Montan wax Market Expected to Reach $195.5 Million by 2031

According to a new report published by Allied Market Research, titled, "Montan wax Market by Type, Application, and End-use industry: Global Opportunity Analysis and Industry Forecast, 2022–2031," the global montan wax market size was valued at $130.0 million in 2021, and is projected to reach $195.5 miillion by 2031, growing at a CAGR of 4.2% from 2022 to 2031.

Montan wax is also known as OP and lignite wax is obtained from the extraction of peat moss, brown coal, and lignite. The montan wax is a good source of lubricating, coating, emulsifying, nucleating, and releasing agents owing to its widespread functionalities it is widely used in various end use industries such as manufacturing, automotive, electrical, and pharmaceuticals, cosmetics, textiles, and other end use industries.

An increase in the usage of the food industry is a key driver responsible for the montan wax growth. The montan wax acts as a coating agent that is applied on fruits for maintaining freshness and increasing their durability. In addition to this, the montan wax is used as a lubricating and coating agent in the manufacturing of plastic food containers. The higher demand from fruit vendors and increase in the demand from the plastic industry has increased the potential sales of montan wax in the market.

The montan wax is also known as lignite wax and mainly it is extracted from lignite and brown coal. However, there are some restraints from the government restrictions on lignite mining this may fall negative impact on the production of montan wax. In addition to this, and the availability of alternative substitutes for montan wax has adversely affected the growth of montan wax. These may negatively impact the growth of the global montan wax market. .

Rise in population, increase in disposable income, and growth in consumer demand for electrical devices, electric vehicles, and other components, has surged the demand for montan wax where it is used in wires, cables, and others. In addition to this, low electric conductivity coupled with excellent insulating property of montan wax, makes it useful in the electrical and electronics industry. These factors together are projected to create remunerative opportunities for the expansion of the montan wax market in the future.

The Montan wax market forecast is segmented on the basis of function, end use, and region. By function, the market is segregated into emulsion, lubricants, thickening agent, release agents, and others. The lubricants segment dominated the global market, in terms of revenue in 2021 with 33% share in the global market. This was due to increase in transportation and logistics activities and rise in industrialization in developed and developing economies, where montan wax is used as lubricating agent in the machineries and plastic industry that helps increase productivity of industrial and plastic industry.

By end use, the market is fragmented into wax polishes, rubber and plastics, pharmaceuticals, electrical, cosmetics, and others. The wax polishes segment dominated the global market, in terms of revenue in 2021 with 29% share in the global market. This is attributed to the fact that the montan wax acts as a coating and protective agent for vehicles. For instance, automotive, upholstery, electrical, and other sector prefers montan wax for polishing and coating purposes that helps in increase in water repellence on vehicles, impart high gloss, and improves scuff resistance.

Region-wise, the montan wax market is analysed across North America, Europe, Asia-Pacific, and LAMEA. The Europe montan wax market size is projected to grow at the highest CAGR during the forecast period, in 2021, with 35% major share in the global market. The electrical sector has accounted one of the highest revenue generating sector in Europe, where montan wax is used as lubricating and thermal insulating agent in wires, cables, and other electronics devices.

Key players operating in the global montan wax market include AmeriLubes, L.L.C., Carmel Industries, Clariant, Dhariwal Corp. Private Limited, Excel International, LUMITOS AG, Mayur Dyes & Chemicals Corporation, Poth Hille, ROMONTA GmbH, S. KATO & CO., Stevenson-Seeley, Inc., TER HELL & CO. GMBH, Tianshi Wax, VÖLPKER SPEZIALPRODUKTE GMBH, and Yunphos.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The montan wax market has moderate impact due to the wake of the COVID-19 pandemic, owing to disruptions in the supply chain for various industrial products. The outbreak of COVID-19 resulted in shutdown of various manufacturing plants for a long period, especially in Europe, Asia-Pacific, and other regions, owing to which manufacturers faced shortage in labor units, production losses, and also, rise in awareness regarding worker security, safety, and guidelines by government posed an additional challenge to resume their basic operations in manufacturing unit. In the first quarter of the pandemic, there was a complete shutdown of building & construction activities, manufacturing industry, and others, due to the strict imposition of lockdown, which hampered the growth of montan wax in the manufacturing industries, construction, pharmaceuticals, food & beverages, paper, electrical, agriculture, and other end-use sectors. Furthermore, disruption in the production unit, closure of manufacturing factories, and cutbacks in service sectors lead to disruption in global logistics and supply chain services. Moreover, the delays in the infrastructure investment, electrical, wax polishing sectors and complete shutdown of transportation has hampered the montan wax market. However, rise in demand for construction, electronics, paper, cosmetics, pharmaceuticals, manufacturing units, and increase in focus on an escalating economic recovery across the globe has supported the cosmetics, pharmaceuticals, transportation, manufacturing, and other end use sectors. In addition, as the restrictions imposed due to lockdowns are being lifted in the fourth quarter of the pandemic, the cosmetics, food & beverages, pharmaceuticals, agriculture, and other sectors are expected to recover soon owing to record of production unit in both developed and developing economies.

Key findings of the study

• In terms of function, lubricants segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.3% from 2022 to 2031.
• In terms of end use, wax & polishes segment is anticipated to register the highest CAGR of 5.1% during the forecast period.
• By region, Europe garnered the highest share of 35% in 2021, in terms of revenue, growing at a CAGR of 4.4%.