paraffin wax market
Paraffin wax Market Insight
The global paraffin wax market accounted for USD 5.3 billion in 2016. Paraffin wax is mainly used for producing aroma candles as they are cost efficient and requires use of less machinery. Increased standard of living of the individuals has raised the consumer awareness regarding home ambiance and aromatherapy.
Increased usage in the fields of manufacturing industrial coatings, body care products, metal casting, and electrical insulations is likely to drive the market in the near future. Apart from the cost efficiency and easy availability, these products provide outstanding water resistance to packaging and hence are anticipated to witness prominent growth over the coming year.
The growing demand for manufacturing candles and its packaging is anticipated to boost the market over the forecast period. Increased demand for chlorinated paraffin is also one of the factors to stimulate the growth.
As the Paraffin waxes are petroleum-based products, changes in the petroleum prices may cause the price of these products to rise, limiting the growth of the market. Additionally, the increased usage of the alternatives such as beeswax, soy, and polyethylene wax are anticipated to restrain the market from flourishing.
The Paraffin wax market by type has been sub-segmented into fully refined wax, semi-refined wax among others.
Application Insights
Candles contributed to approximately 40 % of the market revenue in 2016 making it the leading application segment. Due to the increasing usage of candles in hotels, spa, aromatherapy, its market segment is expected to grow at a considerable rate.
Moreover, the increasing purchasing power of the consumers in China, India, and South Korea along with the accessibility of a wide range of aromas and the need to maintain home hygiene are expected to push the market for such products.
Due to increasing consumption of paraffin waxes in electrical insulator, friction reducer and flame retardant, the market size is expected to expand during the predicted time period. High usage of paraffin wax in making of cosmetics, rubber, candles have also added on to the growth of this particular market segment.
A major usage of paraffin wax lies in flexible packaging. Paraffin wax helps in preventing the packaging from odor and gas transmission.
Developing economies like China, India, Iran, South Korea, South Africa and Brazil are witnessing significant growth in the food and beverage sector leading to an increasing demand for flexible packaging. This in turn is expected to act as a catalyst to the growth of the paraffin wax market.
Paraffin Wax Market Analysis and Segment Forecasts 2014-2025
Industrial Insights of Paraffin Wax
The global paraffin wax market size was valued at USD 4.87 billion in 2015. Growing application of the product for manufacturing candles along with its rising requirement in packaging and hotmelts is expected to stimulate the paraffin wax demand over the forecast period. Moreover, these products provide excellent water resistance to packaging materials and are anticipated to witness significant rise over the forecast period.
Paraffin waxes are used for manufacturing fragrance candles as they are economical and require lesser machinery costs. Growing demand for aromatherapy and consumer awareness regarding home ambiance is expected to drive the requirement of fragrance waxes, which in turn is likely to aid in market expansion over the upcoming years.
Increasing usage in the production of industrial coatings, hot melt adhesives, plastic & rubber processing aids, body care products, metal casting, pharmaceuticals, and electrical insulations is expected to drive demand in the near future. In addition, rising consumption of chlorinated paraffin as a flame retardant and plasticizer in flexible PVC is likely to drive market growth over the next nine years.
Companies including ExxonMobil, Sinopec, and PetroChina are continuously working on the expansion of its base oil plants, which in turn is expected to stimulate growth. Moreover, rising shale oil exploration and production in the U.S., Russia, China, and Brazil will aid in industry augmentation. In addition, the implementation of deoiling technology for wax production is anticipated to create new avenues over the forecast period.
Paraffin waxes are petroleum-sourced products, and therefore volatile petroleum prices along with harmful emissions are likely to restrain industry growth over the forecast period. Furthermore, the increasing usage of environment-friendly alternatives, such as beeswax, soy, and polyethylene wax, are expected to pose challenges for the product growth.
Application Insights
Candles were the leading application segment and accounted for 41.9% of the market revenue in 2015 and are anticipated to foresee considerable growth on account of their increasing usage for aromatherapy in spa, hotels, and other commercial buildings. Furthermore, the availability of a wide array of fragrances along with rising consumer purchasing power in China, India, and South Korea is expected to drive the usage of these products in home hygiene maintenance.
Packaging is anticipated to witness revenue growth at a CAGR of 4.2% from 2016 to 2025 in light of rising requirement of packaged food in several countries including the U.S., China, India, the UK, Germany, Russia, Mexico, and Brazil. Moreover, increasing utilization of flexible packaging in personal care, pharmaceuticals, and food & beverage industry is expected to increase industry expansion.
Regional Insights
Asia Pacific dominated the global market and accounted for 33.3% of the volume share in 2015. The region is expected to show high gains in light of growing personal care, packaging, rubber, and pharmaceuticals industries in China, India, and South Korea. Increasing need for hotmelt adhesives in countries including China, Taiwan, Australia, India, and South Korea for packaging and woodworking is anticipated to augment growth.
China is one of the leading exporters of paraffin wax owing to the presence of large-scale companies including Sinopec and PetroChina. In addition, high investments by several Indian refineries including Chennai Petroleum Corporation Limited and Numaligarh Refinery Limited to expand their wax production capacities are expected to stimulate industry growth.
North America is expected to witness rise on account of high demand for fragrance candles along with rapidly growing cosmetic, pharmaceuticals, and packaged food & beverage in the U.S. and Mexico. Hectic work schedules and wrong eating habits of consumers are likely to drive the demand for packaged food, which in turn is anticipated to fuel growth over the forecast period.
High demand for cosmetics, fragrance products, and food packaging is likely to drive product demand in Middle East & Africa. Moreover, increasing oil & gas exploration in the region is likely to drive the availability of raw materials, which in turn is expected to propel growth over the forecast period.
