The global supply of petroleum wax, which is derived from Group I basestock production, is declining. This is creating a vacuum in the wax market, which is increasingly being filled by synthetic and vegetable waxes. Wax demand in fast-growing markets such as PVC, paints, coatings, and adhesives is increasing, while the demand is slowing down in traditional wax applications such as candles and board sizing.
Wax end users are increasingly looking to include sustainable waxes in their production line to reduce their carbon footprints. This is expected to strengthen the transition in the wax industry toward low-carbon-intensive waxes.