Oxidized Polyethylene Wax Industry Overview
The global oxidized polyethylene wax market size was valued at USD 721.5 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028.
The market is expected to witness substantial growth over the forecast period owing to the widespread usage of the product in applications such as plastics, coatings, hot melt adhesives, rubber processing, and printing. Other applications, such as textile, leather, and cosmetics, also show increasing product consumption as an ingredient in their manufacturing processes. Increasing demand for wax and its derivatives owing to their superior properties, such as good water repellency, non-toxicity, and outstanding chemical resistance, is expected to steer the market growth over the forecast period.
Gather more insights about the market drivers, restrains and growth of the Global Oxidized Polyethylene Wax Market
Moreover, the rise in demand for paperboard & paper and building boards is likely to contribute to the market development. Rapidly growing personal care & cosmetics, inks & coatings, and adhesives sectors are also expected to drive the product demand in the coming years. Rising demand for adhesives, fire logs, candles, and decorative products along with the expansion of the plastic & rubber processing sector, is further expected to impel industry growth. Moreover, escalating demand for plastics and rubber in the defense, aerospace, and automotive sectors is also expected to fuel industry growth.
Major environmental problems of waste disposal of synthetic derivatives, on account of harmful chemical content in the waste, and volatility in raw material prices may pose a challenge to the market growth. The increasing usage of hot melt adhesives in various consumer goods applications, such as furniture making, shoe manufacturing, packaging, baby diapers, and cigarettes is expected to be one of the major drivers. Asia Pacific is the largest consumer of oxidized polyethylene (PE) wax, with China holding the highest market share. Countries, such as China, have developed coal to olefins process to manufacture polymers, such as polyethylene, which is expected to have a positive impact on the market growth.
Almost three-fourths of the ethylene manufactured goes into polyethylene and plastics manufacturing owing to high demand for these products in the market. Thus, ethylene manufacturers have forward integrated their business to tap lucrative opportunities in the market. Petrochemical wax is another raw material used in the manufacturing of PE wax at elevated temperatures. Companies have also developed processes for the product using paraffin wax bases as a replacement for petroleum wax.
The major distribution channels present in the market are through the company’s distribution network, direct supply agreement to industrial users, and third-party distribution channels. Direct supply agreements are gaining more importance owing to end-users entering into an agreement with manufacturers due to cost benefits and to ensure uninterrupted supply. Since the production of oxidized PE wax becomes regionally concentrated over time, third-party distribution channels are expected to play a major role in the future.
Browse through Grand View Research’s Petrochemicals Industry Research Reports.
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Market Share Insights
- May 2022: Since the onset of the COVID-19 pandemic a few years ago, SCG Chemicals, or SCGC, has been using its innovation and technology expertise to develop Mobile Isolation Units that can help prevent the spread of COVID-19 in collaboration with medical professionals.
Key Companies profiled:
Some prominent players in the global oxidized polyethylene wax market include:
- Baerlocher GmbH
- The Lubrizol Corp.
- SCG Chemicals Co., Ltd.
- Marcus Oil
- Deurex AG
- Munzing Chemie GmbH
- Honeywell International Inc.
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