The global wax market is highly concentrated with the top five companies accounting for 80% of the market in 2013. These companies are China National Petroleum Corporation (CNPC), ExxonMobil Corp., Sinopec, Ltd., Sasol Wax, and Royal Dutch Shell Plc. These top players have their presence across the value chain. Key players are offering customized solutions to customers in order to gain a competitive edge. Transparency Market Research (TMR) in its new study states that despite problems in achieving economies of scale and securing raw material, there will exist a considerable threat of new entrants over the years. The threat of substitutes is expected to rise from low to medium over the years. This is likely to happen as natural waxes are being substituted by synthetic ones. In addition to this, synthetic chemicals are being used by various end-user industries.
According to the report, the global wax market is expected to rise from US$7,882.3 mn in 2015 to US$8,985.6 mn by 2020. On the basis of product, the petroleum and mineral wax segment is expected to account for 84.4% of the market in terms of volume by 2020. By end-user industry, the candles segment is anticipated to continue to lead and is projected to account for 41.9% of the market by 2020, in terms of volume. Asia Pacific, followed by Europe, will lead in the wax market in the coming years. In terms of volume, Asia Pacific is expected to hold 35.7% of the market by 2020. Demand for wax in Asia Pacific has been increasing steadily over the last decade, as there is high demand from the packaging, candles, adhesive, and cosmetics industries.
Rising Demand from End-User Industries to Drive Wax Market
The global wax market is driven by the thriving cosmetics, candles, wood and fire logs, adhesives, packaging, inks, polishes, laminates, and crayons industries. As these end-user industries are growing, the demand for wax is also increasing, thus driving the market worldwide. As waxes provide additional protection against foreign odors, moisture, and microorganisms, they are increasingly being used in the packaging and paper industries and also in the packaged food industries for preserving the aroma and flavor. For this reason, wax is also used to pack items such as meat, fruits, vegetables, and fish. In addition to this, they are used for non-food products such as electronics, and as the global demand for electronics is increasing, so will the demand for wax, says TMR.
On the other hand, a decline in the production and demand for Group I base oils is expected to affect the supply of waxes, posing a challenge for the market. The decline in the production of Group I base oils is as a result of strict environmental legislations leading to stringent performance standards which is causing end-user industries to change their preferences.
Low Emissions and Longer Shelf Life to Make Gas-to-liquids (GTL) Wax Popular
Gas-to-liquid (GTL) wax, which comes under synthetic wax has the advantage of being close to petroleum waxes in terms of physical properties. Thus, they can be easily used to make up for the shortage of petroleum wax. GTL products include wax, base oils, jet fuel, diesel, and liquid paraffin, which can be used to in place of petroleum-based product applications. “Moreover, GTL waxes have benefits such as storage stability, longer shelf life, and are low on emissions,” says a TMR analyst. Thus, the manufacturing of GTL is expected to widen the scope of wax, boosting the market.
This information is based on the findings of a report published by Transparency Market Research, titled “Wax Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020.”
The global wax market is segmented as follows:
- Wax Market - Product Segment Analysis
- Petroleum and mineral wax
- Paraffin wax
- Microcrystalline wax
- Others (Including semi-crystalline wax, petroleum jelly, etc.)
- Synthetic wax
- Gas-to-liquids (GTL) wax
- Polymer wax
- Others (Including Montan wax, etc.)
- Natural wax
- Vegetable wax
- Others (Including animal wax, Japan wax, rice bran wax, etc.)
- Wax Market - End-user Industry Analysis
- Wood & fire-logs
- Others (Including crayons, laminates, inks, polishes, insulation, etc.)
- Wax Market - Regional Analysis
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
- Petroleum and mineral wax
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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