Paraffin Market Size, Share, Growth & Industry Trends [2031]

Report Description

Paraffin Market Outlook 2031 

The Paraffin Market was USD 6.24 Billion in 2022 and is likely to reach USD 8.88 Billion by 2031, expanding at a CAGR of 4% during 2023 – 2031. The growth of the market is attributed to the rapidly growing cosmetics and personal care industry and rising disposable income across the globe.

Paraffin is referred to as a colorless and soft solid material, which is derived from coal, distillates of wood, petroleum, and oil shale that consist of a complex mixture of hydrocarbons. Paraffin is usually solid at room temperature; however, it begins to melt at around 37 °C (99 °F). The boiling point of paraffin is around 370 °C (698 °F).

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It is usually available in liquid, wax, petroleum jelly, and kerosene forms. Paraffin was first acquired by a Germany-based chemist, Karl Von Reichenbach. It was discovered when Reichenbach tried to develop techniques to separate and refine wax substances that naturally occur in petroleum. The discovery boosted the candle-making industry, as paraffin is reliable, burns cleanly, and is inexpensive in comparison with other materials used in making candles. Since the discovery of paraffin, it is used in several industries such as paperboard and packaging, beauty, rubber, lubrication, and others for several applications.

The applications of paraffin include wax-carving, candle-making, coating, investment casting, crayons, ink, food-grade paraffin wax, bicycle chain lubrication, solid propellent, surfboards, ski, & skateboard wax, forensic investigations, mechanical thermostats, thickening agent, moisturizers, wood finishing, wax baths for physical therapies, cosmetic treatments, aroma therapy, treatments, and others.

Paraffin is considered to have therapeutic and cosmetic benefits. It is used to relieve pain in people suffering from rheumatoid arthritis, osteoarthritis, fibromyalgia, and other joint issues. Paraffin is used in heat therapy to increase blood flow, decrease joint stiffness, and relax muscles. It helps in minimizing muscle spasms and inflammations. Paraffin is used in treating eczema and constipation as well. It is used cosmetically, as a natural moisturizer to make skin soft. It is used to open pores and remove dead skin as well. Paraffin has a variety of other practical uses in agriculture, medicine, and other industries. It is used as fuel for rockets, jet engines, or tractor engines. It is used as a lubricant in machinery to reduce binding, friction, and wear of machinery and equipment. It is used as a coolant in electrical systems. Paraffin is used as a water-harvesting soil treatment solution.

COVID-19 Impact

The global paraffin market was negatively impacted, due to the COVID-19 pandemic situation. The lockdown, travel restrictions, and social distancing during the pandemic minimized the usage of personal vehicles across the globe. This created a negative impact on the demand for car lubricants; thus, decreasing the demand for paraffin. Conversely, the demand for packed food & beverages and takeaway containers increased during the pandemic. The demand for paperboard and packaging increased, as a rising number of consumers ordered many products online during the pandemic. This increase in demand for packaged products affected positively the global paraffin market.

Paraffin Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global paraffin market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

Major Trends:

Scented candles are one of the key market trends

Scented or fragrant candles are increasingly becoming popular among consumers to use as home décor. Restaurants, hotels, beauty parlors, and spas have started using these candles to create a therapeutic environment around the space to make customers relaxed. Several paraffin wax candle manufacturers are coming up with candles in various shapes, sizes, colors, and fragrances to cater to the growing demand for fragrant candles. The trend of increasing usage of candles among consumers is expected to drive the market.

Key Drivers:

Surge in the food packaging industry boosts market
The demand for packaged food and beverages is growing across the globe. Demand for packaged food and takeaways is growing, due to rapid urbanization, increasing disposable income, and consumers preferring to spend less time on food preparations. This factor is estimated to fuel the market during the forecast period.

Rising usage of paraffin for various applications in different industries spurs the market
The demand for paraffin from several industries such as packaging, coating, rubber, personal care, and others has witnessed growth in recent years. Paraffin is used for various applications in these industries such as hot melt adhesives, body care products, rubber processing aids, industrial coatings, metal castings, electrical insulations, and others. This boosts the demand for paraffin, which drives the market.

Existing Challenges:

Toxic gasses and fumes emitting from paraffin wax hinder the market growth
Negative impacts of toxic gasses and fumes emitted from the burning of paraffin wax on the environment and human health are estimated to restrain the paraffin market growth in the coming years. Increasing demand for eco-friendly products that are paraffin-free hinders market growth.

Emerging Opportunities:

Surging demand for beauty and personal care product offer growth opportunities
South Korea-based beauty products are becoming increasingly popular among consumers across the globe. Many consumers across the globe are investing in beauty and personal care products, due to an increase in disposable income, and the easy availability of these products through various distribution channels. The increasing demand for such beauty and personal care products offers growth opportunities to market players. 

Scope of Paraffin Market Report

The report on the global paraffin market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Paraffin Market Segment Insights

Paraffin wax segment holds a key market share

On the basis of types, the global paraffin market is divided into liquid paraffin, paraffin wax, petroleum jelly, and kerosene. The paraffin wax segment is projected to register significant growth during the forecast period, owing to the significant demand for paraffin wax from various industries such as paperboard and packaging, cosmetics, and others. Low cost, wide availability, adaptability in various applications, and high-performance quality of paraffin in wax format boost the paraffin wax segment growth.

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Paperboard & packaging segment expands rapidly

In terms of applications, the global paraffin market is segregated into fuel, paperboard & packaging, coating & polishing, candles, lubricants, hot melt adhesive, cosmetics & personal care, tire & rubber, and others. The paperboard & packaging segment is expected to witness significant revenue growth during the forecast period, owing to rising demand for packaged food in countries such as Germany, India, China, the US, the UK, and others. Increasing usage of flexible paperboard and packaging in pharmaceuticals, food & beverage, and personal care industries across the globe spur the paperboard & packaging segment growth.

The candles segment is projected to expand significantly in the coming years, due to the growing demand for scented candles across the globe. The usage of such candles is increased for aromatherapy in hotels, spas, and other commercial buildings. A wide range of fragrant candles available in the market boosts the candles segment growth.

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Asia Pacific to dominate the market

Based on regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The paraffin market in Asia Pacific is expected to register a high CAGR during the forecast period, due to surging demand for packaging, candles, paperboards, and cosmetics in the region. Increasing quality of living and growing disposable income among consumers in Asia Pacific is driving the personal care industry in the region. China is one of the key exporters of paraffin wax, due to the presence of large-scale companies such as PetroChina Company Limited and China Petroleum & Chemical Corporation in the country.

A growing number of India-based refineries are expanding their wax production, which is estimated to boost the paraffin market in Asia Pacific in the coming years. A rising number of South Korea-based beauty and self-care brands such as The Face Shop, Laneige, Sulwhasoo, Innisfree, and others are rapidly gaining popularity across the globe. The increasing number of beauty brands across the region drives the paraffin market in Asia Pacific.

The paraffin market in North America is anticipated to observe significant growth in the forecast period, owing to surging in the pharmaceutical industry, cosmetics industry, beauty industry, and paperboard and packaging industry in the region. Increasing demand for fragrant candles across North America is projected to spur the paraffin market in the region.

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