The global slack 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 increasing usage of wax emulsions in various end-user industries.
- Replacement of paraffin wax in candles manufacturing is likely to create opportunities for the market in the coming years.
- By application segment, emulsion 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 for Emulsions in Personal Care Industry
- Cosmetics and personal care are one of the major applications of slack wax. Slack 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 slack 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 slack 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 slack wax is increasing in the region.
- China, one of the largest pharmaceutical markets in the world, is not yet mature. The combined forces of economic and demographic development, government stimulus, enhanced health awareness among the public, market consolidation, and improved R&D capabilities may help the country in maturing into a sophisticated market within the next decade.
- 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 slack 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 slack wax in the region is expected to have a steady growth during the forecast period.
The slack wax market is partially consolidated in nature. Some of the major players in the market include American Refining Group, Inc., Exxon Mobil Corporation, Persol Corporation, Royal Dutch Shell plc, and Carmel Industries LLC, among others.
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