In general, greases are used where liquid lubricants are prohibited by an inability to retain them. Globally, grease consumption is estimated to be 1.3 million tons. Of that volume, 45 percent is used in automotive applications, and the rest goes to the industrial sector.

Grease is comprised of three major components: base fluids, a thickening agent and additives to enhance performance. Base oils are the main component, accounting for 70 percent to 90 percent of volume, with paraffinic API Group I and II mineral oils used most commonly. Highly refined naphthenic base stocks are also making a comeback, due to their low polyaromatic content. Additive content ranges from 2 percent to 10 percent, and the balance is taken up by thickeners, the crucial component which differentiates greases from liquid lubes.

Global consumption of grease in industrial applications is projected to grow at a compound average annual rate of 2.6 percent over the next five years. Because it is used in a wide variety of industries, grease demand correlates with trends in industrial production.

Robust growth in industrial production in Asia, driven by a shift in manufacturing activities from Europe and North America, has seen the region continue to expand its share of global grease consumption from under 40 percent in 2005 to 48 percent in 2011. Asia grease demand is projected to grow 3.9 percent per year over the next five years, nearly 50 percent faster than the global average. By contrast, both Europe and North America have seen their shares, 22 percent and 18 percent respectively, decline as a consequence of both reduced manufacturing and the penetration of longer life greases.

Most greases – more than 90 percent of global demand by volume – are made with mineral oil base stocks. The reason is that the high cost of synthetics cannot be justified in the vast majority of applications. Synthetic greases, associated with niche high-temperature applications where they last longer than mineral greases, account for approximately 9 percent of consumption. Penetration of synthetics in North America and Europe is almost twice as high as in Asia. Synthetics are gaining wider appeal, especially for applications with extreme temperatures, loads and speeds.

Biodegradable greases remain niche products, used in earthmoving, farming and applications that have contact with water. With a 1 percent global market share, biodegradable greases are primarily consumed in Europe, North America and Japan. While much development is being invested in biodegradable greases, current products tend not to be suitable for rigorous service.

The global grease market is dominated by multipurpose greases that are used across multiple industries. Primary metals manufacturing is the most important end-use industry, accounting for nearly a third of total demand. General manufacturing – consisting of automotive, machinery and other products manufacturing – and the mining industry follow with 17 percent and 16 percent of demand, respectively.

When discussing the supply side of the grease industry, it is necessary to distinguish between manufacturers and marketers. Often, a manufacturer does not participate in marketing but is only contracted make the grease on behalf of branded company that retains responsibility for marketing. Some independent private label and contract manufacturers have experienced significant growth in recent years.

The global grease market has recently been subjected to several challenges. Industrial production fell during the global recession, and has since been hampered by the continuing euro crisis. This depressed grease demand, which was already being dragged down by continued penetration of long-life greases, use of filled-for-life greases, use of systems that prevent over-greasing, and a general reduction in the size of mechanical components. Raw material costs are rising, particularly for lithium as a consequence of the demand for batteries for portable devices such as laptop computers and cell phones.

But opportunities continue to exist for customized grease products wherein formulations are tweaked to suit specific requirements. Synthetic greases remain niche or specialty products, but more are being introduced as companies offer additional viscosities and consistencies and as they provide more biodegradable products.

This broader product range allows maintenance and lubrication professionals to consider synthetics for a wider range of applications. Coupled with the fact that costs for conventional greases have increased significantly, the increase in the number of synthetic greases has improved their viability. Other niche opportunities with potential include food grade greases, which are being promoted on a platform of food safety and liability protection.

The biggest challenge for grease marketers remains educating end users, especially in industries where grease has a small role in overall lubrication. Faced with a variety of grease types, the end user often has difficulty choosing the most appropriate, and it is difficult to guide him to a higher cost option. Similarly, approval and introduction of a new higher performance grease is usually a significant challenge as end users tend to be risk averse and unwilling to take a unit offline to flush an old grease and apply a new one.