The global microcrystalline wax market is estimated to witness a healthy growth, at an estimated CAGR of over 3%, over the forecast period. The major factor driving the growth of the market studied is growing personal care industry in the Asia-Pacific region.
- Growing demand for ice hockey and snowboarding in the North American region are likely to create opportunities for the market in the coming years.
- By Application segment, Personal care industry is expected to dominate the market during the forecast period.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Demand from Personal Care Industry
- Cosmetics and personal care are one of the major applications of microcrystalline wax. Microcrystalline wax is used in cosmetics and personal care products as a viscosity agent, binder, and emollient to thicken the formulations.
- With the increasing number of new beauty products and the concern for good appearance, has led to the significant rise in the market for beauty products and cosmetics. The Asia-Pacific region has become the largest consumer and producer of microcrystalline wax. The production has reached high levels, and the region has become a significant hub for exporting cosmetics and personal care products to developed nations, such as the United States.
- The market in the countries, such as South Korea and Indonesia, are expected to witness a rapid rise in the demand for personal care products, due to growth in the cosmetics market.
- The global skin care market is expected to grow at an average rate of around 5% annually. The industry has witnessed a shift from demand from older consumers to a growing younger consumer base. People are increasingly becoming more self-aware about themselves has hence started using skin care at an increasingly young age in order to delay the signs of aging.
- Owing to all these factors, the market for microcrystalline wax is likely to grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific dominated the global market with a share of more than 45%. With growing packaging and personal industries in countries like China, India, Japan, and South Korea, the consumption of microcrystalline wax is increasing in the region.
- China has the second-largest packaging industry in the world. The country is expected to witness a consistent growth during the forecast period, owing to the rise of customized packaging, increased demand for packaged consumerist goods, in the food segment, like microwave food, snack foods, and frozen foods, etc.
- At present, penetration of personal care products in India is comparatively lower when compared to developed or even other developing economies. However, improving economic environment and increasing purchasing power of the Indian population is expected to increase the adoption of personal care products in the country, thereby driving the demand for microcrystalline wax.
- According to a report published by the Ministry of Economy and Industry, the beauty and personal care (BPC) industry in the country is expected to reach more than USD 10 billion by 2021, at an estimated growth rate of 5%-6% annually. The personal care and cosmetics sector in India is expected to register continuous growth, with increasing shelf space in retail stores and boutiques in India.
- Due to all such factors, the market for microcrystalline wax in the region is expected to have a steady growth during the forecast period.
The microcrystalline wax market is partially consolidated in nature. Some of the major players in the market include BLENDED WAXES INC., Indian Oil Corporation Ltd, Paramelt, Sasol, and Sonneborn LLC, among others.
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