North America Paraffin Wax & Emulsions Market Size, Share & Trends Analysis Report By Paraffin Wax Application (Candles, Packaging), By Paraffin Wax Emulsions Application (Woodworking, Paper) - Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030
The North America Paraffin Wax & Emulsions market size was valued at US$ 975.97 million in 2021 and is expected to hit US$ 1.45 Billion by 2030, growing at a compound annual growth rate (CAGR) of 6.24 % from 2022 to 2030.
The market is projected to witness steady growth in terms of growing application markets, such as packaging, cosmetics, ink & coatings, and candle manufacturing. Paraffin waxes are becoming more popular in the packaging industry specifically for corrugated cardboard, flexible packaging, and others. Its high barrier properties are likely to stimulate its consumption for coating cardboard and paper mainly in the food industry. The markets in the U.S. and Canada are expected to witness substantial growth owing to the rising living standards and rapid industrialization.
The market is also expected to grow owing to the presence of various personal care and cosmetics companies, such as Colgate-Palmolive, Maybelline, Avon, Unilever, Johnson & Johnson, and Procter & Gamble. In addition, the increasing popularity of cosmetics is expected to trigger the demand over the forecast period. The value chain of paraffin wax comprises raw material suppliers, manufacturers, distributors, and end-users. It is derived from crude oil and its key raw material includes slack wax; a byproduct obtained from the refining of lubricating oil. The ability of paraffin wax to protect surfaces and make them resistant to water has made it ideal for coating paper and cardboards, specifically for the food industry.
It is an essential ingredient in crayons, fabric finishing, explosives, metal coatings, paints & varnishes removers, candle manufacturing, and polishes among others owing to its ability to blend with a variety of other products. Paraffin wax is produced from crude oil through dewaxing and deoiling processes. Manufacturing companies are investing in R&D activities to develop deoiling practices and eco-friendly manufacturing processes to improve the characteristics of the product to enable its use in various industrial and residential applications.
Generally, paraffin wax is used in end-use industries, such as candles, packaging, cosmetics, rubber, hotmelts, board sizing, and others, which include antirust additives, PVC lubricant, electronics, building, pharmaceuticals, textile, surface coatings, food, and explosives. It is used as a stabilizer, thickener, film former, emulsifier, rheology modifier, lubricity aid, and conditioner. Prominent distributors and suppliers in the market include Alpha Wax USA, Canada Wax Corp., and Sage Oil LLC among others.
Report Scope of the North America Paraffin Wax & Emulsions Market
Market Size in 2021
USD 975.97 Million
Revenue Projection By 2030
USD 1.45 Billion
CAGR of 6.24 % from 2022 to 2030
2017 - 2020
2022 to 2030
Paraffin wax application, paraffin wax emulsions application, and Country
Repsol; Paramelt; Sasol; Hexion; Walker Industries; King Honor International Ltd.; Clariant; Michelman, Inc.; Petrobras; H&R Group; Shell
Paraffin Wax Application Insights
The packaging application segment dominated the market with a revenue share of over 30% in 2021. This is attributed to the development of e-commerce and high demand from emerging economies of the Asia Pacific region. The product is widely used in the packaging industry on account of its moisture and odor absorbing characteristics. It is a saturated hydrocarbon mixture, which is often added with PE molecules to improve their melting point. However, these are mixed with antioxidants to enhance their properties. Key players manufacturing flexible packaging materials are Mars Inc., Tyson Foods Inc., Nestle SA, and PepsiCo Inc.
The spread of the COVID-19 has impacted every sector and the packaging sector has seen a change in buying patterns during the lockdown period. Consumers have become price-sensitive and hygiene-conscious over a few months, thereby leading to an increase in the demand for packaged food items. Moreover, the value supply has become more digitalized, cost-efficient, and productive.
Candle manufacturing is also one of the prominent applications. This product is used for developing a variety of candles that are used in homes and restaurants for decoration purposes. Paraffin wax is usually sold in the pellet form in small containers through retail shops. Several companies prefer paraffin wax in pellet form as the process of melting and weighing wax in this form is easy. The rising demand for scented candles to enhance the aesthetic appeal and aura of different places favors the growth of the candles market, which further contributes to the market growth.
