Wax Market Size, Share & Trends Analysis Report By Product (Synthetic, Mineral), By Application (Candles, Cosmetics & Toiletries), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2020 - 2027

Report Overview

The global wax market size was valued at USD 9.9 billion in 2019 and is expected to register a compound annual growth rate (CAGR) of 2.8% from 2020 to 2027. Rising demand for wax in various applications, including candles, packaging, rubber & plastic processing, cosmetics & toiletries, fire logs, adhesives, building boards, pharmaceuticals, and household & automotive polishes, is likely to propel the market growth over the forecast period.

High consumption of wax owing to its advantages including UV resistance, anti-caking properties, excellent insulation, and resistance from microorganisms, moisture, and odor, is expected to augment the market growth over the forecast period. The growth of polymer processing, pharmaceutical, food, and personal care industries is also boosting the demand for wax across the globe.

Demand for synthetic wax is likely to support market growth. Two major subdivisions of synthetic wax include fully synthetic and partially synthetic. These products are widely used in cosmetics and personal care industries in the preparation of hair care, skin care, makeup, and other allied products. They are also used in hot melt adhesives, printing ink formulations, and coating solutions etc.

In addition, demand for the product from adhesives, agriculture, and textile application sectors is anticipated to aid in advancements in the market. Although, raw materials may face a tight supply situation coupled with falling prices. This will cumulatively act as a restraining factor over the coming years.

Product Insights

In terms of volume, mineral wax segment led the market in 2019 accounting for a share of 68%. It is estimated to be the largest market even during the forecast years due to high demand for mineral wax on account of its pure form. These waxes are extracted from coal, petroleum, lignite, and shale oil through the fractional distillation process. Few of the commonly recognized mineral waxes include microcrystalline, paraffin, petrolatum, and ceresin. Microcrystalline waxes offer high diversity in terms of physical and thermal properties.

Due to these characteristics, these products are broadly utilized in various applications, such as adhesives, chewing gums, cosmetics, and cheese formulations. Synthetic wax is found in multiple forms including polyethylene, gas-to-liquid, montan, polyolefin, and Fischer-Tropsch waxes. These waxes are formulated by unique, specialized processes, wherein the Carbon-rich stock or natural gas in combination with coal are transformed into paraffin long chains. Synthetic wax is a crystalline resin that has low melting point, low molecular weight, and consistency in being solid to semi-solid at room temperature.

Application Insights

In terms of volume, candles application led the market with a share of 31.4% in 2019. It is estimated to retain its dominant position throughout the forecast years on account of availability of a wide variety of candles of different shapes and sizes and rising demand for the same. Increasing number of distribution channels, such as home decor & mass merchandise stores and e-commerce platforms, have aided in propelling the overall demand for candles.

Significant industrial segments from packaging perspective, wherein wax blends find robust application, include folding cartons, food containers, corrugated containers, flexible packaging, and paper cups. The diverse properties including gas transmission, and water and moisture vapor resistance, make it an essential commodity for the global packaging market.

Regional Insights

Asia Pacific led the market in 2019 with a share of 33.6%. It is projected to be the largest as well as the fastest-growing regional market over the forecast years. This growth is attributed to increased construction activities across the globe driving the demand for adhesives, which is one of the prominent applications for waxes. Moreover, technological developments have spurred the demand for adhesives in the region. This, in turn, is expected to positively influence the market growth over the forecast period.

The presence of several multinational personal care brands, such as L'Oréal Group and Colgate-Palmolive Co., in Europe will drive the region’s growth. In addition, increasing R&D activities and the introduction of advanced and innovative products are expected to drive the regional market over the forecast period. North America is expected to witness significant growth owing to the presence of many personal care and cosmetics companies, such as Maybelline, Unilever, and Johnson & Johnson.

Key Companies & Market Share Insights

Most of the key companies operating in the market have integrated their raw material production and distribution operations to maintain product quality and expand regional presence. This provides companies a competitive advantage in the form of cost benefits, thus increasing the profit margins. The market is observed to be strategically evolving with several multinationals involving in mergers & acquisitions, joint ventures, project expansions and more to establish sizeable market presence across each region. Some of the prominent companies in the wax market include:

• Sinopec Corp.

• China National Petroleum Corporation (CNPC)

• HollyFrontier Corp.

• BP PLC

• Nippon Seiro Co., Ltd.

• Baker Hughes

• Exxon Mobil Corp.

• Sasol Ltd.

• International Group Inc. (IGI)

• Evonik Industries AG

• BASF SE

• Honeywell International Inc.

• Royal Dutch Shell Plc

• Mitsui Chemicals

Wax Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global wax market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Mineral

  • Synthetic

  • Natural

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Candles

  • Packaging

  • Plastic & Rubber

  • Cosmetics & Toiletries

  • Fire Logs

  • Adhesives

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa