Oxidized Polyethylene Wax Market Size, Share & Trends Analysis Report By Application (Paints & Coatings, Printing Inks), By Product (Low-, High-density), By Region (Europe, North America, APAC), And Segment Forecasts, 2021 - 2028

Report 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.

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.

Product Insights

In terms of volume, the high-density product segment dominated the market with a share of 51.4% in 2020. This high share is attributed to its wide applications owing to its properties, such as color and chemical resistance, low viscosity, good hardness, and high softening point. HDPE is used as a dispersant in oil paint and printing ink used in printing applications to make printing work look glossy and to improve the surface finish. It is also being used in plastics, rubber processing, and the adhesive industry due to its chemical resistance property.

The product consumption in printing inks is driven by the enhanced physical properties of the final product. The product consumption in the rubber, metal, and plastic processing markets is highly dependent upon the global industrial output. The slow growth in plastic manufacturing is expected to influence the consumption of waxes in the rubber and plastics industry.

The low-density products are primarily used as a lubricant for plastic processing, as dispersing agents for color masterbatches, surface modifiers in printing inks, and as toners and processing aids in various industries. The market is driven by rising demand for specialty products and increased emphasis on innovative offerings.

Application Insights

In terms of volume, the printing ink is estimated to emerge as the fastest-growing application segment registering a CAGR of 4.7% over the forecast period. This high growth is attributed to the growing demand for printing packaging products across the globe. Polyethylene wax is used as an additive in ink manufacturing to provide anti-slip and anti-scuff properties in the water-based printing process. In printing applications, solvent-, water-, and oil-based inks are used along with wax in digital printing, offset printing, and flexo printing processes.

The product application in adhesive formulation enhances strength, provides anti-block performance, modifies permanent tack, modifies open & set time, improves adhesion & wetting properties, and more. The growing number of packagers on account of the increasing reliability of customers worldwide on e-commerce platforms for purchasing various goods is projected to boost the demand for adhesives in the application spectrum, thereby increasing the demand for oxidized PE wax worldwide.

It is majorly used as an emulsion in the paints & coatings sector as it is an excellent water repellent. It also protects paints & coatings against pollution and other destructive elements, such as high humidity, temperature, and more. Increasing infrastructure renovation activities in the Europe and North America regions coupled with new project developments in the Asia Pacific region are anticipated to present new avenues for infrastructural coatings, which, in turn, will boost the demand for PE wax-based products in the global market.

Regional Insights

The U.S. led the North American regional market with a volumetric share of 24.3% in 2020. North America is potentially a robust market for oxidized polyethylene wax with major demand arising from the growing plastics industry in the region. According to multinationals, such as Chevron, the demand for PE is largely undertaken by formulators of PE resins and the application scope of these compounds are broadening since the past decade. Furthermore, with rising demand for the product from industries, such as plastics, rubbers, and printing inks, the market is projected to show significant growth over the forecast period.

Asia Pacific is poised to reflect steady growth, which is attributed to the rising demand for plastic compounds from packaging material formulators, bottle producers, and automobile component manufacturers. This region is one of the fastest evolving markets, in terms of oxidized PE wax product development, which is due to the increasing product demand from end-use markets.

The region is home to various plastic processors, which results in high demand for plastic emulsions and plastic compounds in countries such as China, Japan, South Korea, and India. The presence of multiple formulators, ease of trade with neighboring countries, and availability of skilled labor are anticipated to positively affect the regional market growth.

Key Companies & Market Share Insights

The market is highly dynamic with the presence of companies that are engaged in strategic mergers & acquisitions, regional expansion, and product developments. Large- as well as small-scale companies, such as Marcus Oil and Trecora Chemicals, are expected to make major inroads with concentrated efforts on improving their product portfolio.

Escalating demand for plastics and rubber in the defense, aerospace, and automotive sectors is also expected to fuel industry growth during the next few years. Major companies have undertaken different initiatives, such as frequent capacity expansion, strategic alliances, acquisitions, and mergers, to maintain their position in the industry. 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.

Oxidized Polyethylene Wax Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global oxidized polyethylene wax market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • High-density

  • Low-density

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Plastic Processing

  • Paints & Coatings

  • Printing Inks

  • Textiles

  • Rubber Processing

  • Metal Processing

  • Adhesives

  • Candles

  • Food

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa