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The industrial wax market is estimated to grow at a CAGR of 3.5% between 2022 and 2027. The size of the market is forecast to increase by USD 1,513.88 million. The growth of the market depends on several factors, including increasing demand for industrial wax in coating applications, rise in demand for industrial wax from the personal care industry, and increasing industrial wax production capacity.
This report extensively covers market segmentation by product (fossil based waxes, synthetic based waxes, and bio-based-waxes), end-user (candle manufacturing, cosmetics, packaging, coatings and polishes, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global industrial wax market as a part of the global specialty chemicals market. The global specialty chemicals market covers products and companies engaged in high-value-added chemicals used in the manufacturing of a wide variety of products, including, but not limited to, fine chemicals, additives, advanced polymers, adhesives, sealants, specialty paints, pigments, and coatings. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increased demand for industrial wax in coating applications is notably driving the market growth, although factors such as a growing preference for fiberboard packaging may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Industrial Wax Market Driver
The increased demand for industrial wax in coating applications is notably driving market growth. The coating industry, for instance, is growing at a significant pace with the increase in construction and manufacturing activities. Wax is an important component in coating formulations, as it imparts important characteristics like abrasion resistance, aesthetic appeal, and non-adhesiveness. In addition to this, wax is widely used in formulations because of its relatively low cost, high reliability, and low reactivity when compared with other additives. Paraffin is by far the most common type of wax used in the coatings industry due to its nonpolar characteristics.
Decorative coatings, specialty coatings, and equipment manufacturer coatings are contributing to the growth of the market as they are used in a wide range of industries ranging from aerospace, automotive, and woodwork to construction and other manufacturing industries. The coating industry in APAC is expected to grow exponentially with the increase in demand for decorative, industrial maintenance, and protective coatings from end-users. Thus, the increase in demand for coatings from various industrial end-users will drive the growth of the market in focus during the forecast period.
Significant Industrial Wax Market Trend
The emergence of technology to convert recycled plastics into wax is the key trend in the market. Plastic and wax both are petroleum-derived products. Most plastic uses naphtha as the main raw material. Considering the fact that plastics are, by far, the most toxic waste due to their non-degradable characteristics, private investors, researchers, and scientists are attempting to convert recycled plastic into wax with the aim of managing plastic waste globally.
The process of converting plastic can result in three products, namely, light fuel that can be sold to petrochemical industries, candle wax, and thick brown wax, which can be used in polishes or cosmetics. Many companies, for instance, GreenMantra have claimed that it has been able to convert all their plastic into wax by focusing largely on the production of wax rather than fuel at an investment, which is 50% less than conventional wax manufacturing. More developments like these could result in the cost-effective production of industrial wax, which will positively impact the market growth during the forecast period.
Major Industrial Wax Market Challenge
The growing preference for fiberboard packaging is the major challenge impeding market growth. Traditionally, wax has been used in the packaging industry as it provides resistance to moisture, and preserves the strength of corrugated containers, which hold wet or products like fruits, vegetables, seafood, poultry, and meat that are preserved in ice. However, these wax coatings cannot be recycled because they are insoluble in water, which poses a problem during the repulping process. Thus, the packaging industry is working diligently in order to develop recyclable alternatives. The development of recyclable alternatives to wax has led to the increased adoption of corrugated packaging, which can be recycled.
Corrugated fiberboard is the new packaging material that is gaining traction in the packaging industry as a replacement for wax, as it is easy to handle, cost-effective, lightweight, versatile, and functional. The development of recyclable alternatives to wax has led to the increased adoption of corrugated packaging, which can be recycled. More than 50% of recyclable alternative coatings to wax have passed the certification testing for re-palpability and recyclability and have been registered with the Fibre Box Association (FBA). Thus, these recyclable alternatives to wax coatings will pose a major threat to the growth of the market during the forecast period.
Key Industrial Wax Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Industrial Wax Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Sonneborn LLC - The company operates under one segment. Under this segment, the company offers microcrystalline wax that includes oilfield and drilling, personal care, pharmaceutical, polymers and adhesives, creams and lotions, pj blending, hair care, pomades, rubs, and balms. The company offers industrial wax such as Fischer Tropsch Hard Wax, Fischer Tropsch Medium Wax, n Paraffins.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the fossil based wax segment will be significant during the forecast period. Mineral waxes and petroleum waxes commonly referred to as hydrocarbon waxes constitute fossil based waxes. Paraffin is primarily an oil refinery waste product that is present in a combination of oil and wax and is recommended for use in sustainable applications such as preserving the freshness and quality of fruits. Due to their low heat conductivity, poor electrical conductivity, and minimal chemical reactivity, paraffin is suitable for applications that use microactuators. Thus, the increasing uses of fossil based waxes, such as paraffin wax, will drive the growth of the market
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The fossil based waxes were valued at USD 2,992.80 million in 2017 and continued to grow until 2021. Paraffin wax is a type of petroleum wax that constitute fossil based waxes. Paraffin wax is majorly used in the cosmetics industry. Because it is colorless, odorless, and tasteless, it is frequently used in skin-softening salon and spa treatments on the hands, cuticles, and feet. It can also be applied to soothe aching muscles and joints. Paraffin wax can also help reduce inflammation and muscular spasms. Thus, the increasing uses of fossil based waxes, such as petroleum wax, will drive the growth of the market.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is a major region for several petroleum refineries, which produce wax as their refined products. APAC is also the region with the most refinery expansion projects in the pipeline and, thus, contributed to the growth of the market in terms of the production of industrial wax. The growth of the oil refining market in APAC is majorly backed by China as the country is undergoing significant changes to meet its ever-growing demands.
The refinery capacity in APAC, specifically in China, is among the highest in the world and is still growing. The rise in refining capacity is mainly attributed to independent refiners. Other than these, the number of state-owned refineries is also growing rapidly. Thus, the increase in the number of oil refineries and capacity expansion in existing refineries are expected to increase the exponential growth of the market in APAC during the forecast period.
In 2020, the outbreak of COVID-19 negatively impacted the growth of the regional market. However, the resumption of operations in end-user industries, such as automotive and candle manufacturing, revived the demand for industrial wax. Moreover, the digitization of business processes and the rise in industrialization will fuel the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Industrial Wax Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.5% |
Market growth 2023-2027 |
USD 1,513.88 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.16 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Fuel and Petrochemical Manufacturers, American Refining Group Inc., BASF SE, Calumet Specialty Products Partners LP, Compania Espanola de Petroleos SA, Evonik Industries AG, Exxon Mobil Corp., Gandhar Oil Refinery India Ltd., HollyFrontier Corp., Honeywell International Inc., Indian Oil Corp. Ltd., Numaligarh Refinery Ltd., Sasol Ltd., Shell plc, Sinopec Shanghai Petrochemical Co. Ltd., Sonneborn LLC, Blayson Group Ltd., The International Group Inc., Kerax Ltd., and Lodha Petro |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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