Paraffin Wax Market by Size, Share, Types (Fully Refined, Semi Refined), Applications (Candles, Packaging, Cosmetics, Hotmelts) and Forecasts by 2027

Global Paraffin Wax market was valued at around USD 5.71 billion in 2019 and is expected to grow with the CAGR of 3.70% during forecast period to 2027.

Market Overview:

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. These hydrocarbons generally have a melting point from about 48° to 66° C (120° to 150° F). Dewaxing refined lubricating oil stocks used to obtain paraffin wax. Various technical progress has been served from the years, to make the filtration separations more efficient and economical. Purification methods consist of decolonization by adsorbents, chemical treatment, and fractionation of the separated waxes into grades by distillation, recrystallization, or both. Crude oils differ widely in wax content.

Paraffin waxes are 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. In paper and wood matches, it helps to ignite the matchstick by supplying an easily vaporized hydrocarbon fuel. It is often used in spa treatments and skin-softening salon on the cuticles, hands, and feet because it's colourless, tasteless, and odourless. 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.

Market Dynamics:

Drivers:

• Increasing demand for paraffin wax for candle making

The demand for paraffin wax for candle making is very high, owing to the increasing popularity of aromatherapy and home fragrance products. In addition to this, growing consumer awareness regarding home ambience, further increasing the demand for candles, resulting in the growth of paraffin wax market. U.S. is the leading consumer of candles, which are made up of the paraffin wax, and the sale is high during the holiday seasons such as the charismas. Thus, increasing demand for paraffin wax for the manufacturing of candles, driving the growth of the market. 

• Rising demand for paraffin wax from the cosmetics industry

The paraffin wax market is expanding due to the increasing demand for skincare products, as the wax plays a vital role in the personal care and cosmetics industry. In skincare products, the oil form of paraffin wax is used. Due to its spreadable consistency, it is widely used in the production of creams, balms, and lotions. Paraffin waxes are also used in the manufacture of fatty solid perfumes, which are used to scent the surface of the skin. Developing personal care industry in countries including India, France, China, Brazil, and Argentina, is anticipated to offer future growth opportunities for the paraffin wax.

Restraints:

• Price fluctuation and environmental concern

Paraffin waxes are petroleum-sourced products, and therefore variation in raw material prices is likely to hamper the market growth over the forecast period. The paraffin wax market highly prices volatile from the last few years due to the crude oil price fluctuations. In addition to this, since it is produced using crude oil, which is considered as highly unsustainable as this is a non-renewable resource, hampering the growth of the market in the upcoming years.

Opportunities:

• Growing usage of paraffin wax in the therapy

Paraffin wax therapy can be particularly useful for those suffering from rheumatoid arthritis and osteoarthritis. Regular paraffin hand treatments can help relieve pain and relax joints in hands before exercise and physical therapy. Paraffin wax can also minimize inflammation and muscle spasms as well as treat sprains. It is now widely being used in the spas as a wax bath therapy. Thus, increasing the application of paraffin wax for therapy treatment is expected to offer new growth opportunities for the vendors in the market.

Challenges:

• Availability of alternative waxes in the market

High usage of environment-friendly alternatives, such as soy, beeswax, and polyethylene wax is anticipated to hamper the growth of paraffin wax market over the forecast period. Many brands of candles and cosmetics industry are increasingly using more sustainable options in replacement of paraffin wax. Wax derived from the soy, palm and tallow was already extending the supply of wax in some industries, with soy-based wax being favoured in the US and palm-based wax used more widely in Asia and Europe.

Segmentation Analysis:

The global paraffin wax market has been segmented based on type, form, application, and regions.

• The type segment is divided into fully refined paraffin wax and semi-refined paraffin wax. The fully refined wax held the major market share of 56.39% in 2019. It contains less than 0.5% of oil and considered as the highest grade of refinement. Fully-refined paraffin wax is treated with clay or hydro-treated to take out impurities and discolouration. Three major industries that use Fully Refined Paraffin Wax are the medical, cosmetics, and food industries. Thus, increasing usage in the various sectors, boosting the growth of fully refined wax segment in the market.
• The form segment includes solid and liquid. The solid segment dominates in the market and valued at USD 4.01 billion in 2019. At room temperature, the paraffin wax is in the solid states. Above the temperature of 37°C, the wax enters into the liquid phase. The solid 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.
• The application segment includes candles, packaging, cosmetics, hotmelts, board sizing, rubber, and others.  The candle is the leading segment in the global paraffin wax market and held the largest market share of 42.3% in 2019, owing to cost efficiency and reliability of the product. Wax candles are used in aromatherapy and as fragrance products on account of its low volatile organic compound emissions. Increasing usage of these products in hotels, restaurants, commercial buildings, and spas, coupled with the rising popularity of aromatherapy is expected to aid in the market expansion. However, the cosmetic industry provides a considerable opportunity in the global paraffin wax market. Different lotion, lipsticks, and creams require paraffin wax, as it has a spreadable consistency.

Regional Segmentation Analysis:

The regions analysed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The Asia Pacific region emerged as the largest market for the paraffin wax market, with a 34.6% share of the market revenue 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 the cosmetics and 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.
• The North America region is projected to rise at a considerable growth rate in the global paraffin wax market over the forecast period. This is mainly due to the high demand for paraffin wax in the cosmetics and food packaging industry. In addition to this, the presence of leading players in the region, further boosting the growth of the market in this region.

Competitive Analysis:

Developing and developed countries are offering more significant opportunities and significant players are continuously focused on new developments, strategic partnerships, acquisitions and venture capital investments to obtain high growth in the market.

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.

List of Key Market Players:

• ExxonMobil
• PetroChina Company Limited
• Sasol
• The International Group, Inc.
• Honeywell
• Petrobras
• Nippon Seiro Co., Ltd.
• Petro-Canada
• Repsol
• H&R Group
• CEPSA
• Chennai Petroleum Corporation Limited (CPCL)
• Indian Oil Corp Ltd (IOCL).

Key Target Audience

• Candle Manufacture
• Pharmaceutical Companies
• Traders and Distributors of Paraffin Wax
• Raw Material Suppliers
• Packaging Companies
• Cosmetics Manufacturers 
• Potential Investors

What will the report include?

• Highlights of main global R&D activities and new technological developments
• Estimation of the actual market size and revenue forecasts for global market
• Description of the most relevant research and development activities related to Paraffin Wax market places
• Production of Paraffin Wax, and review of application for Paraffin Wax and assessment of emerging applications
• Analyses of the global market trends, with data from 2020, estimates for 2021, and forecast through 2027
• Review of current industry players, including manufacturers of Paraffin Wax, technology developments, and future market participants

Some of the key questions addressed in the report were…

• What were the market size in 2014 and the outlook from 2021 to 2027?
• How much growth will the industry market experience between 2017 and 2027?
• What are the important factors, constraints, and opportunities, and how they will affect market?
• What are the key segments of the Paraffin Wax market growth and why?
• Who are the main participants and strategies they use to compete in the market?

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