Paraffin Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 3.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Paraffin Market Analysis
The paraffin market is projected to register a CAGR of over 3% during the forecast period.
- COVID-19 negatively impacted the market in 2020. According to Organisation Internationale des Constructeurs d'Automobiles (OICA), about 90.42 million vehicles were sold globally in 2019 and reached about 77.97 million in 2020, with a decline rate of 13.8%. However, the use of paper packaging based on paraffin has increased for food and e-commerce uses, which has increased the demand for paraffin post-pandemic.
- Over the short term, increasing demand for candles and packaging and the growing personal care industry in Asia-Pacific is driving the market growth. Continuous growth in online beauty spending, expanding use of social networks, increasing consumer interest in new and premium products, accelerating urbanization, and the growth of the upper-middle-class population are the major factors driving the paraffin market in the personal care industry in the Asia-Pacific region.
- The development of bio-based products is hindering the market's growth. Increasing investment casting will likely create market opportunities in the coming years. Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Paraffin Market Trends
This section covers the major market trends shaping the Paraffin Market according to our research experts:
Increasing Demand for the Paperboard and Packaging Application
- Paraffin wax finds applications in flexible packaging as paraffin and paraffin blends provide moisture and grease barriers along with gloss and freshness seals. The key benefits of using the product include its ability to provide a gas and odor barrier (preventing loss of flavor or contamination), improved process efficiency, and water and water vapor resistance. Besides, a product derived from petroleum is highly cost-effective and possesses low viscosity. It also needs relatively low-cost machinery for the application at high speeds.
- Due to the need for stability during storage and transportation and aesthetic considerations, a significant share of industrial products is offered in packaging. Crown corks, lug caps, plastic film laminates, craft paper, paper board, and packaging machinery are among India's top exports, along with flattened cans, printed sheets, and components. The fastest-growing packaging categories in India include laminates and flexible packaging, particularly PET and woven sacks.
- India's paper and paperboard packaging market was valued at USD 10.77 billion in 2021 and is expected to reach around USD 15.69 billion by 2027. The export of packaging materials from India grew at a compound annual growth rate (CAGR) of 9.9% to USD 1,119 million in 2021-22 from USD 844 million in 2018-19. The United States remains the major export destination for the packaging industry, followed by the United Kingdom, the UAE, the Netherlands, and Germany.
- The improvement in living standards and higher purchasing incomes, especially in eastern European and North American countries, has increased the demand for a broad range of products, all of which require packaging. Therefore, the demand for packaging is increasing, resulting in the increased consumption of paraffin.
- Most of the demand from the packaging segment is from the food and beverage industry. On the other hand, healthcare products are the largest users of folding cartons. The aforementioned end-user segments will likely boost the demand for paraffin during the forecast period.
- Furthermore, North America is one of the largest consumers of paperboard and packaging. According to Packaging Machinery Manufacturers Institute's (PMMI) Beverage Report, the North American beverage industry is expected to grow by 4.5% from 2018 to 2028. Additionally, according to the National Retail Federation (NRF), retail sales grew by 7% in 2020 and over 14% in 2021. By the end of 2021, total retail sales reached approximately USD 6.6 trillion in the United States.
- Due to all these factors, the paraffin market will likely grow globally during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific dominated the global paraffin market as the demand for paraffin-based products, like candles, paperboard, packaging, and cosmetics, is increasing with an increasing focus on personal care and quality of life.
- In 2021, the Asia-Pacific region accounted for the largest demand for lubricants. In 2021, around 26.08 million vehicles were sold in China compared to 25.22 million in 2020, witnessing an increasing growth rate of about 3%. This led to increased demand for fuel and lubricants, positively affecting the market demand for paraffin.
- The Chinese beauty and personal care industry was valued at USD 51 billion in 2021 and is estimated to reach USD 72.9 billion by 2027. Personal care products held the largest portion of this revenue (over USD 24 billion), followed by skin care products (USD 14 billion).
- According to the Packaging Industry Association of India (PIAI), the sector is growing rapidly at about 22-25% per annum. The Indian packaging industry has made a mark with its exports and imports, thus, driving technology and innovation growth and adding value to various manufacturing sectors. During the forecast period, growth in the packaging industry is expected to drive the paraffin market in India.
- South Korea has one of the world's most exceptional beauty markets. New beauty trends and innovations featuring sophisticated ingredients and aesthetically appealing packaging are constantly displayed. The South Korean beauty and personal care products market was valued at USD 11.9 billion in 2021, and it is expected to reach USD 13.9 million by 2027, which is likely to enhance the market demand.
