Lanolin Oil & Lanolin Wax Market - Forecast(2023 - 2028)

Lanolin Oil & Lanolin Wax Market Overview

The Lanolin Oil & Lanolin Wax Market size is forecast to reach US$557.1 million by 2027, after growing at a CAGR of 8.5% during 2022-2027. Lanolin oil is manufactured from specially refined lanolin LP feedstock under the low-temperature fractional crystallization with a composition of the liquid esters. Lanolin oil is being used in many applications such as water-free skin lotions, cleansing, bath, and hair oils as it has an excellent emollient with low viscosity and clarity. Whereas, lanolin wax is a special type of wax, in which the content of natural wax esters is reduced by fractional crystallization at low temperature without chemical changes along with low emulsion capacity. Lanolin wax is a complex mixture of esters, di-esters, alpha hydroxy acid, and aliphatic alcohols with a medium to a long chain of fatty acids. The lanolin wax is particularly useful for W/O emulsified creams and ointments, where high stability is required, especially at tropical temperatures. For instance, the cosmetics industry of Europe is valued at US$80.65 billion in retail sales price in 2020, and the European cosmetics and personal care market is the largest market for cosmetic products in the world as per Cosmetics Europe the personal care association. The rise in the cosmetics industry across the globe will help to raise the demand for  lanolin oil & lanolin wax market during the forecast period. However, due to covid 19 pandemic, the market has declined in 2020 owing to the shutdown of the manufacturing facilities to reduce the spread of the virus. But the market is expected to follow an increasing trend due to the growing consumption from the various end-use sector. Therefore, the growth in the production of end-use industries such as pharmaceutical, personal care, and others will increase the demand for the lanolin oil and lanolin wax market during the forecast period.

Report Coverage

The report: “Lanolin Oil & Lanolin Wax Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the lanolin oil and lanolin wax industry.

Key Takeaways

• The Asia Pacific is expected to register a CAGR of 9.6% during the forecast period 2022-2027. The increasing demand for lanolin oil and lanolin wax in the various end-use industry such as personal care & cosmetics, pharmaceuticals, and industries among Asian countries such as China, India, Japan, and South Korea is driving the lanolin oil and lanolin wax market.
• The rising application of lanolin oil and lanolin wax in beauty care & personal care product will help to drive the demand for lanolin oil and lanolin wax during the forecast period.
• ·Robust demand for lanolin oil and lanolin wax in the pharmaceutical sector is expected to boost the demand for lanolin oil and lanolin wax during the forecast period as most the pharma products like balms, laxatives, ointments, and creams are made of lanolin oil and lanolin wax.

Figure: Asia Pacific Lanolin Oil and Lanolin Wax Market Revenue, 2021-2027 (US$ Million)

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Lanolin Oil & Lanolin Wax Market Segment Analysis – By Grade

The cosmetics grade segments accounted for around 45% of the market share in 2021 and is estimated to grow at a significant CAGR during the forecast period, owing to the unique solubility properties and effective emulsifying agent, emollient, and moisturizer for skin care, body care products. According to Soil Association certified organic and natural products, the organic beauty & wellbeing market in the UK is valued at US$170.22 in 2021 with an increase of 15% growth as compared to 2020. Therefore, the rise in the growth of the organic cosmetics market will help to boost the demand for cosmetics grade segments of the lanolin oil & lanolin wax market owing to its ease to handle, readily absorbed by the skin, and soluble in many oils without sedimentation during the forecast period.

Lanolin Oil & Lanolin Wax Market Segment Analysis - By Application

The personal care & cosmetics products segment accounted for approximately 48% of the market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. The rising production in the personal care & cosmetics products sector is a growing demand for lanolin oil and lanolin wax globally. According to the Ministry of Economy, Trade, and Industry (METI), the cosmetics and personal care products market of Japan was about US$35 billion in 2019, making it the world’s third-largest after the U.S. and China.Japan has about 3,000 beauty care manufacturing companies, including global brands of Shiseido, Kao, Kose, and Pola Orbis. Therefore, the rising production of personal care & cosmetics products will eventually boost the demand for lanolin oil and lanolin wax market in the forecasted period.

