Global Industrial Wax Market - 2022-2029

Market Overview

Industrial wax market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 4.0% during the forecast period (2022-2029).

Wax is a simple lipid that is an ester of long-chain alcohol and fatty acid found as a coating on leaves and stems. Waxes can be obtained from various sources, including plants, animals and petroleum. Many classes of organic compounds are lipophilic and malleable at room temperature. Wax is not soluble in water but soluble in organic and non-polar solvents. Mineral, natural and synthetic waxes can be produced using petroleum-based substances such as base oil, natural gas, polyethylene, plants and animals.

In coating and printing compounds, wax is often employed. It is well-liked in the paint, coating and printing ink sectors because of its properties, including mark and scratch resistance, rub resistance and water repellency. It is used in many inks, including flexographic, gravure, letterpress and lithographic. The coating and printing industries also use wax for its blockage-preventing, friction-improving, anti-setting and anti-sagging qualities.

Industrial wax has important properties such as lipophilicity and malleability at room temperature, making it widely used in pharmaceutical and cosmetic products. Furthermore, it has high viscosity, moisture control and lubrication properties, making it suitable for candle, packaging, coating and polishing applications. All of these businesses need industrial wax as a raw material; thus, the expansion of these sectors will directly boost the market for industrial waxes throughout the projected period.

Market Dynamics

The market is estimated to be propelled by rising demand for industrial waxes used in various applications such as candles, cosmetics, tires & rubber. The candle industry is the most important application segment for industrial waxes. Colored and fragranced candles are becoming more popular in the home decor industry for ambiance enhancement and other purposes. Because of environmental regulations in developed regions such as North America and Europe, demand for bio-based wax increases in food, packaging, cosmetics & personal care and other applications.

Rising candle production

Traditionally, candles were only used for lighting; however, they now play an important role in festival ceremonies, home decoration and handicrafts. Because of their religious beliefs, lifestyle and living habits, many candles are used daily and even at festival ceremonies in European and North American countries. Customers are enthralled by the advancement of candle products, such as product shape, style, color and fragrance. Changing consumer behavior and the increasing popularity of candles-based craft materials and related decoration and interior design have transformed the traditional candle industry into a sophisticated, innovative and brand-conscious industry.

Industrial wax, like paraffin, microcrystalline and synthetic wax, is the primary raw material used in candle production. Traditional paraffin wax is now being replaced in candle manufacturing with microcrystalline and synthetic wax to support sustainable development, product advancement and product aesthetic/design. The candle industry has evolved steadily recently, with most manufacturing facilities relocating to Asia-Pacific.

According to Eurostat, the EU-28 countries produced over 657 kilotons of candles in the same year, while imports increased by 2.7%. U.S. and nine European countries captured about 16.5% and 46.5% of total imports in the top ten candle importers. On the other hand, China and Poland accounted for 26.2% and 26.9% of total exports.

Growing demand for cosmetics products

Due to rising consumer demand for cosmetics, the personal care and cosmetics industries are booming in many places. International Trade Administration (ITA) reports that France produced 22,680 cosmetics overall in 2019 compared to 22,236 in 2018. South Korea is also the eighth-largest cosmetics market globally, accounting for just under 3.0% of the total market. The South Korean market was about US$8.8 billion in 2017, with an annual growth rate of 4.7 percent over the previous five years.

At US$291 million, cosmetics imports from U.S. represented 24.7% of the overall import market. Industrial wax is widely utilized in the cosmetics and personal care sectors for hair care, skincare, makeup and other related items. Thus, it is anticipated that a developing market for cosmetics will increase the demand for industrial waxes.

Reduction in use of paraffin wax in packaging

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 isomerization. As a result, it was observed that the supply of paraffin waxes derived from fossil sources is declining. Industrial wax is in high demand in North America and Europe for packaging applications.

However, there is a downward trend in packaging demand. Food packaging industries are increasingly concerned about the health risks of paraffin wax used in food packaging. As a result, natural waxes in the food packaging industry in North America and Europe are growing. Moreover, government agencies like the FDA and the European Union have imposed regulations governing the use of industrial waxes. The expanding meat packaging industry can also be attributed to the rising demand for natural waxes.

COVID-19 Impact Analysis

COVID-19, lockdown regulations and a lack of workers resulted in decreased production of various chemicals and other industries such as cosmetics, packaging, rubber, candles and adhesives. The halting of manufacturing activities and the disruption of the supply chain has resulted in a drop in demand for industrial wax from these countries. The impact was exacerbated further by falling oil and gas prices.