Paraffin Wax Emulsions Application Insights
The inks & coatings application segment dominated the market with a revenue share of over 33% in 2021. This is attributed to the high demand from several end-use industries including construction, automotive, electrical & electronics, and industrial manufacturing owing to their ability to protect materials or substances from wear & tear and rusting.
Inks & coatings are used in the above-mentioned industries to enhance the aesthetics of the material or substance. Growing construction activities in North America, due to rapid urbanization and increasing repair & renovation activities of old buildings and structures, and rising use of inks & coatings in the automotive industry are expected to boost the product demand in ink & coating applications.
In the woodworking industry, paraffin wax emulsions are used as a protective covering to enhance durability and reduce water uptake. Paraffin wax emulsions improve the productivity of the wood grinding line by making the plate surface smoother. The anti-dust effect of the paraffin wax emulsion helps in the smooth grinding of the woodwork. The emulsion mixes well with various resins, such as melamine and carbamide, as well as facilitates the hot pressing of wood plates. Paraffin wax emulsions increase the durability of wood products, such as wood boards, and improve the efficiency of woodworking. This is expected to boost the product demand in woodworking applications over the forecast period.
The U.S. dominated the market with a revenue share of over 59% in 2021. This is attributed to a surge in the production of candles in the country over the past decade. The country holds significant ground in the candles industry on account of the high demand for scented wax candles as about 35% of the candles are purchased during the holiday and Christmas season. Candles are usually sold via specialty shops, departmental stores, and mass merchandisers. An average U.S. resident purchases candles every week and use them within a week of purchase. In the U.S., consumers prefer utilizing them at their homes for stress-relieving therapies or as home décor.
Every year in the U.S., approximately 1 billion pounds of wax is used in the manufacturing of various types of candles, such as containers, pillars, votives, floating candles, and birthday candles. The growing popularity of scented candles is expected to boost the demand over the forecast period. Moreover, the growing demand for cosmetics products in the U.S. owing to increasing awareness regarding self-care is expected to boost the demand for paraffin wax in the cosmetics industry.
The growing demand for packaging in the food processing, consumer goods, pharmaceuticals, and e-commerce industries is expected to boost the market growth in Canada. The flexible packaging segment followed by the paperboard segment accounts for the largest segment in the packaging industry in Canada. According to the Smithers Pira (leading manufacturer of packaging materials) estimation, the Canadian packaging industry is expected to reach USD 31 billion by 2025. Thus, the growing packaging industry in Canada is likely to contribute to the high demand for paraffin wax over the forecast period.
Key Companies & Market Share Insights
The market is competitive due to the presence of established manufacturers in the region. Manufacturers, such as Repsol and Shell, are integrated across the entire value chain. Companies operational in the market are focusing on increasing their exposure in other regional markets. For instance, Hexion has a presence in North America, Asia Pacific, Europe, and the Middle East & Africa, which enables it to cater to those markets including the U.S. and Canada.
Manufacturers & distributors in the industry, such as Paramelt, are involved in toll manufacturing through which, they offer a value-added contribution to the partners through tolling and bespoke development. The value-added services offered through toll manufacturing include material portfolio and process capabilities. Through these operational integrations, manufacturers are trying to reach out to potential customers. Some of the prominent players in the North America paraffin wax & emulsions market include:
- Walker Industries
- King Honor International Ltd.
- Michelman, Inc.
- H&R Group
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at North America for the period of 2017 to 2030
- By Paraffin Wax Application
- Board Sizing
- By Paraffin Wax Emulsions Application
- Inks & Coatings
- Textile & Fiber
- By Country
- South Carolina
- North Carolina
- New Brunswick
Key Points Covered in North America Paraffin Wax & Emulsions Market Study:
- Growth of North America Paraffin Wax & Emulsions in 2022
- Market Estimates and Forecasts (2017-2030)
- Brand Share and Market Share Analysis
- Key Drivers and Restraints Shaping Market Growth
- Competition Mapping and Benchmarking
- Recommendation on Key Winning Strategies
- COVID-19 Impact on Demand for North America Paraffin Wax & Emulsions and How to Navigate
- Key Product Innovations and Regulatory Climate
- North America Paraffin Wax & Emulsions Consumption Analysis
- North America Paraffin Wax & Emulsions Production Analysis
- North America Paraffin Wax & Emulsions and Management