This research report on the global vegetable wax market covers sizing and forecast, share, industry trends, growth drivers, and vendor analysis. The study includes insights by Distribution (wholesale and retail), Vegetable Wax Type (carnauba, candelilla, castor, and others), Application (candles, cosmetic, food, industry, and others)), and Geography (APAC, Europe, Middle East & Africa, North America, and Latin America)
The shift from synthetic to natural products across the globe, especially after 2010, has increased the utility of vegetable wax significantly. There has been a growing trend across the world in the last few years toward natural products. Customers opt for additive-free; hence manufacturers focus on natural ingredients, and marketers seek to replace synthetic chemicals in personal care products with safe, organic substitutes without compromising the sensory experience. Hence, changes in consumer behaviors and the shift toward organic products have augured well for the vegetable wax market.
Several global studies have emphasized the certain negative impact of synthetic materials on human health, thereby increasing the need for cleaner and safe raw materials. This, in turn, has largely affected the consumer product-based markets such as cosmetics and food. This conscious way of living goes hand in hand with making informed decisions about buying products with organic and natural labels. Millennials and Gen Z are checking the ingredients before they buy products. This has widely pushed industry manufacturers to opt for natural raw materials, which, in turn, have increased vast opportunities for the suppliers. Hence, the demand for cleaner raw materials is likely to push the demand for vegetable wax further during the forecast period.
The global vegetable wax is expected to grow at a CAGR of over 5% during the period 2019–2025.
This research report includes a detailed segmentation by distribution, product, application, and geography.
Insights by Product
The growing health awareness, along with the specific shift toward the adoption of organic wax products, has pushed the candelilla wax segment. Companies catering in this segment have extremely focused on R&D to produce several organic products. This, in turn, push them to formulate several combinations of paraffin and other waxes. It is the most dominantly used in the food glazing market. It is expected that the increase in demand for processed meat, fish & poultry, and functional foods would drive the demand. In the near future, the growing application of food glazing agents in bakery and confectionery products due to the increasing preference for personalized food items is expected to affect the demand.
The carnauba wax segment growth is driven by highly favorable legislation concerning the use of them as a glazing agent in edible items such as candies, chocolates, and cosmetics. Their usage as a coating medium for regulated pharmaceutical release systems has increased the demand in the pharmaceutical industry. Furthermore, the carnauba segment has witnessed advances in technology, primarily related to wax extraction, and the production and processing techniques have made notable progress. The demand for carnauba wax has remained highly stable despite the availability of several alternatives, such as beeswax and candelilla wax. Superior properties such as permeability and shine have contributed to their widespread use in application industries.
The demand for castor wax has witnessed significant increments over the years. The growing demand can be attributed due to stringency in government regulations for the use of synthetic chemicals. Moreover, the price for castor seed has also declined in the past years owing to the increasing production in China, Jamaica, and other tropical regions.
Insights by Application
Europe is an interesting candle market, where consumption and imports are constantly increasing. Candles, rather than purely functional items, have become decorative accessories. This offers wide opportunities, particularly in the upper-mid market segment for exporters from developing countries. Decorative and gift items retailers are enticing sources for this product. Poland is the principal supplier of candles in Europe. Further, consumer behavior is also moving toward the adoption of healthy natural candles such as soy ones. Soy candles are rapidly in demand as they are made of soybean oil, minimize carbon dioxide emissions, and burn 50% longer than paraffin candles.
Cosmetics has been one of the key application sectors where the use of vegetable wax has been witnessing high demand. This demand is mostly attributed due to the shift in the consumer preference for adopting natural products rather than going for synthetic products. The growth of natural and organic personal care products has also driven the market. Factors such as the expansion of distribution channels, increased customer reach online, and the shift of modern retailers to offering premium personal care products on the shelves are other factors fueling the growth of vegetable wax in the cosmetic industry. Moreover, new product development, advertising, and increased consumer spending capacity on premium products are primary factors driving the overall growth of the global natural and organic personal care market.
