Industrial Wax Market - Forecast(2024 - 2030)

Industrial Wax Market size is forecast to reach $15 billion by 2030, after growing at a CAGR of 4.5% over the forecast period of 2024-2030. The primary factors driving market growth are growing industrial wax applications and increasing demand for candle application. Some of the other factors that drive global demand for industrial wax are rising population growth and increasing food and pharmaceutical consumption. Increased consumption of home decor items such as scented candles, automobile, electronics, cosmetics and personal care products due to increased disposable income is expected to generate a huge market for industrial wax. This uptick can be directly attributed to the notable increase in disposable income among consumers, leading to a pronounced inclination towards lifestyle-enhancing and aesthetically pleasing products. Scented candles, in particular, have emerged as a key player in home decor, contributing substantially to the flourishing market for industrial wax.

The automotive industry's growing reliance on wax for coatings, coupled with its integration into electronic components and cosmetics formulations, further amplifies the market's expansion. As disposable incomes continue to climb globally, the industrial wax market is poised for substantial growth, fueled by the escalating demand for products that seamlessly blend functionality and visual appeal across a spectrum of industries. The trend shows a shift towards premium experiences, with scented candles symbolizing luxury. Industrial wax finds versatile applications in automotive, electronics, cosmetics,and personal care, fostering robust market growth. This reflects an evolving consumer landscape marked by increased disposable income, emphasizing the crucial link between functionality, aesthetics, and preferences. 

The report: “Industrial Wax Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Industrial Wax Industry. 

By Type: Fossil Based Waxes, Synthetic Based Wax, and Bio-Based Waxes. 

By Application: Candles, Packaging, Coatings & Polishes, Hot Melt Adhesives, Tires & Rubber, Cosmetics & Personal Care, Food, Agriculture, Printing Inks, and others.  

By Geography: North America, South America, Europe, APAC, and RoW. 

Asia Pacific dominates the market, owing to the rise in construction activities across the globe, driving the demand for adhesives, which is one of the leading applications for waxes. In addition, technological developments have stimulated the demand for adhesives in the region. This in turn, is projected to have a significant impact on market growth over the forecast period. High wax consumption is expected to increase market growth over the forecast period due to its advantages, including UV resistance, anti-caking properties, excellent insulation, and resistance to microorganisms, moisture and odor. The development of the polymer manufacturing, pharmaceutical, food and personal care industries is also boosting demand for wax globally. In addition, wax-coated paper provides professional and cost-effective packaging options to protect items from moisture, moisture, and greasing. Some of the sectors, such as cosmetics, are now entering into alliances with other industry leaders. Such strategic partnerships, such as bio-based wax, synthetic wax, and petroleum wax, are likely to generate a huge market for wax. However, operations in various industries such as cosmetics, adhesives, and other were significantly affected due to the COVID-19 epidemic, as most countries issued “stay at home guidance” i.e., lockdown. The outbreak of COVID-19 was observed throughout the entire year of 2020 and for a few months in 2021. This limited the growth of the Industrial Wax market. 

 

   

The fossil-based waxes segment held the largest share in the industrial wax market in 2023. These waxes are commonly used in the manufacture of candles, packaging and coatings for commercial goods. In addition, these waxes are used in the cosmetics industry as they are commonly considered healthy and are extracted from different crude oil refining processes. Petroleum wax has a high-gloss characteristic which makes it suitable for polishing and is commonly used in floors, furniture, cars and footwear. Mineral waxes are derived by the fractional distillation process from coal, petroleum, lignite, and shale oil. Few widely known mineral waxes include microcrystalline, paraffin, petrolatum, and ceresin. Microcrystalline waxes give a high variety of physical and thermal properties. Due to these features, these products are commonly used in various applications, such as adhesives, chewing gums, cosmetics and cheese formulations. 

 

The tire & rubber application held the largest share in the industrial wax market in 2023 and is growing at a CAGR of 4.8% during the forecast period. Industrial waxes are applied to the rubber and tires compounds to shield them from ozone and UV lights. In addition, to prevent them from cracking, these waxes are added to tires and rubbers. In addition, during the forecast era, the rising tires and rubber industries are expected to drive the market for industrial waxes. The candles application is also growing at a faster rate during the forecast period, owning the availability of a wide range of different shapes and sizes of candles and increasing demand for them. The growing number of distribution networks, such as home decor & mass merchandise stores and e-commerce sites, have helped to raise the overall demand for candles. Therefore, the global industrial wax will witness a substantial growth during the forecast period. 

 

Asia Pacific held the largest share in the industrial wax market in 2023 up to 30%. Among the leading markets for candle manufacturing, packaging, coatings & polishes, and tyres & rubber are China, India and Japan. Development in the application segments has increased the region's demand for industrial wax. Over the past few years, Asia-Pacific demand has reached greater levels and has become a major hub for the export of cosmetics and personal care products. It is expected that tier-2 markets, such as South Korea, will see a rapid increase in demand for personal care products. In addition, China and India are also expected to experience strong opportunities in the market for personal care. In addition, in terms of both production and consumption, China stands to be the largest adhesive market in the region. Adhesive use has increased in industries such as furniture, building, and so on. Thus, further driving the growth of the wax market in the region. 

 

The personal care and cosmetic sector are booming in varied regions due to the increasing demand of cosmetics from the consumers. According to Cosmetics Europe, Exports of cosmetic products from Europe totalled €26.4 billion (trade value) in 2022.  France and Germany were Europe’s main exporters, exporting over €13.6 billion between them and accounting for over 50% of total global exports from Europe. Also, In 2022, South Korea held the eighth-largest cosmetics and personal care market globally, with a market size of $3.9 billion.  In October 2023, the United States recorded imports of Toiletries & Cosmetics totaling $1.5 billion. Industrial wax is widely used in cosmetics and personal care industries for hair care,skincare, makeup, and other allied products. Thus, growing cosmetic industry is expected to drive the demand for industrial waxes.  

Shrinking supply of paraffin wax Changes in the production process of base oil have been observed in the past few years. Base oil manufacturers are changing their focus from waxes to a more profitable choice for base oil. Via isomerization, waxes are converted in this process into base oils. As a consequence, it was seen that the stock of fossil-based paraffin waxes is decreasing. As the supply of fossil waxes continues to shrink, the supply-demand gap is expected to result and is expected to be the limiting factor for the industrial wax market. New wax processing technologies such as GTL and CTL are able to produce good quality wax and are expected to fill the demand-supply gap during the forecast period. 

 

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Industrial Wax market. The key players in the Industrial Wax market include 

In October 2023, Procudan launched ProCera Natural, a 100% natural cheese wax,marking a significant advance in industrial wax. This eco-friendly alternative, with a patented beeswax recipe, addresses environmental concerns. Supported by innovative programs, it signifies a recent breakthrough in sustainable wax solutions.