The Philippines Lubricants Market is expected to generate over PHP 250 Bn revenue in 2026F owing to the rising demand of personal vehicles and future expansion strategies of market players

Ken Research

GURUGRAM, India, Feb. 7, 2023 /PRNewswire/ -- The Philippines lubricants market is fragmented with too many lubricant manufacturers operating in the industry. Petron and Shell are the dominant player in Philippine's lubricants market.

• Construction industry added major contribution (9.8%) to the overall GDP in Philippines in 2021. The average volume of production for the manufacturing sector in the Philippines was 81.5% in 2021 compared to 54.2% in 2020.
• In 2021, the total volume of motorcycles and scooters sold in the Philippines reached ~1.4 Mn units reflecting an increase of 19.1% sales in comparison to total sales volume of 1.21 Mn in 2020.
• Motor Vehicles sales in Philippines increased by 20.0% in 2021 with sales volume of 268,488 units in comparison to 223,793 units in 2020. Commercial vehicles registered higher sales volume with 183,228 units.

Increasing Population and Rise in the Disposable Personal Income: Growing middle-class incomes, higher percentage of millennial population and the subsequent increasing demands of two-wheelers and four-wheelers is increasing the production and sales of new vehicles will fuel more to the lubricants demand in the Philippines in upcoming years.

Expansion Strategies of Market Players: Petron Corporation Philippines announced completion of the constructing power plant having capacity of 184 MW by 2022 end that will cater to the power requirements of its Bataan refinery. Filipinas Shell Corporation Philippines plans to open 60 to 80 mobility sites per year. Other market players are also planning to expand customer reach by investing actively in growing number of service stations providing products and maintain extensive dealership network.

Future of Philippines Lubricants Market: Philippines Lubricants Market is expected to grow at a double digit positive CAGR of 14.4% during 2021-2026F. Owing to the booming energy sector of the Philippines, the country is anticipated to witness an increase in crude oil imports to meet the growing demand various industries under both the Industrial and Automotive sectors over the long term. Dealers Network are expected to expand their business via online and in-shop channels to offer both local and branded lubricants in distinguished quantities demanded by the customers.