Wax, a simple lipid, is an ester of a long chain alcohol and a fatty acid that can be found as coating on leaves and stems. Waxes can be procured from several different sources such as plants, animals, and can be derived from petroleum. Industrial wax exhibits important properties, including lipophilicity and malleability at ambient temperature, making it widely applicable in pharmaceutical and cosmetic products. In addition, it possess high viscosity, moisture control, and lubrication properties that make it suitable for candle, packaging, coating, and polishing applications.
COVID-19 scenario analysis
The coronavirus pandemic has affected every aspect of life worldwide. This has led to several changes in the market conditions.
As the overall demand for products of major companies has reduced, it has a severe impact on the packaging industry where the use of industrial wax is considerably high.
Other major end users of industrial wax are the cosmetics and personal care product industries. However, being nonessential products, the demand and sales have significantly reduced due to the global pandemic. Another factor that played a key role in the decrease in demand is the reduction of disposable income due to the economic slowdown.
One of the major uses of wax is for polishing cars. However, due to the outbreak of COVID-19, most of the car companies have reduced or shut down their production as well as their servicing units. This has resulted in a major decline in the demand for car wax in the market.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
Surge in demand for colored and scented candles for home décor purposes and for aromatherapy, such as stress reduction and relaxation is expected to drive the growth of the global industrial wax market. In addition, rise in need for industrial wax in the production of latex and rubber is anticipated to fuel its demand, thereby contributing toward the growth of the global market. Moreover, ease of purchase and availability of extensive information and reviews through e-commerce channel is expected to boost the market growth. Furthermore, supermarkets and hypermarkets provide industrial wax at discounted prices with various offers, thus, customers prefer purchasing of industrial wax through these channels, thus generating increased revenue. However, volatility in the raw material prices hinders the market growth. Furthermore, shift in trend toward conversion of industrial wax into base oil through isomerization is anticipated to restrict the market growth. Such shrinking of industrial wax base can lead to supply–demand gap in projected timeframe. On the contrary, advancements such as gas-to-liquids (GTL) and coal-to-liquids (CTL) processing can meet the supply–demand gap, thus providing lucrative opportunities for the market expansion.
The global industrial wax market trends are as follows:
Increase in demand for industrial wax in packaging industry
The packaging sector is expected to serve as the major end user of industrial wax. This is attributed to the fact that industrial wax is expected to witness significant demand in the packaging industry, owing to its properties, such as superior lubrication and enhanced water resistance. In addition, wax coating provides durability to packaging during the time of transit. Moreover, wax-coated papers offer cost-effective wrapping solutions to protect goods from moisture, humidity and greasing.
Industrial waxes are added to compounds of rubbers and tires to protect them from ozone and UV radiation and from cracking. Moreover, anti-blocking, anti-scratch, waterproofing, superior finish, and slip resistance properties exhibited by industrial wax are highly favored in the coating industry, thereby augmenting its demand, globally. Industrial bio-based waxes are mostly favored by food packaging, cosmetics, and personal care applications, which further contributes toward the growth of the market.
Key benefits of the report
This study presents the analytical depiction of the global industrial wax industry along with the current trends and future estimations to determine the imminent investment pockets.
The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global industrial wax market share.
The current market is quantitatively analyzed to highlight the global industrial wax market growth scenario.
Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
The report provides a detailed global industrial wax market analysis on the basis of competitive intensity and how the competition will take shape in coming years.
Questions answered in the industrial wax market research report:
Which are the leading market players active in the industrial wax market?
What are the current trends that will influence the market in the next few years?
What are the driving factors, restraints, and opportunities in the market?
What are the projections for the future that would help in taking further strategic steps?
Industrial Wax Market Report Highlights
By End User
Other Key Market Players
Gandhar Oil refinery, Numaligarh Refinery Limited, Petróleo Brasileiro, THE PJSC Lukoil Oil Company