Bio-Based Lubricants Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Vegetable Oil-Based Lubricants, Synthetic Ester-Based Lubricants, Animal Fat-Based Lubricants, Others), By Application (Automotive Lubricants, Industrial Lubricants, Marine Lubricants, Others), By End User (Automotive & Transportation, Manufacturing & Industrial, Marine & Shipping, Energy & Power, Agriculture & Construction, Others) and Region Forecast 2020-2031

Bio-Based Lubricants Market size was valued at US$ 2,950.0 million in 2024  and is expected to reach US$ 4,206.6 million by 2031, growing at a significant CAGR of 4.9% from 2025-2031. Moreover, the U.S. market is projected to grow at a CAGR of 5.0% in near future. The market refers to the industry focused on the production and distribution of lubricants derived from renewable biological sources such as vegetable oils, animal fats, and other natural esters. These lubricants serve as eco-friendly alternatives to conventional petroleum-based lubricants, offering advantages such as biodegradability, lower toxicity, and reduced environmental impact. They are used across various applications including automotive, industrial machinery, marine, and agriculture to minimize friction, wear, and energy consumption.

The market is witnessing significant growth driven by rising environmental regulations, sustainability initiatives, and increasing consumer awareness about the adverse effects of mineral oil-based lubricants. Technological advancements in formulation and performance enhancement have made bio-based lubricants more competitive in terms of viscosity, oxidation stability, and temperature performance. Europe and North America currently dominate the market due to strong regulatory frameworks and green policies, while Asia-Pacific is emerging as a key growth region due to expanding industrialization and a growing focus on renewable solutions.

Key Developments 

• In May 2025, BP initiated the sale of its Castrol lubricants division as part of a strategic plan to raise $20 billion through asset divestments by 2027. Castrol, a globally recognized brand in over 150 countries, was acquired by BP in 2000 for approximately 3 billion pounds. The sale, managed by investment bank Goldman Sachs, is expected to fetch between $8 billion and $10 billion based on Castrol’s projected $1 billion EBITDA for 2024.
• In March 2025, Japan's largest oil refiner, Eneos, announced plans to gradually halt production of lubricants and certain petroleum products at its Yokohama plant by March 2028, following a restructuring decision driven by declining domestic demand and increasing global competition. The Yokohama facility, operational since 1922, has an annual output capacity of 126,000 kiloliters of lubricants and 3,900 metric tons of grease.

Bio-Based Lubricants Market Segmentation

Based on the product type

• Vegetable Oil-Based Lubricants
• Synthetic Ester-Based Lubricants
• Animal Fat-Based Lubricants
• Others

The leading driver of the market, particularly in the Vegetable Oil-Based Lubricants segment, is the growing emphasis on environmental sustainability. Vegetable oil-based lubricants are derived from renewable sources and are fully biodegradable, offering a significant reduction in ecological impact compared to conventional petroleum-based oils. Industries, especially automotive and manufacturing, are increasingly adopting these lubricants to comply with stringent environmental regulations and reduce carbon footprints. Their superior lubricity, low toxicity, and compatibility with existing machinery make them a preferred choice for businesses aiming to meet green initiatives. Consequently, sustainability concerns are the primary catalyst propelling the growth of vegetable oil-based lubricants.

Based on the application

• Automotive Lubricants
• Industrial Lubricants
• Marine Lubricants
• Others

The Automotive Lubricants segment is anticipated to be the leading driver of the market. The increasing adoption of eco-friendly vehicles and rising regulatory pressure to reduce vehicular emissions are compelling automotive manufacturers to shift toward biodegradable and renewable lubricants. Bio-based automotive lubricants not only minimize environmental pollution but also enhance engine efficiency, reduce wear and tear, and extend service life. Growing consumer awareness regarding sustainable automotive products further fuels demand. With the global focus on reducing carbon footprints in transportation and stringent emission standards, automotive applications are expected to remain the primary growth engine for the market.

Based on the end user

• Automotive & Transportation
• Manufacturing & Industrial
• Marine & Shipping
• Energy & Power
• Agriculture & Construction
• Others

The Automotive & Transportation segment is expected to be the leading driver of the market among end users. Growing environmental awareness, stringent emission regulations, and the global push toward sustainable transportation are driving automotive manufacturers and fleet operators to adopt biodegradable and renewable lubricants. Bio-based lubricants help reduce carbon footprints, improve fuel efficiency, and extend engine life, making them highly suitable for vehicles ranging from passenger cars to commercial fleets. Additionally, the rising demand for electric and hybrid vehicles, which require specialized eco-friendly lubricants, further reinforces the dominance of the automotive and transportation sector in propelling market growth.