Industrial wax Market

Industrial wax Market by Type (Fossil-based wax, Synthetic wax, Bio-Based wax), Application(Candles, Packaging, Coatings & Polishes, Hot-melt Adhesives, Tires & Rubber, Cosmetics & Personal Care, Food), and Region - Global Forecast to 2025

Report Code: CH 4728 Jan, 2021, by marketsandmarkets.com

[242 Pages Report] The Industrial wax market was USD 7.3 billion in 2020 and is projected to reach USD 8.9 billion by 2025, at a CAGR of 4.0% from 2020. This is due to the growing demand for industrial waxes from various applications such as candles, cosmetics, and tire & rubber. The candle market is the largest application segment of industrial waxes. Colored candles and candles with fragrances are gaining more importance in home decore industries for ambiance improvement and other purposes. Bio-based wax demand is growing in food, packaging, cosmetics & personal care, and other applications, due to environmental regulations in developed regions such as North America and Europe. Growing population and faster GDP growth rates in countries such as China, India, and other Asian countries boost the industrial wax market growth.

Industrial Wax  Market

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COVID-19 pandemci and Declinign oil prices Impact on the Global Industrial Wax Market

COVID-19 pandemic has severely impacted most of the North American and European countries, especially the U.S., Italy, Spain, the UK, France, and Germany. The suspension of manufacturing activities and disruption of the supply chain has resulted in a decline for industrial wax from these countries. The impact was further intensified by declining oil and gas prices. Further, declining demand for cosmetics, candles, and consumer products across the globe wherein the wax is used has resulted in a slump in industrial wax demand across the globe.

Industrial wax Market Dynamics

Drivers: Steady growth in candle production with product advancement across the globe, a key to market growth

Traditionally, the candles were used as a lightening tool only; however, now, it plays a pivotal role in the festival ceremonies, home decoration, and handicrafts. In European and North American countries, many candles are used daily and even at festival ceremonies due to their religious beliefs, lifestyle, and living habits. With the candle product advancement, such as product shape, style, color, and fragrance, customers are fascinated to buy these products. Changing consumer behavior and the growing popularity of candles based craft materials and related decoration and interior designing has translated the traditional candle industry into an advanced, innovative, and brand-conscious industry.

In candle manufacturing, industrial wax, such as paraffin, microcrystalline and synthetic wax, is the main raw material. To support sustainable development, the advancement of products, and to impact aesthetic/design in the products, the traditional paraffin wax is now replaced with microcrystalline and synthetic wax in candle manufacturing.

 The candle industry has evolved steadily over the recent past, and most of the manufacturing facilities have shifted towards the Asia Pacific region. According to Eurostat, over 657 kilotons of candles were produced in the EU-28 countries, whereas import of the candles had grown by 2.7% in the same year. It has been observed that, in the top 10 importers of candles, the U.S. and nine European countries accounted for 16.5% and 46.5% of overall imports. In contrast, China and Poland had accounted for 26.2% and 26.9% of overall export. Thus, with the candle segment's steady growth, industrial wax demand is expected to increase steadily over the forecast period.

Restraints: Declining usage of paraffin wax in the packaging application

The demand for industrial wax in packaging applications is significant in North America and Europe. However, the trend is going towards declining demand for packaging. Food packaging industries nowadays are more concerned about the health hazards of paraffin wax used in food packaging. The use of natural waxes is thus increasing in the food packaging industry in North America and Europe. Moreover, the government authorities such as FDA and European Union had levied regulations pertaining to the use of industrial waxes. The growing demand for natural waxes can also be attributed to the growing meat packaging industry.

Opportunities: Rising demand for bio-based products in the cosmetic industry

With the growing concern about health and wellness, the people in developed countries have shifted their preference from synthetic products to green or bio-based products. Due to these, several cosmetics, as well as personal care products manufacturers, have started developing products based on bio-based products. Thus, the demand for bio-based waxes such as carnauba wax, beeswax, and candelilla wax, among others, is gaining traction in cosmetic and personal care product manufacturing and replacing synthetic and paraffin wax. In October 2017, Burt's Bees (U.S.) had launched beeswax-based balms and other cosmetic products lined, and currently, in 2020, they are selling one balm per second across the globe.

Challenges: The US-China trade war implications on the market

To supports the domestic paraffin wax and candles business, the U.S. government had imposed anti-dumping duty on Chinese candle products. Under this, the candles irrespective of the shape and size, the U.S. government has sanction anti-dumping duty of 108.3% on the Chinese candle products. This, in turn, significantly impact the industrial wax market.