Furthermore, declining demand for cosmetics, candles and consumer products containing wax has resulted in a global slump in industrial wax demand. COVID-19 harms the oil market due to all factors, including decreasing wax production.

Segment Analysis

By application, the industrial wax market is segmented into candles, packaging, coatings & polishes, hot-melt adhesives, cosmetics & personal care and others.

Industrial wax is the main ingredient in candles

The candled segment accounts for a significant portion of the global industrial wax market in terms of demand. The major component of a candle is wax. As consumer preferences, lifestyles and habits change, key manufacturers, develop new products to attract customers. According to the National Candle Association, approximately 35% of all candles are sold during the Christmas/Holiday season, while 65% are sold throughout the year. There are more than 10,000 different types of candles on the market.

Candles are available in various shapes and sizes on the market, including floating, tapers, pillars, jar candles and birthday candles. Furthermore, incorporating candles in decorative products such as a chandelier, vases, etc., is trending and gaining consumer demand in home decor. Due to the importance of candles in religious festivals and the decoration industry, the demand for industrial wax is expected to rise steadily.

Geographical Analysis

Growing demand from various end-use industries drives the market in Asia-Pacific

Developing nations such as India and China have seen increased government spending and rapid industrialization, resulting in the market's robust growth. India's economy is expanding and has much potential for future market opportunities. With a growing emphasis on personal appearance, an aging population and a higher standard of living, India's use of cosmetic and personal care products has increased. Because of the expanding food, beverage and retail industries, the country's packaging industry is growing rapidly. As per the Indian Institute of Packaging, the Indian packaging industry is expected to be worth US$ 32 billion by 2020, with annual double-digit growth of nearly 13%.​

In the coming years, Asia-Pacific is expected to dominate the market. The food and cosmetic packaging industry's expansion is positively influencing the market. The increase in disposable income has acted as a catalyst in the market's expansion. Positive automotive, construction, cosmetics, food growth and improving socioeconomic indicators such as living standards, income & purchasing power in developing economies are also driving regional growth.

Competitive Landscape

The global market for industrial wax is highly fragmented. Over the last few years, there has been an increase in refinery consolidation and expansion activities. It can primarily be attributed to companies' efforts to meet the rising demand for industrial wax and achieve high growth in various regions.

Sasol, for example, has announced plans to increase its industrial wax production capacity. Consolidation and expansion among end-users, such as the candle manufacturing, cosmetic and packaging industries, will also boost industrial wax demand during the forecast period. The extension of the fourth alpha olefins (A.O.) plant in Louisiana, U.S., with a 425,000 Tons capacity, was announced by Royal Dutch Shell in January 2019.

Major global industrial wax market companies include China Petroleum and Chemical Corporation, Royal Dutch Shell PLC, Exxon Mobil Corporation, Sasol Limited, Numaligarh Refinery Limited, Petroleo Brasilerio S.A., NK Lukoil PAO, The Blayson Group, BP Plc and HCI Wax.

Royal Dutch Shell PLC

Overview: Royal Dutch Shell was established in 1907. The Shell group's parent company is Royal Dutch Shell plc, based in England and Wales. Shell is a global energy company specializing in the exploration, refining, production and marketing of oil & natural gas and the manufacturing & marketing of chemicals. The company is present in more than 70 countries.

Product Portfolio: Upstream, Integrated Gas & Renewables and Energy Solutions & Downstream are the divisions of the company's operations. The upstream organization is in charge of discovering and extracting crude oil, natural gas and liquids. The organization also markets and transports oil and gas and operates the infrastructure required to get products to market.

The integrated gas organization oversees LNG operations, gas-to-liquids (GTL) fuels and other products. It encompasses natural gas exploration and extraction and the operation of the upstream and midstream infrastructure required to deliver gas to market. It trades and markets natural gas, LNG, crude oil, electricity and carbon-emission rights and markets & sells LNG as a heavy-duty vehicle fuel. The downstream organization serves over 30 million customers daily at approximately 46,000 retail service stations.

Key Development: 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.

Why Purchase the Report?

• Visualize the composition of the industrial wax market segmentation by type, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the industrial wax market by analyzing trends and co-development deals.
• Excel data sheet with thousands of industrial wax market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global industrial wax market report would provide access to an approx. 53 market data table, 45 figures and 205 pages.

Target Audience 2022

• Industrial Wax Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Industrial Wax Manufacturers