Wax Market Report

Wax Market Analysis By Product (Mineral Wax, Synthetic Wax, natural Wax), By Application (Candles, Packaging, Rubber, Cosmetics, Fire Logs, Adhesives), By Region, And Segment Forecasts, 2014 - 2025

Published: November 2017  |  120 Pages  |  Format: PDF  |  Report ID: GVR-2-68038-024-8

Industry Insights

The global wax market size was valued at USD 9.32 billion in 2016 and is expected to register a CAGR of 3.7% from 2017 to 2025 owing to its various properties, including excellent temperature performance, scuff resistance, and outstanding chemical and electrical resistance. Increasing usage of paraffin form in candles, rubber & plastic, and personal care industry is anticipated to propel the demand for the product over the forecast period.

Developments in paint & coating industry is likely to augment the industry growth over the forecast period. Moreover, growth of cosmetics, printing inks, pharmaceuticals and adhesives especially in emerging nations of Asia Pacific is anticipated to propel the market growth.

U.S. wax market revenue by product, 2014 - 2025 (USD million)

U.S. wax market

Paraffin wax has several characteristics such as colorlessness, non-reactive, clean-burning fuel, non-toxic and great water barrier. This composition is used in several applications including detergents, rubber solutions, aerosol formulation, adhesives, household cleaners, tire manufacturing, and wood treatment applications.

Paraffin is obtained from crude oil while producing distillate (light) lubricating oil. Therefore, the raw materials for paraffin form along with microcrystalline and semi-crystalline waxes are derived from carbon compound and petroleum. Volatility in raw material prices affects its pricing and acts as a restraint for the usage of the product in industrial and consumer & commercial applications.

However, the rising acceptance for synthetic counterparts owing to its resistance to chemicals and water, great stability against polishing, and resistance against scratch, scuff and metal marks is anticipated to drive the market growth over the next eight years. The demand for the synthetic composites is likely to show a high growth on account of its application in textile, food packaging, coatings and inks sector.

The emergence of new applications, such as paper, matches, fabric, electrical appliances, cosmetics and pharmaceuticals, rubber, food and agriculture is expected to expand the market for new avenues, thereby augmenting its demand over the next eight years.

Application Insights

Candle was valued at USD 3.36 billion in 2016 and is likely to witness steady gains as a result of its wide product portfolio with respect to various shapes and sizes, ranging from birthday candles, tapers, utility candles, pillars, tealights, jar/container candles, novelty candles, floating candles, outdoor candles and liturgical candles.

The candles market is characterized by availability and ease of purchase of distinguished variety of candles on numerous distribution, wherein the increasing number of distribution channels is propelling the demand for the product through home décor and mass merchandise stores, and e-commerce websites.

The consumption for wax as performance additives in plastics industry is anticipated to withstand a high growth as a result of their rising usage as solvent-based and water-based mold release agents for polyurethane foam processing applications. Moreover, expansion of application scope as release agent and lubricants for engineering resins is expected to propel the consumption of the product in the market.

Product Insights

Mineral form was the most extensively used product and accounted for 73.96% of the global volume share in 2016. The consumption mineral wax is fueled on account of its application in liquid and gases barriers including candles, rust preventatives and lotions. Other applications augmenting the industry demand are electrical and electronic products, waterproofing compounds, and paste and liquid polishes.

Global wax market share by application, 2016 (%)

Global wax market

Owing to low aromatic content and odorless paraffin, these products are ideal for producing varnishes, drying lacquers and paints as diluents. Moreover, rising utilization of petrolatum in pharmaceutical products such as haircare, balms, moisturizers and creams is anticipated to spur the consumption for mineral counterparts over the forecast period.

In addition, the demand for synthetic waxes is expected to increase over the next eight years as a result of its growing application in metal and automotive industry owing to their superior longevity and protection as opposed to natural counterparts.

Furthermore, the growing significance for synthetic form is driven by decreasing availability of slack wax as well as low natural gas prices and large investments initiated in gas-to-liquid technology driven by the U.S. shale gas revolution.

Regional Insights

North America is projected to register substantial revenue gains, registering a CAGR of 3.5% from 2017 to 2025. North America paraffin composition market is likely to grow on account of existence of various personal care and cosmetics companies like Maybelline, Procter and Gamble, Colgate-Palmolive, Avon, Unilever, Johnson & Johnson.

Furthermore, Canada wax industry exhibit high penetration for synthetic and natural counterparts, relatively high purchasing power, strong regulatory framework and a high scope for new applications industry. The demand for the product in cosmetics market owing to high disposable income, continuing research and an inclination to spend more on appearance is anticipated to spur the Canada industry over the forecast period.

Asia Pacific accounted for 26.20% of the overall volume share in 2016 and is expected to witness significant growth over the forecast period. The emerging nations including Malaysia, Indonesia, and rest of Southeast Asia are likely to witness strong economic growth in the near future. The growing demand for printing ink on account of the expanding packaging industry is expected to augment the market growth.

Competitive Insights

The global wax market comprises of well-established and prominent players, especially in the U.S., Malaysia, Thailand, Germany, UK, and Australia. The industry is dominated by various major participants including BASF SE, The International Group, Inc.,Baker Hughes Incorporated, Evonik Industries AG, Mitsui Chemicals and Sasol NA Limited.

High entry barriers owing to forward and backward integration by major players to capture market share and to distribute wax is likely to result in strong industry rivalry over the forecast period. The company market positioning is characterized by mergers, joint ventures, diversification of distribution channel and acquisitions to improve the market share of manufacturers.

In June 2015, Sasol successfully commissioned its Fischer-Tropsch Wax Expansion Project (FTWEP) at Sasolburg Operations in South Africa in order to strengthen its business position in South Africa and supply wax in various sectors including candles, polymers, bitumen modifiers, hot melt adhesives and printing ink.

In July 2015, Jinan Company, a Subsidiary of Sinopec Group, launched new technologically advanced fully refined paraffin wax product No. 62 and No. 66. This initiative was aimed at driving Sinopec’s future growth programmes and to deliver new solutions to the customers.

Report Scope

Attributes

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation                                                 

Volume in tons, revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central and South America, and Middle East & Africa

Country scope

U.S., Canada, UK, Germany, India, China, and Brazil

Report coverage             

Volume & revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments covered in the report
:

This report forecasts volume and revenue growth at a global, regional & country level, and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global wax market on the basis of product, application, and region:

  • Product Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)

    • Mineral wax

    • Synthetic Wax

    • Natural Wax

  • Application Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)

    • Candles

    • Packaging

    • Plastic & Rubber

    • Cosmetics & Toiletries

    • Fire Logs

    • Adhesives

  • Regional Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S

      • Canada

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • India

    • Central and South America

      • Brazil

    • Middle East and Africa

Key questions answered by the report
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