- Therefore, all the above factors are expected to boost the paraffin market during the forecast period.
Paraffin Industry Overview
The global paraffin market is fragmented in nature. The major companies include Sasol, Exxon Mobil Corporation, Lanxess, Eneos Corporation, and China Petroleum & Chemical Corporation, among others.
Paraffin Market Leaders
Sasol
Exxon Mobil Corporation
LANXESS
ENEOS Corporation
China Petrochemical Corporation
*Disclaimer: Major Players sorted in no particular order
Paraffin Market News
- December 2022: The Saudi Arabian Oil Company, China Petroleum and Chemical Corporation ('Sinopec'), and Saudi Basic Industries Corporation (SABIC), announced that they are exploring collaboration across refining and petrochemical projects in China and Saudi Arabia. This collaboration will include a 320,000 barrels-per-day refinery and a 1.5 million tons-per-year petrochemical cracker complex. It is expected to commence operations by the end of 2025.
- November 2022: Eneos Corporation and Niigata Public Corporation of Agriculture and Forestry signed a partnership agreement for 'the realization of a decarbonized society through forests conservation.' The Eneos Group is promoting initiatives to create and use J-Credits*1 derived from forest management toward achieving the target of reducing the Group's Scope 1 and 2*2 CO2 emissions by 46% of the 2013 level by 2030.
Paraffin Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand from Candles and Packaging
4.1.2 Growing Personal Care Industry in the Asia-Pacific Region
4.2 Restraints
4.2.1 Development of Bio-based Products
4.3 Industry Value Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value)
5.1 By Type
5.1.1 Paraffin Wax
5.1.2 Liquid Paraffin
5.1.3 Kerosene
5.1.4 Petroleum Jelly
5.2 By Application
5.2.1 Cosmetics and Personal Care
5.2.2 Paperboard and Packaging
5.2.3 Fuel
5.2.4 Rubber
5.2.5 Lubricants
5.2.6 Other Applications
5.3 By Geography
5.3.1 Asia Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 Italy
5.3.3.4 France
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Aromachimie Ltd
6.4.2 Calumet Specialty Products Partners LP
6.4.3 Cepsa
6.4.4 China National Petroleum Corporation
6.4.5 China Petroleum & Chemical Corporation
6.4.6 ENEOS Corporation
6.4.7 Exxon Mobil Corporation
6.4.8 H&R GROUP
6.4.9 HollyFrontier Refining & Marketing LLC
6.4.10 Indian Oil Corporation Ltd
6.4.11 Kemipex
6.4.12 LANXESS
6.4.13 NIPPON SEIRO CO. LTD
6.4.14 PersiaParaffin
6.4.15 Petrobras
6.4.16 Repsol
6.4.17 Sasol
6.4.18 The International Group Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Use of Investment Casting
Paraffin Industry Segmentation
Paraffin is white or colorless waxy material consisting of a mixture of saturated hydrocarbon, mainly produced as a product or byproduct from a petroleum refinery. It is mainly used in candle makings, personal care products like petroleum jelly, and wax coating on papers, among others.
The paraffin market is segmented by type, application, and geography. By type, the market is segmented into paraffin wax, liquid paraffin, kerosene, and petroleum jelly. By application, the market is segmented into cosmetics and personal care, paperboard and packaging, fuel, rubber, lubricants, and other applications. The report also covers the market size and forecasts for the paraffin market in 15 countries across major regions.
For each segment, the market sizing and forecasts have been done on the basis of value (USD million).
| By Type | |
| Paraffin Wax | |
| Liquid Paraffin | |
| Kerosene | |
| Petroleum Jelly |
| By Application | |
| Cosmetics and Personal Care | |
| Paperboard and Packaging | |
| Fuel | |
| Rubber | |
| Lubricants | |
| Other Applications |
| By Geography | |||||||
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Paraffin Market Research FAQs
What is the current Paraffin Market size?
The Paraffin Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Paraffin Market?
Sasol, Exxon Mobil Corporation, LANXESS, ENEOS Corporation and China Petrochemical Corporation are the major companies operating in the Paraffin Market.
Which is the fastest growing region in Paraffin Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Paraffin Market?
In 2024, the North America accounts for the largest market share in Paraffin Market.
What years does this Paraffin Market cover?
The report covers the Paraffin Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Paraffin Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Paraffin Industry Report
Statistics for the 2024 Paraffin market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Paraffin analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
