Biolubricants are attractive from a social and political viewpoint, but lubricants are generally purchased on a price versus performance basis, and here they fall short. In addition to a higher price versus mineral oils, vegetable oils have two major technical disadvantages that restrict their use; poor oxidative stability at high temperatures and poor flow characteristics at low temperatures. This creates a relatively narrow band of operating temperature and inhibits their use in many high volume applications. There are exceptions, such as some synthetics made from bio sources, but these are much higher yet in price.
The main drivers for vegetable oils are biodegradability, renewability, and energy efficiency, of which only energy efficiency helps repay some of the higher initial cost. As a result, government regulations or incentives are often needed to push biolubricants where a natural market pull does not exist. They tend to be used where a potential exists for significant release of the lubricant into the environment, such as two-cycle oils, chainsaw oils, railroad grease, and various oils used for farm and forestry applications.
Environmental consciousness has proven to be an insufficient driver for overcoming significant price penalties. Consumer conscience is quite price sensitive and demand drops quickly when economies turn down. IMO, I would expect their growth to be relatively slow until technical improvements are made and the price differential from mineral oils is reduced.
Tom NJ