The Global Polyethylene Wax Market is expected to grow at a high CAGR of 4.9% during the forecasting period (2022-2029).
Polyethylene wax is a low molecular weight consisting of ethylene monomer chains used for improving and enhancing the properties and the process parameters of the finished products in diverse applications in the plastic industry. Polyethylene wax has several excellent properties such as low viscosity, high melting & softening point, high hardness level excellent head resistance & thermal stability, excellent chemical resistance, excellent compatibility with other wax and excellent lubrication.
It has consistent ingredients made with certain formulations to improve product physical appearance and thermal properties for a broad range of industries. Hence used in several applications including PVC, paints & coatings, hot melt adhesives, rubber and thermoplastics industries etc.
The global polyethylene wax is driven by rising demand for polyethylene wax in the end-user industries such as construction, paints & coatings petrochemical, plastic, textile, pharmaceuticals, packaging industries, Automotive, the paper industry with government schemes.
Rising polyethylene wax demand for the construction industry with the surge in the government scheme for infrastructure development projects
The market is driven by rising demand by the building and construction industry with growing government support and investment for development around the globe. Polyethelene wax in the construction industry is used for providing thermal insulation and stability for sheets, foam boards, and cable materials.
Further growing government scheme to provide the consetion for the renovation of existing buildings and new construction for residential people may create huge demand for polyethelelne wax. For instance, in 2020 the Australian government launched a scheme that grants US$ 25,000 for building a new home and extensively renovating the existing building. The scheme cost up to around US$ 688 million. It can create huge demand for polyethlene wax require in building and construction sector.
Rising demand in polyethelene wax for manufacturing of plastic products require in several industries such as cosmetics and personal care, automotive, food packaging, paper, leather pharmaceutical products
An increase in the adoption of polyethylene wax for manufacturing plastic products requires several industries including cosmetics and personal care, automotive, food packaging, paper, leather pharmaceutical products. For instance, as per the Plastics Europe Organization, the global plastics industry reached around 360 million tonnes with a global turnover of more than US $ 420 billion (360 billion euros) in 2018. It created a massive demand for the polyethelene wax for the manufacturing of plastic products.
Strict rules and regulations regarding the sale of plastic products that requires polyethylene wax for manufacturing
The global polyethylene wax market is hampered by the strict rules and regulations for the use of single-use plastic products. The polyethylene wax is used for the manufacturing of the which makes up the largest volume of plastic in the world. Several countries have banned plastic usage which hampers the growth of the polyethylene wax market. For instance, in 2018, the United Kingdom banned plastic products sale to prevent plastics from entering the ocean
COVID-19 Impact Analysis
The global polyethylene wax market has declined due to the COVID-19 pandemic, as several leading manufacturing plants were closed due to lockdown in many countries. Further, in June 2020, demand for polyethylene wax has been increased for manufacturing industries such as packaging, coatings and paints, corrugated, plastic processing industries, hot melt adhesive printing inks, paints & coating etc.
For instance, the demand for the polyethylene wax for the paint and coating, rubber production industry has shown drastic declination due to several construction projects has been stopped and leading players have divested investment. However, the market will retain as soon as the covid-19 pandemic will recover. For instance as per the Association of the Natural Rubber Producing Countries, during the covid-19 pandemic, the total production of natural rubber fall by 6% to around 12.901 million tonnes in 2020.
The global polyethylene wax market is segmented based on types, form, manufacturing process, raw material, grade, application, end-user and region.
Rising demand for global polyethylene wax for food packagings such as dairy products, snacks and sweets, frozen food bags and baked goods drives the Low-density market segment
In terms of type, the global polyethylene wax market is bifurcated into polymerization type, modified type, thermally cracking type and others. Among these, the polymerization type segment has the highest market share in 2019, this is primarily due to its demand for the food packaging industry as it uses low-density polyethylene wax for the packaging of dairy, snacks, frozen foods products.
According to the contract packaging organization, the global frozen food packaging market reached around 9 billion in 2019, which is growing with a CAGR of approximately 5% during the period 2016-2020. It created a massive demand for low-density polyethylene for manufacturing plastic bags.
Similarly modified type and thermally cracking type segments are also growing at a faster pace owing to the rising expansion of the production capacity as well as rising acquisition and merger activities of the polyethylene wax by the leading players. For instance, on 24th June 2020, The International Group Inc a Canadian wax manufacturer has completed the acquisition of Rheogistics LLC Picayune, Mississippi-based, which is a leading supplier of lubricants and mechanical stabilizers to the rigid polyvinyl chloride industry.
Rising demand for the powder-based polyethylene wax for processing auxiliary for PVC pipes, special-shaped materials, film, wire and cable and other plastics & rubber products
By form, the global polyethylene wax market is segmented into powders, flakes, granules, pastilles, micronized wax and aqueous wax emulsions. Among this powder-based segment has the highest share in 2019, this is primarily due to rising demand for the manufacturing of PVC pipes, special-shaped materials, film, wire and cable and other plastics as well as rubber products.
