Wax Market Expected to Reach $16.7 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “Wax Market," The wax market was valued at $11.6 billion in 2020, and is estimated to reach $16.7 billion by 2030, growing at a CAGR of 3.7% from 2021 to 2030.

Wax is an organic compound that is lipophilic and bendable solid at room temperature. Higher alkanes and lipids, with melting temperatures often above 40 °C, melt to produce low viscosity liquids. Waxes are soluble in organic, nonpolar solvents but not in water.

Waxes are widely used as additives and bases. The use of wax increases, owing to importance of finished products ,including metal surface gloss and manufacturing of stone tools, driving the growth of the market. In addition, wax is used as a wear suppressant in metalworking and in assembly of metal objects. It is used in material management, owing to the property of water repellent. In addition, they are used as protective equipment in hardware and electronics stores.

The wax market is segmented on the basis of type, application, and region. By type, it is segregated into paraffin/mineral wax, synthetic wax, natural wax, and others. On the basis of application, it is fragmented into candles, packaging, emulsions, hot melts, floor polishes, and others. Region wise, it  is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

According to type, the paraffin/mineral wax segment is projected to hold a 70.0% market share in the market in 2020. Paraffin wax is being used on a large scale in packaging, cosmetics, and candle producing companies, owing to its cost-effective feature.

By application, the candles segment is projected to contribute a 60.2% market share in the market in 2020. This high share is attributable to the growth in demand for aromatherapy through scented candles. Use of candles has become a critical household essential. Candles are available in variety of sizes, shapes, and product range like birthday, taper, utility, teal light container to novelty candles. These are used for multiple purposes such as aromatherapy for relaxation, stress reduction, and home decor.

Region wise, Asia-Pacific is projected to hold a significant share in the global wax market. The growth is attributed to the rise in standards of living and industrialization, especially in countries like China and India.

The major companies profiled in this report include, Akzo Nobel N.V., Baker Hugher Company, BASF SE, Cepsa, China National Petroleum Corporation, Evonik Industries AG, Exxon Mobil Corporation, HollyFrontier Sinclair Corporation, Honeywell International Inc., The International Group Inc.

These players have adopted strategies such as product launch and business expansion to sustain the competition and to strengthen their foothold in the market.

Key Findings of Study

• Region-wise, Asia-Pacific is projected to grow at the highest CAGR of nearly 4.7%, in terms of revenue, during the forecast period.
• On the basis of application, the candles segment accounted for the largest market share in 2020.
• Depending on type, the paraffin/mineral wax segment garnered the highest share in 2020.

Impact of COVID-19 on Global Wax Market

• The outbreak of COVID-19 led to partial or complete shutdown of production facilities that do not come under essential goods, owing to prolonged lockdown in major countries, including the U.S., China, Japan, India, and Germany. It led to either closure or suspension of their production activities in most of the industrial units across the globe.
• COVID-19 pandemic stagnated production activities in various areas, including packaging, cosmetics, chemicals, and candle making. Supply chain disruptions disrupted the supply of raw materials to these industries. As a result, the demand for wax from these industries that depended on wax for production declined. In addition, decline in demand for cosmetics, candles, and consumer goods reduced the demand for waxes across the globe.