Paraffin Wax Manufacturing Industry. Investment Opportunities in Wax Production Business
The global paraffin wax market is expected to reach USD 8.02 billion by 2022
Paraffin wax is a colorless or white soft solid derived from petroleum, coal, and oil shale. These products find use in candle making, packaging, cosmetics, hot melt adhesives, rubber, board sizing, children’s crayons, and toys. Rising living standards coupled with the need for maintenance of home hygiene are expected to drive the demand for fragrance products such as candles, which in turn will fuel industry growth over the next nine years.
Paraffin waxes are used for manufacturing candles owing to reliability and cost efficiency of the product. Wax candles are used as fragrance products and in aromatherapy on account of its low volatile organic compound emissions. Rising popularity of aromatherapy coupled with increasing usage of these products in commercial buildings, hotels, restaurants, and spas is expected to aid in the market expansion.
Uses:
Paraffin wax is derived from refining light to medium lubricating oil. It can be refined to be nearly colorless and odorless, making it easy to add to other products without changing the scent or color of the product.
· Candles
Paraffin wax candles were first used to replace tallow candles because they burn cleaner and more reliably. Paraffin wax is great for creating custom scented candles because it is colorless and odorless. Paraffin candles also burn brighter than other candle types.
· Waterproofing
Paraffin is naturally water resistant. Paraffin wax coatings can be applied to a variety of products to make them waterproof, including matches, wood and bottles.
· Crayons
Paraffin wax is the primary ingredient in crayons that gives them their waxy texture. The wax, mixed with color pigments, is poured into a mold to form the crayon.
· Friction Reducer
Since paraffin wax has lubricating properties, it is applied to a variety of products to reduce friction. Snowboarders, skateboarders and surfers apply paraffin wax to the bottom of their boards to help them glide easier.
· Coatings
Paraffin wax is added to many candy coatings and chocolates to give the treats a shiny finish. It is also used to coat fruits and vegetables to extend shelf life by retaining moisture.
· Agriculture
Paraffin and special mixtures are used in the fertilizer industries as anti-caking additives so as to ease their dosing, handling and transportation.
· Food
Paraffin forms an important coating for foods such as cheese, citrus fruits, etc. It’s also used in the production of gum base which is an important ingredient for chewing gums.
· Rubber
Paraffin is used in the production of tyres helping insulate them from ozone and protect them from chipping and cracking.
· Electrical Appliances
Paraffin is used to insulate electric nodes and appliances wirings.
· Pharmaceuticals and Cosmetics
Paraffin is used to coat tablets to protect their surfaces and also forms an important ingredient in a wide variety of lipsticks, creams, pastes, and lotions.
· Matches
Although minimal in quantity but the application of paraffin in the matchstick box lightening strips, helps regulate their burning.
· Fabric
All fabrics contain waxy coating that gives it softness, elasticity and flexibility. However, environmental exposure and repeated usage robs it’s of the waxy texture and needs to be recoated.
Market Outlook
The global paraffin wax market is expected to reach USD 8.02 billion by 2022. Increasing use of paraffin wax in flexible packaging as a good barrier against odor and gas transmission is likely to drive growth. Expansion of the food & beverage sector in various countries including China, India and Brazil is expected to drive industry growth over the upcoming period.
Growing application of the product for manufacturing candles along with its rising requirement in packaging and hot melts is expected to stimulate the paraffin wax demand over the forecast period. Moreover, these products provide excellent water resistance to packaging materials and are anticipated to witness significant rise over the forecast period.
Paraffin waxes are used for manufacturing fragrance candles as they are economical and require lesser machinery costs. Growing demand for aromatherapy and consumer awareness regarding home ambiance is expected to drive the requirement of fragrance waxes, which in turn is likely to aid in market expansion over the upcoming years. In addition, rising consumption of chlorinated paraffin as a flame retardant and plasticizer in flexible PVC is likely to drive market growth over the next nine years. Increasing usage in the production of industrial coatings, hot melt adhesives, plastic & rubber processing aids, body care products, metal casting, pharmaceuticals, and electrical insulations is expected to drive demand in the near future.
Paraffin waxes are petroleum-sourced products, and therefore volatile petroleum prices along with harmful emissions are likely to restrain industry growth over the forecast period. Furthermore, the increasing usage of environment-friendly alternatives, such as beeswax, soy, and polyethylene wax, are expected to pose challenges for the product growth.
Paraffin wax market is projected to witness significant growth with growing demand for candles in key consuming economies during the forecast period. Further, growing manufacturing industries especially in Asia Pacific and Europe fueling the demand for the packaging products which in turn is anticipated to drive the demand for paraffin wax during the forecast period. Besides this, rapid growth in disposable income of middle class in developing economies fueling the demand for cosmetic products such as personal care products, creams, lipsticks and others are projected to witness high growth in sales volumes which in turn are expected to pump the growth of the paraffin wax over the forecast period. However, increasing use of alternatives such as Beeswax and others is expected to hamper the growth of global paraffin wax market.
One trend in the market is use of paraffin wax in tarpaulin. Currently, paraffin wax is popularly used to manufacture waterproof tarpaulin. These tarpaulins have the advantages of waterproofing, durability, and cost-effectiveness. Tarpaulins are widely used for either protecting or covering agricultural crops and vehicles.
Rising demand for creams, lipsticks, ointments, and personal care products is expected to drive industry growth. Developing personal care industry in countries including the U.S., India, France, China, Brazil, Argentina, Russia, Indonesia, South Africa, Thailand, Saudi Arabia, and UAE is further expected to create growth opportunities for the product over the upcoming years.
The global paraffin wax market is becoming increasingly competitive with growing number of mergers and collaborations between market players to expand their production capabilities to meet the demand for paraffin wax. In addition, several players are also focused on developing their niche in the market.
India and China are the primary contributors to the paraffin wax market as they are the largest supplier of paraffin wax. China, Taiwan, Indonesia, and Japan export large quantities of paraffin wax slabs due to their large production capacity. The candle manufacturing industry, the automobile sector, and the electrical and electronic industry will contribute to the growth of this industrial wax market in APAC.
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