Ecosystem Diagram

Industrial Wax  Market  by Ecosystem

Fossil based segment is estimated for a larger market share in 2019.

Fossil based wax such as paraffin and microcrystalline account for the majority of market share for industrial wax. The steady growth in demand from end-use industries such as candle, packaging, cosmetic, and coatings, among other supports for the growth of the market. Paraffin wax is mainly consumed across these industries due to abundant availability, low cost of the product, ease of production, suitability to several industrial applications, and performance characteristics. Their applications in various industries include rubber, textiles, wood coatings, paper & printing, industrial coatings, and constructions. Moreover, microcrystalline waxes are widely used in cosmetics, food, packaging, coatings, and other industrial applications.

The candle industry is estimated to have the largest share in the industrial wax market.

In terms of demand, a major chunk of the global industrial wax market is notched by the candled segment. The wax is the main constituent of the candle. With the changing consumer preference, lifestyles, and habits, the key manufacturers are focusing on the development of new products to attract customers. According to the National Candle Association, around 35% of the overall candles are sold during the Christmas/Holiday season, whereas 65% are sold during the rest of the year. Over 10,000 different types of candles are available in the market. In the market, candles are available in a variety of shapes and sizes, ranging from floating, tapers, pillars, jar candles, and birthday candles, among others.

In terms of production, China has significant production capacities and export over half of the total production to North American and European countries. It has been observed that the import of candles in European and North American countries has increased significantly in the past five years. This is mainly attributed to the low cost of production, availability of raw materials, low utility cost, and low labor cost, owing to which production of candles in APAC has been increasing significantly.

Moreover, the incorporation of the candles in decorative products such as a chandelier, vas, etc. is trending, and gaining demand from consumers in home decor. Thereby, being an indispensable part not only of the religious festivals but also the decoration industry, the demand for industrial wax is expected to increase steadily. However, due to the COVID-19 pandemic, the demand for the candles has slumped owing to a lockdown of the cities, suspension of manufacturing operation, disruption of the supply chain, declining consumer spending, and declining per capita income. This, in turn, impacts the demand for industrial wax from the candle manufacturers.

Industrial Wax  Market  by Region

APAC is projected to account for the largest share of the industrial wax market during the forecast period.

Asia-Pacific has the largest share in the market due to growing economies such as China, India, Japan, and other Asian countries like South Korea and Indonesia. The Asia-Pacific has the largest market for the candle industry. Within Asia, China dominates the market for candles and the packaging industry. The growth is led by rapid industrialization, growing demand from various applications, and growing per capita income in these regions. The growing demand for candles is derived from decoration, religious belief, and various lifestyle and living habits. North America is the largest market for synthetic waxes. The increasing range of applications for synthetic waxes is driving the demand in the region. Due to environmental regulations in developed countries such as Europe and North America, the demand for bio-based waxes is increasing in the candles and food packaging industry for this region.

Key Market Players

Key players such as ExxonMobil (U.S.), Royal Dutch Shell PLC (Netherlands), Sinopec (China), Sasol Ltd (South Africa), CEPSA (Spain), Hollyfrontier Corporation (U.S.),Calumet Specialty Products Partners (US),Gandhar Oil refinery (India), Numaligarh Refinery Limited (India),  Petróleo Brasileiro (Brazil), The PJSC Lukoil Oil Company (Russia). are the top 10 manufacturers are covered in the industrial wax market. They have adopted various strategies to expand their market presence and enhance their growth prospects for the industrial wax market.

Scope of the report

Report Metric

Details

Market size available for years

2018–2025

Base year considered

2019

Forecast period

2020–2025

Forecast units

Value (USD Million) and Volume (Ton)

Segments covered

Type, Application, and Region

Geographies covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Companies covered

ExxonMobil(US), Royal Dutch Shell PLC (Netherlands), Sinopec (China), Sasol Ltd (South Africa),CEPSA (Spain), Hollyfrontier Corporation (US), Calumet Specialty Products Partners (US), Gandhar Oil refinery (India), Numaligarh Refinery Limited (India),  Petróleo Brasileiro (Brazil), THE PJSC Lukoil Oil Company (Russia). are the top 10 manufacturers are covered in the industrial wax market.

This research report categorizes the Industrial wax market based on Type, Application, and Region.

Industrial wax Market, By Type

  • Fossil-based waxes
    • Mineral Wax
    • Paraffin Wax
    • Microcrystalline Wax
  • Synthetic waxes
    • Fischer-Topsch Wax
    • Other
  • Bio-based waxes

Industrial wax Market, By Application

  • Candles
  • Packaging
  • Coatings & Polishing
  • Hot Melt Adhesive
  • Tire & Rubber
  • Cosmetics & Personal Care
  • Food
  • Others

Industrial wax market, By Region

  • North America
  •  Europe
  •  Asia Pacific
  •  South America
  •  Middle East & Africa

Recent Developments

  • In August 2020, Sasol Ltd entered into a distribution agreement with DKSH Management Ltd (Switzerland) for marketing, distribution, and logistics for Sasol's chemicals and wax products in the European market.
  • In March 2020, Calumet Specialty Products Partners acquired Paralogics, LLC (U.S), a producer of the candle and industrial wax blends, and has added 20 million pounds of annual blending and formulating capabilities.
  •  In May 2019, ExxonMobil announced an expansion of three-project with a total investment of USD 2 billion to expand the US-based chemical plant at Baytown, Texas.
  • 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 April 2019, Sasol Ltd opened a new wax warehouse in Sasolburg, South Africa, to improve the supply chain cost base, quality of product, service experience, and to improve export business.
  • In April 2019, Numaligarh Refinery launched Food Grade Wax under the trademark, Pristene. It will find applications for food packaging, pharmaceutical, and cosmetic industries.
  • In February 2019, HollyFrontier  acquired Sonneborn (U.S.) for USD 655 million. The company is a producer of specialty hydrocarbon chemicals such as white oils, petrolatums, and waxes with manufacturing facilities in Pennsylvania and the Netherlands.

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TABLE OF CONTENTS

1 Introduction
    1.1. Objectives of the Study
    1.2. Market Definition
    1.3. Market Scope

    1.4. Currency
    1.5. Package Size
    1.6. Limitation
    1.7. Stakeholders
    1.8. Summary of Changes

2 Research Methodology 
    2.1. Research Data
           2.1.1. Secondary Data
                    2.1.1.1. Key Data From Secondary Sources
           2.1.2. Primary Data
                    2.1.2.1. Key Data From Primary Sources
                    2.1.2.2. Key Industry Insights
                    2.1.2.3. Breakdown of Primary Interviews
    2.2. Market Size Estimation
           2.2.1. Bottom-Up Approach
           2.2.2. Top-Down Approach
    2.3. Data Triangulation
    2.4. Assumptions

3 Executive Summary 

4 Market Overview
    4.1. Introduction
    4.2. Forecast Impact Factors
           4.2.1. COVID19 Impact Analysis
    4.3. Market Dynamics
           4.3.1. Drivers
           4.3.2. Restraints
           4.3.3. Challenges
           4.3.4. Opportunity
    4.4. Porter’s Five Forces Analysis 
    4.5. Ecosystem Market Map
    4.6. Supply Chain and Value Chain Analysis 
           4.6.1. Disruption Due to COVID19
    4.7. Regulatory Landscape
    4.8. Technology Analysis 
    4.9. Patent Analysis
    4.10. Average Selling Price Analysis 
    4.11. YC, YCC Shift
    4.12. Macroeconomic Indicators
    4.13. Trade Data Analysis  Key exporting and importing countries
    4.14. Adjacent markets 
    4.15. Case Study

5 Industrial wax Market, By Type – Forecast till 2025 (Volume and Value)
    5.1. Introduction
    5.2. Fossil-based waxes
           5.2.1. Mineral Wax
           5.2.2. Paraffin Wax
           5.2.3. Microcrystalline Wax
    5.3. Synthetic waxes
           5.3.1. Fischer-Topsch Wax
           5.3.2. Other
    5.4. Bio-based waxes

6 Industrial wax Market, By Application – Forecast till 2025 (Volume and Value)
    6.1. Introduction
    6.2. Candles
    6.3. Packaging
    6.4. Coatings & Polishing
    6.5. Hot Melt Adhesive
    6.6. Tire & Rubber
    6.7. Cosmetics & Personal Care
    6.8. Food 
    6.9. Others

7 Industrial wax Market, By Region – Forecast till 2025 (Volume and Value)
    7.1. Introduction
    7.2. North America
           7.2.1. The US
           7.2.2. Canada
           7.2.3. Mexico
    7.3. Europe
           7.3.1. Germany
           7.3.2. France
           7.3.3. Netherlands
           7.3.4. Russia
           7.3.5. The UK
           7.3.6. Poland
           7.3.7. Rest of Europe
    7.4. Asia Pacific
           7.4.1. China
           7.4.2. India
           7.4.3. Japan
           7.4.4. South Korea
           7.4.5. Indonesia
           7.4.6. Thailand
           7.4.7. Vietnam
           7.4.8. Rest of Asia-Pacific
    7.5. South America
           7.5.1. Brazil
           7.5.2. Argentina
           7.5.3. Rest of South America
    7.6. Middle East & Africa
           7.6.1. Saudi Arabia
           7.6.2. Egypt
           7.6.3. Rest of Middle East & Africa

