According to Kline, the global grease market in 2014 was 1.3 million tons, 52 percent of which was consumed in the industrial segment. Commercial applications accounted for 37 percent, and the remaining 11 percent was sold in the consumer market.

The Asia-Pacific region consumed 47 percent of the volume, followed by Europe (20 percent), North America (19 percent), South America (8 percent) and the rest of the world (6 percent). The share of thickener types has stayed constant for the past few years, though regional differences can be seen.

Over the next five years, the compound annual growth rate for industrial grease demand will be a measly 0.3 percent, according to Klines prediction, bringing global consumption to 691,000 tons in 2019. That scant amount of growth is expected to be spread across a range of industries.

Geographic distribution is expected to change very little. Slow industrial activity will keep consumption largely flat in Europe and North America, Jarquin said, with a small increase in the European market driven by recovery from the Eurozone crisis rather than actual economic growth. North America is expected to see a slight decline. Demand in Asia-Pacific will also remain flat – or possibly decline slightly from current levels. Fastest growth will occur in the rest of the world, with South America leading the pack.

Europe consumed 134,000 tons of industrial greases in 2014, and recovery in the Eurozone brings a forecast of 0.6 percent growth through 2019. However, the United Kingdoms decision to leave the European Union has affected the industry somewhat, Jarquin said, bringing uncertainty about the future.

Key European markets are Germany, Switzerland and Austria. These three countries, along with Russia and Turkey, make up 50 percent of regional demand volume. The regions demand is increasing for better-performing, more expensive greases such as polyurea, lithium complex and calcium complex products, Jarquin said.

Eighty-nine percent of the greases used in Europe are made with mineral base oils, while 8 percent are synthetic or semi-synthetic, and 3 percent
are biobased. The region is slowly shifting toward synthetic greases for applications such as electric motors, fan bearings and other fill-for-life applications like wind turbines, said Jarquin. Demand for synthetics is higher in Northern Europe because of the regions low-temperature requirements.

Use of biobased greases is increasing across Europe, especially compared to other regions. Synthetic ester biobased greases are primarily used for sensitive applications such as water purification, water locks, agriculture and forestry.

The Kline & Co. report is titled General Industrial Oils and Grease: Global Market Analysis and Opportunities.