The Global Paraffin Wax Market is expected to reach US$ 5.4 Bn by 2025, expanding at a CAGR of 3.9% during the forecast period 2017 – 2025.
Paraffin wax market is projected to witness significant growth with growing demand for candles in key consuming economies during the forecast period. Further, growing manufacturing industries especially in Asia Pacific and Europe fueling the demand for the packaging products which in turn is anticipated to drive the demand for paraffin wax during the forecast period. Besides this, rapid growth in disposable income of middle class in developing economies fueling the demand for cosmetic products such as personal care products, creams, lipsticks and others are projected to witness high growth in sales volumes which in turn are expected to pump the growth of the paraffin wax over the forecast period. However, increasing use of alternatives such as Beeswax and others is expected to hamper the growth of global paraffin wax market.
Global paraffin wax market is segmented on the basis of application and geography. By application, in 2016 candles segment was the most dominant segment accounting for largest revenue share in global paraffin wax market. Growing demand for candles in key consuming economies of Asia Pacific and Europe are projected to drive the growth of the segment during the forecast period (2017-2025). On the basis of geography, Asia Pacific was estimated to be the largest market for paraffin wax in 2016. Growth in disposable income of middle class coupled with rapid industry development in the region is projected to spur the demand for paraffin wax in the region during the forecast period.
Major players in global paraffin wax market are investing in expansion of production capacity, merger and acquisition with focus on increasing market penetration.
Overall, global paraffin wax market is anticipated to register significant growth over the forecast period (2017-2025).
The global wax market
The global wax market is also expected to reach USD 12.9 billion by 2025, and is expected to grow at a CAGR of 3.7% from 2017 to 2025, according to a report by Grand View Research, Inc. Rising demand for the product owing to its superior properties including high gloss, non-toxicity, good water repellency and outstanding chemical resistance is anticipated to augment the industry size over the forecast period.
Mineral wax is likely to witness significant volume gains with a predicted CAGR of 3.3% from 2017 to 2025 on account of rising consumption of the product in detergents, rubber solutions, aerosol formulation, adhesives, household cleaners, tire manufacturing, and wood treatment applications.
North America was the dominant market and accounted for 34.9% of the overall revenue share in 2016. The rising consumption of the product in packaging of milk cartons, paper drinking cups and waxed paper is anticipated to drive the market growth over the forecast period.
The cosmetics application is anticipated to augment the U.S. industry consumption as a result of rising demand for various skin-care products such as face masks, creams and peels. The U.S. market has also demonstrated a shift in demand towards natural and organic cosmetics, thereby providing further avenues for growth.
In June 2017, BASF SE introduced a new plant for waxes and emollients in Jinshan, Shanghai, China. This plant, having invested over €20 million by the company, was inaugurated on account of further enhancing and complementing BASF's then current production of primary surfactants, emulsifiers and wax esters, and to serve the personal care industry in China as well as in Asia Pacific.
In July 2017, Royal Dutch Shell Plc. introduced new wax products, namely Slack wax 120 and Slack wax 60. These new products will be produced at its manufacturing site in Pulau Bukom, Singapore. By producing over 60,000 tons of these products, the company is aimed at serving its customers in Europe, the U.S. and Asia.