8 Competitive Landscape 
    8.1. Overview
    8.2. Market Evaluation Framework
    8.3. Market Share Analysis / Industry Tier Structure 
    8.4. Revenue Analysis of Top Players
    8.5. Key Market Development
           8.5.1. Expansions
           8.5.2. Acquisitions
           8.5.3. New Product launches
    8.6. Company Evaluation Matrix Definition and Methodology 
           8.6.1. Product Footprint
           8.6.2. Star
           8.6.3. Emerging Leader
           8.6.4. Pervasive
    8.7. Company Evaluation Matrix, 2019 

9 Company Profiles
(Business Overview, Financial^ & COVID-19 Impact on Business, Products & Services, Key Strategy, Right To Win/MNM View)  (Page No. - )
    9.1. SINOPEC
    9.2. Royal Dutch Shell PLC 
    9.3. Petroleo Brasileiro S.A. (Petrobras)
    9.4. Exxon Mobil Corp 
    9.5. Sasol Ltd. 
    9.6. Oil Co. Lukoil PJSC 
    9.7. Numaligarh Refinery Ltd 
    9.8. HCI 
    9.9. The Blayson Group Ltd 
    9.10. International Group Inc.
    9.11. Gandhar Oil Refinery
    9.12. CEPSA
    9.13. HollyFrontier Corporation
    9.14. Calumet Specialty Products Partners, L.P.
    9.15. China National Petroleum Corporation
    9.16. Evonik Industries
    9.17. Kerax Ltd
    9.18. Koster Keunen
    9.19. The Darent Wax Company
    9.20. SIWAX Group

Note:The above list of key players is indicative will be finalized by identifying most relevant and leading companies during the research 
^Financials will be available for stock-listed companies only  (Page No. - )

The study involved four major activities for estimating the current size of the Industrial wax market. Exhaustive secondary research was carried out to collect information on the market, the peer market, and the parent market. The COVID-19 pandemic impact on the demand with respect to end-use industries, application areas, and countries was comprehended. The next step was to validate these findings, assumptions, and sizes with the industry experts across the supply chain of industrial wax through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the industrial wax market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.

Secondary Research

In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to identify and collect information for this study on the Industrial wax market. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; regulatory bodies, trade directories, and databases.

Primary Research

Various primary sources from both the supply and demand sides of the industrial wax market were interviewed to obtain qualitative and quantitative information. The primary sources from the supply-side included industry experts, such as Chief Executive Officers (CEOs), vice presidents, marketing directors, sales professionals, and related key executives from various leading companies and organizations operating in the industrial wax market. The primary sources from the demand-side included key executives from end-use industries. The breakdown of the profiles of primary respondents is as follows:

Industrial Wax  Market  Size, and Share

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Market Size Estimation

Both the supply-side and demand-side approaches were extensively used, along with several data triangulation methods, for market size estimation and forecast of the overall market segments. The research methodology used to estimate the market size included the following details:

  • The key players were identified through extensive secondary research.
  • The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
  • The impact of the COVID-19 pandemic was ascertained
  • All percentage split and breakdowns were determined using secondary sources and verified through primary sources.

Data Triangulation

After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments of the industrial wax market. The data was triangulated by studying various factors and trends from both the demand- and supply-side.

Report Objectives

  • To define and segment the global industrial wax market
  • To provide detailed information regarding the major factors influencing the growth of the global industrial wax market (drivers, restraints, opportunities, and challenges)
  • To analyze the market segmentation and project the market size, in terms of volume and value, and for key regions such as North America, Europe, Asia-Pacific, South America, and Middle East & Africa and the key countries within these regions
  • To analyze competitive developments such as new product launches, capacity expansions, mergers & acquisitions, and partnerships & agreements in the global industrial wax market
  • To strategically profile key players in the global industrial wax market

Available customizations

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Product Analysis:

  • Product Matrix that gives a detailed comparison of the product portfolio of each company

Regional Analysis

  • Further breakdown of a region with respect to a particular country

Company Information

  • Detailed analysis and profiling of additional market players (up to five)
COVID-19

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