Wax Market - Forecast(2023 - 2028)

Report Code: CMR 16125 Report Format: PDF + Excel

Wax Market Overview

The Wax Market size is forecast to reach US$11.3 billion by 2027, after growing at a CAGR of 2.7% during the forecast period 2022-2027. Wax is an ester of long-chain fatty acids along with long-chain monohydric alcohols. It can be divided into multiple categories such as paraffin wax, shellac wax, mineral wax, stearate wax, and more. They are used in a wide range of industries which include packaging, Cosmetic & Personal Care, automotive, building & construction, pharmaceutical, food & beverage, textile, rubber, and other industries. According to recent insights published on Interpack in 2020, the global packaging industry is expected to grow by an annual rate of 3.5% within the next four years. An increase in demand for wax from the packaging and textile industries acts as the major driver for the market. On the other hand, fluctuating prices of raw materials may confine the growth of the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing, and production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, the COVID-19 pandemic has increased the demand for packaging all over the world. For instance, recent insights from Flexible Packaging states that the food packaging industry witnessed a sharp increase in demand during the pandemic due to the high number of consumers turning into online groceries shopping. By the end of 2021, U.S. online grocery sales accounted for 12.4% of the country’s overall e-commerce sales. It further states that the U.S. digital grocery buyers grew up to 137.9 million in 2021, a growth of 4.8% in comparison to 2020. Supermarkets witnessed a huge surge in demand for packaging materials for the wrapping of food and other grocery products. Hence, such an increase in demand for packaging is expected to increase the demand for wax as it is primarily used as plastic additives in the production of plastics used for packaging. This is most likely to lead to market growth in the forecast period.

Report Coverage

The report: “Wax Market Report – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Wax Industry.

By Type: Paraffin Wax, Shellac Wax, Mineral Wax, Stearate Wax, Beeswax, Soy Wax, Carnauba Wax, Others.
By Form: Flakes, Granules, Powder, Others.
By Application: Adhesive, Sealers, Polishes, Binders, Inks & Coating, Lubricants, Candles, Food Additives, Others.
By End-Use Industry: Packaging, Cosmetic & Personal Care, Automotive, Building & Construction, Pharmaceuticals, Food & Beverage, Textile, Rubber, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

    • Adhesive application in Wax Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand from the packaging industry. Properties of wax such as high melting point, high stability, and low melt viscosity make it ideal for the production of hot melt adhesives.
    • Wax has a wide range of properties which include excellent thermal stability, high softening point, high melting point, high chemical resistance, perfect lubrication, which makes it ideal for use in packaging, cosmetics, and textile industries.
    • Asia-Pacific dominated the Wax Market in 2021, owing to the increasing demand for Wax from the packaging and cosmetic sectors of the region. According to a recent study published on Interpack, Asia accounted for the highest world share of packaging sales in 2020, an increase of 7.4% in comparison to 2019.

    Figure: Asia-Pacific Wax Market Revenue, 2021-2027 (US$ Billion)

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    Wax Market Segment Analysis – By Application

    The Adhesive application held the largest share in the Wax Market in 2021 and is expected to grow at a CAGR of 2.8% between 2022 and 2027, owing to the increasing demand for adhesives from the packaging sectors in multiple regions across the world. According to a recent study published by the European Adhesive and Sealant Industry in 2020, the adhesives sector saw an increase in the production of adhesives across multiple regions. Asia-Pacific saw an increase of 36.8%, Europe by 34.5%, North America by 23.1%, the Middle East by 1.3%, and Africa by 1.1% in 2020. In this way, such an increase in the production of adhesives across the globe is expected to increase the demand for wax since it is primarily used for the production of adhesives, thus, leading to market growth in the upcoming years.

    Wax Market Segment Analysis – By End-Use Industry

    Cosmetic & Personal Care held the largest share in the Wax Market in 2021 and is expected to grow at a CAGR of 2.9% between 2022 and 2027, owing to the increasing demand for wax in the production of cosmetics, and skincare products. For instance, according to a study published on Fashion Network, skincare and sun care products produced an average annual growth of 5.6% in 2020. Furthermore, recent insights from World's Top Exports states that countries like France, Singapore, South Korea, and the US sold some of the largest amounts of exported beauty and skincare goods during 2020 with shipments valued at US$ 9 billion, US$ 6.2 billion, US$ 6.1 billion, and U$ 5.1 billion respectively. European countries sold the highest amount of exported beauty and skincare goods during 2020 with shipments valued at US$ 26.7 billion, which indicates around 44% of the global total. This is followed by Asian exporters with related shipments at 43%, and North America by 10.7%. Since, wax such as paraffin wax, and shellac wax are used in cosmetic products for stabilizing formulations and emulsions in the product along with boosting their consistency and viscosity, it plays a major role during the production of cosmetics, and skincare products. Thus, the increasing growth of the cosmetic & personal care industry is expected to accelerate the growth of the market during the forecast period.

