The last decade has witnessed wax market size traversing along a modestly profitable growth path. This progression can indeed be aptly attributed to the product’s widespread application spectrum comprising adhesives, packaging solutions, and various cosmetics. Given the diverse end-use spectrum, wax market players have been minutely focusing on product expansion with heavy investments in research and development activities as well. Not to mention, these firms partaking in wax market size are also looking forward to developing natural wax products in order to comply with stringent regulatory norms related to the usage of synthetic and petroleum-based wax in various cosmetic products. The surging use of bio-based wax in various personal care and cosmetics products is thus slated to boost wax market size over the years ahead.
U.S. wax market size, by product, 2013 - 2024 (USD Million)
How wax market contenders have contributed to the growth of this business space, adhering to the mandated regulatory norms
Researchers have unearthed that in many personal care and cosmetic products, microbeads are primarily used as a cleanser to scrub dead skin cells. However, these microbeads lead to ecological disbalance by impacting marine life and water suppliers. Considering the hazards that they pose to the ecological lifecycle, many renowned cosmetic manufacturing companies including Unilever, Johnson & Johnson, and Procter & Gamble have decided to stop the usage of microbeads in cosmetic products and are looking forward to using naturally formed wax alternatives. In addition, many candle manufacturing companies have also decided to use bio-based wax to manufacture candles. Say for example, in 2016, the U.S. based agricultural product supplier, Cargill Inc., acquired the vegetable oil-based wax manufacturer, NatureWax. With this acquisition, Cargill has successfully expanded its reach in wax market capitalizing on the demand for bio-based products. In 2016, wax market size from candle sales had been reported to substantially huge, owing to the massive demand from Europe and North America.
Citing another instance, the Austria based Schur Flexibles Group recently acquired the Netherlands-based manufacturer of packaging products, Clondalkin Group. With this acquisition, the Austrian company seems to have successfully strengthened its business position in wax market across North America and Europe. In addition, it is looking forward to extending its regional reach through the development of new infrastructure and highly advanced facilities. The company also seems to be focusing on the deployment of innovation for sustainable wax packaging solutions. For the record, it has developed a biodegradable vegetable-based flexible packaging solution to curb the usage of traditional petroleum product-based packaging. The growing preference for flexible packaging along with the rise in demand for packaged food products is thus slated to stimulate wax market size over the years ahead.
Considering the increasing demand for wax, most of the reputed biggies in wax market are developing new manufacturing plants to enhance their annual production. Sasol’s investment in South Africa is one of the most recent examples of ongoing business development strategies adopted by petrochemical companies in wax market. In order to expand its wax production plant in South Africa, Sasol – the well-known petrochemical company, put up an investment of USD 1 billion. Through this plant expansion, Sasol is planning to improve its exports across the globe as it is primarily producing wax for printing ink products, paints, candles, emulsions, and adhesives. In addition, via this project expansion, Sasol will contribute toward the economic development in South Africa by generating considerable employment opportunities in the region.
Shifting trends toward the increasing adoption of additive manufacturing for time-saving and cost-effective benefits is slated to have significant influence on overall wax market size. Nowadays, additive manufacturing, i.e., 3D printing is being prominently preferred over conventional manufacturing processes across the medical, aerospace, automotive, military, electronics, food packaging, and oil & gas sectors. Taking into account the increasing importance of 3D printing technology, recently, HP Inc. has expanded its operations in digital packaging with the launch of ePac in U.S. In addition, several other tech giants including GE, Sandvik, and Henkel have also implemented 3D printing solutions. The increasing use of 3D printing technologies for next-generation manufacturing is certain to impel wax market size, owing to the escalating use of printing inks and adhesives.
The increasing consciousness among the regional governments and regulatory bodies about the usage of non-recyclable products is one of the pivotal factors encouraging wax market giants to develop biodegradable products. The wastage of non-degradable products leads to rise in landfill levels, which will have a negative impact on the environment. In this regard, in order to curb the usage of non-biodegradable candles, several young students from UK, as a part of a research initiative, have established the Cosey Candle Company, through which they are manufacturing candles from soy wax. These candles are biodegradable, paraffin and carbon-free, and release cleaner flames. In addition, recently, in India, Dow Chemicals has introduced a new methodology to manufacture PE laminates for flexible packaging solutions after the launch of new regulations related to the ban on multilayer laminates. Indeed, the increasing involvement of companies in new product development and the emergence of new investors in this business space is likely to fuel wax market size over the years ahead. Incidentally, was industry size has been forecast to cross the 10-billion-dollar frontier by 2024.