Dublin, Sept. 04, 2023 (GLOBE NEWSWIRE) -- The "Wax Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
During the forecast period, the wax additives market is estimated to grow with a CAGR of over 5%.
Wax additives are widely used in paints and coatings, construction, and automotive industries. The outbreak of COVID-19 resulted in hindrances in construction activities. Due to semiconductor chip shortage and other supply chain disruptions, automotive manufacturing was also affected severely.
The demand for wax additives was thus relatively affected. Another wide use of wax additives is in candle manufacturing, which was majorly affected by the slowdown in the tourism industry during the pandemic.
Key Highlights
As tourism and other manufacturing activities are slowly resuming back to pre-COVID levels, the demand for wax additives in paints and coatings and candle manufacturing is expected to rise.
Spas and other healing and therapy centers are now witnessing a rise in footfall, with a rising population of middle-class people turning towards these centers for stress relief. Tourism in regions with an abundance of such spas and other healing and therapy centers is expected to push the demand for wax additives further.
However, inflated prices of specialty raw materials, crude oil prices, and transportation prices are expected to hamper market growth.
Asia-Pacific region is expected to lead the global wax additives market growth, with the highest market share during the forecast period.
Wax Additives Market Trends
Wax Additives Expected to find High Demand in Coatings Segment
Wax additives are widely used in coatings to improve the appearance of finished products, help protect from bruising or scratching during the shipping and handling of goods, and to act as a carrier for active compounds.
According to American Coatings Association, over 48% of total coatings produced in the Asia-Pacific region apply to architectural and automotive OEM coatings. This statistic serves as a primary indicator that with the booming automotive and building & construction industry, demand for wax additives is expected to rise in parallel.
The global construction output is expected to grow to USD 15.2 trillion by 2030, with construction output in North America and Western Europe growing by 32% and 23% percent, respectively.
The upsurge in demand for residential construction has remained strong in bigger economies, showing great promise to drive the growth of the construction sector globally.
On the other hand, the automotive industry, specifically light vehicle sales, is expected to grow by 5.7% globally by 2023. The United States LMC Automotive estimated that the United States' new light-vehicle sales reached a SAAR of 15.1 million units in October 2022, which is an 11% year-on-year growth compared to October 2021.
Although supply chain problems, such as the shortage of semiconductors, have contributed to hindrances for the automotive industry in the short-medium term. However, strong growth is expected in the longer run.
The above factors are expected to boost the demand for wax additives globally during the forecast period.
Asia-Pacific Region Expected to Lead the Global Market
Asia-Pacific was the major market for wax additives, owing to increasing consumption from countries such as China, India, and Japan.
According to American Coatings Association, the Asia-Pacific region accounted for more than 53% of the volume of total global production and 47% of the total global revenue in the coatings segment. In Asia-Pacific, China accounted for 59% of the regional volume and over 60% of the regional value.
The per capita consumption of paint in the Asia-Pacific region is 9.5 kg, whereas, in the European countries and the United States, it is between 13-14 kg. The vast gap, however, is expected to act as a driving factor for regional growth.
With 43% of total paint and coatings production finding its application in architectural coatings and over 6% in the automotive industry, the strong growth potential for building and construction and the automotive sector is expected to fuel the demand for wax additives.
The Asia-Pacific construction output is expected to be up by over 50%, making it a USD 7.4 trillion market over the next eight years.
The automotive industry in the region is expected to reach 15% of volume growth by 2025, growing at a CAGR of 5% until 2025 and potentially touching sales figures of over 4.8 million vehicles.
Therefore, with growth prospects for the building, construction, and automotive industries, the Asia-Pacific region is expected to dominate the global market in the forecast period.
Wax Additives Market Competitor Analysis
The wax additives market is consolidated in nature. Some of the major players in the market include Lubrizol Corporation, Honeywell, BASF SE, Arkema Group, Evonik Industries, and others.
A selection of companies mentioned in this report includes
- Agrakem
- Arkema Group
- BYK
- Clariant AG
- Concentrol
- Evonik Industries
- Honeywell
- K-Tech (India) Pvt. Ltd.
- Lubrizol Corporation
- Micro Powders, Inc.
- Paramold
- Shamrock Technologies, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/so53ct
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