Industrial Wax Market

Industrial Wax Market Size (2023-2028):

Industrial Wax Market was valued at 15.8 billion USD in 2022 and it is expected to grow at a CAGR of 6.1% during the forecasted period of 2023 to 2028. By 2028, the market valuation of the industry will be 19.6 billion USD. 

Drivers and Restraints of the Industrial Wax Market:

The tire manufacturing application segment is the largest share of the Synthetic rubber market in terms of value. Tire manufacturing is an integral part of the automotive industry and its usage has increased over the past few years. Due to the abrasive nature of the materials transported; tires are constantly exposed to heavy wear and impact damage and therefore, require constant improvement in performance for increasing their service life. As a result, there is a high demand for Synthetic rubber in the tire manufacturing industry. 

Wax coatings offer strong chemical and moisture resistance to cans. In addition to this, they also prevent corrosion. This makes Industrial wax suitable for applications the in rubbers and tires industry.

Challenges in the Industrial Wax Market:

The diminishing supply of paraffin wax is a major factor hindering the growth of the market. Industries are switching from waxes to oil-based adhesives and coatings for improved durability. This increasing gap in supply and demand has presented several challenges for the market to counter.  The recent shutdown of group-based oils has also negatively impacted the industrial wax market.

INDUSTRIAL WAX MARKET REPORT COVERAGE:

Market Segmentation:

Industrial Wax Market - On the basis of Type:

• Fossil based

• Synthetic based

• Bio-Based

Industrial Wax Market - On the basis of Application:

• Candles

• Packaging

• Coatings

• Hotmelt adhesives

• Tires

• General line can

Hot melt adhesives are one of the growing applications of industrial wax. Rising demands in personal care and hygiene products is a driving factor to promote the Hot-melt adhesives industry in the North American region as it is widely used in the packaging industry and with the pandemic, the packaging industry is one of the few which has grown. The covid-19 pandemic has skyrocketed the demand for sanitation products as a preventive measure against the virus.

The Paper industry also has wide implications for hot melt adhesives in the form of laminations etc.

The use of wax coatings has increased. These materials are known for their excellent durability and are therefore used in various mechanical and electrical industries. They provide superior strength and recyclability at a relatively low cost.

Industrial Wax Market - On the basis of Region:

• North America

• Latin America

• Europe

• Asia Pacific

• Middle East & Africa

North America is the largest market for Industrial wax, in terms of value and volume. The growth of the Industrial wax market in the region is primarily attributed to the established industries such as rubber, candles, personal care, and pharmaceutical industries. Countries like the USA, Canada, and Mexico have increased their expenditure on canned food products this in turn has helped the Industrial wax markets to grow.

Asia and Pacific (APAC) are projected to be the fastest-growing Industrial wax market, in terms of value, during the forecast period. This is because this region is a manufacturing hub for industrial goods and chemical industries. The availability of cheap labor and the rising population is expected to drive the market.

Key Market Players:

1. PPG Industries

2. SABIC

3. Valspar

4. Altana

5. Toyochem

6. DuPont

7. Constantia Flexibles GmbH

Impact of COVID-19 on the Global Industrial wax Market

Covid-19 has had a morose impact on various production markets across Europe, North America, and Asia. It has negatively affected the demand for composites across various end-use industries such as aerospace & defense, automotive & transportation, wind energy, construction & infrastructure, and pipes & tanks. The disruption in the supply chain resulted in delays or non-arrival of raw materials, disrupted financial flows, and declining morale among production line workers have compelled aircraft and automobile manufacturers to operate at reduced or sometimes at zero capacities. However, the Industrial wax industry saw a small growth during this period thanks to the growth in demand for packaged food during this period. Because several countries imposed lockdowns, a lot of food and beverages were delivered in a packaged format, and thus the can manufacturing and in turn, the Industrial wax industry saw a rise in demand.