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The global industrial wax market size was USD 9,539.7 million in 2019 and is projected to reach USD 14,509.5 million by 2027, exhibiting a CAGR of 5.9% during the forecast period.
Industrial wax is a type of organic substance that is solid at room temperature and free-flowing liquid at slightly high temperatures. These properties make it an important material in the manufacturing processes of candles, adhesive, additive, packaging, rubber, cosmetics, and home care products. There are several bio-based sources and chemical synthetic processes that aid in the manufacturing of wax.
High consumption of the industrial waxes owing to their properties such as anti-caking, UV resistance, excellent insulation, excellent moisture and odor, and resistance from microorganisms, are expected to significantly affect the market growth during the forecast period. The growth of candles, food, packaging, and personal care industries is further boosting the demand for wax around the globe.
COVID-19 Pandemic: Reduced Demand for Wax-based Products and Shutdown of Manufacturing Facilities May Impact the Market
The rapid spread of coronavirus has severely affected industries of all sectors. This has led to fluctuations in sales and consumption of various products, including wax-based product applications. The global pandemic caused a temporary shutdown of manufacturing facilities, thus, leading to disturbance in the supply and demand chain. Reduced demand for wax-based products such as candles and soaps is negatively affecting the market growth.
However, consumer demand for products such as high quality packaged food, disinfectants, medicines, and others are positively affecting the demand for wax. This wax market is expected to showcase considerable growth as all the above products require packing, causing an increase in consumption due to microorganism resistance properties. This will cause a surge in demand for wax and lead to substantial market growth.
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Increasing Demand for Bio-based Wax to be a Key Trend
Bio-based wax demand is increasing for applications such as food packaging and cosmetics. The demand for bio-based waxes can be attributed to the high use of naturally-occurring waxes for the food and cosmetics industries. The growing food packaging industry is further providing ample opportunities for market growth.
Bio-based wax comprises epoxides of fatty acid esters and non-hydrogenated vegetable oils. The demand for bio-based wax is strong due to consumer need for bio-based candles and packaging applications as eco-friendly alternatives to paraffin candles that are petroleum-based. Bio-based waxes are soy candles produced from derivative soybean oil and more reliable as compared to paraffin wax products. This shift towards eco-friendly options of wax applications is propelling the market growth.
Increasing Demand for Candles and Other Applications to Aid Market Growth
The growing demand for various types of candles such as colored and scented is driving the market for industrial wax. Candles are progressively becoming luxury items and decorative gift items. The rising popularity of candles for providing dim light and perfume for enhancing the ambiance of the room is a rising trend that is driving the market growth. The increasing use of scented candles for gifting is expected to drive the candle industry that, in turn, is causing the growth of market size. The increasing import from developing countries such as China and India is leading to the high consumption of waxes for industrial applications. This is expected to grow and to support economic growth while further creating opportunities for exporters in the market.
The rising cosmetic industry is further expected to drive the market growth. It is used on paper for cost-effective wrapping methods that protect from water, humidity, and grease. Moreover, properties that include slip resistance, water-proofing, and anti-scratch are used in the coating industry for automobiles, infrastructure, and others, further increasing the demand for waxes. The increasing demand for waxes for other applications such as food and additives packaging and insulation application is boosting the market growth.
Decreasing Supply of Paraffin Wax May Hinder the Market Growth
A decrease in the supply of paraffin wax has been witnessed over the years due to changes in the crude oil production process. Paraffin wax accounts for a major industrial wax market share in the global market that is produced from petroleum sources. The increasing price of crude oil is leading the manufacturers to shift towards profitable and cheaper options like synthetic processes. The continuous reduction in the supply of fossil waxes is another major factor in the supply-demand gap and acts as a restraining factor to market growth. Moreover, stringent regulations over the preservation of resources are causing manufacturers to shift from fossil-based wax. Therefore, these factors may restrain market growth to some extent.
Fossil Based Wax Segment to Hold the Major Share in the Market
Based on type, the market is segmented into fossil-based wax, synthetic wax, and bio-based wax.
The fossil-based wax segment dominated the market due to the growing demand for candles for consumer goods applications. Paraffin and microcrystalline are derived from petroleum wax and account for the major share of fossil-based waxes. They have applications in candle making, skincare products, and cosmetic products. High demand for candles from consumers is expected to support market growth.
Synthetic wax is expected to showcase significant market growth. Synthetic waxes can be bifurcated into fully synthetic and partially synthetic. These waxes have applications for polishing & castings, tire & rubber, hot-melt adhesives, and others. The growing demand for wax for the above applications is expected to drive the market growth. Bio-based wax is gaining demand as it is eco-friendly and effective for food applications. The increasing population rate can be attributed as the factor for food demand, thus, leading to market growth.
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Candles Segment to Hold the Major Share in the Market
On the basis of application, the market is segmented into candles, coatings & polishes, packaging, food, tires & rubber, cosmetics & personal care, hot-melt adhesives, and others.
The candles segment dominated the market due to the growing consumer demand. They can be categorized into scented and unscented candles. The surging demand for candles in the household application, where they are used as a lighting product during the festive season and as gifting items on several occasions, will drive the market growth.
Coatings are applied to various food products such as cheese and fruits for keeping the product fresh and protected from outer bacteria. Properties of wax such as resistance from microorganisms help to keep the food from being spoiled. The increasing consumer demand during the pandemic for quality food is subsequently driving the demand for wax.
The coating and polishing segment is attaining growth due to the increasing manufacturing of automobiles and the growing construction activities. Growth in the industry can be attributed to population increase and improved lifestyle of the consumers. These factors are leading to high demand for wax for coating and polishing applications for the aforementioned industries.
For packaging applications, waxes are used on paper and packaging surfaces such as food boxes and wax papers for wrapping and cosmetic covering. The packaging provides water resistance and scuff resistance to protect the product inside. The growing demand for convenience food is causing growth in the packaging industry that is expected to lead to high consumption of the product.
Industrial wax has application as an additive in the cosmetic industry for providing moisture resistance and protection from external factors. These aforementioned factors are expected to propel market growth.
Asia Pacific Industrial Wax Market Size, 2019 (USD Million)
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North America is estimated to have a significant share in the global market. This is attributed to the rapid industrialization and the rising disposable income in the region. The growth in the number of producers of bio-based wax for applications across the personal care sector is further expected to support the regional market growth. The pandemic has led to high demand for industrial wax for proper food packaging to protect from the virus. Along with this, the growing consumer lifestyle has led to increased use of wax for cosmetic applications.
The company Blended Waxes Inc. provides customizable wax according to the consumer needs that include wax for adhesive application, a wax grade for cosmetics, and paraffin wax for candle making.
Asia Pacific dominated this market with a value of USD 2,872.3 million. This growth can be attributed to increased demand from leading markets such as packaging, candle making, tires & rubber, and coatings & polishes. High demand from the above-mentioned industries can be experienced from developing countries that include China, Japan, and India. The growth in construction activities in the region increased the demand for waxes, where it is used for hot-melt adhesive applications. Strong economic growth in developing regions is providing disposable income to consumers, which is leading to the growing wax consumption for cosmetics and home decor applications.
China is the largest producer as well as consumer of candles that can be associated with rapid urbanization and the growing rate of population in the region. Additionally, the rising automotive sector in the region is leading to a subsequent demand for industrial waxes for coating and polishing applications. Several major companies such as Total, BASF, and others have expanded their business into the Asia Pacific market and have manufacturing facilities in the region due to cheap labor costs and easy availability of raw material.
The European region is experiencing significant market growth for the past few years due to an increase in demand for wax from automobile and candle applications. This high demand for wax can be attributed to the rising sales of automobiles in the region. Germany is the major consumer of candles and accounts for about 20% of the total consumption within the region and imports around 12% of candles from developing countries. The growth in the region is expected to continue between 2019 and 2020. This is attributed to the increasing private expenditure in Germany that is anticipated to propel the consumption of decorative and luxury products such as candles.
Latin America is expected to have substantial growth of the market during the forecast period. This growth can be attributed to a reasonable increase in sectors such as automotive, construction, and food packaging. Brazil is one of the major countries that have a high consumption rate for waxes for applications in the food packaging and construction industry. The increasing population in the region is the driving factor for the high consumption of food products and increased construction activities.
The Middle East & Africa is anticipated to support the market growth owing to the increasing construction sector. Additionally, the growing adoption of wax as hot-melt adhesives in the construction segment and technological advancement is leading to high consumption. Moreover, the region is a major raw material provider for fossil-based wax such as petroleum, which in turn, is supporting the growth of the market.
Joint Ventures and Capacity Expansion are the Key Strategic Initiatives Implemented by the Companies
Major players operating in the industry are Sinopec, Exxon Mobil, Oil Co., Lukoil PJSC, and others. Companies are involved in capacity enlargement, new product development, acquisition, and joint venture, to gain a competitive edge in the global market. For example, Eagle Petrochem provides a wide range of wax for application in different end-user sectors such as packaging, candles, adhesives, and others.
Gandhar Oil provides a carefully blended range of waxes and has a product section that includes transformer oils, liquid paraffin, white oil & petroleum jelly, industrial lubricants, automotive oils, rubber process oils, industrial solvents, industrial wax, and industrial coal.
An Infographic Representation of Industrial Wax Market
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The industrial wax market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, sources, applications, and products. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Million); Volume (Kilo Tons)
Type; Application; and Geography
Fortune Business Insights says that the global market size was USD 9,539.7 million in 2019 and is projected to reach USD 14,509.5 million by 2027.
In 2019, the market value stood at USD 9,539.7 million.
Growing at a CAGR of 5.9%, the market will exhibit steady growth in the forecast period (2020-2027).
The fossil based wax segment is expected to be the leading segment in this market during the forecast period.
The increasing demand for candles and other applications is a key factor driving the market growth.
Sinopec, Exxon Mobil, Oil Co. Lukoil PJSC Industries are few of the leading players in the global market.
Asia Pacific dominated the global market in 2019.
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