The food industry has widely used waxes to provide a protective coating to fruits and vegetables. Seeking the potential in the shifting consumer behavior, the food industry uses a variety of post-harvest techniques and natural wax to maintain quality and guarantee the longest possible shelf-life and satisfy consumer demand for fresh and healthy foods. The application of a protective coating on fruits and vegetables is an important factor driving growth.
Insights by Distribution
Distributors, retailers, and manufacturers are the major vegetable wax suppliers. Manufacturers such as Cargill have promoted the sale through the wholesale network via design models. Vendors, for example, in Europe, primarily sell finished products either through dealers or distributors or the internet. The growth in online sales is set to increase by over 5% during the forecast period. The primary reason for this is online stores offer a variety of options to choose from than retail stores. Besides, prices offered on the internet are lower than retail stores because of the discount offered by vendors to promote their products.
Insights by Geography
The vegetable wax market in North America has vast potential with regard to consumption. Several application areas such as cosmetics, candles, and food among others have largely adopted the utilization of vegetable wax due to the growing awareness in consumers against the use of synthetic products. Therefore, customers turn to natural and organic products due to concerns about synthetic chemicals in cosmetics & toiletries.
In APAC, wax has wide applications, ranging from paints to textile, ink & coatings for packaging, cosmetics and pharmaceuticals to food, and electrical & electronics to rubber. Hence, their increased application in these end-user industries is generating a large-scale demand for natural wax. China remains one of the dominant players offering a variety of vegetable waxes. The market is fragmented with numerous local and global payers. The cosmetic industry has accounted for decent growth in the last years.
Europe has one of the world's largest cosmetics industries. There is an increasing demand for natural ingredients in cosmetics and toiletries, a development anticipated to continue in the future. The consumer demand for cosmetics and toiletries that avoid contentious chemicals is expected to help fuel the growth. Strong demand for natural ingredients provides opportunities for potential suppliers in developing countries.
Mexico has a strong market demand for vegetable wax, especially candelilla ones. The country is one of the leading producers in the world. However, the outlook for industrial production remains uncertain as the labor supply needed for wax processing continues to decline.
The Middle East and African market has moderate demand for vegetable wax. This demand is driven by the utilization of vegetable wax in several application segments, such as cosmetics and candles. Brands that produce organic beauty products driven from African plants and fruits have soothing, cleansing, and moisturizing properties. Further, countries such as Nigeria, South Africa, Ethiopia, Kenya, Uganda, Tanzania, and Mozambique have the largest consumer market, which has resulted in the industry’s growth over the past decade.
Key Countries Profiled
Insights by Vendors
The vegetable wax market is highly fragmented with many local and international players in the market. The competition is intense. The rapidly changing technological environment could adversely affect vendors as customers expect continual innovations and upgrades in the manufacturing of natural cosmetics products, pharma, among other application segments. The present scenario is forcing vendors to alter and refine their unique value proposition to achieve a strong presence.
Cargill and Koster Keunen are the key leading vendors in the market. The market concentration in developed countries such as the US and other Western European countries is high, while the market is in its growing stage in developing economies such as China and India because of the entry of global brands in these countries. The competition between vendors exists based on offerings and pricing. Vendors are using new business models and focusing on developing the portfolio of their establishments to drive growth. The focus in cosmetics is heavily shifting toward natural products, which is likely to provide vast opportunities to the vendors.
Other Prominent Vendors – Croda Industrial Chemicals, Brenntag (EPChem), Marcus Oil, Argan Co., FAITH Industries, BASF, CALWAX, PJ Group India, Falcon, Foncepi, Carnaúba do Brasil, Brasil Ceras, KAVYA IMPEX, and Shri Ram Sons Wax Private Ltd.
Key Market Insights
The analysis of the global vegetable wax market provides sizing and growth opportunities for the forecast period 2020–2025.
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