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The global wax market Size was valued at USD 7.28 billion in 2019 and is expected to reach USD 9.24 billion by 2027, exhibiting a CAGR of 3.1% during the forecast period.
Wax consists of a variety of organic substances. Generally, it is solid at room temperature and melts at higher temperatures. These products can be derived from petroleum and bio-based resources. Petroleum products are generally derived from crude oil refining. Physical and chemical characteristics of these materials are highly dependent upon their molecular weight, degree of carbon branching, and distribution of individual components.
Paraffin consists of saturated hydrocarbons ranging from C18 to C60. Microcrystalline type contains naphthenic & branched hydrocarbons with normal alkanes. Synthetic types are derived from the polymerization of carbon monoxide under high-pressure conditions. Mineral types are produced from the fractional distillation of lignite, coal, or shale oil. Plant types are derived from palm trees, soy, or candelilla shrubs. Animal type contains long-chain fatty alcohols & carboxylic acids and is commonly obtained with the help of insects.
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Thermotherapy Using Molten Paraffin Bath Is Increasing Demand for Paraffin
Paraffin possesses excellent heat absorbing and retaining capacity. As paraffin has a low melting point, it can be easily applied to the skin without any burns. Therefore, paraffin bath is one of the most effective methods used to improve blood circulation & reduce joint pains. Muscle stiffness or pains caused due to arthritis are relieved with the help of paraffin heat treatment. The heat is transferred to the affected area when paraffin undergoes a phase change from liquid to solid.
In addition to therapeutic benefits, the paraffin bath has cosmetic benefits too. Paraffin is a natural emollient. It opens skin pores and softens the skin by improving blood circulation. Moreover, it helps to rehydrate dry or cracked skin due to cold conditions or stress. It removes layers of dead skin and helps to improve the skin tone.
Multiple Uses across Variety of Industrial Application is Boosting Growth of the Market
Wax coatings provide protection to packaged good and higher gloss improves the appearance of the same. Smooth coating allows the consumers to better control the opening of the packages. Soft & gentle packaging products are highly valued across the world. Excellent barrier properties against moisture make them suitable for packaging applications in food & other industries. The non-sticky nature plays an important role to offer reliable & cost-effective solutions for packing sticky products.
Moreover, properties such as anti-blocking, water repellency, slip, lubricity, abrasion resistance, low viscosity, excellent chemical resistance, high compatibility, and thermal stability are highly recommended in applications such as candle manufacturing, coatings, polishes, adhesives, cosmetics, as well as plastic & rubber additives.
Growth of End-use Industries in Developing Economies is Projected to Boost Market Growth
In developing countries of Asia Pacific, Africa, and Latin America, the growth of end-use industries such as candles, packaging, cosmetics, plastic, rubber and others is high as compared to the developed countries in America & Europe. Therefore, rapid industrialization in such countries is expected to create opportunities for the wax market growth in these regions.
Paraffin wax is highly adopted in corrugated packaging which is used to pack food, furniture, and other goods. Therefore, the healthy growth of the packaging sector across these developing economies is fuelling the growth of the market. For instance, according to the Packaging Industry Association of India, the packaging is the fifth largest sector and one of the highest growth sectors in India with an annual growth rate of 22% to 25%. In Latin America, Mexico is the key packaging market. According to the Packaging Machinery Manufacturers Institute, the packaging manufacturing companies in Mexico produce over 8.1 million tons of packaging products per year.
High Cost of Animal & Plant-Based Waxes Is Key Restraining Factor for Market Growth
As compared to petroleum type, the manufacturing cost of animal & plant-based wax is high, due to their high cost, adulteration with other cheaper material. Animal fat, paraffin, plant oils and other materials are mixed to gain more profit. However, the emergence of methods to detect adulteration such as liquid chromatography is expected to lower the impact of this restraint during the forecast period.
Animal & plant-based products start to degrade after a period of time. Therefore, sustainability, as compared to the other types, is also a key challenge for the growth of this segment. Moreover, improper handling of natural resources due to lack of quality standards & regulations, as well as authentic sourcing of raw material represents a major restraint for manufacturers. Improperly treated products may contain chemicals used for insect keeping and hence, will lead to very low product quality.
Increasing Oil Exploration Activities across the World Is Creating Potential Opportunities for Market Growth
Refining is an important separation process in petroleum plants. Two commercial processes are used for this purpose i.e. solvent-based physical process and catalytic based chemical process. The products obtained from petroleum refining are marketable by-products and important to gain the overall plant operation revenue. As wax is manufactured during such processes, favorable growth of oil exploration activities globally is expected to create new opportunities for production during the forecast period. For instance, in 2019, Total S.A. planned to drill wells at different locations including South Africa, Brazil, Mauritania, and Guyana. In 2020, the Brazilian oil firm, Petrobas identified the presence of oil in the Campos basin, Brazil.
