Market Trends of Myanmar Lubricants Industry
Growing Demand from Agriculture Industry
- Available agricultural oils in the market today have been particularly developed to meet the demanding and often intensive workloads that modern farming equipment must manage. In a competitive sector like farming, all vehicles and equipment must continually run at peak performance and save time and money while producing the biggest yields possible.
- The primary function of any lubricant is to improve equipment reliability, performance, and efficiency. Since farming machinery and equipment are frequently subjected to harsh working conditions and high usage, the usage of lubricant is an essential option for keeping the equipment operational.
- Agriculture-specific lubricants are formulated to prevent contamination, protect machinery from oxidation, corrosion, and rust, and provide longer oil drain intervals, resulting in lower oil usage.
- The agriculture sector is a high priority for the government of Myanmar. As per the vision policy by the government, by 2030, Myanmar should achieve inclusive food and nutrition security, climate change resilience, and a sustainable agricultural system that can further contribute to the socio-economic well-being of farmers and people living in rural areas.
- To pursue this vision, the government has designed an agriculture development strategy that proposes a sequence of plans that will pave the way for commercial expansion of livestock and crop production, increase the income for farmers, and improve access to international markets, which will ultimately contribute to the country's food security and overall economic development. All these initiatives are expected to increase the requirements for machinery and tools required for efficient agriculture production and will thus increase the demand for materials like lubricants utilized in the same.
- As per the data released by the Directorate of Investment and Company Administration (DICA), the agriculture industry in Myanmar received USD 3.5 million in foreign direct investment between April 2022 and March 2023 for two projects.
- However, as per the Asian Development Bank Outlook released in April 2023, growth in agriculture contracted by 3.5% in 2022 amid consistent increases in input and energy prices, declining access to finance and capital, supply disruption, and others. The scenario is expected to improve in the coming years.
- All the aforementioned factors are expected to influence the demand for lubricants in Myanmar from the agriculture industry in the coming years.
Understand The Key Trends Shaping This Market
Download PDF
Engine Oil to Dominate the Market
- Engine oil is a type of lubricant used to keep the moving elements of an internal combustion engine from rubbing against one another and wearing out prematurely. Its purpose is to extend the machine's life while reducing the amount of wear it undergoes. In addition to protecting the engine from corrosion, engine oil helps maintain a clean engine.
- Many different types of engines require engine oils, including automobile engines, motorcycle engines, truck engines, marine engines, industrial engines, agricultural engines, aircraft engines, generator engines, and lawnmower engines.
- The performance of the automotive industry highly drives the demand for engine oil. As per the statistics released by the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2022, the production of automobiles in Myanmar reached 3.17 thousand units, recording an increase of 62% from the production achieved in the previous year. This is indicative of the rise in demand for lubricants in the last year.
- The mining industry has a high demand for engine oil as there are various heavy-duty equipment required for mining activities. Mining is still the most untapped sector in Myanmar, with huge deposits of copper, gold, lead, silver, zinc, tin, and others. The government has been focusing on developing the mining industry of the country by passing initiatives in support of foreign direct investments.
- As per the data released by the Directorate of Investment and Company Administration (DICA), the mining sector in Myanmar received USD 7 million in foreign direct investment in between April 2022 - March 2023.
- All these factors are likely to influence the demand for engine oil from Myanmar in the coming years.
