The Wax Market size is forecast to reach US$11.3 billion by 2027, after growing at a CAGR of 2.7% during the forecast period 2022-2027. Wax is an ester of long-chain fatty acids along with long-chain monohydric alcohols. It can be divided into multiple categories such as paraffin wax, shellac wax, mineral wax, stearate wax, and more. They are used in a wide range of industries which include packaging, Cosmetic & Personal Care, automotive, building & construction, pharmaceutical, food & beverage, textile, rubber, and other industries. According to recent insights published on Interpack in 2020, the global packaging industry is expected to grow by an annual rate of 3.5% within the next four years. An increase in demand for wax from the packaging and textile industries acts as the major driver for the market. On the other hand, fluctuating prices of raw materials may confine the growth of the market.
There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing, and production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, the COVID-19 pandemic has increased the demand for packaging all over the world. For instance, recent insights from Flexible Packaging states that the food packaging industry witnessed a sharp increase in demand during the pandemic due to the high number of consumers turning into online groceries shopping. By the end of 2021, U.S. online grocery sales accounted for 12.4% of the country’s overall e-commerce sales. It further states that the U.S. digital grocery buyers grew up to 137.9 million in 2021, a growth of 4.8% in comparison to 2020. Supermarkets witnessed a huge surge in demand for packaging materials for the wrapping of food and other grocery products. Hence, such an increase in demand for packaging is expected to increase the demand for wax as it is primarily used as plastic additives in the production of plastics used for packaging. This is most likely to lead to market growth in the forecast period.
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Wax Market Segment Analysis – By Application
The Adhesive application held the largest share in the Wax Market in 2021 and is expected to grow at a CAGR of 2.8% between 2022 and 2027, owing to the increasing demand for adhesives from the packaging sectors in multiple regions across the world. According to a recent study published by the European Adhesive and Sealant Industry in 2020, the adhesives sector saw an increase in the production of adhesives across multiple regions. Asia-Pacific saw an increase of 36.8%, Europe by 34.5%, North America by 23.1%, the Middle East by 1.3%, and Africa by 1.1% in 2020. In this way, such an increase in the production of adhesives across the globe is expected to increase the demand for wax since it is primarily used for the production of adhesives, thus, leading to market growth in the upcoming years.
Wax Market Segment Analysis – By End-Use Industry
Cosmetic & Personal Care held the largest share in the Wax Market in 2021 and is expected to grow at a CAGR of 2.9% between 2022 and 2027, owing to the increasing demand for wax in the production of cosmetics, and skincare products. For instance, according to a study published on Fashion Network, skincare and sun care products produced an average annual growth of 5.6% in 2020. Furthermore, recent insights from World’s Top Exports states that countries like France, Singapore, South Korea, and the US sold some of the largest amounts of exported beauty and skincare goods during 2020 with shipments valued at US$ 9 billion, US$ 6.2 billion, US$ 6.1 billion, and U$ 5.1 billion respectively. European countries sold the highest amount of exported beauty and skincare goods during 2020 with shipments valued at US$ 26.7 billion, which indicates around 44% of the global total. This is followed by Asian exporters with related shipments at 43%, and North America by 10.7%. Since, wax such as paraffin wax, and shellac wax are used in cosmetic products for stabilizing formulations and emulsions in the product along with boosting their consistency and viscosity, it plays a major role during the production of cosmetics, and skincare products. Thus, the increasing growth of the cosmetic & personal care industry is expected to accelerate the growth of the market during the forecast period.
Wax Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the Wax Market in 2021 up to 30%. The consumption of wax is particularly high in this region due to its increasing demand from the packaging and cosmetics sectors. Wax is primarily used as a plastic additive in the production of plastics used for packaging. For instance, China holds the largest market share around the world when it comes to food packaging. According to a recent study published on Interpack, the consumption of food packaging is expected to increase to 447,066 million in 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of around US$5.88 billion with end packaging. According to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$ 50.5 billion in 2019 and is expected to increase up to US$ 204.81 billion by the end of 2025. It further states that packaging is considered to be one of the industries with high growth in India and is rising at 22-25% per year.
Furthermore, wax such as paraffin wax, and shellac wax is used in cosmetic products to thicken formulations. It is used to provide stability to skincare & cosmetic products along with providing emollient and protective qualities and helps in boosting their consistency and viscosity. For instance, a recent study published by the Indian Ministry of Economy and Industry states that the beauty and personal care industry in the country reached over US$ 10 billion in 2021, and is most likely to grow by around 6% in the upcoming years. Likewise, Shiseido, a leading cosmetics and beauty brand in Japan, published a report which stated that the net sales of the company based on cosmetics and personal care products reached around 267.2 billion yen (US$ 2.4 billion) during the fourth quarter of 2020, and it is expected to rise in the upcoming years as well.
In this way, the growth of packaging and cosmetics industries in the region is expected to increase the demand for wax such as paraffin wax, shellac wax, mineral wax, and stearate wax, thus, resulting in the growth of the market during the forecast period.
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Wax Market Drivers
An increase in demand from the packaging industry is most likely to increase demand for the product
According to PMMI (The Association for Packaging and Processing), the North American beverage industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. Likewise, recent insights from the Packaging Federation of the United Kingdom states that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$ 15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors of the region. In this way, an increase in demand for packaging activities is expected to increase the demand for wax during the production of plastics required for packaging. This is most likely to lead to the growth of the market in the upcoming years.
An increase in demand from the textile industry is most likely to increase demand for the product
Wax emulsions are primarily used as softeners and sizing aids in the textile industry. The wax emulsion generates bright color, high gloss, high tensile strength, and high elasticity in the fabric. For instance, in July 2021, India announced the Non-Woven Fabric Manufacturing Expansion Project worth INR 220 million (US$ 2.9 million) in Himachal Pradesh. A recent article published on fibre2fashion states that Vietnam’s garment manufacturing business accounts for around 70% of the majority of businesses. It also states that the import of textiles and clothing by the United States increased by 26.79 % up to US$41.689 billion during the initial five months of 2021. Likewise, the value of U.S. man-made fiber, textile, and clothing shipments reached about $64.4 billion in 2020. Furthermore, in 2021, United Nations Environment Programme (UNEP) announced the commencement of a new project that is targeted to provide the approval of eco-innovation along with the use of Product Environmental Footprint (PEF) within textile SMEs in Kenya, South Africa, and Tunisia.
In this way, an increase in demand for various textile operations across the world is expected to increase the demand for wax such as paraffin wax, shellac wax, and more, for post-finishing of textiles in order to make the fabric have excellent smoothness, softness, and gloss. This is most likely to drive market growth in the upcoming years.
Wax Market Challenges
Fluctuating prices of raw material prices may cause an obstruction to the market growth
Crude oil is the primary raw material used in the production of petroleum-based wax which includes paraffin wax, microcrystalline wax, and petroleum jelly. According to recent insights published in the Journal of Cleaner Production in 2021, a supply deficit of 0.6% in crude oil was observed in 2020. Furthermore, it also states that this deficit is most likely to increase by 8% or 0.18 million tons by 2030 across the globe, owing to the increase in demand for crude oil-based biofuels for transportation. Due to this imbalance in the supply-demand chain of crude oil, its prices are most likely to hike or fluctuate in the upcoming years. Hence, the fluctuating prices of crude oil which is significantly required in the production of wax may confine the market growth.
Wax Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Wax Market. Wax top 10 companies include:
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Wax Emulsion Market – Forecast (2022 – 2027)
Microcrystalline Wax Market – Forecast (2021 – 2026)
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