Polyethylene Wax Market - Forecast(2023 - 2028)

Polyethylene Wax Market Overview

The Polyethylene Wax Market size is forecast to reach US$1.7 billion by 2027, after growing at a CAGR of 4.2% during the forecast period 2022-2027. Polyethylene can be divided into multiple categories such as high density polyethylene, low density polyethylene, oxidized polyethylene, and more. They are used for a wide range of applications which include plastic additives, hot melt adhesive, lubricants, digital printing inks, textile treatment, rubber, cosmetics, and other similar applications. According to recent insights published on Interpack in 2020, the global packaging industry is expected to grow by an annual rate of 3.5% within the next four years. An increase in demand for polyethylene wax from the packaging and textile industries acts as the major driver for the market. On the other hand, volatility in raw material prices and strict environmental regulations regarding the use of plastics may confine the growth of the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing, and production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, the COVID-19 pandemic has increased the demand for packaging all over the world. For instance, recent insights from Flexible Packaging states that the food packaging industry witnessed a sharp increase in demand during the pandemic due to a high number of consumers turning into online groceries shopping. By the end of 2021, U.S. online grocery sales accounted for 12.4% of the country’s overall e-commerce sales. It further states that the U.S. digital grocery buyers grew up to 137.9 million in 2021, a growth of 4.8% in comparison to 2020. Supermarkets witnessed a huge surge in demand for packaging materials for the wrapping of food and other grocery products. Hence, such an increase in demand for packaging is expected to increase the demand for polyethylene wax as it is primarily used as plastic additives in the production of plastics used for packaging. This is most likely to lead to market growth in the forecast period.

Report Coverage

The report: “Polyethylene Wax Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Polyethylene Wax Industry.

By Type: High Density Polyethylene, Low Density Polyethylene, Oxidized Polyethylene, Others.
By Manufacturing Process: High Pressure Polymerization, Low Pressure Polymerization, Others.
By Form: Flakes, Granules, Powder, Others.
By Application: Plastics, Hot Melt Adhesive, Lubricants, Rubber, Cosmetics, Paints & Coatings, Textile, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

• Low Density Polyethylene segment in Polyethylene Wax Market is expected to see the fastest growth, especially during the forecast period. Its wide range of characteristics and advantages made it stand out in comparison to other types of polyethylene in the market.
• Polyethylene wax has a wide range of properties which include excellent thermal stability, high softening point, high melting point, high chemical resistance, perfect lubrication, which makes it ideal for use in the production of plastics, hot melt adhesive, lubricants, digital printing inks, and textile treatment.
• Asia-Pacific dominated the Polyethylene Wax Market in 2021, owing to the increasing demand for polyethylene wax from the packaging sector of the region. According to a recent study published on Interpack, Asia accounted for the highest world share of packaging sales in 2020, an increase of 7.4% in comparison to 2019.

Figure: Asia-Pacific Polyethylene Wax Market Revenue, 2021-2027 (US$ Billion)

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Polyethylene Wax Market Segment Analysis – By Type

Low Density Polyethylene type held the largest share in the Polyethylene Wax Market in 2021 and is expected to grow at a CAGR of 4.4% between 2022 and 2027, owing to its increasing demand due to the characteristics and benefits it offers over other types of polyethylene. Low Density Polyethylene provides better resistance to moisture, chemical resistance, impact resistance, and provide high resistance to temperature in comparison to high density polyethylene, and oxidized polyethylene. Moreover, low density polyethylene is more flexible with low tensile strength, is a poor conductor of electricity which makes them shock-proof in comparison to high density polyethylene, oxidized polyethylene, and other types of polyethylene. In addition to this, they are more economical, cost-effective, and recyclable. Hence, all of these properties are driving its demand over other types of polyethylene, which in turn, is expected to boost the market growth in the upcoming years.

Polyethylene Wax Market Segment Analysis – By Application

The Hot Melt Adhesive application held the largest share in the Polyethylene Wax Market in 2021 and is expected to grow at a CAGR of 4.6% between 2022 and 2027, owing to the increasing demand for adhesives from the construction and packaging sectors in multiple regions across the world. According to a recent study published by The European Adhesive and Sealant Industry in 2020, the adhesives sector saw an increase in the production of adhesives across multiple regions. Asia-Pacific saw an increase of 36.8%, Europe by 34.5%, North America by 23.1%, the Middle East by 1.3%, and Africa by 1.1% in 2020. This, in turn, increased the demand for polyethylene wax, since it is primarily used for the production of these adhesives.

