Fischer-Tropsch (FT) Wax Market

Fischer-Tropsch (FT) Wax Market: Overview

The Fischer-Tropsch (FT) Wax Market is valued at USD 1.1 Bn in 2026 and is projected to reach USD 1.7 Bn, growing at a CAGR of 7% by 2033. Growing consumption of wax-based products, including candles, polishes and coatings, will propel the market demand. Focus on growing the adoption of sanitation products and high-quality packaging materials owing to increasing food and hygiene concerns will drive global market growth. In addition, growing food and hygiene concerns encouraging the demand for cost-effective sanitation products and high-quality packaging would also positively impact market growth.

Furthermore, key participants in the industry have been focusing on innovative R&D activities and significant collaborative schemes to initiate a prominent position in the market. For instance, in September 2021, Sasol, a global chemical and energy company, collaborated with University of Cape Town (UCT) researchers to transform hydrogen and CO2 into green jet fuels and chemicals. Sasol's FT technology iron catalyst has aimed to attain CO2 conversion of more than 40%.

Crude oil supply & demand gap coupled with growing gas to liquids fuel production is a key factor contributing to the industry development. The synthetic properties of Fischer-Tropsch are varied by the production process, which can be used in various applications. The Fischer-Tropsch technology process varies in carbon efficiency between 25% to 50% and thermal efficiency around 50%. The overall production efficiency of the process is around 80% which is considerably higher than petroleum and mineral-derived process. The ability of the product of low production cost or constant supply compared to petroleum-derived hydrocarbons is expected to create lucrative opportunities for the major players.

Fischer-Tropsch (FT) Wax Market: COVID-19 Impact 

Fischer-Tropsch wax companies are focusing on high-growth industries, including inks and paints & coatings, to regain revenue growth after the impact of COVID-19. Demand for Fischer-Tropsch wax will likely be high soon owing to low production efficiency from mineral and petroleum-derived sources, declining output by refineries & blenders, and increasing fuel prices. As per the Transparency Market Research (TMR), companies should consider growing 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 anticipated to propel significantly.

Fischer-Tropsch (FT) Wax Market: Drivers

Rising Demand for Adhesive Resins to Drive Market Growth

Resin, plastic, and synthetic rubber are anticipated to boost the global Fischer-Tropsch market during the forecast period owing to the high melting point of Fischer-Tropsch products. They are extensively utilized to formulate adhesive resins. Adhesive resins formulated from FT technology can be used for several applications, such as plastic processing, paints, printing inks, hot melts, technical emulsions, cosmetics, heavy compounds & candle additives, and polishes. Strong functional properties, including improved heat resistance and low viscosity of resins derived from FT products, will provide growth prospects to the industry participants. Growing the application of Fischer-Tropsch wax for enhancing the functionality of processing agents for modified plastic products will support the development of the FT wax market development for the coming years. FT resins contribute to the dispersion and smoothness of fillers in the production of modified plastics and color masterbatch. It can also be utilized as an external lubricant for Poly Vinyl Chloride (PVC). Low viscosity can improve the product's production speed and assist in dispersing pigments and fillers in mixing, especially in the extrusion of high viscosity system. Fischer-Tropsch wax is also utilized in rubber extrusion to improve rubber's processing and extrusion properties. It also works as an internal lubricant to decrease friction and improves the final product's hardness. Growing demand for synthetic rubber from the automotive industry for car tires and other sectors, such as footwear, foam etc., will promulgate the FT wax market size as it is being extensively utilized for carrying out extrusion processes in the synthetic rubber industry.

Various Strategies by Key Players are Anticipated to Drive Market Growth

The Fischer-Tropsch wax market is consolidated, with a small number of large-scale vendors managing most of the share. Various companies are investing significantly in comprehensive research and development activities to expand environmentally-friendly products. Diversification of product portfolios and mergers and acquisitions are important strategies various market players adopt. Evonik Industries AG, AWAX Group, DEUREX AG, and Sasol are important entities operating in the market. For instance, in March 2022, Sasol sold its German subsidiary Sasol wax GmbH to AWAX s.p.a, a global manufacturer of wax that would handle in Germany, Hamburg, the UK and Australia. With this acquisition, AWAX aims to expand its business in the global wax market.

Moreover, in July 2019, DEUREX AG announced that it had expanded the production volume 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 the company's best-selling products. Furthermore, In February 2018, Sasol announced that it had completed its USD 900 million FT products capacity expansion project in South Africa. This expansion project has assisted the company in the pipeline of its strategy as a leading supplier of Fischer-Tropsch-derived products globally. With this project completed, South Africa is now one of the leading countries of wax production globally.

