Report Overview

Thailand Slack Wax Market - Industry Trends & Forecast Report 2027

The Thailand Slack Wax Market was worth USD 38.6 million in 2020. The market is further projected to accumulate USD 50.9 million by 2027 at a CAGR of 4.4% during the forecast period (2021-2027). The booming cosmetics and personal care industry has propelled the growth of the Thailand slack wax market. Moreover, changing male gender preferences in the cosmetic industry, as well as rising cosmetic product consumption by Thailand's ageing population, have fueled the growth of the Thailand slack wax market. Furthermore, rising demand for slack wax from the rubber industry and rising automobile sales have increased demand for slack wax in the country, supporting the growth of the Thailand slack wax market.

Source: BlueWeave Consulting

Thailand Slack Wax Market Overview

Approximately two percent of crude oil is converted into lubrication oil, and a small percentage of lubrication oil is processed into wax products. Slack wax is a mixture of oil and wax obtained from the extraction of petroleum from lubrication oil. It is a translucent crystalline material in the solid state and a yellow, clear liquid in the molten state. It is used as raw material for value-added wax products like paraffin wax. It is also used to make wax emulsions, construction boards, synthetic firelogs, weed bars, matches, glass wool and textile treating, matches, inks, composite wood panels, chemicals, fertilizers, and carbon papers, among other things. Slack wax varies from light to heavy grades, based on its melting point. While the light grades have a melting point of 50-52 C, the heavy grades have a melting point of 53-55 C. All types of slack wax are used as blending components or waterproofing agents in the manufacture of various industrial products.

Thailand Slack Wax Market Trend

Growth Drivers

Growing demand for wax from cosmetics industry

Hydrocarbon waxes like paraffinic wax and slack wax are witnessing increasing demand from the cosmetics industry. Vaseline oil, macro-and micro crystalline paraffin waxes are some of the products manufactured using hydrocarbon waxes. Furthermore, vaseline and vaseline oil are prominent ingredients in many cosmetics creams for skin care. The high content of petroleum products (such as Vaseline, Vaseline oil), fatty alcohols (such as acetyl alcohol), and multi-functional alcohols (such as glycerol) in hydrocarbons explains the reason for the growing demand for slack wax from the cosmetics industry. According to the International Trade Administration (ITA), Thailand's beauty and personal care products market was worth USD 6.2 billion in 2018, with skincare being the largest segment. The market is projected to grow at 7.3% YoY between 2019-2022. The growth of Thailand's cosmetics industry is expected to create demand for hydrocarbon wax, thereby driving the growth of the Thailand slack wax market in the coming years.

Growing demand for waxes in tire & rubber application

Among the most significant threats to tire and synthetic rubber products are ozone and ultraviolet rays. Tire manufacturers add ordinary doses of waxes to tire compounds during tire bending and flexing to protect against ultraviolet rays. Slack wax adds cost-effective internal lubrication, mill and mould release, and improved compound flow to tyre and rubber blend mixtures. The rising demand for automobiles, especially two-wheeler and four-wheelers in Thailand, propels the growth of the tire and rubber industry which has further driven the development of the Thailand slack wax market. According to Royal Thai Embassy reports, the Thailand automobile industry came to a screeching halt as a result of the COVID-19 pandemic; however, the industry began to pick up in 2021, with a 3-4 percent growth percentage. Thailand also offers an excellent investment opportunity to foreign investors, due to which Thailand is the leading automotive production base in the Association of Southeast Asian Nations (ASEAN). Over the last 50 years, the country has evolved from an auto component assembler to a leading automotive manufacturing and export hub.

Restraints

Petroleum-based wax: an environmental concern

Petroleum-based products like slack wax are natural but degrade the environment since they are derived from petroleum or refined crude oil. The refining of crude oil degrades the quality of the environment; thus, slack wax also pollutes the environment. Generally, the quantity of hazardous waste produced when refining crude oil and removing contaminants (whether paraffin wax or something else) can pollute the air and water. Furthermore, slack wax emits volatile organic compounds in nature, which further affects people's health. It also contains several toxins that, when inhaled, can cause side effects such as nausea, vomiting, headaches, and even benzene pollution, which can cause lung cancer. Moreover, toxins released by paraffin candles are similar to those found in diesel fuel fumes and linked to asthma and lung cancer. Thus, the rising emission of harmful and toxic substances from slack wax has hindered the growth of the Thailand slack wax market.

