Waxes are solid material that melt and convert into liquid state at a slightly higher temperature. Sources of wax can be segregated into three segments: oil, mineral and plants & animals. Crude oil is the most dominant source of waxes moreover owing to higher demand for crude oil in other application segments, mineral waxes have been gaining acceptance and demand for mineral waxes has been surging across the globe. Lignite is the most dominant mineral used for the production of mineral waxes and this trend is anticipated continue for a foreseeable future. Ozokerite, peat and ceresin waxes are among other major mineral waxes sources.
Environmental hazards associated with processing of crude oil coupled with volatile pricing of crude oil have led to decline in demand for crude oil based waxes. Moreover, high demand for crude oil for other more lucrative application segments has been the foremost factor driving demand for mineral waxes. Increasing demand for wax in the production of rubber is expected to drive demand for mineral waxes during the forecast period. High growth in cosmetics market is also expected to be among major factors driving demand for mineral waxes. Moreover, supply constraints related to major mineral sources such as lignite is expected to restrain mineral waxes market growth. Furthermore, availability of other wax sources such as plants, animals and insects are expected to restrain mineral waxes market growth.
Asia Pacific dominates the global demand for mineral waxes and this trend is anticipated to continue during the forecast period. Asia Pacific comprises two of the largest and the fastest growing economies, India and China. China dominates the global production of mineral waxes and exports a major portion of the production. Moreover, high GDP growth in the emerging economies of India and China is expected to drive growth in several end user industries for mineral waxes including paper, rubber and cosmetic among several others. Furthermore, high demand for candles in India is expected to be among major factors driving demand for mineral waxes in Asia Pacific. Owing to the aforementioned factors, Asia Pacific is anticipated to be the fastest growing region for mineral waxes during the forecast period.
North America is the second largest market for mineral waxes followed by Europe. Moreover, mineral waxes market in North America is profoundly dependent on imports from countries such as China. Poland is expected to be among major mineral waxes market in Europe. Moreover, Europe is anticipated to outdo North America in terms of mineral waxes market growth during the forecast period. Increasing demand for firelogs is anticipated to be a major factor driving demand for mineral waxes in North America and Europe. Demand for mineral waxes in RoW region is expected to be driven by increasing demand from developing economies of South America and Europe.
Mineral waxes market is highly fragmented and dominated by several regional players across the globe. Owing to dominance of regional players, the market is characterized by high prices sensitivity. Low capital investment has increased the threat from new entrants mainly in the developing economies. The degree of competition in the mineral waxes market is high and is expected to remain high for the next six years. Some of the major players in the market include American Refining Group Incorporated, Archer-Daniels-Midland Company, Calumet Specialty Products Partners LP, International Flora Technologies Limited and Honeywell International Inc among others.