Wax Market Analysis

Wax Market Analysis

Synthetic was second largest and fastest growing product segments in 2016 and shall exhibit the same growth numbers over the forecast period. Synthetic product is manufactured by high-pressure or low-pressure polymerization and gas-to-liquid process technology. Major types of it includes GTL and polymer. Polymer wax is highly used in adhesives and protective coating in automotive industry. Increasing automotive and construction industry in Asia Pacific expected to fuel the wax market share in coming years. These product types may have same basic composition; however, changing production process yield products with different properties. The major players use different production techniques to develop application specific products. Demand for synthetic wax is gaining momentum, as synthetic product type resembles petroleum-based product in properties and can practically replace the latter in major applications.

in spite of small market share, wood & fire logs are one of the fastest growing application. This segment is also expected to grow at a swift pace over the forecast period. Wax is used as a fuel fully consumes fire-logs, leaving little ash to clean up. However, increasing restriction on wood cutting owing to the rising environmental awareness across the globe may hamper the wax market demand in wood & fire logs industry at some extent over the forecast period.

Rubber was another prominent application segment in 2016 and forecast to grow with a significant CAGR in near future. Product is used in the UV and ozone protection systems in the manufacture of rubbers. Flexibility and adaptable molecular structure of product makes it ideal for usage in protection systems. Growing automotive industry in Asia Pacific will fuel the rubber demand for tire manufacturing, which ultimately expected to boost the product demand over the forecast period.

Asia Pacific was the largest as well as the fastest growing region in wax market share and shall grow with a CAGR 3.7% during the forecast timespan. High growth in the end-use industries in Asia Pacific lead to high growth. Rapidly growing construction industry in the region owing to the increasing urbanization and per capita income shall fuel the product demand over the forecast period. Moreover, low product prices and high production in the region due to easy availability of the raw material such as ethylene, HDPE, LDPE and coal is likely to fuel the product demand in coming years. Europe accounted over 26% wax market in 2016 and expected to grow with a CAGR over 2.5% in years to come. Candle was the major application segment in the region. Luxurious lifestyle owing to high disposable income were fueling the candles demand from past several years.