Food Additives Industry Faces Challenges with Production of Food Grade Lubricants

Food grade lubricants are defined as lubricants which are acceptable for use in meat, poultry and other processing equipment, and in plant-based applications. Food grade lubricants are divided into categories based on the likelihood that they will be in contact with the food.  The United States Department of Agriculture (USDA) states has divided the production of food grade lubricants according to the characteristics they poses namely, H1, H2, and H3. Based on these aforementioned categories, the approval and registration of new food grade lubricants by USDA is validated, particularly with respect to the use of these ingredients in manufacturing of food products.

Ongoing research by Future Market Insights states that global market for food grade lubricants will be witnessing a restraining growth in the foreseeable future. Companies partaking in the global food grade lubricant market are facing major challenge as large-scale food processing operations require equipment such as mixers tanks, pumps, pipes, chain drives and conveyor belts. Food grade lubricants produced by global market players are compelled to be resistant to corrosion, deposits and heats. The study has also revealed key players in the global food grade lubricant market, which include AB Skf, BP Plc, Bel-Ray Company LLC (U.S.), Chemtura Corporation, Clearco Products Co, Inc. (U.S.), D-A Lubricant Company, Inc. (U.S.), Elba Lubrication Inc. (U.S.), Exxon Mobil Corporation, Fuchs Petrolub SE, Haynes Manufacturing Company (U.S.), Huskey Specialty Lubricants (U.S.), Kluber Lubrication Munchen SE & Co. Kg, Total S.A, and The Dow Chemical Company.

Tech Company to Foray into Food Grade Lubricants Market

Despite the complexities associated with food grade lubricant production being a challenge, new companies are overlooking such market entry barriers and partaking towards expansion of global food grade ingredients market. A global technology company, Freudenberg Group, is planning to invest in food grade lubricant market. The company is expanding its business in food industry, in which it has a key specialization with respect to production of confectionery products. Freudenberg has announced the acquisition of Colarome Inc. of Saint Hebert, Canada. Colarome specializes in making natural food additives which work on an immediate basis. This company also holds production technology patents that permit manufacturers to make unique natural pigments.

According to the reports, food additives such as food grade lubricants have an appealing market growth potential in the long run. In the global confectionary market, Capol LLC and Colarome are categorized in as key players. While Capol specializes in serving all applications of confectionary segment, it also supplies glaze and polishing agents for sugars, as well as anti-sticking agents for jellies and gum. Capol is Freudenberg’s subsidiary in North America, whereas Colarome is a Canadian company, collectively indicating presence of the tech giant in North America’s food grade lubricant market. These companies also operates in production of several natural food additives, dealing with their manufacturing and formulation of dyes, colors, flavors and pigments.

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Shambhu Nath Jha

Shambhu Nath Jha with an experience nearing a decade, has helped over 50 large and medium to small business enterprise to foray into new markets, increase footprint in the existing bucket and understand the nature of the beast. These beasts are the companies that have been primarily engaged in chemicals, material or packaging activities, and encountering challenge either in maintain P&L or staying ahead of their competitors. He has authored over 300 industry research papers consisting critical information such as market growth, total addressable market, serviceable addressable market, market size, forecast, player strategies, market share estimates and winning imperatives along with recommendations. He is also the pioneer of “three slope distributor/off-taker evaluation model” used by several multinational companies to track the performance of channel partners. A consultant by profession, writer by mood and explorer by desire, Shambhu Nath is currently employed with a London based market research and consulting firm as a full time consultant. A few of the industry verticals where he demonstrated his skill includes water and wastewater treatment chemicals, high purity alumina, water purifiers, activated carbon, chloramine filters, bio-based bioplastics, water purifiers, textile chemicals etc.