A Industrial Wax Market Forecasts to 2028 – Global Analysis By Type (Bio Based, Fossil Based, Synthetic Based)

Industrial Wax Market Forecasts to 2028 – Global Analysis By Type (Bio Based, Fossil Based, Synthetic Based), Application (Cosmetics & Personal Care, Candles, Coatings & Polishing, Packaging, Hot Melt Adhesive, Food, Tires & Rubber, Other Applications), and Geography

According to Stratistics MRC, the Global Industrial Wax Market is accounted for $8,262 billion in 2022 and is expected to reach $11,721 billion by 2028 growing at a CAGR of 6% during the forecast period. Industrial wax is an organic material that is used in several industrial applications and serves as a crucial component in a variety of goods. Growing strategic alliances amongst numerous end users could result in a significant increase in demand for raw materials including petroleum waxes, bio-based waxes, and synthetic waxes. Waxes are temperature sensitive and subject to dust explosion risk; even little temperature changes during processing or production can have a big impact on the final product's quality. The expansion of the international market for industrial wax may be constrained by the declining use of paraffin wax in packaging applications.

According to the data released by the Observatory of Economic Complexity (OEC), in 2020, candles worth USD 3.38 billion were traded across the world. According to the Packaging Industry Association of India (PIAI), the sector is growing at a CAGR of 22.0% to 25.0%. According to the Indian Institute of Packaging (IIP), packaging consumption in India has increased 200% in the past decade, rising from 4.3 kg per person per annum (PPPA) to 8.6 kg PPPA as on FY20.

Market Dynamics:

Driver:

Growing demand in various industries

The need for industrial wax is expected to increase across a variety of industries due to its great qualities, including high shine, good water barrier properties, and exceptional chemical stability. Industrial wax is so widely used in the manufacturing of candles, cosmetics, polymers, and many other products. As a result, the market for industrial wax is expected to benefit from lucrative growth possibilities due to the strong demand for candles.

Restraint:

Shrinking supply of paraffin wax

Base oil output has changed during the previous few years, as has been seen. Waxes are no longer the primary focus of base oil producers; base oil is now their main priority. Waxes are changed into base oils by the process of isomerisation. As a result, it was observed that the supply of paraffin waxes derived from fossil sources is declining. The supply-demand gap is anticipated to develop as the availability of fossil waxes continues to slide, and it is anticipated to be the industrial wax market's limiting factor. During the projection period, new wax process or a system including GTL and CTL, which can generate high-quality wax, are anticipated to close the supply-demand gap.

Opportunity:

Industrial research and development activities

In one such R&D project, high-performance wax is being developed to be used in wax 3D printers. Wax is utilised in 3D printing as a replacement to plastic because it is not biodegradable and is therefore becoming seen as a significant environmental problem. Wax, on the contrary hand, is an environmentally friendly substitute that has several advantages including a low melting point and light weight. In the upcoming years, it is anticipated that these improvements will promote market expansion even further.

Threat:

Limitations of industrial waxes

It is anticipated that escalating crude oil expenses in combination to growing raw material prices will be important obstacles to the target currency market expansion. The expansion of the global industrial wax market is being constrained by growing prices for synthetic and bio-based wax and a decrease in the usage of fossil-based wax in the packaging industry.

Covid-19 Impact

The COVID-19 epidemic has had a detrimental effect on the expansion of the industrial wax market worldwide. Construction activity delays, supply chain interruptions, major countries imposing lockdowns, worker social isolation policies, and financial difficulties are the main causes of the downturn. The effect was exacerbated further by falling gas and oil prices. Furthermore, there has been a global decline in demand for industrial wax due to falling sales of consumer goods like candles, cosmetics, and other items that use wax.

The fossil based segment is expected to be the largest during the forecast period

The fossil based segment is estimated to have a lucrative growth. These waxes are frequently employed in the production of commercial goods like packaging, coatings, and candles. Additionally, because they are produced from various oil refining processes and are generally regarded as healthy, these waxes are employed in the cosmetics business. Petroleum wax is frequently used in flooring, furniture, autos, and footwear and has a high-gloss quality that makes it perfect for polishing. By fractionally distilling coal, petroleum, lignite, and shale oil, mineral waxes are produced. Microcrystalline waxes have a wide range of thermal and physical characteristics.

The tire & rubber segment is expected to have the highest CAGR during the forecast period

The tire & rubber segment is anticipated to witness the fastest CAGR growth during the forecast period. To protect the rubber and tires chemicals from ozone and UV rays, industrial waxes are used. Additionally, these waxes are put to tyres and rubbers to stop them from cracking. Due to the availability of candles in a variety of sizes and shapes and the rising demand for them, the candle application is also expanding more quickly during the projection period. The expansion of distribution networks, including e-commerce websites, mass merchandise and home decor retailers, has contributed to an increase in candle demand. As a result, the industrial wax market will expand significantly worldwide.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the extensive packaging sector in important Asian economies. In addition to the packaging sector, the expanding automotive and electronics sectors in China and Japan both contribute to the increase in consumption for industrial wax in such nations. Economic growth that is steady is anticipated in the developing markets. The region's demand for printing ink is anticipated to increase as a result of the rapidly growing packaging industry, which will also increase the need for industrial wax.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to biggest consumer of packaged products. The nation's packaging business is expanding more quickly, which is boosting the market growth. This is due to changing customer behaviour and manufacturers' increased convenience. A positive market outlook will be supported by businesses' targeted marketing initiatives and an upbeat economic outlook.

Key players in the market

Some of the key players profiled in the Industrial Wax Market include Blayson, Numaligarh , ExxonMobil, Sinopec, BASF SE, China Petroleum and Chemical Corp., Evonik Industries AG, Honeywell International Inc., Petrochemical Manufacturers, Royal Dutch Shell PLC, First Source Worldwide, Candlewic Co., Shell Eastern Petroleum Ltd and HCI Wax.

Key Developments:

In January 2019, Royal Dutch Shell announced the expansion of the fourth alpha olefins (A.O.) unit at Louisiana, the U.S., with a 425,000-tonne-per-year capacity.

In July 2017, Shell Eastern Petroleum Ltd (""Shell"") began manufacturing two new wax products, Slackwax 60 and Slackwax 120, at its Pulau Bukom manufacturing site in Singapore in 2017. Shell intends to produce 60 kilotons per year for customers in Asia, Europe, and U.S.

Types Covered:
• Bio Based
• Fossil Based
• Synthetic Based

Applications Covered:
• Cosmetics & Personal Care
• Candles
• Coatings & Polishing
• Packaging
• Hot Melt Adhesive
• Food
• Tires & Rubber
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements