Microcrystalline Wax Market is forecast to reach $926.27 Million by 2025, after growing at a CAGR of 3.9% during 2020-2025. In the Asia-Pacific region, the market is driven by the rising personal care industry. The increased demand for ice hockey and snowboarding will likely be an opportunity for market growth in the North American region.
- Huge demand from the end-use industries will provide a favorable macroeconomic environment for polyethylene wax market.
- A key driver of growth in the microcrystalline wax market strong demand for Chemicals and Petroleum-based products.
- Industry leaders like pharmaceutical manufacturers, cosmetics manufacturers, etc. allow the development of strategic partnerships to increase their portfolios and market share.
Application – Segment Analysis
Cosmetics and Personal Care sector has been the primary market for Microcrystalline Wax by growing at a CAGR of 3.56%. For cosmetics and personal care products, microcrystalline wax is used for thickening the formulations as a viscosity agent, binder and emollient. With the increasing numbers of new products for beauty and the concern for good appearance the demand for beauty products and cosmetics has increased significantly. Production has reached high levels and the region has become an important hub for exports to developed nations such as the United States for cosmetic products and personal care products. There is estimated a rapid increase in the demand for personal care products in countries such as South Korea and Indonesia, owing to increasing cosmetics. The Asia-Pacific region is the largest microcrystalline wax consumer and manufacturer. In addition, all the above factors are expected to drive the microcrystalline wax market during the prediction period.
Geography – Segment Analysis
APAC dominated the Microcrystalline Wax Market with a share of more than 36.4%, followed by North America and Europe. The use of cosmetics and personal care products is growing across the region with an increased focus on personal appearance, aging and the standard of living in countries like China and India. Since the last decade, the cosmetics market has grown in India. The country’s packaging industry’s growth is driven mainly by the food and pharmaceuticals industries. Together with the increase in organized retail in the country, the large and growing Indian middle class population stimulates the development of the packaging industry. The needs for packaging in India have increased because of various requirements for packaging, such as lightweight products different sizes, shelf life and easy recycling. In addition, all these factors increase the demand in the Asia-Pacific region for micro-crystalline wax over the forecast period.
Drivers – Microcrystalline Wax Market
- Increased global transport activities will raise global demand for microcrystalline wax
However, the worldwide transportation of goods, fruit, and vegetables is growing rapidly, contributing to an increasing demand for packaged foods. The growing demand for packaged foods can be due mainly to changes in dietary habits and preferences. As a result, the rising transportation of packaged foods creates enormous opportunities throughout the forecast period for the food packaging industry. For impregnation, coating and contact adhesives used in food packaging, mixtures of hard paraffin, micro crystalline waxes with resins and plastics are used to ensure a longer lifespan for fruits / foods. Micro-crystalline wax prevents moisture from keeping fruits safe for an extended period. The growing food packaging industry in the coming years will thus increase demand for microcrystalline wax.
Challenges – Microcrystalline Wax Market
- Complete dependence on petrochemical feedstock decreases the growth of the demand for microcrystalline wax
Solvents generally come from refining and petrochemical feedstock operations and they are commonly used by end-use industries. The extraction of crude oils produces micro-crystalline waxes. The price volatility of such feedstock will trigger micro-crystalline wax prices to fluctuate. This might act as a restriction to oil-based feedstock and thus hinder the growth of the world’s microcrystalline wax industry. In addition, the profits for microcrystalline wax suppliers will be low.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Microcrystalline Wax market. In 2018, the market of Microcrystalline Wax has been consolidated by the top five players accounting for xx% of the share. Major players in the Microcrystalline Wax Market are Sasol, MOL Group, The International Group, Inc., Calumet Specialty Products Partners, L.P., Indian Oil Corporation Ltd, Sonneborn LLC, Koster Keunen, Kerax Limited, Asian Oil Company, and CEPSA, Nippon Seiro Co., Ltd. and Holly Frontier Refining & Marketing LLC, among others.
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