Wax refers to a solid material which melts and gets converted into liquid state when exposed to a slightly higher temperature. Wax can be sourced from three major segments namely minerals, oils, and plants & animals. While crude oil is considered to be the most dominant source of wax, various players are focusing on extracting natural wax from plants and animals. In addition, owing to the increasing demand for crude oil in various applications, mineral based waxes are gaining significant acceptance over past few years and demand for mineral wax is anticipated to surge across the globe. Further, lignite is the most commonly used mineral employed for production of mineral waxes and this trend is anticipated to continue for a significant period. Peat, ceresin and ozocerite waxes come under the major sources of mineral waxes. Some of the major applications of industrial waxes include electrical insulation, lubrication and manufacture of candles. Moreover, dyed wax is also used in the manufacture of crayons. Industrial wax is distinct from kerosene and is also known as paraffin in the common language.

Market Dynamics

Due to presence of environmental hazards linked with the refining and processing of crude oil along with volatile nature of crude oil prices are some key factors leading to the decline in demand for crude oil based waxes. Also, heavy demand of crude oil for different and relatively more lucrative applications is considered to be one of the foremost factors fueling the demand for industrial waxes. In addition, increasing demand for industrial waxes, especially in the production of latex and rubber is anticipated to drive the demand for mineral waxes over the forecast period. Rapid growth in global cosmetics industry as well as supply constraints related to key mineral sources including lignite is projected to hamper the growth of industrial wax market. Furthermore, abundance and availability of other types of sources of wax including animals, plants and insects are some other major factors anticipated to hinder the growth of global industrial wax market. Increasing consumption of paraffin wax especially for paper coating and cardboard in food packaging industry due to its excellent water barrier and protection properties is anticipated to stimulate the demand for industrial waxes over the forecast period. Also, increasing application of industrial waxes in manufacture of industrial & surface protection coatings, hot melt adhesives, pharmaceuticals, rubber & plastic processing aids, metal castings, electrical insulation and fabric impregnation & proofing are some other key elements boosting the demand for industrial waxes.

Market Classification

The global industrial wax market can be segmented on the basis of application, type and geography. On the basis of application, the global industrial wax market can be segmented into candles, packaging, coatings, polishing, hot melt adhesive, tires, rubber, cosmetics and personal care, food and others. On the basis of type, the global industrial wax market can be segmented into fossil based, synthetic based and bio based. By region, the global industrial wax market can be segmented into North America, Latin America, Europe, Middle East & Africa (MEA) and Asia-Pacific.

Report Coverage

Market Participants

Major players operating in the global industrial wax market are focusing on some key market strategies such as mergers and acquisitions to keep hold in the ever competitive market. Some of the key players involved in the manufacture and supply of industrial wax include Archer-Daniels-Midland Company, American Refining Group Incorporated, International Flora Technologies Limited, Honeywell International Inc and Calumet Specialty Products Partners LP among others.

Market Segmentation

Market by Type

·         Fossil based

·         Synthetic based

·         Bio based

Market by Application

·         Candles

·         Packaging

·         Coatings

·         Polishing

·         Hot melt adhesive

·         Tires

·         Rubber

·         Cosmetics and personal care

·         Food

·         Others

Market by Geography

·         North America

o   US

o   Canada

o   Mexico

·         Europe

o   UK

o   Germany

o   France

o   Rest of Europe

·         Asia-Pacific

o   China

o   Japan

o   India

o   Philippines

o   Rest of Asia-Pacific

·         Latin America

o    Brazil

o   Chile

o   Rest of Latin America

·         Middle East and Africa (MEA)

o   South Africa

o   Saudi Arabia

o   Rest of MEA