The Global Wax Market was valued at 7 million tons in 2020 and the market is projected to register a CAGR of over 2.5% during the forecast period (2021-2026). Due to COVID-19, the lockdown regulations and deficient number of workers has led to the decline in production of various chemical and other industries such as cosmetics, packaging, rubber, candle, and adhesives. The supply of raw materials to the industries decreased and causes the disturbance in supply and demand balance. Owing to all these factors, the oil market is negatively impacted by COVID-19 and the production of wax is decreased.
- Over the medium term, the major factor driving the market studied is the increasing demand from the candle and packaging industriesâ€‹. Growing personal care industry in the Asia-Pacific regionâ€‹ is the other factor driving the market studied.
- On the flip side, fluctuating prices of raw materials and environmental concerns are expected to hinder the growth of the market.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Demand from Personal Care Industryâ€‹
- Cosmetics and personal care is one of the major applications of wax. It is used to thicken formulations. With emollient and protective qualities, it provides stability to skincare products and cosmetics, and it boosts their viscosity and consistency. The personal care industry accounted for a healthy share in the global market in 2019.â€‹
- The Asia-Pacific region has become the largest consumer, as well as producer of wax. The production reached high levels in the past few years, and the region has become a significant hub for exporting cosmetics and personal care products to the developed countries, such as the United States.â€‹
- The personal care market accounted for more 21% of the Indian consumer packaged goods market in 2019, with a potential to be the gold mine for certain beauty and personal care companies. With the rising awareness, changing consumption pattern and lifestyle, increasing disposable income, and improving purchasing power, the demand for personal care products is likely to increase over the forecast period.â€‹
- China is becoming the largest market for cosmetics and skin care products, globally. The beauty sector in the country witnessed a growth of around 5% in the last 10 years, and it is set to grow at around the same rate during the upcoming years as well.â€‹
- Japan hosts one of the biggest beauty industries in the world. In recent times, there has been a significant rise in the â€˜Puchi Pura Cosmeâ€™ culture in the Japanese beauty industry. â€˜Puchi Pura Cosmeâ€™ translates to â€˜low-priced cosmeticsâ€™, and, currently, this trend has a major influence on the market. â€‹
- Considerable purchasing power of individuals in the Southeast Asian region (a dynamic and diverse market for the emerging middle class) is likely to drive the consumption of cosmetics in the region. According to Euromonitor, the beauty and personal care market in the country is likely to reach a value of nearly USD 8.50 billion in 2022 from USD 6 billion in 2019.â€‹
- Overall, the Asia-Pacific market for the personal care is growing significantly, and it is likely to follow the same trend during the forecast period, driving the overall market for wax in the region.â€‹
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share, due to the concentration of dominant petroleum wax producing refineries in countries, like China and India.
- Asia-Pacific is also projected to register the highest growth during the forecast period, driven by increasing production and consumption of cosmetics, adhesives, and packaging products in the region. Asia-Pacific demand has reached higher levels in the past few years and has become a major hub for exporting cosmetics and personal care products.
- India is a growing economy and holds great potential for future market opportunities. With the increasing focus on personal appearance, aging population, and quality of living, the use of cosmetic and personal care products in the country is increasing. The market for beauty and wellness in the country increased over the past decade, reaching USD 14 billion in 2019.
- The packaging industry in the country is rising at a significant rate, owing to the expanding food, beverage, and retail industries. According to the Indian Institute of Packaging, the Indian packaging sector is estimated at USD 32 billion by 2020, exhibiting a double-digit growth, of nearly 13%, every year.â€‹
- The tier-2 markets, such as South Korea, are expected to witness a rapid rise in the demand for personal care products.
- Besides, China stands to be the largest market for adhesives in the region, in terms of both production and consumption. The consumption of adhesives has been increasing in the industries, such as furniture, construction, etc., which is further driving the growth of the wax market in the region.
- Owing to all the aforementioned factors, Asia-Pacific region is expected to dominate the market studied during the forecast period.
The global wax market is partially fragmented. The major players dominating the market include China National Petroleum Corporation, Exxon Mobil Corporation, Cepsa, Sasol, and Eni SpA, among others.
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