According to the Association for the Natural Rubber Producing Countries, total production of natural rubber (NR) in 2017 was anticipated at 12.797 million tonnes which created a massive demand for polyethylene wax for rubber production around the globe. Similarly, flakes, granules, pastilles, micronized wax and aqueous wax emulsions forms are also growing at a faster pace owing to rising demand for the construction, automotive and plastic products manufacturing industries.
By manufacturing process, the global polyethylene wax market is segmented into high-pressure polymerization, synthesis by ziegler-natta method, thermal degradation process of polyethylene, oxidation of synthetic wax, walter-reppe synthesis, metallocene process and others. . Among this high-pressure polymerization of the polymers method is the most commonly used due to its usage in the plastic products manufacturing industries.
Increasing demand for plastic products with the surge in plastic production has propelled the demand for the polypropylene segmental growth
Depending upon the raw material, the global raw material polyethylene wax market is segmented into Ethylene, Low-Density Polyethylene and Polypropylene. Among this polypropylene segment has the highest market share in 2019, this is primarily due to rising demand for plastic products all over the world. As per the Plastic Europe Organization in 2018, global plastics production reached 360 million tons.
Depending upon the grade, the global polyethylene wax segment is segmented into Emulsifiable and Non-Emulsifiable. Among this emulsifiable segment has the highest market share in 2019, this is primarily due to rising demand for the packaging industry and plastic products manufacturers all over the world
Rising demand for polyethylene wax as a plastic modifier may boost the demand for this market
Based on the applications, the global polyethylene wax market is segmented into rubber processing, plastic additives, adhesives, crayons, petroleum wax blends and others. Among these plastic additives has the highest market share in 2019, this is primarily due to its demand as the modifier for the processing for plastics and elastomers, the ink paste polisher, and paper coating.
Similarly, the adhesives, crayons, petroleum wax blends segment is also growing at a faster pace due to rising demand for the petrochemical, paints and coatings industry. For instance the as per the American Coating Association, the global coating and paints industry-valued to around US$ 158 billion value with 45 million litres of global volume. It created a massive demand for the polyethylene wax used in the coating and paint industry.
Rising production of polymers, synthetic fibres and additives for the packaging of plastic products
Depending on end-users, the global polyethylene wax market is divided into oil & gas, plastic industry, textile, pharmaceuticals, cosmetics, industrial, automotive, packaging and paper & leather. Among these, the plastic industry has the highest market share in 2019, this is primarily due to the rising demand for plastic products with growing demand in the automotive industry. As per our world data in 2015, the cumulative production of synthetic fibres, polymers, and additives was around 8,300 million tonnes.
Asia-Pacific region holds the largest market share global polyethylene wax market
Asia-Pacific region is dominating the global polyethylene wax market accounted for the largest market share in 2019, due to the presence of the leading manufacturing industries with the surge in the paints and coatings industry with the surge in the construction industry in this region followed by North America. As per the American Coating Association, paints and coatings revenues for the Asia-Pacific region grew from around US$ 56.2 billion in 2013 to $74.2 billion in 2018 representing 18.5 billion litres and 23.7 billion litres respectively.
North America is also growing at a faster pace owing to rising demand for the expansion of shale, petrochemicals and natural gas reserves. North America has several leading companies such as Dow Chemical, Williams Company, Formosa Plastics Chevron Phillips Chemical, INEOS, Westlake Chemical and LyondellBasell which boost the demand for polyethylene wax used in these industries.
The Polyethylene Wax market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Micro Powders, Trecora Resources, Mitsui Chemicals, WIWAX, Honeywell International, BASF SE, SCG Chemicals, Synergy Additives, Clariant International, Innospec Inc., The Lubrizol Corporation, Kerax Limited, The International Group and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the polyethylene wax market globally. For instance, on 6th October 2020, Mitsui Chemicals completed the acquisition of Hydrophobic, Anti-Reflective Coatings Maker COTEC with expanded the portfolio of Mitsui Chemicals Group’s Vision Care Materials Division.
Mitsui Chemicals Group
Overview: Mitsui Chemicals Group, founded in 1997, office based in Tokyo, Japan. Mitsui Chemicals Group is one of Japan’s leading chemical providers for materials and products used in healthcare products, the food & packaging sector, and mobility parts. The product portfolio of the company includes construction materials, basic chemicals agriculture solutions healthcare solutions, automobiles materials, packaging materials, next-generation business, and functional sheets.
Product Portfolio: The company has a diverse product portfolio of polyethylene wax including:
Hi-Wax Low molecular weight polyolefin: HI-WAX is a polyethylene wax with various grades in Polymerization type, Modified type and Thermally Cracking type. The wax can be used as a slip agent, mould release agent, resin modifier, dispersant due to its molecular structure, which enables it to outperform natural wax.
Applications: Lubricant for PVC, releasing agent for engineering plastics and toner, pigment dispersant
Key Development: On 15th Sept 2020, Mitsui Chemicals launched a Joint Research partnership with the Nagaoka University of Technology which propel plastic waste recycling.
Merger and Acquisition: Mitsui Chemicals has made a partnership agreement with plug and play for developing innovative technologies and ideas.
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