Paraffin Wax Market– Statistics And Analysis & Forecast To 2025

Posted by Mrudula Anil Karmarkar on December 3rd, 2020

The global paraffin wax market size is expected to reach USD 7.27 billion by 2025, according to a new report published by Grand View Research, Inc. Increasing demand for paraffin waxes in flexible packaging, candle manufacturing, rubber, and cosmetics is expected to aid in market expansion over the next nine years. Rising consumption of these products as a rheology modifier, electrical insulator, friction reducer, plasticizer, and flame retardant is expected to increase market size over the forecast period.

The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.

Paraffin waxes are used in flexible packaging as they provide an excellent barrier against odor and gas transmission. The growing food & beverage sector in developing countries including China, Japan, India, South Korea, South Africa, and Brazil is expected to stimulate packaging growth, which in turn will drive product demand over the upcoming years.

Further key findings from the report suggest:

• The global market demand was 3,461.8 kilo tons in 2015 and is expected to grow substantially on account of increasing demand for home fragrance products in countries including China, the UK, India, and the U.S.
• The cosmetic application segment is projected to show volume grow at a CAGR of 4.2% from 2016 to 2025. Increasing usage of these products as body moisturizers in dermatology is likely to fuel growth.
• Rising demand for creams, lipsticks, ointments, and personal care products is expected to drive industry growth. Developing the personal care industry in countries including the U.S., India, France, China, Brazil, Argentina, Russia, Indonesia, South Africa, Thailand, Saudi Arabia, and UAE is further expected to create growth opportunities for the product over the upcoming years.
• Asia Pacific was the leading market in 2015 and is projected to foresee rapid revenue growth at a CAGR of 4.4% from 2016 to 2025. The increase is attributed to the rapid development of packaging, personal care, and adhesives industries in the region. Growing utilization of these waxes in hot melt adhesives mainly in China, South Korea, Australia, India, and Taiwan will spur industry expansion over the next nine years.
• The industry is highly competitive with a large number of participants in China, the U.S., India, and South Africa. Key players include ExxonMobil, PetroChina Company Limited, Sinopec, International Group Inc., Repsol, IOCL, and Sasol.
• ExxonMobil provides semi-refined paraffin wax which finds applications in packaging and adhesives and complies with Food and Drug Administration (FDA) specifications
• Companies such as Sasol provide non-toxic paraffin wax which is produced by environment-friendly technology, i.e., high-pressure hydrogenation. This innovation, in turn, will create new opportunities for growth over the next nine years.

The global paraffin wax market size was valued at USD 4.87 billion in 2015. The growing application of the product for manufacturing candles along with its rising requirement in packaging and hotmelts is expected to stimulate the paraffin wax demand over the forecast period. Moreover, these products provide excellent water resistance to packaging materials and are anticipated to witness a significant rise over the forecast period.

Paraffin waxes are used for manufacturing fragrance candles as they are economical and require lesser machinery costs. Growing demand for aromatherapy and consumer awareness regarding home ambiance is expected to drive the requirement of fragrance waxes, which in turn is likely to aid in market expansion over the upcoming years.

Increasing usage in the production of industrial coatings, hot melt adhesives, plastic & rubber processing aids, body care products, metal casting, pharmaceuticals, and electrical insulations is expected to drive demand in the near future. In addition, rising consumption of chlorinated paraffin as a flame retardant and plasticizer in flexible PVC is likely to drive market growth over the next nine years.

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Companies including ExxonMobil, Sinopec, and PetroChina are continuously working on the expansion of its base oil plants, which in turn is expected to stimulate growth. Moreover, rising shale oil exploration and production in the U.S., Russia, China, and Brazil will aid in industry augmentation. In addition, the implementation of deoiling technology for wax production is anticipated to create new avenues over the forecast period. Key players including Sinopec, ExxonMobil, PetroChina Company Limited, Sasol, and the International Group, Inc. dominated the industry. Other prominent participants include IOCL, Honeywell, Petrobras, Nippon Seiro Co., Ltd., Petro-Canada, Repsol, H&R Group, and CEPSA. In February 2013, ExxonMobil announced plans to expand its Group II and Group II base oil production facility in Baytown, Texas, U.S., refinery to meet the increasing demand for waxes in candles, emulsions, and hot melt adhesives.

Grand View Research has segmented the global paraffin wax market on the basis of application:

Application Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014-2025)

• Candles
• Packaging
• Cosmetics
• Hotmelts
• Board Sizing
• Rubber
• Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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