Paraffin Wax Emulsion Market Size, Share & COVID-19 Impact Analysis, By Type (Natural and Synthetic), By Application (Leather, Construction, Agriculture, Paper, Paints & Coatings, and Others), and Regional Forecast, 2022-2030

The global paraffin wax emulsion market size was valued at USD 527.6 million in 2021. The market is projected to grow from USD 550.7 million in 2022 to USD 860.3 million by 2030, exhibiting a CAGR of 5.7% during the forecast period. Asia Pacific dominated the paraffin wax emulsion market with a market share of 35.78% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with paraffin wax emulsion experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 5.6% in 2020 as compared to 2019.

Wax emulsion is a mixture of one or more types of waxes in water, usually immiscible under normal conditions. However, they are blended together using specific processes and surfactants. The method of emulsifying paraffin wax involves heating the wax along with a surfactant or emulsifying agent and an adequate quantity of water to make a viscous paste, which is further transformed into the emulsion. The emulsion is primarily employed in coatings, paints, inks, paper and paperboards, gypsum board, and waterproofing formulations. The market growth is associated with the increasing demand for woodworking applications.

COVID-19 IMPACT

Limitations in Production and Supply Activities Due to COVID-19 Pandemic Hampered Growth

COVID-19 infected millions worldwide, and significant countries imposed embargoes and stop-work orders. Over the past few years, the market witnessed a decline in company sales and marketing activities, temporary business shutdowns, and supply chain and manufacturing disruptions. During the outbreak of COVID-19, construction, manufacturing, hotel and tourism industries were severely affected. This led to a decline in cement manufacturing, which further affected the paraffin wax emulsion market growth. The pandemic had an impact on the downstream section of the industry. Retail sales of leather goods were disrupted due to limitations in spending power, shut stores/outlets of premium apparel, and widespread lockdown globally. However, some factories resumed operations post-pandemic. Additionally, the enterprises need to protect the life and health of employees while operating production, such as purchasing masks, disinfecting the working environment, and regularly testing body temperatures.

LATEST TRENDS

Adoption of Paraffin Wax Emulsion in Flexible Packaging Solutions to Boost Growth

The increasing technological advancement by manufacturers to expand their offerings for various applications in several industries will flourish the market growth throughout the forecast period. For instance, technologically advanced high solids paraffin wax emulsions are gaining traction for cosmetic and flexible packaging applications, film coatings, and barrier coatings due to their water repellent properties. Additionally, food manufacturers prefer adequate flexible packaging to decrease the possibility of food contamination and quality degradation. The ability of the emulsion to act as a barrier between food products and the external environment is surging the product demand.

DRIVING FACTORS

Rising Demand for Paraffin Wax from Paints & Coatings and Wood Working to Augment Growth

Paraffin wax emulsion is significantly consumed in paints & coatings and woodworking applications. The increasing demand for paints & coatings from several industries, including automotive, construction, industrial manufacturing, and electrical & electronics is responsible for product adoption. Furthermore, the growth is also attributed to the ability of wax paraffin emulsion to protect substances or materials from rusting and wear & tear. Moreover, the rising demand for wood from the furniture industry will augment the consumption of wax paraffin emulsion, as woodworking is one of the critical applications of this emulsion. The growing demand for beds, sofas, tables, and chairs from the residential and commercial sectors, increasing interior and exterior design of homes, and rising consumer spending on premium furniture products are the major factors boosting the consumption of wax emulsion in the furniture industry.

RESTRAINING FACTORS

Presence of Alternatives to Limit Market Growth

Various other wax emulsions are present in the market, including carnauba, polypropylene and polyethylene. Some of these substitutes offer similar characteristics to paraffin wax emulsion, and some provide eco-friendly properties. For instance, carnauba wax is extracted from carnauba palm leaves and offers eco-friendly features. On the other hand, polyethylene wax emulsion is one of the most widely used types of wax, owing to its easy availability and economical price. In addition, it also offers slip control, lubrication, water-repellency, abrasion resistance, and anti-blocking characteristics. Hence, increasing adoption of substitutes, their awareness amongst consumers, and fluctuation in raw material prices are expected to hinder product consumption and restrain the market growth.

SEGMENTATION

By Type Analysis

Natural Segment to Hold Key Share Due to Easy Production

Based on type, the market is bifurcated into natural and synthetic. The natural type of the product is obtained by distillation of crude oil, which is then further fractionated, dewaxed, and crystallized to obtain paraffin wax. The final product is then emulsified to obtain natural paraffin wax emulsion. This emulsion is mainly used as there are several crude oil processing facilities, and the paraffin wax is received after processing byproducts.

Synthetic paraffin wax emulsion is produced by converting natural gas, biomass, or gasified coal into synthetic lubricating oil through the Fischer-Tropsch process. Even though the process is comparatively complicated, recent changes in the oil & gas industry, growing concerns over the environment, and increasing regulations are shifting the view of consumers toward synthetic wax emulsion.

By Application Analysis

Paints & Coatings Segment to Account for Largest Share Owing to High Demand from Several Industries

On the basis of application, the market is segmented into leather, agriculture, construction, paper, paints & coatings, and others. In the leather industry, paraffin wax emulsion is largely used as an additive for leather finishing, matting agent, and brightening. The increasing consumption of leather by the clothing and consumer goods companies propels the segment growth.

Paraffin wax emulsion is considered an essential raw material in paints & coatings and inks formulations, as it aids suspension and dispersion of other additives, improves the appearance of pigment, enhances the luster, and ensures a better finish, thereby leading to the high demand from paints & coatings manufacturing.

In the construction industry, paraffin wax emulsion is commonly used as a curing agent to protect concrete against corrosion and rust. Increasing residential and commercial construction activities propel the demand for the product from the construction segment.

REGIONAL INSIGHTS

The market size in Asia Pacific was valued at USD 188.8 million in 2021. The exponential population growth and increasing urbanization activities are contributing to the development of several industries, such as construction, agriculture, leather manufacturing, and paints & coatings, which are augmenting product consumption in Asia Pacific. According to the State Council of the People's Republic of China, the operating revenue of major manufacturers of leather, footwear, feather, fur, and related products will reach USD 52.49 billion by 2022, with a growth rate of 7.9%.

The manufacturing industries in Europe, including automobiles, machinery & equipment building, chemicals, electrical engineering and electronics, and food processing activities are proliferating, thereby leading to the development of infrastructures and increased product demand. Additionally, the rising investments of the countries toward advancement of the agriculture sector will further fuel the product demand.

North America held a substantial share in the market. Paper manufacturing and agriculture are the leading industries that played an essential part in the market’s growth and development. Moreover, expanding residential construction activities in the region will result in higher product adoption in medium-density fiberboard and oriented strand board.

South America is estimated to show considerable growth in the market owing to increasing consumption in several industries such as automotive, textile, and cement. The rising demand for leather in the automotive industry coupled with the growing adoption of construction chemicals from the real estate industry will propel the use of wax paraffin emulsion.

The Middle East & Africa is a prominent region for the petrochemicals industry, which dominates the overall economy of Saudi Arabia and the UAE. The Organization of the Petroleum Exporting Countries (OPEC) says that Saudi Arabia accounts for approximately 17% of the world's proven petroleum reserves and is the largest exporter of crude oil globally. This is expected to drive the regional market.

KEY INDUSTRY PLAYERS

Formation of Strategic Alliances to Improvise Business

The paraffin wax emulsion market is relatively consolidated and competitive, with many regional and international manufacturers. Some of the key players operating in the industry are PMC Crystal, Sasol Ltd, Altana AG, Lubrizol Corporation, and BASF, accounting for a major market share in 2021.

Strategic alliance with other players is one of the prime strategies of the key players. For instance, in 2022, Awax Group, one of Europe's leading wax manufacturers, acquired Sasol Wax GmbH, the wax division of Sasol Ltd.

LIST OF KEY COMPANIES PROFILED:

• PMC Crystal (U.S.)


• Sasol (South Africa)


• Altana AG (Germany)


• Lubrizol Corporation (U.S.)


• Nippon Seiro Co., Ltd (Japan)


• Michelman, Inc. (U.S.)


• TIANSHI WAX (China)


• BASF SE (Germany)


• Repsol (Spain)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 - Michelman announced a new agreement with Omya, a producer of calcium carbonate and a universal distributor of specialty chemicals for its products. The agreement states that Omya will be the exclusive distributor for Michelman’s wax emulsion and surface modifiers product line to Canada’s paints and coating markets.


• August 2020– DKSH moved into an exclusive distribution contract with Sasol Wax GmbH, the Wax Division of Sasol Chemicals, a dedicated company in innovative wax technology, for four crucial markets in Europe. The agreement between DKSH and Sasol Chemicals waxes is to market and sell paraffin waxes, emulsions, and microcrystalline waxes.

REPORT COVERAGE

The paraffin wax emulsion market research report provides an analysis of the market and focuses on crucial aspects such as leading companies, products, and applications. It also offers insights into market trends and highlights industry developments. In addition, the report encompasses various factors contributing to the market's growth in recent years. It includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities.

REPORT SCOPE & SEGMENTATION