Paraffin Wax Market Analysis

Market Insights:
The global paraffin wax market accounted for USD 5.3 billion in 2016. Paraffin wax is mainly used for producing aroma candles as they are cost efficient and requires use of less machinery. Increased standard of living of the individuals has raised the consumer awareness regarding home ambiance and aromatherapy.

Increased usage in the fields of manufacturing industrial coatings, body care products, metal casting, and electrical insulations is likely to drive the market in the near future. Apart from the cost efficiency and easy availability, these products provide outstanding water resistance to packaging and hence are anticipated to witness prominent growth over the coming years

The growing demand for manufacturing candles and its packaging and hotmelts is anticipated to boost the market over the forecast period.  Increased demand for chlorinated paraffin is also one of the factors to stimulate the growth.

As the Paraffin waxes are petroleum-based products, changes in the petroleum prices may cause the price of these products to rise, limiting the growth of the market.  Additionally, the increased usage of the alternatives such as beeswax, soy, and polyethylene wax are anticipated to restrain the market from flourishing.

The Paraffin wax market by type has been sub-segmented into fully refined wax, semi-refined wax among others.

Application Insights:
Candles contributed to approximately 40 % of the market revenue in 2016 making it the leading application segment. Due to the increasing usage of candles in hotels, spa, aromatherapy, its market segment is expected to grow at a considerable rate.

Moreover, the increasing purchasing power of the consumers in China, India, and South Korea along with the accessibility of a wide range of aromas and the need to maintain home hygiene are expected to push the market for such products.

Due to increasing consumption of paraffin waxes in electrical insulator, friction reducer and flame retardant, the market size is expected to expand during the predicted time period. High usage of paraffin wax in making of cosmetics, rubber, candles have also added on to the growth of this particular market segment.

A major usage of paraffin wax lies in flexible packaging. Paraffin wax helps in preventing the packaging from odour and gas transmission.

Developing economies like China, India, South Korea, South Africa and Brazil are witnessing significant growth in the food and beverage sector leading to an increasing demand for flexible packaging. This in turn is expected to act as a catalyst to the growth of the paraffin wax market.

Regional Analysis:
Asia Pacific ruled the global market and recorded approximately 36% of the total volume share. The region is anticipated to witness high profits due to rising demand for personal care products, packaging, rubber, and pharmaceuticals industries.

North America is anticipated to witness high growth in the near future due to high demand for aroma candles coupled with rapidly growing cosmetic and pharmaceuticals industries in these regions.

Due to hectic work schedules and wrong eating habits of consumers, the consumption for packaged food has increased. In addition, increasing oil & gas consumption is anticipated to expand the availability and demand of raw materials. These factors are likely to fuel the market over the years.

End Use Landscape:
The end-use landscape includes a list of current and prospective consumers prevailing across the regions. This section provides company addresses, contact details, products, and regional presence of companies who are purchasing or are likely to purchase products from paraffin wax market. The major consumers of the product are Aromatic Fragrances International, Agilex Fragrances, Compagnie Parento, Inc.

Please note: This is not an exhaustive list of companies profiled in the report.

Competitor Analysis:
Some of the major players of the market include Petro China Company Limited, ExxonMobil, Sinopec, Repsol, IOCL, and Sasol International Group. These companies are continuously trying to expand its oil based plants, which in turn is projected to drive the market.

In February 2013, ExxonMobil announced plans to expand its oil production base to meet increasing consumption of waxes in candles, emulsions and hot melt adhesives