Growth in Automotive Sector and Increasing Industrial Activity Has Stimulated the Growth in Brazil Lubricants Industry: Ken Research

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Increasing Vehicle Ownership: The number of vehicles in circulation in Brazil reached ~46 million units in 2019 including 2.7 million new motor vehicles registered in the same year.  The country has a robust automotive manufacturing sector with many large original equipment manufacturers operating in the country and largely manufacturing passenger cars. The growing vehicle ownership in the country has stimulated the demand for automotive lubricants in the country.

South & South-East Regions Dominating Sales:  The South & South-East region in the country consists of some of the major cities & states including Sao Paulo, Rio de Janeiro, Minas Gerais, Parana, and Rio Grande do Sul which are home to major industrial hubs in the country. These regions also account for a large proportion of the vehicles in circulation in the country and therefore contributed highly to the overall sales of lubricants in the country.

Challenges in Lubricants Industry: The lubricants industry in Brazil is still largely dominated by mineral-based lubricants which are harmful to the environment. The country is also largely dependent on imports for base oils due to a lack of domestic production of API Group II base oils required for manufacturing lubricants. Growth of electric vehicles and shift towards sustainable & eco-friendly bio-based lubricants also poses a threat to the traditional lubricant manufacturers in the country.

Impact of COVID-19 on Brazil Lubricants Industry: COVID-19 has severely impacted the lubricant industry in Brazil. In April 2020, the lubricant sales volume declined by ~44.0% as compared to the same period in 2019. The imposed lockdown in the country, lack of industrial production, and movement of transport impacted the industry adversely. The industrial production declined by ~27.0% in April 2020 as compared to the same month in 2019 with all major industries including automotive, machinery & equipment, metallurgy and plastics taking a hit. The demand for both automotive & industrial lubricants in the country is expected to remain low throughout 2020, even after the lockdown has eased and slow recovery is expected in 2021. Companies are expected to invest in online sales channels & partnerships to ensure higher sales volumes.

Analysts at Ken Research in their latest publication “Brazil Lubricants Market Outlook to 2025- By Origin (Mineral, Synthetic & Semi-Synthetic), By Lubricant Type (Automotive & Industrial), By Automotive Lubricants (By Product Type, By End-Users & By Distribution Channels) and By Industrial Lubricants (By Product Type, By End-Users & By Distribution Channels)observed that Brazil is the largest finished lubricants market in South America and is slowly recovering from the economic crisis. The increasing vehicles in circulation in the country along with rising demand from industrial end-users are driving the growth of the industry. Increasing focus on research & development and marketing activities, new product launches, partnerships & collaborations are expected to drive the industry in the future. The Brazil Lubricants Industry is expected to grow at a CAGR of 3.2% on the basis of sales revenue during the forecast period 2020-2025.

Key Segments Covered: –

By Origin of Lubricants (Volume in Kilo Tons & Value in BRL Billion)

Mineral

Synthetic

Semi-Synthetic

By Type of Lubricant (Volume in Kilo Tons)

Automotive

Industrial

Automotive Lubricants Market

By Type (Volume in Kilo Tons)

Passenger Vehicle Motor Oil

Heavy Duty Diesel Engine Oil

Gear Oils

Transmission Fluids

Hydraulic Oil

Greases

By End-Users (Volume in Kilo Tons)

Commercial Vehicles

Passenger Cars

Motor Cycles

Marine

Aviation

By Distribution Channels (Volume in Kilo Tons)

OEM Workshops

Supermarkets & Spare Part Shops (including Dealers & Distributors)

Unorganized Workshops

Online

Industrial Lubricants Market

By Type (Volume in Kilo Tons)

Hydraulic Oils

Industrial Gear Oils

Transformer Oils

Turbine Oils

Greases

Compressor Oils

By End-Users (Volume in Kilo Tons)

Construction

Engineering Equipment

Manufacturing

Power Generation

Iron & Non-Iron Production

Cement

Others

By Distribution Channels (Volume in Kilo Tons)

Direct Sales

Distributor-Lead

Companies Covered: –

Petrobras Distribuidora SA

Iconic Lubrificantes SA

Cosan Lubrificantes E Especialidades SA

Shell Brasil Petroleo LTDA

Petronas Lubrificantes SA

YPF Brasil Comercio de Derivados De Petroleo LTDA

Castrol Brasil LTDA

Total Brasil Distribuidora LTDA

Key Target Audience

Lubricant Manufacturing Companies

Lubricant Importing Companies

Additive Manufacturing Companies

Original Equipment Manufacturers

Consultancy Companies

Industry Associations

Regulatory Bodies

Time Period Captured in the Report: –

Historical Period – 2014-2019

Forecast Period – 2020-2025

Key Topics Covered in the Report: –

Economic & Geographical Overview of Brazil

Target Addressable Market for Automotive & Industrial Lubricants

Trends and Growth Drivers in the Industry and Challenges Faced

Brazil Lubricants Market Size and Segmentations, 2014 – 2019

Ecosystem and Value Chain of Lubricants Industry in Brazil

Industry SWOT Analysis and Lubricant Production Scenario

Customer Decision Making Parameters

Cross Comparison between Major Players and Company Profiles & Product Portfolios

Future Market Size and Segmentations, 2019-2025F

Covid-19 Impact on the Industry & the Way Forward

Analysts’ Recommendations

For More Information on the research report, refer to below link: –

Brazil Lubricants Market Analysis

Related Reports by Ken Research: –

Malaysia Automotive Lubricant Market Outlook to 2025- Driven by Growing Vehicle Ownership & Preference for Synthetic Lubricants

Malaysia Industrial Lubricants Market Outlook To 2023 – By Origin (Mineral Lubricants, Semi-Synthetic Lubricants And Synthetic Lubricants), By Industrial Lubricants (Hydraulic Oils, Industrial Greases, Metal Working Fluid/Cutting Oil, Industrial Gear Oil, Turbine Oil, Compressor Oil And Others), By End Users (Construction & Mining, General Manufacturing, Power Generation, Metal Production, Food Processing, Cement Industry And Others), By Distribution Channel (Direct Sales And Dealer Network)

Indonesia Industrial Lubricants Market Outlook To 2023 – By Industrial Lubricants (Hydraulic Oils, Industrial Greases, Metal Working Fluids, Industrial Gear Oils, Turbine Oils, Compressor Oils, And Others), By End Uses (Construction And Mining, General Manufacturing, Power Generation, Metal Production, Food Processing, Cement And Others), By Distribution Channel (Direct Sales And Dealer Network)

Contact Us: –

Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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