Lanolin Oil & Lanolin Wax Market Segment Analysis - By Geography

Asia Pacific region held the largest share in the lanolin oil & lanolin wax market in 2021 up to 38%, owing to the growing pharmaceutical, textile, personal care & toiletries market, in developing countries like China, India, Indonesia, and others. The major factor responsible for the growth of lanolin oil and lanolin wax is the eco-friendliness of the product, as it is obtained by natural oil by purifying the lipid components that adhere to wool, and consists of various components similar to human epidermal lipids such as cholesterol and branched fatty acids. The lanolin-based oil and wax find their application in the production of balms, laxatives, ointments, creams, excipients, animal health/veterinary, sun care, skincare, body care, hair care, decorative cosmetics, baby care products, and others. According to the International Trade Administration, South Korea is one of the top 10 beauty markets in the world, representing nearly 2.8% of the global market of US$9.4 billion in 2019. The total local production and total exports increased by approximately 4.9% and 4.2% respectively from 2018. According to the Indian Economic Survey 2021, the Indian pharmaceutical domestic market is expected to grow 3 times in the next decade with a market size valued at US$42 billion in 2021 and likely to reach US$65 billion by 2024 and further expand to reach US$120-130 billion by 2030. The rise in growth of the pharmaceutical, personal care & cosmetics sector will eventually boost the demand for lanolin oil and lanolin wax market during the forecast period.

Lanolin Oil & Lanolin Wax Market Drivers:

The growing demand for feed additives will boost the demand for Lanolin Oil and Lanolin Wax

Lanolin oil is being used in the production of feed additives as feed additives are used to enhance the flavors of feed, meet the need for certain nutrients, or increase the performance of animals in good health. According to International Feed Industry Federation, the global compound feed production is estimated at over one billion tons annually and generates an estimated annual turnover of over US$400 billion. According to the United Nations Food and Agriculture Organization (FAO), the demand for food additives will grow by 60% by 2050. The production of animal proteins is expected to grow by around 1.7% per year, with meat production projected to rise by nearly 70%, aquaculture by 90%, and dairy by 55% between 2010 and 2050. Thus, a rise in the production of animal proteins will eventually increase the demand for feed additives and in turn, will boost the demand for lanolin oil and lanolin wax market during the forecast period.

Rapid Industrialization across the globe is boosting the demand for Lubricants

Rapid industrial developments owing to advancements in technology to meet the growing need of people from various end-use industries will eventually drive the demand for the lanolin oil & lanolin wax market during the forecast period. For instance, according to the National Institute of Statistics of Rwanda, the Index of Industrial Production (IIP) for manufacturing increased by 6.7%, electricity increased by 12.9%, and water and waste management increased by 15.4% in April 2022. Also, the industrial production in the United States increased 6.40% year-on-year in April 2022 with manufacturing output increasing by 5.8%, utilities by 7.5%, and mining by 8.6% as per Trading Economics. Therefore, the increasing industrial production shows the growing demand for lubricants globally, which in turn will boost the demand for lanolin oil and lanolin wax during the forecast period.

Lanolin Oil & Lanolin Wax Market Challenges:

The higher price of the lanolin oil and lanolin wax will restrain the market growth

The price of lanolin oil and lanolin wax is much higher. The reason behind this is its production cost while producing oil & wax. For instance, the price of pure lanolin oil & wax price is around US$5-10 per kilogram. Owing to this factor, the products of lanolin oil and lanolin wax come at a higher price as compared to their alternative materials, which tends to constrain the growth of the market.  Also, the lack of awareness of the products to a specific section of the society is hampering the market growth.

Lanolin Oil & Lanolin Wax Market Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the lanolin oil & lanolin wax market. Global lanolin oil and lanolin wax's top 10 companies include:

1. Lubrizol Corporation
2. Deutsche Lanolin Gesellschaft
3. Weleda
4. Nippon Fine Chemical
5. Zhejiang Garden Biochemical
6. Liwei Biological
7. NK Ingredients Pte Ltd
8. Tallow Products Pty Ltd,
9. Anhydrous Lanolin USP LP
10. Wellman Advanced Materials

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