The global paraffin wax market is expected to grow from USD 5.71 billion in 2019 to USD 7.67 billion by 2027, at a CAGR of 3.70% during the forecast period 2020-2027.
Paraffin wax market is witnessing the steady growth from the past few years. The demand for paraffin wax for candle making is very high, owing to the increasing popularity of aromatherapy and home fragrance products. These waxes can also be used to provide relief from pain to muscles and sore joints. Furthermore, High melting point paraffin wax can be used as an external lubricant for PVC. High melting points helps in the dispersing smoothness and improves the production speed and fluidity of the product. Currently, paraffin wax is commonly used to manufacture waterproof tarpaulin, owing to its advantages such as durability, waterproofing, and cost-effectiveness, and widely used for either protecting or covering crops and vehicles.
Paraffin wax is a colourless, white soft wax, generally comes in solid or liquid form. It obtains from the petroleum coal, and oil shale, which consist of a mixture of solid straight-chain hydrocarbons. It used in paper, candles, cosmetics, polishes, and electrical insulators. It also assists in extracting perfumes from flowers, supplies a waterproof coating for wood, and forms a base for medical ointments.
Global paraffin wax market is growing at a steady growth rate, owing to increasing demand for a variety of end-use applications such as candle manufacturing, rubber, and cosmetics etc. In addition to this, rising usage of paraffin wax in the packaging and automotive industry, further driving the growth of the market. Furthermore, increasing application of paraffin wax for therapy treatment is expected to offer new growth opportunities for the vendors in the market. However, growing usage for environment-friendly alternatives, such as beeswax, soy, and polyethylene wax, is anticipated to hamper the growth of paraffin wax market over the forecast period.
Key players operating in the global paraffin wax market ExxonMobil, PetroChina Company Limited, Sasol, Honeywell, The International Group, Inc., Chennai Petroleum Corporation Limited (CPCL), Petrobras, Nippon Seiro Co., Ltd., Petro-Canada, Repsol, H&R Group, CEPSA, and Indian Oil Corp Ltd (IOCL) among others. The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances and partnerships to improve their market position in the global paraffin wax industry.
- In February 2018, Sasol announced the successful commission of its Fischer-Tropsch Wax Expansion Plant (FTWEP) at its Sasolburg operation, with the aim to expand Sasol's Southern African operations. This expansion is a part of the company's regional strategy and the company's commitment to industrial investment in South Africa.
- In October 2019, Cepsa announced that it had renewed its agreement with ExxonMobil for the manufacture, distribution and supply of Mobil-brand marine lubricants in more than 130 ports in Spain, Portugal and Gibraltar.
The fully refined wax held the major market share and valued at USD 3.19 billion in the year 2019
The type segment is divided into fully refined paraffin wax and semi-refined paraffin wax. The fully refined wax held the major market share and valued at USD 3.19 billion in the year 2019. Fully refined paraffin wax is highest grade purity wax and generally used in the application such as Medial, food, and cosmetics industry.
The solid segment dominated the market and held the major market share of 70.56% in the year 2019
The form segment includes solid and liquid. The solid segment dominated the market and held the major market share of 70.56% in the year 2019. Solid form paraffin wax is widely used for candle making and in the packaging industry as wax coatings for film, paper, and foil substrates including corrugated board, cups and container.
Cosmetics application segment is estimated to rise at the highest CAGR of 4.7% over the forecast period.
The application segment includes candles, packaging, cosmetics, hotmelts, board sizing, rubber, and others. Cosmetics application segment is estimated to rise at the highest CAGR of 4.7% over the forecast period. Paraffin wax has air and water barrier properties, which open up a myriad of applications in the cosmetics industry. The global cosmetics industry is driven by the rise of e-commerce, product innovation, and growth in travel retail across the globe. In addition to this, increasing demand for cosmetics products in developing countries such as India, China, Brazil, and Southeast Asian countries, further driving the growth of the market.
Regional Segment Analysis of the Paraffin Wax Market
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, U.K., Italy, Spain, Rest of the Europe)
- Asia-Pacific (China, Japan India, Rest of APAC)
- South America (Brazil and Rest of South America)
- Middle East and Africa (UAE, South Africa, Rest of MEA)
The regions analysed for the market include North America, Europe, South America, Asia Pacific, and Middle East and Africa. The Asia Pacific region emerged as the largest market for the paraffin wax market and valued at USD 1.94 billion in 2019. This is because of the presence of emerging economies such as India and China in the Asia Pacific region. Consumption of paraffin wax in cosmetics and in candles is on the peak in these countries, which is boosting the market growth. In addition to this, the region contributes in terms of high production of paraffin wax for the various applications. China is the leading country in the Asia Pacific region, owing to the presence of key vendors of paraffin wax market in the country. On the other side, the Middle East & Africa region is projected to grow at healthy growth rate in the global paraffin wax market, owing to rise in the oil and gas exploration activities, which is likely to results into wide availability of raw material resources for paraffin wax in the region.
The global paraffin wax market is analysed on the basis of value (USD Billion), volume (Kilotons), export (Kilotons), and import (Kilotons). All the segments have been analysed on global, regional and country basis. The study includes the analysis of more than 30 countries for each segment. The report offers in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining the key insight of the market. The study includes porter's five forces model, attractiveness analysis, raw material analysis, supply, demand analysis, competitor position grid analysis, distribution and marketing channels analysis.