Thailand Slack Wax Market - Impact of COVID-19

The novel coronavirus has negatively impacted the Thailand slack wax market which is largely dependent on petroleum refineries. Throughout 2020, the crude oil market was highly volatile, with an average price of 42.1 US dollars per barrel, a decline of 21.4 US dollars per barrel from the previous year's pricing. The COVID-19 pandemic reduced global oil demand by 10-15 million barrels per day (BPD). The lockdown had a significant impact on fuel demand, and refiners such as PTT Global Chemicals, IRPC PCL, and Star Petroleum Refining Corp (SPRC) had to reduce refining capacity. Slack wax is a by-product of refining, so the reduced refining capacity had an impact on it.

Thailand Slack Wax Market: By Application

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 accounted for the largest share in the Thailand Slack Wax Market in 2020. Being one of the most actively used ingredients for candles, the segment has been receiving growing demand amid the rising consumption in the festivals. In 2019, Thailand exported candles worth USD 19.5 million. One of the major festivals of Thailand is the Thailand candle festival, which attracts tourists from around the world. During the festivals, large and attractive candles are carried out in a procession to traditional music and dance accompaniment. Therefore, the tourism industry in Thailand and the hotel industry using paraffin for spa treatments are contributing to the growth of the Thailand slack wax market.

Source: BlueWeave Consulting

Thailand slack wax market, By Paraffin Wax: By Application

Based on applications, the Thailand paraffin wax market application segment is bifurcated into candles, packaging, board sizing, rubber, hotmelts, polishing, cosmetic, and others, based on paraffin wax. The Candles segment accumulated the highest share in the Thailand paraffin wax market in 2020. The cosmetics segment is anticipated to garner the highest CAGR in the forecast period. The growing cosmetic industry in Thailand is a major factor contributing to the growth of the cosmetic segment in Thailand. One of the key factors for the growth of the cosmetic industry in Thailand is social media-based marketing by brands, and the integration of 3D technology for marketing, which attracts customers. Furthermore, the changing attitude of men towards cosmetic products, especially the younger generation and Gen-Z, to look presentable has further driven the growth of this segment. Bangkok Post reports that Japan, South Korea, and Thailand have long been Asia's top markets for male cosmetics. According to recent statistics, nearly one-third of Thai men aged 25-34 purchased foundation or lipstick in the last 12 months.

Thailand Slack Wax Market - Competitive Landscape

The Thailand slack wax market is consolidated, with only a few manufacturers and many importers offering slack wax products around the world. The major companies in the Thailand slack wax market are 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. Key players in the Thailand slack wax market are leveraging investments to enter into collaborations and engage in mergers & acquisitions of companies to stop small players from cutting their market shares. The companies are also seeking to expand their distribution network across Thailand to capitalize on the biggest market.

Recent Development

• On August 2021, ExxonMobil stated that Imperial Oil Ltd., its majority-owned subsidiary, is moving forward to build a new facility at its Strathcona refinery in Edmonton, Canada, to manufacture renewable diesel. Once it is complete, the refinery is planning to produce about 20,000 barrels of renewable diesel per day, reducing emissions in the Canadian transportation sector by nearly 3 million metric tonnes per year.  The facility will use locally generated plant-based feedstock and hydrogen in its production process and carbon capture and storage (CCS).

Scope of the Report

By Slack Wax Application

• Rubber
• Emulsions
• Construction Boards
• Paraffin Wax
• Textile Treating
• Carbon Paper
• Composite Wood Panels
• Others

By Paraffin Wax Application

• Candles
• packaging
• Board Sizing
• Rubber
• Hotmelts
• Polishing
• Cosmetics
• Others

1.   Research Framework

1.1.   Research Objective

1.2.   Product Overview

1.3.   Market Segmentation

2.   Research Methodology

2.1.   Qualitative Research

2.1.1.   Primary and Secondary Products

2.2.   Quantitative Research

2.2.1.   Primary and Secondary Products

2.3.   Breakdown of Primary Research Respondents

2.3.1.   Secondary Research

2.3.2.   Primary Research

2.4.   Breakdown of Primary Research Respondents, By Industry Participants

2.5.   Market Breakdown & Data Triangulation

3.   Executive Summary

4.   Thailand Slack Wax Market - Industry Insights

4.1.   Industry Value Chain Analysis

4.2.   DROC Analysis

4.2.1.   Growth Drivers

4.2.2.   Restraints

4.2.3.   Opportunity

4.2.4.   Challenges

4.3.   Recent Developments

4.4.   Regulatory Framework

4.5.   Porter Five Forces Analysis

5.   Thailand Slack Wax Market Overview

5.1.   Market Size & Forecast by Value, 2017-2027

5.1.1.   By Value (USD Million)

5.2.   Market Share & Forecast

5.2.1.   By Application

5.2.1.1.   Rubber

5.2.1.2.   Emulsions

5.2.1.3.   Construction Boards

5.2.1.4.   Paraffin Wax

5.2.1.4.1   Candles

5.2.1.4.2   Packaging

5.2.1.4.3   Board Sizing

5.2.1.4.4   Rubber

5.2.1.4.5   Hotmelts

5.2.1.4.6   Polishing

5.2.1.4.7   Cosmetics

5.2.1.4.8   Others

5.2.1.7.   Textile Treating

5.2.1.8.   Carbon Paper

5.2.1.9.   Composite Wood Panels

5.2.1.10.   Others

6.    Thailand Importer and Exporter Company

6.1    Top Exporter Company for Slack Wax in Thailand (Classified by Volume, Application and Price in 2017-2021E)

6.2    Top Importer Company for Paraffin Wax in Thailand (Classified by Volume, Application and Price in 2017-2021E)

6.3    Top Slack & Paraffin Wax Producer in Thailand (Classified by Production Capacity)

6.4    Top Product Upgrading Company Including Slack Wax and Paraffin Wax Blender, Wax Purification Company in Thailand (Classified by Process)

7.   Thailand Slack Wax Competitive Benchmarking

7.1.   List of Key Players and Their Offerings

7.2.   Market Share Analysis (2020)

7.3.   Competitive Benchmarking, By Operating Parameters

7.4.   Competitive Benchmarking, By Price, Grade, Volume

8.   Thailand Slack Wax Development Trends Under Covid-19 Outbreak Analysis

9.  Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

9.1.   ExxonMobil

9.2.   Thai Lube Base Public Company Limited (TLB)

9.3.   H&R GmbH Co. KGaA

9.4.   PTT Global Chemical Public Company Limited (GC)

9.5.   IRPC Public Co., Ltd.

9.6.   SQI GROUP CO., LTD

9.7.   Royal Dutch Shell

10.   Overview of Petroleum Wax

10.1    Introduction to Global and APAC Petroleum Wax Market, 2017-2027

10.2    Global Market Trends for Petroleum Wax and Paraffin Wax Market

10.3    Integrated Value Chain of Wax Classified, By Grade

10.4    Key Parameter in Specification Slack & Paraffin Wax Classified, By Grade

11.   Thailand: Wax Demand, Supply and Price 2017-2027

11.1    Wax Demand, Supply and Price 2017-2027 classified by grade

11.2    Key Market Drivers & Restraints

11.3    Industry Challenges

11.4    Key Market Trends

11.5    Potential future application areas

12.   Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Fig 1: Thailand Slack Wax Market Segmentation

Fig 2: Thailand Slack Wax Market Size, By Value (USD Million)

Fig 3: Thailand Slack Wax Market, By Application, By Value (in %), 2020

Fig 4: Thailand Slack Wax Market Industry Value Chain Analysis

Fig 5: Manufacturing Process of Slack Wax

Fig 6: Porters Five Forces Analysis

Fig 7: Thailand slack Wax Market Size, By Value (USD Million), 2017-2027

Fig 8: Thailand Slack Wax Market Share (%), By Application, By Value, 2017-2027

Fig 9: Thailand Slack Wax Market Share (%), By Application, By Value, 2017-2027

Fig 10: Thailand Slack Wax Market: Market Share Analysis, 2020, By Production

Fig 11: Crude Oil Production in Thailand 2017-2021

Fig 12: Crude Oil Export Prices in Thailand 2017-2021

Fig 13: OPEC Oil Production and Supply Adjustments Since January 2017

Fig 14: Revenue of the cosmetics market in Thailand from 2012 to 2024

Fig 15: Global Petroleum Wax Market Size, By Value (USD Million), 2017-2027

Fig 16: Online Retail Sales (USD Billion)

Fig 17: APAC Petroleum Wax Market Size, By Value (USD Million), 2017-2027

Fig 18: Different type of Waxes

Fig 19: Integrated Value Chain of Wax Classified by Grade

Fig 20: Manufacturing Process of Paraffin Wax

Fig 21: Supply and Demand of Wax in Thailand 2017-2027 (Thousand Ton)

Fig 22: Wax Price in Thailand 2017-2027 (USD/Ton)

Fig 23: Demand of Wax by Grade in Thailand 2017-2027 (Thousand Ton)

Fig 24: Supply of Wax by Grade in Thailand 2017-2027 (Thousand Ton)

List of Tables

Table 1: Analysis of Slack Wax Light Grade 12% Oil Content

Table 2: Analysis of Slack Wax Light Grade 10% Oil Content

Table 3: Car and Motorcycle Exports, from January to June

Table 4: Key Natural Rubber Export Markets of Thailand (Unit: 1,000 tonnes)

Table 5: Thailand Slack Wax Market Size, By Application, By Value (USD Million), 2017-2027

Table 6: Thailand Slack Wax Market Size, By Paraffin Wax, By Application, By Value (USD Million), 2017-2027

Table 7: Top Exporter Company for Slack Wax in Thailand

Table 8: Top Importer Company for Paraffin Wax in Thailand

Table 9: Top Slack & Paraffin Wax Producer in Thailand (Classified by Production Capacity), 2020

Table 10: Top Product Upgrading Company

Table 11: List of Key Players and Their Offerings

Table 12:  Competitive Benchmarking, By Operating Parameters

Table 13:  Competitive Benchmarking, By Operating Parameters

Table 14:  Competitive Benchmarking, By Operating Parameters

Table 15:  Competitive Benchmarking, By Operating Parameters

Table 16:  Competitive Benchmarking, By Price, Grade, Volume

Table 17: Esso (Thailand) Public Company Limited Mobil Corporation Overview

Table 18: Exxon Mobil Corporation Financial Analysis (USD Million)

Table 19: Thai Lube Base Public Company Limited (TLB) Overview

Table 20: Thai Lube Base Public Company Limited (TLB) Corporation Financial Analysis (USD Million)

Table 21: H & R Group Overview

Table 22: H & R Group Financial Analysis (USD Million)

Table 23: Pertamina Lubricants (Thailand) Co., Ltd. Overview

Table 24: Pertamina Lubricants (Thailand) Co., Ltd Financial Analysis (USD Million)

Table 25: IRPC Public Company Limited Overview

Table 26: IRPC Public Company Limited Financial Analysis (USD Million)

Table 27: SQI GROUP CO., LTD Overview

Table 28: Royal Dutch Shell PLC, Overview

Table 29: Royal Dutch Shell PLC, Financial Analysis (USD Million)

Table 30: Key Parameter in Specification Slack & Paraffin Wax Classified by Grade

Table 31: Specification of fully refined paraffin wax 0.5% oil content

Table 32: Specification of light Grade Semi-Refined Paraffin wax 1-1.5% oil content