Europe Fischer-Tropsch Wax Market

Europe Fischer-Tropsch Wax Market Outlook 2031

• The Europe Fischer-Tropsch wax market was valued at US$ 29.6 Mn in 2021
• It is slated to clock at a CAGR of 4.4% from 2022 to 2031
• The Europe Fischer-Tropsch wax market is expected to reach US$ 45.7 Mn by the end of2031

Analysts’ Viewpoint on Europe Fischer-Tropsch Wax Market Scenario

Fischer-Tropsch wax companies are focusing on high-growth industries such as inks and paints & coatings to regain revenue growth levels after the impact of COVID-19. Demand for Fischer-Tropsch wax is likely to be high in the near future due to low production efficiency from mineral and petroleum-derived sources, declining output by refineries & blenders, and rising fuel prices. According to the Transparency Market Research (TMR), companies should consider increasing their output capacities in anticipation of a rapid increase in demand for Fischer-Tropsch wax in PVC products, rubber products, adhesives, and structural/architectural coatings during the forecast period, as these industries are expected to propel significantly.

Overview of Europe Fischer-Tropsch Wax Market

Fischer-Tropsch wax (FT Wax) is a synthetic wax that is produced from natural gas and air using the Fischer-Tropsch process. It consists primarily of unbranched chains and has a linear structure, which results in low viscosity. Fischer-Tropsch wax exhibits an increased hardness and high-temperature resistance compared to other waxes. It is rich in saturated straight-chain hydrocarbons, which allows for a narrower carbon number distribution, lower oil content, higher melting point, and greater hardness. Fischer-Tropsch hard wax is synthetically produced by using the gas-to-liquids (GTL) technology. Fischer-Tropsch medium wax is widely used in a range of applications such as household & consumer goods and industrial products.

Fischer-Tropsch wax is a pure hydrocarbon wax, ranging from medium to very hard in terms of type. It is commonly used in inks, coatings, plastics, lubricants, adhesives, and personal care products. It is also used in rubber extrusion to improve the extrusion and processing properties of rubber. Unlike naturally occurring paraffin wax in crude oil, white synthetic paraffin wax is synthesized using molecules of carbon and hydrogen, giving it excellent specific properties and accuracy. White synthetic paraffin wax is widely used as an effective external lubricant for extrusion and molding in rigid PVC applications. It is compatible with lead, tin, and mixed metal stabilizer base systems.

Players operating in the global Fischer-Tropsch wax market are boosting their output capabilities in FT wax, owing to its superior properties such as the hydrophobic nature of wax, specifically for inks and coatings & plastic applications.

Fischer-Tropsch wax is used in paints to change the rheology properties of films. Paint stripper formulas can benefit from the use of Fischer-Tropsch wax, which prevents solvents from volatilizing. Furthermore, the introduction of favorable environmental regulations is expected to boost the Fischer-Tropsch wax market in Europe in the next few years.

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Excellent Abrasion & Scratch Resistance Properties of Fischer-Tropsch Wax to Increase Use in Inks and Coatings

In terms of revenue, the inks and coatings segment accounted for a 30.7% share of the Europe Fischer-Tropsch wax market in 2021. The segment is expected to grow substantially during the forecast period. Fischer-Tropsch wax is used in coatings (powder coatings, can coatings, industrial coatings, and wood coatings) and printing inks due to its high melting point & excellent abrasion & scratch resistance. Furthermore, it improves chemical and weather resistance.

Wax is used as an additive in printing inks, primarily to improve the resistance of the ink film. Fischer-Tropsch wax is used in printing inks and varnishes to improve abrasion resistance, matting, and scratch resistance.

Fischer-Tropsch wax is combined with particulate powder in inks in order to improve the wear and wrinkle resistance of applied materials. The wrinkling effect is achieved when Fischer-Tropsch wax is applied to coatings, and the wrinkling effect of stripes and watermarks is formed when the wax is used in fine powder form. Adding powder coating resins can also lubricate the extrusion process, reduce screw torque and energy consumption, and improve production efficiency.

Thus, an increase in demand for Fischer-Tropsch wax in various inks and coatings is likely to propel the Fischer-Tropsch wax market in Europe during the forecast period.

Rise in Demand for PVC Products to Offer Lucrative Opportunities to Europe Fischer-Tropsch Wax Market Players

Fischer-Tropsch wax is used in plastic processing such as injection molding, extrusion, and pelletizing. When used in color and the production of modified plastics, Fischer-Tropsch wax aids filler dispersion and improves mixture smoothness. It is also used in the production of masterbatches and modified plastics to help disperse fillers and provide excellent slip in the mixing process.

