According to Kline’s Global Lubricants: Market Analysis and Assessment report the UK finished lubricant market is increasing, whilst other European markets remain flat. The report forecasts the UK market to increase at a compound annual growth rate of 1% to 2019. Demand for PCMO in the UK accounts for approximately 84% of the consumer automotive segment, and the country is seeing a migration to lower viscosity grade PCMO. This has resulted in a higher penetration of synthetics and semi-synthetics.
Finished lubricants are marketed in the UK through two distribution channels: installed and retail. The increased prevalence in the installer establishments will negatively impact the retail lubricants sector.
Sharbel Luzuriaga, Project Lead in Kline’s Energy Practice, commented: “The good shape of the economy and enhanced consumer confidence encourage people to purchase new vehicles. On average, two million new units are projected to be registered in the United Kingdom through 2015, and 2016 is paving the way for increased use of low-viscosity, fuel economy grades, developed to meet more stringent emission norms. The use of synthetic grades will lead to longer drain intervals and lower volumetric growth.”
“The recovery of the economy in the European Union has been steady in recent years. Expanding at a strong 3.2% in 2014, the United Kingdom is exhibiting robust growth. Lubricant demand generally trails GDP growth; therefore, it can be anticipated that demand for consumer lubricants will grow at a slightly slower pace than the performance of the overall economy,” added Luzuriaga.
Edited from press release by Angharad Lock
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