Australia’s lubricant and grease market has remained steady, but pressures from regulatory compliance are increasing, according to an industry expert speaking at a recent conference.
Key growth drivers include government-related purchases of infrastructure equipment, which use large amounts of lubricants, as well as the expanding mining and agriculture sectors.
In addition, Australia has high vehicle ownership and a strong vehicle servicing culture. With the average vehicle age rising to 14 years, there is growing demand for better engine protection and aftermarket services, although motorcycles make up just 4.5% of the total vehicle population.
In 2024, the lubricant market was valued at about A$2 billion (U.S.$1.3 billion), with imports accounting for 30% of the market. Annual demand ranged from 400 million litres to 450 million liters (including grease). Automotive lubricants – including those for passenger and commercial vehicles – made up about 50% of total demand, industrial lubricants such as those used in mining and manufacturing accounted for about 35%, and the remaining 15% came from marine, aviation and other sectors.
Over the past 10 years, demand for synthetic lubricants has increased. Over the next decade, the population of electric vehicles is expected to continue growing, according to Jeremy van Kruining, director of the Australian Lubricant Association.
Meanwhile, the grease market grew to 319,000 tons in 2023 from 231,000 metric tons per year in 2013. The share of imported grease also increased to 59% from 40% over the same period. In 2024, Australia primarily imported grease from Asia: India (33%), Singapore (30%), China (13%) and Thailand (7%).
Although 11% of new car sales in the first quarter of 2025 were EVs – up from just 0.2% in 2015 – EVs still represent only 1% of the total vehicle population, he added.
“If 100% of all new vehicles purchased in Australia from today were EVs, it would take until 2050 for the entire fleet to be electric,” he said. “This is due to a lack of charging infrastructure, the apartment lifestyle and the ongoing popularity of internal combustion engines in commercial and industrial vehicles.”
“It will happen, but not as quickly as some may think or want,” he told the audience.
As in other parts of the world, regulatory requirements related to waste management and workplace safety are adding to costs, while sustainability compliance pressures continue to grow.
Beginning in 2027, all businesses will be required to submit annual carbon emissions reports. The requirement took effect on Jan. 1 of this year for large companies, and by 2027, medium and smaller companies must report on emissions from direct operations (Scope 1), energy use (Scope 2) and their supply chain (Scope 3).
Each year, about 250 million liters of used oil are collected in Australia, with about 170 million liters rerefined. Half of this is sold domestically and the other half is exported. Van Kruining said that although Australian rerefined oils can meet or exceed the quality of virgin base oils, there is a need to improve collection processes, education and collaboration.