The global carnauba wax market size was USD 246.0 million in 2015 and is expected to witness significant growth over the next eight years due to growing use in confectionery products. The demand for chewy confectionery such as jellies and chewing gums, primarily in Asia Pacific on account of increased consumption by youth population, is expected to bolster the demand for carnauba wax over the forecast period.
Majority manufacturers in the industry are based out of Brazil due to the abundance of raw material in the region. The raw material suppliers are involved in the extraction of the wax from the leaves of the Brazilian palm tree at a location external to wax filtering and processing. The filtering and processing of the product are not capital intensive, leading to low setup cost for the manufacturers in the domain. The extraction and processing are highly labor intensive leading to a higher labor cost.
The carnauba wax market is highly dependent on the continuous supply of raw material that is extracted from Brazilian palm trees from August to January. The raw material cost is less in the aforementioned period due to lack of availability of other sources of employment for laborers. However, the process of crude wax extraction is primitive, with little emphasis on deployment of advanced leaf drying techniques, leading to an increase in the overall extraction time.
The raw material suppliers incur the costs pertaining to the wages distributed to the workforce, transportation, and logistics cost, and a minimal cost of the equipment used for the extraction process. The operating cost of landholdings for the raw material suppliers varies with the type of ownership and the location of the land. The distributors in the industry operate with high distribution margins on account of price customizations in accordance to the distribution region. However, the margin shares are affected by the transportation cost accrued by the distributors.
U.S. carnauba wax market volume, by product, 2013 - 2024 (Tons)
The market is segmented on the basis of products into carnauba wax type 1, type 3, and type 4. Type 1 accounted for over USD 92 million in 2015. It is the purest form of the product and has high demand in niche applications such and pharmaceutical and food products. It is also used in the manufacturing of premium automotive wax formulations, which are used for enhancing the shine of automotive bodies and increasing their aesthetic appeal. Increasing demand for the product in fruit coatings is expected to drive the demand for the product.
Type 3 and type 4 wax are dark in color and find use in automotive applications, industrial polishes, and in leather tanning industry. It is also used in the cosmetics industry as an agent to impart gloss to various products such a lip colors and nail polishes. The demand for type 4 is expected to grow on account of increasing demand for the product as a mold release agent.
The food industry is accounted for over 18% of the global revenue due to the growing use of carnauba wax in confectionery and fruit coatings. Increasing demand for such products on account of growing disposable income coupled with growing affinity towards high price, wax treated foods is expected to drive the demand over the forecast period.
The automotive application accounts for a significant share of the industry on account of high demand premium shine wax. The demand in the pharmaceutical industry is limited to its use in coating tablets and capsules for timed release of drugs. The cosmetics industry is expected to drive the market growth owing to high demand for cosmetics, primarily in Asia Pacific and Europe.
The demand is expected to be limited in North America and Europe due to high market maturity. The demand for the product is expected to be driven by increasing use of automotive care waxes. The growth of the automotive care industry on account of increasing automotive sales coupled with the rising sales of pre-used cars is likely to translate into a high demand for the product.
The growth is expected to be driven by increasing consumption of the product in Asia Pacific owing to rapid industrialization, which is leading to the development of various application industries in the region. Increasing demand for food glazing agents in the developing food and confectionery industry in China is expected to drive market growth in this region. Also, increasing adoption of the product in the automobile industry is also expected to accelerate market growth in Asia Pacific.
The market has witnessed a gradual price increase on account of the attempts to increase the margins and revenues by the major manufacturers. The companies have been operational for over ten years and benefit from their market knowledge and experience. Carnauba wax produced by the company is supplied and exported to the global markets through multiple distribution channels comprising of wholesalers, suppliers, and distributors. The companies enjoy the access to abundant raw materials coupled with favorable regulations from the Brazilian government.
Key players in the global metal aerosol cans market include Foncepi comercial exportadora ltda, Brasil Ceras, Carnauba do Brasil, Pontes industria de Cera ltda., and Tropical Ceras do Brasil Ltda.
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