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Lubricant Base Oils Group II: Market Size & Forecast 2026
Group II base oils are the dominant refined paraffinic feedstock for the global finished-lubricant industry. We estimate the global market at approximately USD 19.0 billion in 2025 (base year), growing at 3.4% CAGR through 2032 to reach USD 24.1 billion. Vacuum Gas Oil (VGO) accounts for roughly 62% of finished Group II cost; the public commodity benchmarks US N100 export benchmark averaged USD 2.54/USG through mid-December 2025, down from USD 2.77/USG in 2024, reflecting a structural oversupply that is compressing hydrocracker utilisation economics across North American and European integrated producers. > **Analyst Take.** The consensus 3.4% CAGR is defensible but the composition is wrong. Buyers who see Group II as a commoditised hydrocracker by-product are missing the real story: Group II is the formulation workhorse for 90%+ of global finished-lubricant volume, and the margin compre
Official data · Claight AnalysisForecast
Market size and CAGR extracted from the published Claight report; figures match the report..
2025 base: $0.0bn2032 est: $0.0bn
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Connect to an analyst →Market size and forecast are Claight Analysis, informed by public research and industry data. Historical years before 2025 and all forecast years are Claight estimates at the stated CAGR. Retrieved 2026.