Fischer-Tropsch (FT) Wax Market: Restraints

Expensive Installation and Additional Costs to Hamper Market Growth

The factor that hampers the global Fischer-Tropsch(FT) wax market is variation in the prices of raw materials, such as crude oil, which are expected to hamper the market growth. The negative impact of COVID-19 on several industries is projected to challenge the Fischer-Tropsch wax market in the forecast period.

Fischer-Tropsch (FT) Wax Market: Segment Overview

Ink and Coatings to Dominate Market due to its Excellent Abrasion & Scratch Resistance Properties

The ink and coating segment is expected to grow significantly during the forecast period. Fischer-Tropsch wax is utilized in coatings (powder coatings, can coatings, industrial coatings, and wood coatings) and printing inks owing to its high melting point & excellent abrasion & scratch resistance. Furthermore, it enhances chemical and weather resistance. Wax is utilized as an additive in printing inks, primarily to improve the resistance of the ink film. Fischer-Tropsch wax is utilized in printing inks and varnishes to upgrade abrasion resistance, matting, and scratch resistance. Fischer-Tropsch wax is incorporated with particulate powder in inks to improve applied materials' wear and wrinkle resistance. The wrinkling effect is achieved when Fischer-Tropsch wax is applied to coatings, and the wrinkling consequence of stripes and watermarks is formed when the wax is utilized in fine powder form. Adding powder coating resins can also lubricate the extrusion process, decrease screw torque and energy consumption and improve production efficiency. Thus, the growing 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.

High Utilization in Several End-Use Dominated Market

During the forecast period, the high-melt segment dominated the Fischer-Tropsch(FT) wax market. High-melt Fischer-Tropsch wax has a special combination of high melting point, hardness, and low viscosity, even at high temperatures. As a result, high-melt wax can be utilized as a performance additive in a wide range of specialty applications, such as hot melt adhesives (HMA), bitumen modification, printing inks and coatings, polymer processing, polishes, and textiles.

Fischer-Tropsch (FT) Wax Market: Regional Landscape

North America Dominate Market due to a Significant Decrease in Fuel Supplies

During the forecast period, North America held the largest market share in the Fischer-Tropsch(FT) wax market. As per a World Bank report, crude oil prices were 30% higher in 2019 than last year. A substantial decrease in fuel supplies because of increasing crude oil prices has prompted the demand for Fischer-Tropsch technology in North America. Additionally, the descendent trend in blender and refinery production from the U.S., coupled with the increasing importance of trade, has further driven the demand for synthetically derived fuels. Moreover, a shortage in hard and medium compounds with high viscosity results in increased product demand from the clarifying industry for formulating inks, adhesives, and PVC lubrication. Positive application of Fischer-Tropsch extracted propels the processing industry along with reducing the production of waxes derived from petroleum and mineral source is expected to support the market growth in the region during the forecast period.

Apart from North America, manufacturers also witness demand for Fischer-Tropsch wax in Europe. Growing demand for Fischer-Tropsch wax in several end-use industries, such as inks and coatings, plastic, and adhesives, is anticipated 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 considered the European market's 18.6% and 15.9% value share. An increase in plastic demand 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 owing to its unique properties. It is also used as a nucleation additive and dispersing agent in various plastics and plastic processing methods.

Global Fischer-Tropsch (FT) Wax Market: Competitive Landscape

In 2021, Sasol completed the project of Lake Charles Chemicals. That will contribute to recovering the benefits of their LyondellBasell joint venture partnership. This permits them to enrich research and development of new and innovative products. Moreover, in June 2021, Evonik boosts its system solutions portfolio with the acquisition of the cosmetic delivery company InfinitecActivos which helped them strengthen their technological and strategic fit, supporting the portfolio shift of Evonik’s life science division Nutrition & Care toward system solutions.

Few of the players in the Fischer-Tropsch (FT) Wax Market include:

• Sasol Limited
• ExxonMobil Corporation
• Shell plc
• TotalEnergies SE
• China National Petroleum Corporation (CNPC)
• China Petrochemical Corporation (Sinopec)
• Petroliam Nasional Berhad (PETRONAS)
• Chevron Phillips Chemical Company
• BASF SE
• Honeywell UOP
• Haldor Topsoe A/S
• LyondellBasell Industries
• INEOS Group Ltd.
• Mitsubishi Chemical Corporation
• SK Global Chemical

Global Fischer-Tropsch (FT) Wax Market is Segmented as Below:

By Type
• Hard Wax
• Medium Wax
• Soft Wax

By Product Form
• Pastilles
• Powder
• Granules
• Flakes

By Application
• Candles
• Hot Melt Adhesives
• PVC Lubricants
• Coatings
• Printing Inks
• Rubber Processing
• Polishes
• Others

By Distribution Channel
• Direct Sales
• Distributors

By Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa