Thailand Slack Wax Market Poised for Steady Growth: Growing at a CAGR of 4.4% by 2027
Published | 10 November 2021
Thailand slack wax market is booming, driven by a rapid shift in demand for male cosmetics. As a result, this is driving investments in the cosmetic segment, directly affecting its growth. Additionally, the rising number of tourist arrivals to the country has fueled the demand for lucrative candles amid the festival seasons, providing higher growth potential for the Thailand slack wax market in the forecast years…
A recent study, conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that the Thailand slack wax market was worth USD 38.6 million in the year 2020. The data generated by the study reveals that the Thailand slack wax market is estimated to grow at a CAGR of 4.4%, earning revenue of around USD 50.9 million by the end of 2027. The thriving cosmetics and personal care industry is fueling the growth of the Thailand slack wax market. A shift in the consumption of personal care products by men has bolstered the consumption of such products in Thailand, driving market growth. In addition to this, the growing demand for slack wax from the rubber industry and the rising number of automobiles sales have created a proportional demand for slack wax in the country, supporting the growth of the Thailand slack wax market.
Rising construction projects all across the country is driving the growth of the Thailand slack wax market
Slack wax finds its application in the manufacturing of construction boards. Slack wax with higher oil content is used for the manufacturing of construction material. The construction industry contributes significantly to Thailand's economy. The public and private sectors have contributed to Thailand's construction boom. The construction of new buildings, hotels, and residential homes has led to the rise in demand for construction boards. For instance, Standard International, a global leader in the hotel industry, announced its plan to open two new hotels in Thailand. The Standard, Hua Hin, The Standard's first resort in Thailand will be launched on December 1, 2021, followed by launch of The Standard, Bangkok Mahanakhon in 2022. Thus, the rising infrastructure development in Thailand and the use of construction board has propelled the growth of the Thailand slack wax market.
Growing Use of Slack Wax for Candle Manufacturing is propelling the Thailand slack wax market
Every year, Thailand celebrates candle festivals wherein large wax candle sculptures, up to 20 meters tall are decorated with Thai patterns. Sculptures are displayed throughout the evening, while candle-lit processions are held throughout town that same night. Also, Thailand's tourism industry has seen tremendous growth in the past year. In 2019, travel and tourism contributed 21.9% to the country’s GDP. Moreover, Thailand's Tourism Revenue reached 62 USD billion in Dec 2019, compared with 58 USD billion in 2018. Moreover, Thailand’s hotel industry increasingly uses candles for aromatherapy. Thus, the growing use of candle in the hotel industry and people's increasing awareness of candle festivals in Thailand has boosted the Thailand slack wax market.
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Thailand Slack Wax Market - By Application
Based on applications, the Thailand slack wax market is segmented into rubber, emulsions, construction boards, paraffin wax, textile treating, carbon paper, composite wood panels, and others. The paraffin wax segment acquired the larger share in the Thailand slack wax market in 2020. The factors contributing to the growth of the segment in the Thailand slack wax market comprise the consumption rate of candles during festivals across the country. Thailand’s candle festival happens to be one of the major festivals in Thailand, attracting tourists from all over the world. During the festivals, demand for lucrative candles surges amid growing tourism traffic, which happens to be a pivotal factor contributing to the growth of the Thailand slack wax market. In addition, the hospitality industry is thriving, creating a positive demand for paraffin wax across spa treatments, driving the growth of the slack wax market in Thailand.
Thailand Slack Wax Market - By Paraffin Wax – By Application
Based on paraffin wax application, the Thailand paraffin wax market is segmented into candles, packaging, board sizing, rubber, hotmelts, polishing, cosmetic, and others. The candles segment of the market has garnered the highest share in 2020. On the other hand, the cosmetics segment is projected to witness the highest CAGR during the forecast period. The already growing cosmetic industry across Thailand is a key factor driving the growth of the cosmetic segment in Thailand. One of the key factors for this growth is attributable to the social media-based marketing carried out by brands, and 3D technology integration for marketing purposes, attracting the attention of customers toward the end product. Additionally, the rapidly changing preferences of men toward cosmetic products to look more presentable have bolstered the demand of the cosmetics segment in the Thailand paraffin wax market. According to one estimate, more than a third of Thai men aged between 25-34 purchased the foundation in the past year, stating the changing attitude of the customers.
Impact of COVID-19 on Thailand Slack Wax Market
The sudden breakout of the COVID-19 pandemic has had a huge negative impact on the growth of the Thailand slack wax market. The crude oil prices dropped significantly in 2020 as compared to 2019. Also, the supply of crude oil from crude oil exporters and allies (OPEC Plus) remained stable. However, a second pandemic wave swept through Europe and the Americas, putting severe pressure on the crude oil market. It propelled several countries, including Thailand, to impose nationwide lockdowns again to combat the pandemic. As a result of the lockdown, industries had to run on reduced capacity as demand for products plummeted.
Moreover, the imposed lockdown also affected the supply chain of petroleum products as the international borders were shut down to curb the spread of the virus. Consequently, the global crude oil inventories went high. However, with the help of domestic distributors, the companies were able to meet the local demands and yield some profits. Furthermore, the pandemic's negative impact on household products, candles, and cosmetics also affected slack wax sales. As consumers prioritized essential goods during the pandemic, which adversely affected the demand and supply of slack wax. Further, the reduced workforce capacity in the production units severely impacted the Thailand slack wax market. However, the growing vaccination rates may fuel the tourist arrivals across the country, regenerating the demand for candles sin the coming years, thereby providing potential for growth of the Thailand slack wax market.
Thailand Slack Wax Market - Competitive Landscape
The leading players in the Thailand slack wax market include Exxon Mobil Corporation, Thai Lube Base Public Company Limited (TLB), H & R ChemPharm, Pertamina Lubricants (Thailand) Co., Ltd., IRPC Public Company Ltd., SQI GROUP CO., LTD, and Royal Dutch Shell PLC, and other prominent players.
The Thailand slack wax market is moderately consolidated, with a handful of players acquiring over half of the entire market. As a result, it is difficult for the newer entrants to establish their presence and beat larger players in the Thailand slack wax market. Additionally, the growing investment in the research and development of the male cosmetics by major players has negatively impacted the growth of newer entrants in the Thailand slack wax market.
On July 2021, Thai Oil Public Company Limited announced the purchase of a 15.38% stake in PT Chandra Asri Petrochemical Tbk ("CAP") in Indonesia, for a total investment of USD 1,183 million, through PT TOP Investment Indonesia, a newly formed subsidiary, marking the company's entry into the olefins business. CAP also plans to expand its capacity and build a second petrochemical facility to meet rising local demand for olefin products in Indonesia.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Thailand slack wax market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Thailand slack wax market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the Thailand slack wax market.
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