Paraffin Oil Market Research, 2031
The global paraffin oil market was valued at $2.2 billion in 2021, and is projected to reach $3.3 billion by 2031, growing at a CAGR of 4.4% from 2022 to 2031.
Paraffin oil is a mineral oil that is produced as a by-product of crude oil distillation. It is a clear, odorless, colorless, and tasteless oil made up mostly of high-boiling alkane derivatives. Paraffin oil is used in a variety of cosmetics, including skin and hair care products. It's frequently used to treat dry skin, constipation, and eczema.
Rising demand for cosmetics and personal care products such as emulsions, hair care, lotions, lip balm, baby oil, and emollients is projected to drive market growth. However, development of bio-based products is anticipated to hamper the growth of the paraffin oil industry. On the contrary, growth in the packaging industry is expected to generate lucrative opportunities for the global paraffin oil market.
The paraffin oil market is segmented into grade, application, and region. On the basis of grade, the market is categorized into technical, pharmaceutical and cosmetics. On the basis of application, the market is categorized into cosmetics & personal care, pharmaceuticals, food, textiles and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The paraffin oil market is analyzed across all significant regions and countries.
The major players operating in the global paraffin oil market include BASF SE, Baker Hughes, BP plc, Cepsa, China National Petroleum Corporation, Evonik, Eni S.P.A, Exxon Mobil, Gulf Oil International, Honeywell International, HollyFrontier Refining & Marketing LLC, Linde Plc, Mitsui Chemicals, Sasol, and Shell Plc.
Asia-Pacific is projected to register a robust growth during the forecast period. Paraffin is mostly demanded in skin care products and food industry in Asia-Pacific.
China is the leading importer of beauty-related skincare products, lip makeup preparations, and skincare, cosmetics, and baby powders. The growing demand for beauty and skin care products is expected to boost the paraffin oil market growth during the forecast period in the region.
Pharmaceutical segment dominated the global paraffin oil market in terms of revenue, in 2021. Pharmaceutical grade paraffin oils are used as internal lubricants in the pharmaceutical sector for laxative treatments. Pharmaceutical grade paraffin oils are non-allergenic and don’t have any negative impact on the skin. Paraffin oil is a medication used to treat eczema and other dry skin disorders. Eczema is a skin condition in which skin areas become irritated and rough, with ulcers that can cause itching and bleeding. The skin loses moisture and may peel, break, or become irritating, resulting in dry skin. The rising demand for pharmaceuticals along with the growing need for eczema treatment is expected to boost the paraffin oil market during the forecast period.
Pharmaceuticals segment dominated the global paraffin oil market in 2021. Paraffin oil is used as a laxative to treat constipation in conditions like fistula, piles, fissures, and pre/post-operative conditions among elderly and bedridden patients. It can also be used to relieve pain in painful joints and muscles. Thus, increasing demand from pharmaceutical industry is expected to boost the paraffin market during the forecast period.
COVID-19 Analysis:
- The COVID-19 pandemic had moderate impact on the paraffin oil market. It also has an influence on the supply of cosmetics & personal care as well as the import and export of paraffin oil. The demand for paraffin oils witnessed 5% drop in 2020. The scale of decline varied from one country to another. The drops, between 5% and 10%, were higher in matured markets such as the U.S., Germany, France, and the UK because these countries were among the most affected during the first wave of COVID-19, encountering temporary closures or decline in production activities in different factories.
- As consumers purchased less makeup and clothes, demand for paraffin oils dropped in the cosmetics & personal care and textile industries. Meanwhile, the closure of restaurants and bars led to a reduction in paraffin oils demand in the food sector. On contrary, the pharmaceuticals industry witnessed an upsurge in paraffin oils demand due to rise in pharmaceuticals production and consumers buying more than their average number of medications during the COVID-19 crisis.
- Further, the COVID-19 pandemic has had a detrimental effect on the cosmetics industry globally, causing great loss to businesses that cannot be measured causing tremendous loss to businesses that cannot be quantified. For instance, the online orders for beauty and personal care products in India went down by about 70% compared to the 2019. However, demand for cosmetics and personal care has been slightly increasing from mid-2020 in the U.S.
- Consequently, increase in demand from the pharmaceuticals industry coupled with rise in demand for cosmetics and personal care is anticipated to propel the paraffin oil market during the pandemic.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the paraffin oil market analysis from 2021 to 2031 to identify the prevailing paraffin oil market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the paraffin oil market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global paraffin oil market trends, key players, market segments, application areas, and market growth strategies.
Paraffin Oil Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 3.3 billion |
 Growth Rate | CAGR of 4.4% |
 Forecast period | 2021 - 2031 |
 Report Pages | 280 |
 By Grade |
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 By Application |
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 By Region |
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 Key Market Players | Mitsui Chemicals, HollyFrontier Refining and Marketing LLC, Sasol Limited, Honeywell International Inc., BASF SE, Exxon Mobil Corporation, Linde plc, Eni S.P.A, China National Petroleum Corporation, BAKER HUGHES, gulf oil international group, BP plc, Cepsa, Royal Dutch Shell Plc, evonik industries ag |
Analyst Review
According to the perspective of the CXOs of leading companies, the paraffin oil market is anticipated to grow in the near future, due to its extensive use in applications such as cosmetics & personal care, pharmaceuticals, food, textiles and other end-use industries.
Paraffin oil is a raw ingredient used in the production of creams, lotions, baby oil, ointments, gels, lubricants, hair oils, and shampoos. Paraffin oils are used in a variety of personal and cosmetics items, including emulsions, haircare, lotions, lip balm, baby oil, and emollients. It is used for the preparation of a number of solid and liquid brilliantine, cold cream, moisturizers, and lotions as well as in makeup products such as lip balm, lipstick, and foundation cream.
Rise in packaging industry is driving the market growth during the forecast period. However, development of bio-based products is projected to hinder the market growth.
The Asia-Pacific region is projected to register a robust growth during the forecast period.
The paraffin oil market was valued at $2.2 billion in 2021, and is projected to reach $3.3 billion by 2031, growing at a CAGR of 4.4% from 2022 to 2031.
Asia-Pacific is the largest regional market for Paraffin Oil.
The growth of the global paraffin oil market is majorly attributable to its wide applications in various industries such as pharmaceuticals, food, textiles and others. Also, increase in demand from cosmetics and personal care industry is driving the market growth during the forecast period.
Pharmaceutical is the leading application of Paraffin Oil Market.
The major players operating in the global Paraffin oil market include BASF SE, Baker Hughes, BP plc, Cepsa, China National Petroleum Corporation, Evonik, Eni S.P.A, Exxon Mobil, Gulf Oil International, Honeywell International, HollyFrontier Refining & Marketing LLC, Linde Plc, Mitsui Chemicals, Sasol, and Shell Plc.
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