In Bangladesh, the industrial lubricants market has become a focus market in recent years as players look outside of the highly competitive automotive lubricants market for new growth.
Within Bangladesh, industrial lubricants represent the third-largest market after mineral-based lubricants markets and automotive lubricants market, with an estimated annual consumption of around 20 million litres in 2018 that is projected to reach the 25 million litres mark by 2020.
Bangladesh’s rising demand for industrial lubricants does not come as a surprise. The stability of Bangladesh’s economy in the last 5 years and, coupled with its pro-business climate and improving infrastructure has transformed this market into one of the top destinations for foreign direct investments in the manufacturing sector.
Lubricants consumption by the industrial sector has increased significantly in the last 5 years. This industrial sector accounts for around 30% of the total lubricant consumption in Bangladesh.
The demand from the industrial machinery and equipment application also accounts for a major share of the total lubricants market and is driven by the end-user sectors such as power, manufacturing, logistics, automotive manufacturing, and others.
In Bangladesh, the distribution structure of industrial lubricants has evolved over the years to serve the dispersed industrial landscape.
Traditionally, lubricants oil manufacturers have relied on primary and secondary distributors as their primary channel-to-market.
However, some markets may even require traders–individuals who have intimate knowledge of the market–to service the population of small-scale industrial end-users and retailers in rural regions.