants<br />Specialty Lubricants Markets for Food Grade and Subsea Applications: Impact of Top Three Industry Challenges (Southeast Asia), 2010-2016<br />Source: Frost & Sullivan.<br />High Medium Low <br />
  9. 9. Opportunities and Challenges of Specialty Lubricants<br />
  10. 10. Market Drivers and Restraints<br />Specialty Lubricants (Food Grade and Subsea oil & Gas Sector) Market: Drivers and Restraints (Southeast Asia ), 2010-2016<br />Drivers<br />Drivers<br />Safety concerns by the leading food manufacturing companies drives the need<br />Food manufacturingindustry growth complemented by proactive effort of lubricant manufacturers<br />Restraints<br />Restraints<br />Higher price restrains the market growth<br />Absence of proper regulation prevents bio-lubricants to be accepted widely<br />Denotes short-term impact<br />Denotes long-term Impact <br />Source: Frost & Sullivan.<br />
  11. 11. Market Trend<br />Specialty Lubricant Market Trend in Southeast Asia<br />Source: Frost & Sullivan<br />
  12. 12. Current Research Initiatives in Southeast Asia Done by Malaysian Palm Oil Board<br />Advanced Oleochemical Technology Division of Malaysian Palm Oil Board (MPOB), Malaysia, has developed six types of palm esters using palm-based material. The resulting palm esters could be used on its own as a base fluid to formulate a bio-lubricant or blended with other esters, mineral oil, or synthetic oil to produce the desired lubricants.<br />Role of Associations Like MPOB <br />Food-Grade Lubricant Patented by Malaysian Palm Oil Board<br />
  13. 13. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter<br />http://www.facebook.com/pages/Frost-Sullivan/249995031751?ref=ts<br />http://www.linkedin.com/companies/4506<br />http://www.slideshare.net/FrostandSullivan<br />http://twitter.com/frost_sullivan<br />
  14. 14. For Additional Information<br />Donna Jeremiah<br />Corporate Communications<br />Asia Pacific<br />+603 6204 5832<br />djeremiah@frost.com<br />Carrie Low<br />Corporate Communications<br />Asia Pacific<br />+603 6204 5910<br />carrie.low@frost.com<br />SushmitaMahajan<br />Research Analyst<br />Chemicals, Materials & Food<br />+65 6890 0999<br />sushmita.mahajan@frost.com<br />Jessie Loh<br />Corporate Communications<br />Asia Pacific<br />+65 6890 0942<br />jessie.loh@frost.com<br />

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