Some years bring steady, predictable change, and as we’ve already experienced in the first quarter, 2025 will not be one of those years.

Instead, 2025 will continue to be highlighted as the year that separates the leaders from the laggards in the lubricant industry. The year where companies that are embracing technology, sustainability, and strategic pricing thrive—while those clinging to outdated models fall behind.

For over a decade, Pricefx has helped businesses in the lubricants industry break free from pricing inefficiencies, and outdated strategies. We’ve seen firsthand what happens when companies make bold, strategic decisions—they win.

And in 2025 and years beyond, there’s no room for hesitation.

If you’re wondering what’s coming, what’s changing, and how you can turn these shifts into an advantage—this is the guide for you. Let’s explore the three biggest trends that will shape the lubricant industry in 2025 and how forward-thinking companies are seizing the moment to redefine success.

Trend #1: Industrial Demand for Lubricants Will Continue to Grow

For years, lubricant companies have been bracing for an EV revolution that, quite frankly, hasn’t arrived as quickly as expected. Instead, the real demand surge is coming from industrial sectors—manufacturing, heavy machinery, and equipment maintenance.

Picture this: If your business is a global manufacturer that operates thousands of machines 24/7 to keep up with production demands. Every hour of downtime costs you tens of thousands of dollars. Your need for high-performance lubricants isn’t just a preference, it’s a non-negotiable operational necessity .

And in 2025, as industrial output continues to rise, this demand will only increase.

A Shift That Demands New Thinking

The lubricant industry has always been cyclical, with demand fluctuating based on economic trends. But 2025 has already presented a unique challenge—a sustainable-growth phase that requires companies to rethink pricing, forecasting, and supply chain agility.

Instead of waiting for demand to stabilize, smart companies are already positioning themselves with the right technology to pivot and capitalize on the region-dependent sustainable growth opportunities that may abruptly present themselves.

The key question is: Will your business be one of them?

How Smart Companies Are Responding

• Ditching Old Pricing Models – If you’re still using cost-plus pricing without factoring in demand fluctuations, you’re leaving revenue on the table. Market index-based pricing ensures stability, while attribute-based pricing lets you charge premium prices for high-performance products.
• Leveraging AI for Revenue Forecasting – The days of gut-feel forecasting are over. Use AI to forecast revenue or quantity for the coming months based on your transaction data. Based on it, simulate, plan strategy, better analyze trends and take more accurate decisions.

• Getting Ahead on Long-Term Contracts: With demand rising, securing long-term contracts now can lock in stable revenue by setting a minimum margin expectation and factoring in market and cost changes over time with the baseline in place - opposed to a fixed price.

The Big Takeaway: Demand in industrial lubricants is seeing sustainable growth, but it’s not just about selling more lubricants—it’s about selling the right lubricants, in the right way. And that leads us to the next game-changing trend: Sustainability.

Trend #2: Sustainability Will Drive Profits, Not Just Compliance

Turning a Regulatory Headache into a Competitive Advantage

For years, sustainability has been treated like eating your vegetables. Necessary? Sure. Exciting? Not so much.

But what if sustainability was the key to unlocking higher margins and stronger customer loyalty?

We know that navigating environmental regulations can feel overwhelming. The rules keep changing, and it’s easy to feel like you’re constantly trying to catch up. But here’s the thing—companies that take control of their sustainability strategy now will be the ones shaping the future of the market.

Take the case of a mid-sized lubricant manufacturer that decided to shift 30% of its product line to bio-based lubricants in 2023. By 2024, they weren’t just meeting regulatory requirements—they were charging 20% more per unit and winning contracts with companies that prioritized eco-friendly products.

Why Sustainability Is No Longer Optional

If you’re feeling hesitant, you’re not alone. Many companies are still in a wait-and-see mode, but the reality is that sustainability isn’t a passing trend, it’s the future of the industry.

If customers want eco-friendly lubricants, if incentives make sustainability more profitable, and if competitors are already launching premium synthetic products, why wait?

How Smart Companies Are Monetizing Sustainability

• Developing Premium Eco-Friendly Lubricants: Synthetic and bio-based lubricants aren’t just good for the planet; they also sell at higher margins. Position them as premium, high-performance alternatives and charge accordingly.
• Capitalizing on Government Incentives: Many governments are offering tax breaks and subsidies for sustainable products. If you’re not taking advantage, you’re leaving money on the table.
• Using Sustainability to Strengthen Customer Loyalty: Companies that market their sustainability efforts effectively don’t just win sales; they win long-term customers who are willing to pay a premium for environmentally friendly solutions. If you can align with their values, you’re not just winning a sale—you’re winning a long-term relationship.

The big takeaway, Sustainability isn’t a checkbox, it’s a chance to innovate, differentiate, and increase margins.

Sustainability and demand growth are massive trends, but they won’t matter if your business isn’t leveraging technology to keep up. That’s where digital transformation comes in.

Trend #3: Technology Will Separate Leaders from Laggards

The True Cost of Inaction

One of the biggest barriers to digital transformation in the lubricants industry isn’t cost, it’s fear.

Companies worry about disrupting existing processes, investing in technology that might not deliver immediate ROI, or making the wrong move. But the bigger risk? Doing nothing.

Imagine a company still manually updating pricing spreadsheets in 2025 while their competitors use AI-driven pricing models that adjust in real-time. By the time they realize they’ve been outpriced, the market has already moved on.

How Smart Companies Are Embracing Digital Transformation

• AI-Driven Pricing for Competitive Edge: Real-time, automated pricing models help businesses maximize margins without manual guesswork.
• Predictive Analytics for Smarter Decisions: AI can detect market shifts before they happen, giving companies a strategic advantage in pricing and inventory management.
• Connected Manufacturing for Cost Efficiency: Tech-driven factories and smart supply chains reduce waste, lower costs, and increase productivity.

The big takeaway, technology isn’t a cost, it’s an investment in profitability, efficiency, and long-term survival.

Learn more about how pricing software can assist in mitigating the costs of your company’s digital transformation efforts in this great e-book by my Pricefx colleague, Sara-Marie Gansert (click on the image below to be redirected to the eBook):

How Lubricant Companies Should Prepare for 2025

The Cost of Indecision is Higher Than the Cost of Action

It’s easy to get caught in the trap of waiting— waiting for clearer regulations, waiting for competitors to make the first move, waiting for the “perfect moment” to invest in technology.

But waiting is a strategy for companies that want to be left behind.

The lubricant industry in 2025 belongs to companies that:

• Turn Sustainability into a Profit Center: High-margin, eco-friendly lubricants are the future.
• Embrace Technology to Gain a Competitive Edge: Automation, AI, and predictive analytics will separate winners from losers.

The biggest risk in 2025 is not making the wrong move, it’s failing to make a move at all.

If you’re ready to modernize your pricing strategy and drive profitability, Pricefx can help. Click on the image below to learn more about our innovative solutions that can help drive value for your lubricant industry endeavors:

Here’s to smart, strategic, and profitable pricing in 2025.

Here’s to smart, strategic, and profitable pricing in 2025 and beyond.