PVC is externally lubricated with Fischer-Tropsch wax. Products with low viscosity can be manufactured more quickly by using Fischer-Tropsch wax. Fischer-Tropsch wax helps in the dispersion of fillers during mixing, especially in the extrusion of high viscosity systems. It costs 40% to 50% less than regular polyethylene wax and can significantly improve product surface gloss.

Fischer-Tropsch wax is PVC-compatible and can be used as an internal or external lubricant. It can be employed as an effective internal lubricant to control shear conditions, promote flow, and control friction and melt properties. Thus, it improves thermal stability. Simultaneously, Fischer-Tropsch wax provides strong physical and processing properties to PVC products due to its high crystallinity and linearity structure.

Thus, a rise in the demand for PVC components in various countries is likely to propel the Fischer-Tropsch wax market during the forecast period.

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Preference for High-melt Fischer-Tropsch Wax for Use in Several End-use Applications

In terms of product type, the Fischer-Tropsch wax market in Europe has been classified into high-melt and medium-melt. Typically, the melting range of high-melt Fischer-Tropsch wax stands at around 90°C–120°C, while that of medium-melt Fischer-Tropsch wax is around 75°C–90°C.

The high-melt segment dominated the Europe Fischer-Tropsch wax market in 2021 with a market share of 69.4%. The segment is also expected to register the highest CAGR of 4.7% during the forecast period. High-melt Fischer-Tropsch wax has a unique combination of high melting point, hardness, and low viscosity even at high temperatures. As a result, high-melt wax can be used as a performance additive in a wide range of specialty applications, including hot melt adhesives (HMA), bitumen modification, printing inks and coatings, polymer processing, polishes, and textiles.

Regional Outlook of Europe Fischer-Tropsch Wax Market

Germany held the largest value share of 32.2% of the Europe Fischer-Tropsch wax market in 2021. An increase in demand for Fischer-Tropsch wax in various end-use industries such as inks and coatings, plastic, and adhesives is estimated to propel the Fischer-Tropsch wax market in Germany in the near future.

France and the U.K. are also large-scale consumers of Fischer-Tropsch wax. These countries accounted for 18.6% and 15.9% value share, respectively, of the Europe market in 2021. A rise in demand for plastics is estimated to drive the Fischer-Tropsch wax market in the U.K. Fischer-Tropsch wax is used as a high-performance additive in the plastic industry, due to its unique properties. It is also used as a nucleation additive and dispersing agent in various types of plastics and plastic processing methods. Apart from Europe, manufacturers are also witnessing demand for Fischer-Tropsch wax in Asia Pacific. This can be attributed to the ever-increasing architecture, engineering, and construction (AEC) industry in the Asia Pacific region.

Analysis of Key Market Players

The Fischer-Tropsch wax market in Europe is consolidated, with a small number of large-scale vendors controlling the majority of the share. Most companies are investing significantly in comprehensive research and development activities, primarily to develop environmentally-friendly products. Diversification of product portfolios and mergers and acquisitions are important strategies adopted by key market players. Evonik Industries AG, AWAX Group, DEUREX AG, and Sasol are prominent entities operating in the market.

Key drivers of Fischer-Tropsch wax market include maximization of wax product use in key-revenue generating industries such as metals, cosmetics, and textiles amongst others. Manufacturers are broadening their product portfolio in hard wax and white synthetic paraffin wax.

Key Developments in Europe Fischer-Tropsch Wax Market

• In July 2019, DEUREX AG announced that it had expanded the production capacity of HDPE wax from 14 tons per month to 25 tons per month, as the oxidized high-density polyethylene (HDPE) wax, DEUREX EO 44 K, was one of the company's best-selling products.
• In December 2020, Sasol successfully completed the Lake Charles Chemicals Project, an integrated ethane cracker and downstream derivatives complex under progressive commissioning since 2019 in Westlake, near Lake Charles, in the U.S. This is expected to help the company reap the benefits of its joint venture partnership with LyondellBasell in the near future. The move would also allow Sasol to increase its research and development activities for new and innovative products.
• In June 2021, Evonik Industries AG boosted its system solutions portfolio with the acquisition of Infinitec Activos, a cosmetic delivery company. This would help the company strengthen its technological and strategic position in the market.
• Each of these players has been profiled in the Fischer-Tropsch wax market report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments

Europe Fischer-Tropsch Wax Market Snapshot