    Wax Market Segment Analysis – By Geography

    The Asia Pacific held the largest share in the Wax Market in 2021 up to 30%. The consumption of wax is particularly high in this region due to its increasing demand from the packaging and cosmetics sectors. Wax is primarily used as a plastic additive in the production of plastics used for packaging. For instance, China holds the largest market share around the world when it comes to food packaging. According to a recent study published on Interpack, the consumption of food packaging is expected to increase to 447,066 million in 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of around US$5.88 billion with end packaging. According to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$ 50.5 billion in 2019 and is expected to increase up to US$ 204.81 billion by the end of 2025. It further states that packaging is considered to be one of the industries with high growth in India and is rising at 22-25% per year.

    Furthermore, wax such as paraffin wax, and shellac wax is used in cosmetic products to thicken formulations. It is used to provide stability to skincare & cosmetic products along with providing emollient and protective qualities and helps in boosting their consistency and viscosity. For instance, a recent study published by the Indian Ministry of Economy and Industry states that the beauty and personal care industry in the country reached over US$ 10 billion in 2021, and is most likely to grow by around 6% in the upcoming years. Likewise, Shiseido, a leading cosmetics and beauty brand in Japan, published a report which stated that the net sales of the company based on cosmetics and personal care products reached around 267.2 billion yen (US$ 2.4 billion) during the fourth quarter of 2020, and it is expected to rise in the upcoming years as well.

    In this way, the growth of packaging and cosmetics industries in the region is expected to increase the demand for wax such as paraffin wax, shellac wax, mineral wax, and stearate wax, thus, resulting in the growth of the market during the forecast period.

    Wax Market Drivers

    An increase in demand from the packaging industry is most likely to increase demand for the product

    According to PMMI (The Association for Packaging and Processing), the North American beverage industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. Likewise, recent insights from the Packaging Federation of the United Kingdom states that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$ 15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors of the region. In this way, an increase in demand for packaging activities is expected to increase the demand for wax during the production of plastics required for packaging. This is most likely to lead to the growth of the market in the upcoming years.

    An increase in demand from the textile industry is most likely to increase demand for the product

    Wax emulsions are primarily used as softeners and sizing aids in the textile industry. The wax emulsion generates bright color, high gloss, high tensile strength, and high elasticity in the fabric. For instance, in July 2021, India announced the Non-Woven Fabric Manufacturing Expansion Project worth INR 220 million (US$ 2.9 million) in Himachal Pradesh. A recent article published on fibre2fashion states that Vietnam’s garment manufacturing business accounts for around 70% of the majority of businesses. It also states that the import of textiles and clothing by the United States increased by 26.79 % up to US$41.689 billion during the initial five months of 2021. Likewise, the value of U.S. man-made fiber, textile, and clothing shipments reached about $64.4 billion in 2020. Furthermore, in 2021, United Nations Environment Programme (UNEP) announced the commencement of a new project that is targeted to provide the approval of eco-innovation along with the use of Product Environmental Footprint (PEF) within textile SMEs in Kenya, South Africa, and Tunisia.

    In this way, an increase in demand for various textile operations across the world is expected to increase the demand for wax such as paraffin wax, shellac wax, and more, for post-finishing of textiles in order to make the fabric have excellent smoothness, softness, and gloss. This is most likely to drive market growth in the upcoming years.

    Wax Market Challenges

    Fluctuating prices of raw material prices may cause an obstruction to the market growth

    Crude oil is the primary raw material used in the production of petroleum-based wax which includes paraffin wax, microcrystalline wax, and petroleum jelly. According to recent insights published in the Journal of Cleaner Production in 2021, a supply deficit of 0.6% in crude oil was observed in 2020. Furthermore, it also states that this deficit is most likely to increase by 8% or 0.18 million tons by 2030 across the globe, owing to the increase in demand for crude oil-based biofuels for transportation. Due to this imbalance in the supply-demand chain of crude oil, its prices are most likely to hike or fluctuate in the upcoming years. Hence, the fluctuating prices of crude oil which is significantly required in the production of wax may confine the market growth.

    Wax Industry Outlook

    Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Wax Market. Wax top 10 companies include:

    1. China National Petroleum Corporation
    2. Exxon Mobil Corporation
    3. Royal Dutch Shell PLC
    4. Akzo Nobel NV
    5. Lubrizol Corporation
    6. Honeywell International Inc.
    7. Cargill, Inc.
    8. BASF SE
    9. Evonik Industries AG
    10. Calumet Specialty Products Partners LP

    Recent Developments

    • In June 2021, Braskem, a Brazil-based chemical company, launched its first renewable-sourced polyethylene wax. The new product can be used as a viscosity modifying agent in numerous formulations. It can be used for a wide range of applications such as the production of adhesives, coatings, cosmetics, and various compounds.
    • In September 2020, Lubrizol Corporation announced the development of PTFE wax additives that contains less than 25 ppb PFOA in order to meet new PFOA regulations (as stated in ANNEX I of Regulation (EU) 2019/1021 under the Stockholm Convention on POPS).

    Relevant Reports

    Wax Emulsion Market – Forecast (2022 - 2027)
    Report Code: CMR 0604

    Microcrystalline Wax Market – Forecast (2021 - 2026)
    Report Code: CMR 12653

    Carnauba Wax Market – Forecast (2021 - 2026)
    Report Code: CMR 64362

    For more Chemicals and Materials Market reports, Please click here

    1. Wax Market- Market Overview
        1.1 Definitions and Scope
    2. Wax Market - Executive Summary
        2.1 Key Trends by Type
        2.2 Key Trends by Form
        2.3 Key Trends by Application
        2.4 Key Trends by End-Use Industry
        2.5 Key Trends by Geography
    3. Wax Market – Comparative analysis
        3.1 Market Share Analysis- Major Companies
        3.2 Product Benchmarking- Major Companies
        3.3 Top 5 Financials Analysis
        3.4 Patent Analysis- Major Companies
        3.5 Pricing Analysis (ASPs will be provided)
    4. Wax Market - Startup companies Scenario Premium Premium
        4.1 Major startup company analysis:
            4.1.1 Investment
            4.1.2 Revenue
            4.1.3 Product portfolio
            4.1.4 Venture Capital and Funding Scenario
    5. Wax Market – Industry Market Entry Scenario Premium Premium
        5.1 Regulatory Framework Overview
        5.2 New Business and Ease of Doing Business Index
        5.3 Successful Venture Profiles
        5.4 Customer Analysis – Major companies
    6. Wax Market - Market Forces
        6.1 Market Drivers
        6.2 Market Constraints
        6.3 Porters Five Force Model
            6.3.1 Bargaining Power of Suppliers
            6.3.2 Bargaining Powers of Buyers
            6.3.3 Threat of New Entrants
            6.3.4 Competitive Rivalry
            6.3.5 Threat of Substitutes
    7. Wax Market – Strategic Analysis
        7.1 Value/Supply Chain Analysis
        7.2 Opportunity Analysis
        7.3 Product/Market Life Cycle
        7.4 Distributor Analysis – Major Companies
    8. Wax Market – By Type (Market Size - US$ Million/Billion)
        8.1 Paraffin Wax
        8.2 Shellac Wax
        8.3 Mineral Wax
        8.4 Stearate Wax
        8.5 Beeswax
        8.6 Soy Wax
        8.7 Carnauba Wax
        8.8 Others
    9. Wax Market - By Form (Market Size - US$ Million/Billion)
        9.1 Flakes
        9.2 Granules
        9.3 Powder
        9.4 Others
    10. Wax Market – By Application (Market Size - US$ Million/Billion)
        10.1 Adhesive
        10.2 Sealers
        10.3 Polishes
        10.4 Binders
        10.5 Inks & Coating
        10.6 Lubricants
        10.7 Candles
        10.8 Food Additives
        10.9 Others
    11. Wax Market – By End-Use Industry (Market Size - US$ Million/Billion)
        11.1 Packaging
        11.2 Cosmetic & Personal Care
        11.3 Automotive
        11.4 Building & Construction
        11.5 Pharmaceuticals
        11.6 Food & Beverage
        11.7 Textile
        11.8 Rubber
        11.9 Others
    12. Wax Market - By Geography (Market Size - US$ Million/Billion)
        12.1 North America
            12.1.1 USA
            12.1.2 Canada
            12.1.3 Mexico
        12.2 Europe
            12.2.1 UK
            12.2.2 Germany
            12.2.3 France
            12.2.4 Italy
            12.2.5 Netherlands
            12.2.6 Spain
            12.2.7 Russia
            12.2.8 Belgium
            12.2.9 Rest of Europe
        12.3 Asia-Pacific
            12.3.1 China
            12.3.2 Japan
            12.3.3 India
            12.3.4 South Korea
            12.3.5 Australia and New Zealand
            12.3.6 Indonesia
            12.3.7 Taiwan
            12.3.8 Malaysia
            12.3.9 Rest of APAC
        12.4 South America
            12.4.1 Brazil
            12.4.2 Argentina
            12.4.3 Colombia
            12.4.4 Chile
            12.4.5 Rest of South America
        12.5 Rest of the World
            12.5.1 Middle East
            12.5.2 Africa
    13. Wax Market – Entropy
        13.1 New Product Launches
        13.2 M&As, Collaborations, JVs, and Partnerships
    14. Wax Market – Industry/Segment Competition Landscape Premium
        14.1 Company Benchmarking Matrix – Major Companies
        14.2 Market Share by Key Geography - Major companies
        14.3 Market Share at Country Level - Major companies
        14.4 Market Share by Key Product Type/Product category - Major companies
    15. Wax Market – Key Company List by Country Premium Premium
    16. Wax Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
        16.1 Company 1
        16.2 Company 2
        16.3 Company 3
        16.4 Company 4
        16.5 Company 5
        16.6 Company 6
        16.7 Company 7
        16.8 Company 8
        16.9 Company 9
        16.10 Company 10 and more
    "*Financials would be provided on a best-efforts basis for private companies"

    LIST OF TABLES

    1.Global MARKET SEGMENTATION Market 2019-2024 ($M)
    2.Global COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
    2.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Global Industry Research
    3.Global MARKET SEGMENTATION Market 2019-2024 (Volume/Units)
    4.Global COMPETITIVE LANDSCAPE Market 2019-2024 (Volume/Units)
    4.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 (Volume/Units) - Global Industry Research
    5.North America MARKET SEGMENTATION Market 2019-2024 ($M)
    6.North America COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
    6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
    7.South America MARKET SEGMENTATION Market 2019-2024 ($M)
    8.South America COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
    8.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
    9.Europe MARKET SEGMENTATION Market 2019-2024 ($M)
    10.Europe COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
    10.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
    11.APAC MARKET SEGMENTATION Market 2019-2024 ($M)
    12.APAC COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
    12.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research
    13.MENA MARKET SEGMENTATION Market 2019-2024 ($M)
    14.MENA COMPETITIVE LANDSCAPE Market 2019-2024 ($M)
    14.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2019-2024 ($M) - Regional Industry Research

    LIST OF FIGURES

    1.US Wax Market Revenue, 2019-2024 ($M)
    2.Canada Wax Market Revenue, 2019-2024 ($M)
    3.Mexico Wax Market Revenue, 2019-2024 ($M)
    4.Brazil Wax Market Revenue, 2019-2024 ($M)
    5.Argentina Wax Market Revenue, 2019-2024 ($M)
    6.Peru Wax Market Revenue, 2019-2024 ($M)
    7.Colombia Wax Market Revenue, 2019-2024 ($M)
    8.Chile Wax Market Revenue, 2019-2024 ($M)
    9.Rest of South America Wax Market Revenue, 2019-2024 ($M)
    10.UK Wax Market Revenue, 2019-2024 ($M)
    11.Germany Wax Market Revenue, 2019-2024 ($M)
    12.France Wax Market Revenue, 2019-2024 ($M)
    13.Italy Wax Market Revenue, 2019-2024 ($M)
    14.Spain Wax Market Revenue, 2019-2024 ($M)
    15.Rest of Europe Wax Market Revenue, 2019-2024 ($M)
    16.China Wax Market Revenue, 2019-2024 ($M)
    17.India Wax Market Revenue, 2019-2024 ($M)
    18.Japan Wax Market Revenue, 2019-2024 ($M)
    19.South Korea Wax Market Revenue, 2019-2024 ($M)
    20.South Africa Wax Market Revenue, 2019-2024 ($M)
    21.North America Wax By Application
    22.South America Wax By Application
    23.Europe Wax By Application
    24.APAC Wax By Application
    25.MENA Wax By Application