Carnauba wax is a derived from the leaves of the Brazilian palm tree and is extensively used as a coating and glazing agent to impart a characteristic shine on the product. The wax is predominantly manufactured in Brazil and transported to the rest of the world depending on the demand. The demand for the product is expected to be driven by increasing use in application industries such as cosmetics, food, and automotive.
Carnauba wax type 3 is the most widely used product due to its versatility in use for various applications including food and automotive. The increasing use of the product in automotive care waxes and polishes is expected to drive the demand for the product over the next eight years. The demand for food grade carnauba wax type 3 is expected to be driven by the growing confectionery industry. Growing demand for confectionery products such as sugar coated chocolate and sugar coated candies is likely to drive the market growth.
The demand for the wax is likely to be driven by the growing use as a mold release agent. Increasing use of carnauba wax type 4 as an ingredient in industrial coatings. Growing demand for automotive care waxes coupled with rising concerns regarding automobile care is expected to drive the demand for carnauba wax over the next eight years.
The market has witnessed some technology advances, primarily pertaining to wax extraction and there were no notable advances pertaining to the wax production and processing techniques. The market growth was bolstered by highly favorable regulations pertaining to the use of the wax as a glazing agent in edible products such as candies, chocolates, and cosmetics. Also, adoption of the wax as a coating material for pharmaceutical controlled release systems has driven its demand in the pharmaceutical industry.
The carnauba wax production has remained highly stable due to the availability of a large number of substitutes such as beeswax and candelilla wax coupled with relatively higher prices. However, superior properties of the product such as permeability and shine has led to its widespread use in application industries.
The rapid economic and technological development of India and China over the past five years coupled with increasing demand for food and cosmetic products has led to a high demand for carnauba wax. In addition, the growth of manufacturing sector in China led to an increase in the spending abilities of the consumers in the region. The market also witnessed a change in food preferences of the consumers, leading to a heightened demand for sugar coated confectionery and chocolate products leading to an increasing demand for the product in Asia Pacific.
In-depth report on global carnauba wax market by Grand View Research: