Global Natural & Synthetic Waxes Market to Reach US$11.3 Billion by 2015, According to New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Natural & Synthetic Waxes market. Global natural & synthetic waxes market is projected to reach US$11.3 billion by the year 2015. The market is driven by the Chinese market and the GTL (Gas-To-Liquid) technology, enabling the manufacture of sufficient wax to meet increasing demand. Strong consumer preference for renewable and vegetable-based products is propelling growth of vegetable waxes. In addition, new synthetic wax formulations are expected to favorably influence the global wax market.
San Jose, CA (Vocus) September 2, 2010
With demand for waxes closely linked to economic conditions, the global economic slowdown exerted a significant impact on the supply and demand of waxes. Wax manufacturers were hit by a steep increase in raw material prices. Manufacturers were forced to trim down production to steer through the economic slowdown. The market witnessed a decline in traditional sources of supply owing to alterations in lubricant standards and closure of Group I base oil plants. Wax supply was further tightened due to rising standards for finished lubricants, and growing demand for premium Group II and Group III base stocks. Nevertheless, the market showed signs of recovery during second half of 2009, and is projected to expand at a healthy rate, as the world economy stabilizes.
The US represents the largest market for natural and synthetic waxes, as stated by the new market research report on Natural & Synthetic Waxes. Europe trails the US in terms of wax sales, holding the second largest position in the global market. Growth-wise, Asia-Pacific is the fastest growing region for natural & synthetic waxes, and is forecast to grow at a CAGR of 6.4% during the analysis period. Continuation of Group I base oils strengthened China to emerge as largest exporter of waxes to the global markets. China occupies a key position in the worldwide market for wax owing to rich waxy crudes and the capacity to produce more than 2.0 billion pounds of wax annually.
Petroleum wax represents the largest segment worldwide, accounting for more than 60% of total wax demand. Once conceived as a by-product, petroleum wax is now considered as a high-margin product. Despite the vast increase in demand, petroleum wax market is impacted by a dip in supply in some regions owing to shift in processes towards basestock production such as hydrocracking and waxisomerisation from the traditional solvent dewaxing process. However, the segment is expected to retain its dominance over the coming years. Synthetic wax represents the second largest category. The segment is expected to register fastest growth over the next few years. Besides, the market is also expected to witness encouraging demand for natural waxes, spurred by consumer preference for products that are environmentally or nature friendly; shifting demand away from petroleum-based products due to high cost of feedstock and declining supply, and escalating paraffin wax prices.
Candles remain the most predominant application, accounting for about half of the global wax demand. Candles accounts for more than 50% share of wax consumption. There is a continual increase in the global demand for wax candles, including paraffin-scented candles and beeswax-scented candles. Demand for paraffin-scented candles is growing strongly largely on account of its low cost. However, paraffin scented candles when burnt release toxic compounds as well as soot in the air, which may cause harmful effects to the human body. Beeswax scented candles, on the other hand, are non-toxic and hypo-allergenic, forming a perfect substitute to paraffin scented candles.
GTL technology that converts stranded natural gases to liquid fuels is one of the key drivers of the waxes market. GTL technology has the potential to commoditise wax business by flooding the market with low-cost and high-quality wax. GTL’s major focus is on larger consumption areas of ultra clean diesel, specialty chemicals and high performance lubricant base fluids. The steady pace of capacity additions in GTL plants globally is expected to change the competitive scenario for this segment in the coming years.
Key players profiled in the report include BASF SE, Sinopec Beijing Yanshan Company, Blended Waxes Inc., Chemtura Corp., CITGO Petroleum Corp., Clariant AG, ExxonMobil Corp., Hexion Specialty Chemicals Inc., Koster Keunen Holland BV, Lubrizol Corp., Marcus Oil & Chemical, Micro Powders Inc, Paramelt BV, Petroferm Inc., Romonta GmbH, Strahl & Pitsch Inc. , TH. C. TROMM GmbH, The International Group Inc., among others.
The report titled “Natural & Synthetic Waxes: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the waxes market, impact of ongoing recession on the market, current market trends, different types of waxes, the GTL technology, new product launches, recent industry activity, profiles of global market participants. The report analyzes market data and analytics in terms of value for regions including the US, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin America. Product segments analyzed include Natural Waxes, Petroleum and Mineral Waxes, and Synthetic Waxes.
For more details about this comprehensive market research report, please visit – http://www. strategyr. com/Natural_and_Synthetic_Waxes_Market_Report. asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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