Increase in demand from cosmetics Industry is
likely to fuel the growth of Liquid Paraffin market
Market Size – USD 2.09 billion in 2018, Market
Growth - CAGR of 1.2%, Market Trends – Increase in investments in Cosmetics
Industry
The Liquid Paraffin market is projected to grow at a rate of 1.2% by
2026, to reach USD 2.30 billion in 2026 from USD 2.09 billion in 2018,
according to a new report by Reports and Data. Short-term growth till 2022 is
projected to grow at a healthy pace of 0.7%. Turmoil in the physical commodity
market price index along with surplus inventory stock for liquid paraffin is
anticipated to decline the growth of this market during the period 2023-2026.
Moving forward to 2019 and the following years, vulnerability in raw material
prices remains a concern for this industry along with unpredictable trade
policies adopted by major consumers and manufacturers’ country. Cosmetics, food
& beverages, detergents and lubricant industry will continue to be a
significant demand driver for the growth of the liquid paraffin market. Qatar
continues to be a dominant player in the supply of liquid paraffin however the
mentioned region would likely face stiff price competition from Chinese and
Indian manufacturers where prices would likely see a dip of 16% owing to
oversupply. Capacity utilization rates have aggressively gone up by 11% during
the period 2017-2018, as prices of liquid paraffin stabilized in this region
post June 2017.
LAB continues to be the largest application segment
in this market valuing USD 1.5 Billion in 2018 and reaching up to USD 1.74
Billion as demand for LAB has seen an overall increase of 6 during the past
three years. Installed capacity has seen an increase of 26% combing Africa,
LATM, Asia and Middle East. Sales of detergents both industrial and domestic
are witnessing a rapid north rise therefore tangentially increasing the demand
rate for liquid paraffin.
Further key findings from the report suggest
- C14-C17 acquired the second largest market
share growing at the rate of 1.1% reaching 483.1 million during the
forecasted period. This demand mainly rose from the PVC, metal cutting,
paints and sealants, plasticizers and flame retardants for rubber and
polymers. C12-C14 emerged as the largest segment owing to its wide use in
the detergent and fertilizers industry. This segment is also forecasted to
have the highest growth rate moving ahead in the future.
- North America’s current GTL plants are limited
and short lived and is estimated continue to do so during the forecasted
period. There are very few production facilities that manufacture liquid
paraffin in a wide scale in this region. Therefore majority of the liquid
paraffin consumption comes through import. The market in this region is
estimated to be USD 399.84 million in 2018. U.S. accounts for 51.14% in
the entire consumption while countries such as Canada, Mexico, Dominic
Republic and Panama account for the remaining of the share.
- Europe liquid paraffin prices were stable
during the period 2016-2017. Previously in 2015-2016 prices for liquid
paraffin decreased but heading into June 2018 the price in this region
have shown a significant rise. Chinese imported material is still
available and many consumers are buying up quantities and building
inventories now amid the relatively low prices and quiet demand in order
to ease the buying pressure when demand hits its peak at the end of August
or in September. Predictions indicate there would be no price increase
during this peak demand peak period as is normal.
- Manufactures profiled in this market are Sasol
Ltd, Shell, ExxonMobil Corporation, Farabi Petrochemical Company, Savita
Oil Technologies Ltd., JXTG Nippon Oil and Energy Corporation, CEPSA,
Sonneborn, MORESCO Corporation, KDOC, Atlas Setayesh Mehr, Gandhar Oils
Refinery India, FPCC and UNICORN
Segments covered in the report:
This report forecasts volume and revenue growth at
a global, regional & country level, and provides an analysis on the
industry trends in each of the sub-segments from 2018 to 2026. For the purpose
of this study, Reports and Data have segmented the Liquid Paraffin market on
the Grade Type, Product Type, Application and Region:
By Grade Type Outlook (Volume, Kilo Tons; Revenue,
USD Million; 2018-2026)
- C10-C13
- C11-C14
- C12-C14
- C14-C17
- C17-C20
By Product Type Outlook (Volume, Kilo Tons;
Revenue, USD Million; 2018-2026)
- Light
- Heavy
By Application Outlook (Volume, Kilo Tons;
Revenue, USD Million; 2018-2026)
- LAB
- Chlorinated Paraffin
- Others
Regional Outlook (Volume, Kilo Tons; Revenue, USD
Million; 2018-2026)
- North America
- U.S.
- Europe
- Germany
- UK
- Asia Pacific
- China
- India
- Latin America
- Brazil
- MEA
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