Polyethylene Wax Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the Polyethylene Wax Market in 2021 up to 30%. The consumption of Polyethylene Wax is particularly high in this region due to its increasing demand from the packaging industry. For instance, China holds the largest market share around the world when it comes to food packaging. According to a recent study published on Interpack, the consumption of food packaging is expected to increase to 447,066 million in 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of around US$5.88 billion with end packaging.

According to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$ 50.5 billion in 2019 and is expected to increase up to US$ 204.81 billion by the end of 2025. It further states that packaging is considered to be one of the industries with high growth in India and is rising at 22-25% per year. In this way, an increase in packaging activities will require the use of polyethylene wax as it is primarily used as plastic additives in the production of plastics used for packaging. This is most likely to lead to market growth in the forecast period.

Polyethylene Wax Market Drivers

An increase in demand from the packaging industry is most likely to increase demand for the product

According to PMMI (The Association for Packaging and Processing), the North American beverage industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. Likewise, recent insights from the Packaging Federation of the United Kingdom states that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$ 15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors of the region. In this way, an increase in demand for packaging activities will require the use of polyethylene wax during the production of plastics required for packaging. This is most likely to lead to the growth of the market in the upcoming years.

An increase in demand from the textile industry is most likely to increase demand for the product

Polyethylene wax emulsions are primarily used as softeners and sizing aids in the textile industry. The polyethylene wax emulsion generates bright color, high gloss, high tensile strength, and high elasticity in the fabric. For instance, in July 2021, India announced the Non-Woven Fabric Manufacturing Expansion Project worth INR 220 million (US$ 2.9 million) in Himachal Pradesh. A recent article published on fibre2fashion states that Vietnam’s garment manufacturing business accounts for around 70% of the majority of businesses. It also states that the import of textiles and clothing by the United States increased by 26.79 % up to US$41.689 billion during the initial five months of 2021. Likewise, the value of U.S. man-made fiber, textile, and clothing shipments reached about $64.4 billion in 2020. Furthermore, in 2021, United Nations Environment Programme (UNEP) announced the commencement of a new project that is targeted to provide the approval of eco-innovation along with the use of Product Environmental Footprint (PEF) within textile SMEs in Kenya, South Africa, and Tunisia.

In this way, an increase in demand for various textile operations across the world would also increase the requirement of polyethylene wax for post-finishing of textiles in order to make the fabric have excellent smoothness, softness, and gloss. This is most likely to drive market growth in the upcoming years.

Polyethylene Wax Market Challenges

Volatility in raw material prices can cause an obstruction to the market growth

When the availability of crude oil, additives, or other materials that are primarily used in the production of polyethylene resin fluctuates, the overall cost of producing the polyethylene resin increases. For instance, Reliance Industries Limited (RIL) raised High-density polyethylene (HDPE) prices by INR 3,000 (US$ 40.6) per ton, and low-density polyethylene (LDPE) by INR 7,000 (US$ 94.7) on April 1, 2021. On the other hand, low density polyethylene (LDPE) prices in Russia dropped in December 2021, prices of 108 grade PE have dropped to Russian ruble 154,000-156,000/ton (US$ 2,104- US$ 2,131/ton). High density polyethylene (HDPE) prices also fell significantly in Russia in December 2021. Hence, such fluctuating prices of raw materials may confine the market growth.

Strict environmental regulations regarding the use of plastics can cause an obstruction to the market growth

According to the United States Environmental Protection Agency (EPA) Plastics Molding and Forming Effluent Guidelines and Standards (40 CFR Part 463), the guidelines are applicable to any plastics molding and forming process that releases or may release pollutants to waters or that releases pollutants into a publicly owned treatment works. Research and development laboratories that generate plastic products by making use of plastic molding processes are also subject to the discharge limitations guidelines and standards. None of the processes should release any discharge over the permissible limit or it will be charged with a penalty. Hence, strict regulations regarding the use of plastics may confine the market growth.

Polyethylene Wax Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Polyethylene Wax top 10 companies include:

1. Mitsui Chemicals, Inc.
2. BASF SE
3. Arya Chem Inc.
4. The Lubrizol Corporation
5. Innospec Inc.
6. Micro Powders Inc.
7. Kerax Limited
8. Clariant
9. China Petroleum & Chemical Corporation (Sinopec)
10. WIWAX

Recent Developments

• In September 2020, Lubrizol Corporation announced the development of PTFE wax additives that contains less than 25 ppb PFOA in order to meet new PFOA regulations (as stated in ANNEX I of Regulation (EU) 2019/1021 under the Stockholm Convention on POPS).

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