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Petroleum Segment Dominated the Global Wax Market in 2019
On the basis of product type, the global market for wax is segmented as petroleum, synthetic, mineral, and animal & plant.
Petroleum products mainly include paraffin, petrolatum, and micro-crystalline type. Among these, paraffin is highly consumed and produced across the world. Less reactive nature and high versatility make these products suitable for numerous industrial applications. Moreover, paraffin is cheaper than the other types which make them the economically prime option. Despite high cost, owing to the increasing demand for bio-based non-toxic & non-carcinogenic products, the animal & plant segment is projected to be the fastest-growing segment during the forecast period, both in terms of value and volume.
The synthetic segment accounted for the second-largest share among product type in 2019 and is expected to grow at a higher CAGR than the petroleum segment during the forecast period. Synthetic type mainly includes products derived from polyolefin and the Fischer-Tropsch process. The oil content in synthetic type is low and these products can be used in numerous applications such as candles, coatings, inks, adhesives, lubricants, textiles, and polishes.
Candles Segment Held the Largest Revenue Share in the Global Wax Market
On the basis of application, the global market is segmented as candles, packaging, coating & polishes, hot-melt adhesives, cosmetic & toiletries, plastic & rubber, and others.
In 2019, the candles segment dominated the global market and the trend is projected to remain the same throughout the forecast period. Increasing demand for scented candles for home décor and aromatherapy is boosting the growth of this segment. Candles are available in a wide variety of choices such as scent, size, shape, and cost. Moreover, they are considered as the most appropriate gift on different occasions such as Christmas, birthdays, house warming parties, and others. According to the National Candle Association, most of the American candle consumer use purchased candles within a week.
The cosmetic & toiletries segment is projected to be the fastest growing segment in the global market throughout the forecast period. In cosmetic manufacturing, these waxes are used as structuring or thickening agents, waterproofing or wear enhancing agents, and SPF booster. They are mainly used in the manufacturing of lipsticks, lip balms, sunscreens, foundations, and mascara.
Asia Pacific Wax Market Size, 2019 (USD Million)
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Asia Pacific dominated the global market in 2019. In this region, countries such as China, India, and Japan are the key markets. Bulk availability of raw materials along with the favorable growth of end-use industries in the region is projected to drive growth of the market in the near future.
Since many years, China is one of the largest producers, consumers, and importers in the world. India is one of the largest producers of beeswax in the world. According to the Economic Advisory Council Beekeeping Development Report 2019, India has a potential to keep 200 million bee colonies which can produce over 15 kilo tons of this product and an organized collection can add additional 10 kilo tons.
Europe held the second largest share for this global market in 2019. Owing to the higher presence of leading manufacturers, the region is a well-established market. In Europe, Germany accounted for the highest revenue share followed by the U.K. and is expected to grow at the fastest CAGR over the forecast period.
North America accounted for the third-largest share of 26.6% in the global market in 2019. The demand in this region is expected to grow at a CAGR of 2.6% over the forecast period. The United States is the largest consumer and importer in the world. Among application, the candles segment accounted for the largest revenue share in this region in 2019. Owing to the increasing demand for high-quality petroleum and bio-based candle, the segment is expected to lead the market during the forecast period.
KEY INDUSTRY DEVELOPMENTS:
The wax market report provides both qualitative & quantitative insights across the world. Quantitative insights include market sizing in terms of value (USD million) & volume (Kilo Tons) across each segment, sub-segment, and region profiled in the scope of study. Also, it provides market share analysis and growth rates of the segment, sub-segments, and key counties across each region. Qualitative insight covers an elaborative analysis of the market drivers, restraints, growth opportunities, and key trends related to the market.
An Infographic Representation of Wax Market
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Moreover, the competitive landscape section provides detailed company profiling of key players operating in the market covering their business overview, key management, key geographic operations, business strategies, and SWOT analysis.
REPORT SCOPE & SEGMENTATION
Value (USD Million) Volume (Kilo Tons)
By Product Type
Fortune Business Insights says that the global market was valued at USD 7.28 billion in 2019 and is expected to reach USD 9.24 billion by 2027.
The market is projected to grow at a CAGR of 3.1% over the forecast period.
Multiple uses across a variety of industrial applications and favorable growth of end-use industries are some of the key factors boosting the growth of the market.
Petroleum segment dominated the market in 2019 and it is projected to lead during forecast period.
Asia Pacific accounted for largest revenue share in the global market in 2019.
Key players operating in the market are Sasol Limited, Sinopec, Royal Dutch Shell PLC, Exxon Mobil Corporation, The International Group Inc., Petróleo Brasileiro S.A., The PJSC Lukoil Oil Company, PDVSA (Petróleos de Venezuela, S.A.), Kerax Limited, DEUREX AG, NIPPON SEIRO CO. LTD., Numaligarh Refinery Limited, Strahl & Pitsch, Inc., Poth Hille & Co Ltd., Cargill, Inc., and Samin Chemical.
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