Wax Market Expected To Witness A Substantial Growth Of .2 Billion By 2030: Grand View Research Inc.

Posted by Mrudula Anil Karmarkar on July 26th, 2022

The global wax market size is expected to reach USD 14.2 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.3% from 2020 to 2030. The growth is majorly driven by growing inclusion of wax as a performance additive in the plastics industry on account of its rising utilization as water and solvent-based mold release agent. Wax has become one of the critically utilized materials globally with widespread application across multiple industries. It is used in the automotive industry for vehicle polishing, hair removal, packaging applications, and as an additive in the food industry.

In addition, it is used in paints and coating industry and printing ink application. Rising demand in various applications, including candles, rubber and plastic processing, cosmetic and toiletries, fire logs, building boards, is likely to propel overall growth in the coming years. High consumption of wax owing to its advantage including UV resistance, anti-caking, excellent insulation, is expected to augment market growth. The stringent COVID-19 lockdown in 2020 induced a downward trend in the market. The recovery in the industrial businesses and activities in the second half of 2020 moderately improved the demand. Additionally, the festive season in the final quarter of 2020 improved the demand from different industries including candles, cosmetics, and packaging.

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Wax finds major applications in coating and printing formulations. It is highly utilized in paint, coating, and printing ink industries owing to its features scratch as mark and scratch resistance, rub resistance, and water repellency. It is applied as an additive to a variety of inks including letterpress, lithographic, gravure, and flexographic. Other functions of wax in the coating and ink industry include in blockage, improvement in friction, anti-setting, and anti-sagging.

Wax Market Report Highlights

  • The synthetic wax segment accounted for the fastest CAGR of 4.5% over the forecast period, owing to a significant increase in application across lotion, shampoo, foundation, lipstick, and other personal care products
  • The cosmetics and toiletries application segment accounted for the highest CAGR of 4.8% over the forecast period considering the growing inclusion of product in formulation of creams and moisturizers. In addition, above average living standards and new product innovation are expected to propel the demand
  • Asia Pacific accounted for the highest CAGR of 4.7% over the forecast period which can be traced to growing construction activities, mainly in economies such as China and India. Moreover, technological developments in Korea and Japan have spurred the growth of adhesives
  • The market’s value chain comprises raw materials suppliers, product manufacturers, distribution channels, and application industry. Depending upon the type, wax formulation requires timely procurement of key feedstocks which includes lubricating oils, base oils, and bee’s milk. Product prices are highly impacted depending on the availability of these feedstocks
  • The industry is made up of large and medium-sized players. The small players are either suppliers or distributors. Companies are working on strategies that can harness their internal strategic advantage and position according to the end-use segment growth 

Waxes are the members of organic compounds that are malleable and hydrophobic solids at ambient temperatures. It includes lipids and higher alkanes that are insoluble in water but are soluble in nonpolar, organic solvents. Various wax products including mineral, natural, and synthetic wax are produced from petroleum-based products such as base oil and natural gas, chemicals such as polyethylene, and plants and animals.

Paraffin wax is one of the commonly extracted waxes from the oil industry as a by-product, which ensures continuous diligent sourcing and ease of producing the wax. Paraffin product type is broadly utilized in the formulation of candles as it has the unique property to retain both scent and color for an extremely long duration. In addition, paraffin is widely used in skin softening treatment. On the other hand, microcrystalline wax has a higher melting point and is comparatively more flexible than paraffin and therefore, is used in large-scale industrial applications apart from the cosmetic industry.

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The key manufacturers of wax are implementing various growth strategies to keep up with the rising demand from various applications. In order to gain further access to the global and regional markets, the companies are integrating forward through the value chain. The industry is marked by the presence of key multinationals that have established their strong regional presence with cosmetics, packaging, and paints and coating manufacturing companies. The market is observed to be strategically evolving with several multinationals involved in mergers and acquisitions, joint ventures, project expansion, and more to establish a sizeable market presence across the globe. One such example would be the acquisition of Puget Sound Refinery by HollyFrontier Corporation for USD 613.6 million in 2021. Some of the prominent players in the wax market include:

  • Sinopec Corp
  • China National Petroleum Corporation
  • HollyFrontier Corporation
  • BP P.L.C
  • Nippon Seiro Co., Ltd
  • Baker Hughes Company
  • Exxon Mobil Corporation
  • Sasol Limited
  • The International Group, Inc

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
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