Wax Market 2020 and Forecast 2021-2027

                                          
Report Overview: Wax Market


The global wax market size was valued at USD 8.8 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 1.7% from 2021 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 2021-2027.

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, skincare, 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: Wax Market

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 the high demand for mineral wax on account of its pure form. These waxes are separated 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 a low melting point, low molecular weight, and consistency in being solid to semi-solid at room temperature.

Application Insights: Wax Market

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, including 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: Wax Market

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 market growth over the forecast period.

The presence of several multinational personal care brands, such as LOréal 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 personal care and cosmetics companies, such as Maybelline, Unilever, and Johnson & Johnson.

Key Companies & Market Share Insights: Wax Market

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 a sizeable market presence across each region. Some of the prominent companies in the wax market include:

Key companies Profiled: Wax Market Report

 	
Sinopec Corp.
 	
China National Petroleum Corporation (CNPC)
 	
 HollyFrontier Corporation
 	
BP PLC; Nippon Seiro Co., Ltd.
 	
Baker Hughes
 	
Exxon Mobil Corporation
 	
Sasol Limited
 	
International Group Incorporated (IGI)
 	
Evonik Industries AG
 	
BASF SE
 	
Honeywell International, Inc.
 	
Royal Dutch Shell Plc
 	
Mitsui Chemicals

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, Trusted Business Insights 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