Wax is a variety of organic substances and is generally found in solid form at room temperature. When heated at a higher temperature, wax melts quickly and is derived from petroleum & bio-based resources. Due to its versatility, wax finds applications across different industries like candles, packaging, coating & polishes, hot-melt adhesives, cosmetic & toiletries, and plastic & rubber, among others.
While coating & polishing are among the prominent applications of wax backed by its features like scratch by mark & scratch by resistance, water repellency, and others. In fact, wax is also extensively utilized as an additive in inks for letterpress, lithographic, gravure, & flexographic.
The Global Wax Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2022-27. The market is driven by the growing awareness across industries about the versatility of wax and its diverse utilization. Since wax offers protection to packaged products & higher gloss, improving the appearance of the is, the packaging industry is augmenting the demand for wax substantially.
In addition, the vast packaging industry worldwide is set to generate lucrative opportunities for the leading players to increase their wax production & distribution capacities and cater to the rising needs globally. Besides, wax exhibits excellent barrier properties against moisture, which make it suitable for packaging across different industries.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico, Rest of North America|
|Europe: Germany, UK, France, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, Australia, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: GCC, South Africa, Rest of Middle East & Africa|
|Key Companies Profiled||
Cargill, Inc., CALWAX, DEUREX AG, Exxon Mobil Corporation, Kerax Limited, NIPPON SEIRO CO. LTD., Numaligarh Refinery Limited, Petróleo Brasileiro S.A., PDVSA (Petróleos de Venezuela, S.A.), Poth Hille & Co Ltd., Royal Dutch Shell PLC, Sasol Limited, Sinopec, Strahl & Pitsch, Inc., The International Group Inc., The PJSC Lukoil Oil Company, Others
|Unit Denominations||USD Million/Billion|
What adds up to the high demand for wax for such applications include the non-sticky nature offering a reliable & cost-effective solution, especially for packing sticky products. Hence, the popularity of wax is widening across sectors and positively influencing the market.
Moreover, the growing awareness among people about the properties of wax, like anti-blocking, slip, water repellency, lubricity, low viscosity, excellent chemical resistance, abrasion resistance, high compatibility, and thermal stability, among others, are also contributing to the market growth. It is demonstrating a high demand for these products for the production of candles, coatings, polishes, adhesives, and others.
Impact of Covid-19 on the Global Wax Market
The emergence of Covid-19 had consequential effects on the Global Wax Market, especially when the governments of different countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease.
Since such limitations led to a temporary shutdown of industries, the demand for wax from sectors like packaging, food & beverages, cosmetics, rubber, adhesives, paints, and candle, among others, declined severely, causing significant loss for the leading players. Moreover, the hampered supply chain due to travel & trade restrictions also caused a disturbance in the production & distribution of wax across locations.
Nonetheless, with the gradual control of the pandemic and upliftment of restrictions, the market has been on the track to recovery and steadily regaining its pace. The leading players are also resuming their operations and increasing their business capacities to meet the unmet needs for wax across industries. It, in turn, is hinting toward a steady market growth from the loss during the forecast period, pointing toward a presence of remunerative opportunities for the leading players.
Based on Application:
Here, Candles acquired the largest share of the Global Wax Market and is anticipated to prevail in its dominance during the forecast period. This growth attributes to the rapidly growing inclination of people toward lighting scented candles and practicing aromatherapy. Besides, candles are also extensively used as decorations, aesthetics, meditation, and other such activities and are easily available in the market in numerous forms, essence, sizes, shapes, and varieties. Hence, the consumer base for candles is rising swiftly and directly influencing the demand for wax.
Moreover, observing the high demand & popularity of candles, several leading players are expanding their distribution & production capacities to cater to the burgeoning demands across locations and positively influence the wax market in the future. In the same idea, numerous participants in the market are increasing their visibility as décor & mass merchandise stores alongside the e-commerce platforms and further aiding the need for candles.
On the other hand, Packaging is another prominent application contributing substantially to the expansion of the Global Wax Market through 2027. This growth attributes to the growing awareness among industry players about the properties of wax facilitating excellent coating, treatment, impregnation, and lamination of products, including sticky goods. Hence, the requirement for wax is widening across the packaging industry and stimulating market growth through 2027.
Based on Product:
Among all, Mineral wax is anticipated to dominate the Global Wax Market with the largest share during the forecast period. This growth is backed by the swift expansion of the cosmetics industry and its inclination toward using mineral wax in different cosmetic formulations to cater to dynamic consumer requirements.
Besides, since mineral wax are pure with no traces of esters or alcohol (in beeswax, plant-based waxes), they find substantial utilization in cosmetics. Moreover, mineral wax is extracted from resources like coal, lignite, petroleum, & shale oil, among others, through the fractional distillation process and also includes a few commonly recognized mineral waxes. Hence, these are easily available in the market and are used for different purposes.
Geographically, the Global Wax Market expands across:
Here, Asia-Pacific dominated the market with the largest share in the previous years and is anticipated to prevail in the same trend during the forecast period. It owes principally to the improving living standards of the people and their inclination toward purchasing aromatic candles for aesthetics & meditations, influencing the demand for wax.
Besides, as the governments of different countries in the region are increasingly focusing on developing the country's infrastructure and boosting industrialization, sectors like packaging, food & beverages, cosmetics, plastics, rubber, and adhesives, among others, are witnessing expansion and directly influencing the wax market in the region.
Moreover, countries like China & India are prominent in the market, where China is dominating the regional industry growth. Backed by the presence of cheap labor, easy availability of raw materials, and minimal operation costs, the production & distribution of wax is widening in the country & contributing to the market growth in Asia-Pacific. The same aspect is also generating growth opportunities for the leading players to widen their capacities and cater to the burgeoning needs throughout the region.
On the other hand, Europe is anticipated to demonstrate the fastest growth in the Global Wax Market during the forecast period. It owes principally to the surging demand for hot melts in the adhesives & sealants industry, boosting the demand for wax. Besides, the presence of numerous prominent players producing & distributing wax globally is also backing the market growth in Europe. Moreover, the massive cosmetics industry across different countries in the region is another area demonstrating the high demand for wax & catering to the overall market expansion.
Possible Restraint: High Cost of Animal & Plant-Based Waxes Restraining Industry
While wax is derived from a variety of resources, its procurement from animals & plants is relatively higher than petroleum and other resources. It, in turn, brings out an overall high cost of manufacturing wax, which then restrains cost-sensitive users from buying and shifts the consumer focus on using other cheaper alternatives. Besides, as animal & plant-based products degrade much early, sustainability issues also restrain the fledged growth of the industry and challenge the sales of these wax across locations.
Growth Opportunity: Rising Oil Exploration Activities Generating Opportunities for Leading Players
As the demand for oil & gas is mounting worldwide, activities associated with refining & exploration of such resources are escalating rapidly, which in turn, are demonstrating a high presence of petroleum. Once the petroleum separation is done, the obtained products are refined t create wax and utilize in different ways. It, in turn, is generating growth opportunities for the leading players to widen their production & distribution capacities and use wax from such resources.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Wax Market is projected to grow at a CAGR of around 4% during 2022-27.
A. Wax derived from resources like animals & plants is higher, which makes the overall cost of manufacturing wax expensive and restrains several consumers from investing, thereby affecting the fledged growth of the Global Wax Market.
A. Packaging is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Wax Market during the forecast period.