Australia’s lubricant and grease market has remained steady, but regulatory compliance pressures 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 volumes of lubricants, along with expanding mining and agriculture sectors.
Australia also has high vehicle ownership and a strong vehicle servicing culture. With the average vehicle age rising to 14 years, demand is growing 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 (US$1.3 billion), with imports accounting for 30% of total volume. Annual demand ranged from 400 million to 450 million liters, including grease. Automotive lubricants – covering both passenger and commercial vehicles – made up about 50% of demand. Industrial lubricants used in mining and manufacturing accounted for 35%, with the remaining 15% coming from marine, aviation and other sectors.
Over the past decade, demand for synthetic lubricants has grown. The electric vehicle population is expected to continue increasing, according to Jeremy van Kruining, director of the Australian Lubricant Association.
Meanwhile, the grease market grew to 319,000 metric tons in 2023, up from 231,000 tons in 2013. The share of imported grease also rose – to 59%, from 40% – over the same period. In 2024, Australia primarily imported grease from Asia, led by 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 – electric vehicles still represent only about 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 mount.
Beginning in 2027, all businesses will be required to submit annual carbon emissions reports. The rule took effect Jan. 1 of this year for large companies. By 2027, medium and small businesses must also report emissions from direct operations (Scope 1), energy use (Scope 2) and supply chains (Scope 3).
Each year, about 250 million liters of used oil are collected in Australia, with roughly 170 million liters rerefined. Half is sold domestically and the rest is exported. Van Kruining said that although Australian rerefined oils can meet or exceed the quality of virgin base oils, improvements are needed in collection systems, public education and industry collaboration.