The global wax market is 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.
The growing consumption of synthetic wax as it offers various properties such as thermal degradation resistance, high temperature stability and good heat resistance is likely to increase its demand in creams, eye make-ups and lipsticks in cosmetics applications.
Natural wax has been emerging as a potential mineral and synthetic wax alternative on account of its ability to provide luster and excellent oil retention coupled with environment friendly nature. High scuff-resistant toughness and melting point, and chemical stability of the product as a substitute to paraffin, microcrystalline and polyethylene waxes is expected to witness promising gains over the upcoming years.
The candles accounted for 36.01% of the overall revenue share in 2016 and is expected to witness growth owing to high usage of the product are as gift items for various occasions, including house warming gifts, adult birthday party gifts as well as thank you and dinner/hostess party gifts. The increasing demand for blended, palm and soy waxes in candles industry is expected to augment the overall wax consumption in the near future.
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.
Key players dominating the industry are Evonik Industries AG, ExxonMobil Corp., Sinopec Corp., CNPC, BASF SE, Royal Dutch Shell Plc. And HollyFrontier Corp.
Industry is highly competitive with companies undertaking several initiatives including frequent mergers, acquisitions, capital expansion and strategic alliances. Growing plastics and rubber processing sector along with rising consumption of adhesives, fire logs, and candles and decorative products applications is projected to propel the industry demand.
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 Slackwax 120 and Slackwax 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.
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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