ALBANY, N.Y., Aug. 4, 2020 /PRNewswire/ -- Proliferating use polyethylene waxes in making vast range of materials, including candles, packaging, firelogs, plastic additives and lubricants, rubber, adhesives and coatings, and cosmetics, accounts for worldwide utilization in end-use industries.
They play key role in regulating properties such as abrasion, mar resistance, coefficient of friction, melt viscosity, gloss, melt temperature, and fusion speed helps drive the utilization in end-use industries.
The global polyethylene wax market's valuation stood at US$ 300 Mn in 2018. Analysts at TMR projects the valuation to expand at a CAGR of more than 3.0% during the forecast period of 2019–2027.
Extensive utilization in plastic additives and lubricants, and adhesive and coatings offers sizable revenue to global polyethylene wax market.
Polyethylene Wax Market: Key Driving Factors and Promising Avenues
Rise in production of plastics that utilize polyethylene wax is a key factor driving the market.
Widespread demand for this in making automotive, packaging, and medical products has fueled growth of revenues in the polyethylene wax.
Proliferating use of adhesives and coatings in various applications has spurred urtication of polyethylene wax, and thus has reinforced the market outlook. A rapidly expanding coatings industry in developing and developing countries around the world has also spurred demand for polyethylene wax.
Extensive utilization of polyethylene wax in flame retardants, plasticizers, and antioxidants is boosting the market.
Key Impediments to Polyethylene Wax Market Players
The popularity of Fischer-Tropsch (FT) waxes are a substitute that has offered a tough competition to manufacturers of polyethylene wax. Their superior performance is due to their being odorless.
There are stringent regulations with respects to handling, storage, use, and transportation of polyethylene wax. This has also led to hefty penalties to defaulters. This has constrained the demand for polyethylene wax in packaging and printing industries.
Nevertheless, the shift from solvent-based to water-based formulations has enabled players to overcome some of these problems.
Fluctuation in oil prices is one of the key challenge for players looking for consistent revenue streams in the polyethylene wax market.
Geographically, Asia Pacific is a highly lucrative market and held the dominant share in the polyethylene wax market. The prospects are underpinned by rising utilization of polyethylene wax in numerous end-use industries such as rubber, plastics, and packaging. Extensive research has been conducted in the region for making polyethylene wax particles with better chemical characteristics.
The opportunities in Europe are expected to expand at promising pace during the forecast period. The regional market is projected to clock a CAGR of 3.0% between 2019 and 2027.
Wax Market - The report points out that the rising base of end-use industries such as adhesives, rubber, cosmetics, packaging, candles, and wood and fire-logs is driving the global wax market. The growing demand from the packaging and cosmetics industries is particularly contributing towards the growth of the market. However, the closure of Group I base oil refineries will inhibit the growth of the global wax market during the forecast horizon. The overall market has a huge opportunity to grow with the introduction of gas-to-liquid (GTL) waxes.
Slack Wax Market - Slack wax is primarily used in the production of paraffin wax. Paraffin wax is expected to remain the dominant application segment in the slack wax market during the forecast period. Rise in the demand for paraffin wax in various applications such as candle making, anti-caking agents for fertilizers, and wood impregnation products is a key factor that drives the slack wax market.
Chlorinated Paraffin Wax Market - The growing prospect in the market has been underpinned to a substantial extent by the strides made the flame retardant industry. The market has contributed to a significant share of about 12% in the industry. The demand dynamics is influenced by the rapid uptake of low-cost flame retardant additives for a wide range of materials in various industries around the world. Moreover, the chlorinated paraffin wax market has seen new potential from advances being witnessed in the synthesis of the various formulations as well as the adoption of better manufacturing technologies.
Polyethylene Adipate Market - Based on geography, the global polyethylene adipate market can be segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Polyethylene adipate is primarily employed in the manufacture of polyurethane. Asia Pacific dominated the global polyethylene adipate market in 2017. In terms of demand, China alone accounts for more than 50% share of the polyethylene adipate market in the region. Countries such as China, Taiwan, South Korea, and Japan are the leading consumers of polyethylene adipate in the regional market.
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