Lubes Market Down But Not Out In Western Europe

LITTLE FALLS, N.J., Sept. 28 -- Recent declines in the Western European lubricants market have sent some global marketers looking elsewhere for growth opportunities, but preliminary research for a new study by Kline & Company indicates that Western Europe might warrant a second look, especially for manufacturers of high-performance lubricants.

"Lube marketers seem to be writing off Western Europe because of the declining consumption, but what it lacks in volume, it makes up for in revenue potential," says Geeta Agashe, director of the Petroleum and Energy practice for Kline's research division. "Consumption of high-performance lubes is on the rise, and this could mean significant growth opportunities for high-end products."

According to Kline's study, COMPETITIVE INTELLIGENCE FOR THE GLOBAL LUBRICANTS INDUSTRY, 2006-2016, Western Europe accounts for less than 15% of global lubricant consumption, but it consumes 30% of full synthetic lubes and 35% of synthetic blends, the highest of any region.

Germany currently commands the largest share of the Western European market at 23%, but it is also is facing the steepest decline, with a drop of more than 4% predicted over the next five years. Conversely, consumption in the Asia-Pacific region is expected to grow by nearly 4% within the same timeframe, driven by the booming economies of China and India.

"Even though overall demand is expected to drop, use of synthetics and synthetic blends is growing," Agashe says. "People are willing to pay more for the premium products because it means fewer oil changes and some are more environmentally friendly."

COMPETITIVE INTELLIGENCE FOR THE GLOBAL LUBRICANTS INDUSTRY, 2006-2016 provides a comprehensive assessment of select national markets for commercial automotive, consumer automotive, and industrial oils and fluids. The study, which is expected to be published in July 2007, examines six geographic regions through aggregate research gathered at the country level.

"The results of this study will demonstrate why it's important for manufacturers to examine the whole picture, especially in Western Europe," says Bill Downey, vice president and head of Kline's Petroleum and Energy consulting practice. "We can see that manufacturers are not happy with the results of their European portfolios. We will be working with clients using this study and other tools to improve results."

COMPETITIVE INTELLIGENCE FOR THE GLOBAL LUBRICANTS INDUSTRY, 2006-2016 includes a complete Year in Review for the industry, supplier and country profiles, opportunity and threat assessments, and 10-year market forecasts generated with Kline's FutureView Forecasting Model.

For more information on this study, go to http://www.klinegroup.com/reports/y533.asp or contact Geeta Agashe at +1-973-435-3484 or geeta_agashe@klinegroup.com. In Europe, contact Erin Durham at +39-0331-931807 or erin_durham@klinegroup.com.

To learn more about Kline's customized consulting capabilities in the petroleum and energy fields, contact Bill Downey at +1-973-435-3388 or bill_downey@klinegroup.com.

Established in 1959, Kline & Company (http://www.klinegroup.com/) is an international business consulting and market research firm serving the petroleum and energy, specialty chemicals, life sciences, and consumer products industries.

  For more information, contact:
  Geeta Agashe
  Director, Petroleum and Energy Practice
  +1-973-435-3484
  geeta_agashe@klinegroup.com