Oxidized Polyethylene Wax Market Size, Share & Trends Report

Oxidized Polyethylene Wax Market Size, Share & Trends Analysis Report By Product (HDPE Wax, LDPE Wax), By Application (Hot Melt Adhesives, Plastics, Coatings), And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-137-5
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 76

Report Overview

The global oxidized polyethylene wax market size was estimated at USD 233.6 million in 2018. Rising usage of hot melt adhesives in various consumer goods applications such as furniture making, shoe manufacturing, packaging, baby diapers, and cigarettes is expected to be one of the major drivers.

U.S. oxidized PE wax market

Oxidized Polyethylene (PE) wax is produced by mild air oxidation of polyethylene. It is a polar one used to prepare emulsions with various products in order to improve the quality and performance of the end product. Ethylene is the primary raw material used for production and over the past few years, ethylene supply has undergone various ups and downs. The demand for ethylene was pegged at 152.3 million tons in 2017. The current capacity is barely sufficient to keep pace with the demand. Therefore, there has been a greater need for new capacity additions in the forthcoming years.

The U.S. is observed to be one of the strongest markets for polymers in North America with a total projected production capacity of 23 billion pounds annually. The U.S. oxidized polyethylene wax market is highly characterized by the presence of several multinationals that have their business operations in the segment. Companies such as Lubrizol, Westlake Chemicals, and Innospec among others have been operating in the country for decades and have a strong regional presence in terms of product portfolio, market access, and distribution channel strength. With the rising demand for the product from industries such as plastics, rubbers, and printing inks, the market is projected to showcase significant growth over the forecast period.

North America and Middle East are expected to remain the dominant supplier of the product in the forthcoming years owing to the availability of plenty of raw material to manufacture ethylene and other derivatives. Whereas, Europe, Asia Pacific, and South America are expected to face challenges such as high transportation costs and trade tariffs in raw material procurement. Almost three fourth of the primary raw material, ethylene manufactured globally goes into polyethylene and plastics manufacturing owing to high demand for these products. Thus, ethylene manufacturers have forward integrated their business to tap lucrative opportunities in the market. Petrochemical wax is another raw material used for manufacturing this chemical at elevated temperatures.

Countries such as China have developed coal to olefins process to manufacture polymers such as polyethylene. This factor is expected to positively affect the end-use industries in the region. On the other hand, major companies have also developed processes to produce polyethylene wax using paraffin bases as a replacement to petroleum one. The use of such alternative raw materials for manufacturing oxidized PE wax, has benefited the manufacturers to overrule the price imbalance caused due to ethylene costs.

Fischer Tropsch wax has emerged as an effective substitute for oxidized PE, owing to its excellent hardness and low viscosity. This product is anticipated to restrain market growth over the next couple of years. Few manufacturers of oxidized polyethylene products such as DEUREX, Clariant, and Nanjing Tianshi also offer Fischer Tropsch in their product portfolio. It can somehow replace oxidized polyethylene one in applications such as coatings, hot melt adhesives, and printing ink, but PE wax is hard to be replaced in the manufacture of plastics. However, cost-wise oxidized PE one is more economical as compared to its competitor and this factor is expected to remain dominant over the demand of the product in various application segments.

Product Insights

Oxidized polyethylene waxes are majorly categorized as low density (LDPE), linear low density (LLDPE), medium density (MDPE), and high density (HDPE). HDPE wax finds application in color masterbatches, printing inks, rubber and adhesives, and sealants. It is also used as a lubricant in PVC manufacturing to maximize processing time and improve the characteristics of the product. Munzing Chemie GmbH; Honeywell International Inc.; Savita Chemicals; and Trecora Chemical are some of the key manufacturers.

Application Insights

Oxidized polyethylene wax has high consumption in plastics. Petrochemical plastic is extensively used in our day to day life since its inception in 1940. It is useful in applications such as domestic, agricultural, and industrial owing to its properties such as durability, strength, lightweight, ease of handling, and cost-effectiveness. However, these properties have led to extremely high consumption and improper disposal. As an effect of it, municipal solid waste has a high percentage of plastics into it. Moreover, plastics account for more than 80% of marine debris causing serious threats for marine animals and their health.

Global oxidized PE wax market

European countries hold a relatively larger share when it comes to hot melt adhesives manufacturing. The region has a high demand from automotive and packaging industry applications. Increasing regulations for the use of lightweight vehicles has created a demand for hot melt adhesives, which in turn is expected to drive the growth of oxidized PE. From a macroeconomic point of view, rapid urbanization coupled with industrial and infrastructural development, especially in the Asia Pacific; is expected to propel the product demand. Whereas, increasing penetration of environmental-friendly alternatives hot melt adhesives may hinder the market growth in the near future.

Regional Insights

North America has witnessed a high demand for ethylene owing to the increased consumption in automobile manufacturing and packaging applications. The production cost in the region is also relatively lower owing to the high availability of low carbon number feedstock. North America was among the prominent consumers of oxidized PE products, attributed to the growing demand from construction and renovation activities coupled with demand for paints and coating in the automotive industry.

Middle East and Africa also has a strong market for printing ink with major demand from the packaging industry. The region reflected high growth of printing ink with a rise in its end-use industries. Growing demand for flexible packaging is considered to be the key driving factor of the market in Middle East. Major companies operating in the vertical includes Sun Chemicals, Toyo Ink Group, and Huber Group among others, which are recognized as technology-oriented companies.

However, the region is also developing in terms of its plastic demand, with multiple mergers and acquisitions occurring in the marketplace. Booming construction activities in the region is yet another key driver of the ecosystem. In Middle East, UAE has registered high growth in demand for plastics products. Dubai accounts for a major stake in terms of plastic product consumption with over 375 processing companies that cater 40% of the overall plastics business in United Arab Emirates (UAE).

Key Companies & Market Share Insights

The market has been dynamic with the presence of multiple key participants that have been observed to be engaging in strategic mergers and acquisitions, regional expansions, and product developments, among other strategies. For instance, Innospec acquired European surfactant business division of Huntsman in 2016. In another advancement, Lubrizol announced thermoplastic polyurethane capacity expansion on a global scale. Also, companies such as Clariant have expanded their product portfolios to cater to a broader market spectrum. These factors are observed to have positively impacted the marketspace globally.

Major players such as BASF SE., Westlake Chemicals, and Honeywell are involved in the production of oxidized PE wax. Some other key market participants include Trecora Chemical, Munzing Chemie Gmbh, and Marcus Oil.

Oxidized Polyethylene Wax Market Report Scope 

Report Attribute

Details

Market size value in 2019

USD 253.5 million

Revenue forecast in 2025

USD 443.6 million

Growth Rate

CAGR of 9.7% from 2019 to 2025

Base year for estimation

2018

Historical data

2014 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, U.K., Germany, Italy, France, China, India, Japan, South Korea, Brazil, Argentina

Key companies profiled

BASF SE., Westlake Chemicals, Trecora Chemical, Munzing Chemie Gmbh, and Honeywell .

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest 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 oxidized polyethylene wax market report on the basis of product, application, and region:

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

    • High Density Polyethylene Wax

    • Low Density Polyethylene Wax

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

    • Hot Melt Adhesive

    • Plastics

    • Coatings

    • Printing Inks

    • Rubber Processing

    • Others

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

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

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