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The industrial wax market is estimated to increase by USD 1.41 billion at a CAGR of 3.2% between 2023 and 2028. The growth of the market depends on several factors, including increasing demand in coatings and polishes, rise in demand from the personal care industry, and increasing production capacity. The market is witnessing strong expansion, primarily propelled by the increasing demand for coating applications. Microcrystalline wax and mineral wax serve as essential constituents in coating formulations, augmenting characteristics such as resistance to abrasion and visual attractiveness. This upsurge in demand is fueled by rapid industrial growth, particularly evident in the Asia-Pacific region, where construction and manufacturing sectors are flourishing. Paraffin, renowned for its nonpolar attributes, remains a dominant force in the coatings industry.
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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 3.15 Billion in 2018. 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 31% 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.
The market is experiencing rapid growth due to increasing demand from various sectors such as cosmetics & personal care, packaging, and food industries. Mineral wax and microcrystalline wax are key players in this market, offering moisture barriers and enhancing the quality of packaged food and laminated papers. With changing lifestyles and rising per-capita incomes, consumers are becoming more brand-conscious, leading to a surge in demand for innovative products like green cosmetics. Candle manufacturers, packaging industries, and tire manufacturers are significant consumers of industrial wax, utilizing it for product shape, style, and color enhancement. As industries continue to evolve amidst rapid industrialization, the market for industrial wax is poised for continuous expansion. Our researchers analyzed the data with 2023 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. Changing lifestyles, increasing living standard, and growing per-capita income are driving forces shaping consumer behavior and economic dynamics.
The market is experiencing robust growth, fueled primarily by the surging demand in coating applications. Microcrystalline wax and mineral wax are pivotal components in coating formulations, enhancing properties like abrasion resistance and aesthetic appeal. This demand surge is driven by rapid industrialization, particularly in the Asia-Pacific region, where construction and manufacturing activities are thriving.
Furthermore, Paraffin, favored for its nonpolar characteristics, dominates the coatings industry. Decorative, specialty chemical, additives and equipment manufacturer coatings find applications across diverse sectors, from aerospace to automotive. This growth trend is expected to persist, fueled by increasing consumer expectations for quality and aesthetics, particularly in industries such as cosmetics and packaged food, where green initiatives and innovative packaging solutions are gaining traction.
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 cost-effective production, which will positively impact the market growth during the forecast period.
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 and polymers 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.
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 Market Customer Landscape
Companies 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 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 companies, 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 research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing significant growth driven by the increasing popularity of candle products and the demand for bio-based alternatives. Carnauba wax, beeswax, candelilla wax, and mineral wax are gaining traction as customers increasingly favor natural waxes over synthetic and paraffin wax. With changing lifestyles and increasing living standards, the demand for candles-based craft materials for decoration and interior designing is on the rise. The market caters to the traditional candle industry with advanced and innovative products, meeting the needs of a brand-conscious industry. Additionally, industrial wax finds applications in cosmetics, personal care, food packaging, and the health and wellness sectors, ensuring moisture barriers and enhancing product quality amidst rapid industrialization. Regulatory bodies like the FDA monitor health hazards, prompting a shift towards green cosmetics and natural wax-based beauty products.
In today's dynamic market, industrial wax plays a pivotal role, catering to diverse sectors like cosmetics, food packaging, and more. The demand for bio-based products is soaring, driven by changing lifestyles and increasing living standards worldwide. With per-capita incomes rising, consumers are gravitating towards eco-friendly options in skin and hair care products, as well as food packaging industries. Amidst the surge in demand, synthetic products face scrutiny, with anti-dumping duties impacting the market. Manufacturers are innovating with ozokerite, ceresin, and montan wax to meet the evolving needs of candle manufacturers, cosmetic industry, and tire manufacturing. This shift towards sustainable solutions heralds a promising future for the industrial wax market.
Moreover, the market is undergoing a transformative surge, fueled by shifting lifestyles and rising living standards. With increasing per-capita incomes, demand is soaring in sectors like cosmetics & personal care, where skin and hair care products are infused with fragrances. Simultaneously, the food industry, reliant on packaged foods, is driving up the need for laminated papers and anti-dumping duties on plates and needles. Moreover, the meat packaging industry is witnessing a boost, necessitating robust solutions like wax-coated paper and paperboard. These trends are reshaping the market, with candles adopting innovative shapes and fragrances to cater to changing consumer preferences. Industrial wax is not merely a commodity; it's a cornerstone of modern manufacturing across diverse sectors, from cosmetics to tires.
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Market Scope |
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Report Coverage |
Details |
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Page number |
194 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
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Market growth 2024-2028 |
USD 1.41 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.06 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 31% |
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Key countries |
China, US, Germany, India, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
American Fuel and Petrochemical Manufacturers, American Refining Group Inc., BASF SE, Blayson Group Ltd., 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., Kerax Ltd., Lodha Petro, Numaligarh Refinery Ltd., Sasol Ltd., Shell plc, Sinopec Shanghai Petrochemical Co. Ltd., Sonneborn LLC, and The International Group Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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