Paraffin Wax Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast 2024-2028

Paraffin Wax Market 2024-2028

The paraffin wax market size is forecast to increase by USD 1.57 billion, at a CAGR of 5.82% between 2023 and 2028. The growth rate of the market depends on several factors, including the rising application in packaging solutions, the diversified product portfolio of key market players, and the growing industrial applications of paraffin wax. 

The report includes a comprehensive outlook on the Paraffin Wax Market, offering forecasts for the industry segmented by Application, which comprises candles, packaging, hotmelts, cosmetics and personal care, and board sizing and others. Additionally, it categorizes Type into fully refined, semi-refined, and others, and covers Regions, including APAC, North America, Europe, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.

What will be the  Paraffin Wax Market Size During the Forecast Period?

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Paraffin Wax Market Definition 

Paraffin wax refers to a soft, colorless solid that is derived from petroleum, coal, or oil shale. Paraffin wax is a byproduct of the oil purification process and is made from saturated hydrocarbons. It is widely used in skin-softening salon and spa treatments. Paraffin wax is the most widely used wax type in the production of candles.

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Paraffin Wax Market: Key Drivers, Trends, Challenges

Key Paraffin Wax Market Driver

Rising application in packaging solutions is the key factor driving market growth. The use of paraffin wax in flexible packaging solutions is gaining traction in the pharmaceuticals and food industries, owing to its exceptional barrier properties against moisture, grease, gases, and odors. Various industries, such as food and pharmaceuticals, emphasize the importance of effective packaging in extending shelf life, maintaining product quality, and ensuring hygiene. Such factors surge the demand for efficient packaging solutions such as paraffin wax-based packaging.

Consequently, the new developments for flexible packaging are likely to increase the options available to end-users. Thus, the growing adoption of flexible food packaging will propel the demand for paraffin wax. Thus, such factors increase the need for advanced packaging solutions and act as a driver for the growth of the global paraffin wax market during the forecast period.

Significant Paraffin Wax Market Trends

Expansions in cosmetic and personal care applications is the primary trend shaping market growth. Paraffin wax has already been used in various skincare and personal care products due to its emollient and moisture-locking properties. Paraffin waxes are essential components in the production of personal care products and decorative cosmetics. They are complex mixtures of heavy hydrocarbons and fatty acids combined with esters. Waxes are harder, less greasy, and more brittle than fats.

Furthermore, the rising demand for products such as lip balms, creams, lotions, and haircare items further drives the demand for paraffin-based formulations. As the personal care industry and cosmetic industry continue to evolve and consumers seek effective and versatile products, the demand for paraffin increases. Hence, the global paraffin market is expected to grow significantly during the forecast period.

Major Paraffin Wax Market Challenge

The shrinking supply of paraffin wax is a challenge that affects market growth. The global production of paraffin wax is declining, and the industry needs to find alternatives to prevent shortages in the next decade. The anticipated decline of Group I base oil production in favor of Group II and Group III will facilitate the availability of paraffin wax. The wax from soy, palm, and tallow is widely preferred by consumer goods, personal care, and coating industries across the globe. Soy-based wax is favored in the US, and palm-based wax is more widely used in Europe and Asia.

Moreover, synthetic routes of wax production are also alternatives to paraffin wax. Although these waxes are fully interchangeable with paraffin wax, they are not expected to play a major role in meeting the shortfall. With the increase in the demand for paraffin wax, the diminishing supplies of raw materials have led to an increase in the selling price of paraffin wax. Hence, a shrinking supply of paraffin wax can be a potential threat to the growth of the global paraffin wax market during the forecast period.

Paraffin Wax Market Segmentation by Application, Type and Geography 

Paraffin Wax Market Application Analysis 

The market share growth by the candles segment will be significant during the forecast period. The candle segment is expected to grow significantly during the forecast period. Some of the waxes that are used to manufacture candles are paraffin wax, beeswax, spermaceti, soy wax, palm, carnauba, bayberry, and tallow, among which paraffin wax is the most used wax used for manufacturing candles. 

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The candles segment accounted for USD 1.51 billion in 2018. The market is characterized by the availability and easy purchase of various candles through several distribution channels, such as e-commerce platforms and retail stores. Furthermore, the availability of candles in various shapes and sizes, such as birthday candles, utility candles, pillars, tealights, novelty candles, floating candles, outdoor candles, tapers, jar or container candles, and liturgical candles, will be the driver for candle segment, which will boost the growth of the global wax market during the forecast period.

Paraffin Wax Market Type Analysis 

Fully refined paraffin wax refers to wax that contains less than 0.5% oil and is made free of impurities and discoloration by hydro-treating or clay-treating. As the wax is refined, the grade of paraffin wax reduces, and the oil content increases to 1.5%. The higher melting point and harder texture of fully refined paraffin wax provide better stability and performance in various applications. In addition, fully refined paraffin wax is widely used in spas as a moisturizer. It is non-toxic and safe to use on the face and body. Thus, such factors will drive the growth of the fully refined segment in the global paraffin wax market during the forecast period.

Paraffin Wax Market Region Analysis

APAC is estimated to contribute 39% 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.

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The growth of the APAC paraffin wax market can be attributed to factors such as the increasing utilization of paraffin wax in the candle industry and the rising demand for convenient packaging from the cosmetics and pharmaceutical sectors in various countries in the region. The cosmetics market in the region has grown significantly in response to high diversity in consumer preferences and innovations in the market.

Furthermore, the growing demand for such products in the region drives the demand for paraffin wax in the region. In addition, the increasing demand for scented candles, with the mixture of rich berries, mulled fruits, and the rustic scent of weathered woods, spur the demand for paraffin wax in the region. Therefore, all such factors are anticipated to significantly propel the growth of the regional paraffin wax market during the forecast period.

Key Paraffin Wax Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

• Eni SpA, Ergon Inc.: The company offers paraffin wax with different melting point, obtained through modern refining processes of appropriate crude oil streams.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

Calumet Specialty Products Partners L.P., China Petrochemical Corp., Compania Espanola de Petroleos SA, ENEOS Holdings Inc., Exxon Mobil Corp., FUSHUN HENGYI Petro and Chemical Co Ltd, Gandhar Oil Refinery India Ltd., HollyFrontier Corp., Honeywell International Inc., Indian Oil Corp. Ltd., NIPPON SEIRO CO. LTD., Numaligarh Refinery Ltd., PetroChina Co. Ltd., Petroleo Brasileiro SA, Repsol SA, Sasol Ltd., SpecialChem S.A., and The International Group Inc.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2018-2028. 

• Application Outlook 
  • Candles
  • Packaging
  • Hotmelts
  • Cosmetics and personal care
  • Board sizing and others

• Type Outlook
  • Fully refined
  • Semi refined
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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What are the Key Data Covered in this Paraffin Wax Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of paraffin wax market companies

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