TAGS: Hot-melt Adhesives
The global wax market size is expected to reach USD 12.4 billion by 2027 registering a CAGR of 2.8 percent, according to a new report by a Grand View Research, Inc. The market growth can be attributed to rapid expansion of application areas, such as adhesives, paints, coatings, cosmetics, toiletries and candle manufacturing.
Increased Demand for Synthetic Wax Products
High consumption of wax owing to its advantages including UV resistance, anti-caking properties, excellent insulation, and resistance from microorganisms, moisture, and odor, is expected to augment the market growth over the forecast period.
Demand for synthetic wax is likely to support market growth. Two major subdivisions of synthetic wax include fully synthetic and partially synthetic. These products are widely used in hot melt adhesives, printing ink formulations, and coating solutions etc. In addition, demand for the product from adhesives, agriculture, and textile application sectors is anticipated to aid in advancements in the market.
Excessive Use of Mineral Wax in Adhesives
In terms of volume, mineral wax segment led the market in 2019 accounting for a share of 68 percent. It is estimated to be the largest market even during the forecast years due to high demand for mineral wax on account of its pure form. These waxes are extracted from coal, petroleum, lignite, and shale oil through the fractional distillation process. Few of the commonly recognized mineral waxes include microcrystalline, paraffin, petrolatum, and ceresin. Microcrystalline waxes offer high diversity in terms of physical and thermal properties.
Due to these characteristics, these products are broadly utilized in various applications, such as adhesives, chewing gums, cosmetics, and cheese formulations. Synthetic wax is found in multiple forms including polyethylene, gas-to-liquid, montan, polyolefin, and Fischer-Tropsch waxes. These waxes are formulated by unique, specialized processes, wherein the Carbon-rich stock or natural gas in combination with coal are transformed into paraffin long chains. Synthetic wax is a crystalline resin that has low melting point, low molecular weight, and consistency in being solid to semi-solid at room temperature.
Essential Commodity for Global Packaging Market
In terms of volume, candles application led the market with a share of 31.4 percent in 2019. It is estimated to retain its dominant position throughout the forecast years on account of availability of a wide variety of candles of different shapes and sizes and rising demand for the same. Increasing number of distribution channels, such as home decor and mass merchandise stores and e-commerce platforms, have aided in propelling the overall demand for candles.
Significant industrial segments from packaging perspective, wherein wax blends find robust application, include folding cartons, food containers, corrugated containers, flexible packaging, and paper cups. The diverse properties including gas transmission, and water and moisture vapor resistance, make it an essential commodity for the global packaging market.
Fastest Growth in Asia Pacific
Asia Pacific led the market in 2019 with a share of 33.6 percent. It is projected to be the largest as well as the fastest-growing regional market over the forecast years. This growth is attributed to increased construction activities across the globe driving the demand for adhesives, which is one of the prominent applications for waxes. Moreover, technological developments have spurred the demand for adhesives in the region. This, in turn, is expected to positively influence the market growth over the forecast period.
Source: Grand View Research