Paraffin Oil Market Expected to Reach $3.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Paraffin Oil Market," The paraffin oil market size was valued at $2.2 billion in 2021, and is estimated to reach $3.3 billion by 2031, growing at a CAGR of 4.4% from 2022 to 2031.

Paraffin oil is an oily, clear, colorless liquid with a high boiling point. Paraffin oil, also known as white oil, is used as a raw material in the manufacture of creams, lotions, baby oil, ointments, gels, lubricants, hair oils, shampoos, and other items such as pharmaceutical, industrial, and packaging goods.

Further, paraffin oil is a raw ingredient used in the production of creams, lotions, baby oil, ointments, gels, lubricants, hair oils, and shampoos. Paraffin oils are used in a variety of personal and cosmetics items, including emulsions, haircare, lotions, lip balm, baby oil, and emollients. It is used for the preparation of a number of solid and liquid brilliantine, cold cream, moisturizers, and lotions, as well as in makeup products such as lip balm, lipstick, and foundation cream. It is also employed in skin treatment, particularly in treating diaper rash and eczema and to preserve unstable or reactive substances. It is used in body and hand care cosmetics in concentrations ranging from 1% to 98%.

The growth of the global paraffin oil market is majorly attributable to its wide applications in various industries such as pharmaceuticals, cosmetics, food, textiles and others. Paraffin oil is a by-product of the petroleum distillation process which is a colourless, odourless, tasteless, and water insoluble oil. It is extensively used across many applications such as cosmetics & personal care, pharmaceuticals, food, textiles and others. In cosmetics, paraffin oil forms a thin, oily protective coating on the skin, protecting it from allergens and irritants while sealing moisture into the skin. In pharmaceutical industry, it is used in the production of penicillin and is a vital ingredient in multiple medicated creams, balms, and ointments.  It is also used as a heat treatment for hand and joint pain and relieve the pain of fibromyalgia, rheumatoid arthritis, muscle cramps, spine pains, simple inflammation, and others. It is also used for removing dead cells, as diluted paraffin oil is ideal for use on the skin as it does not cause any skin sores at high temperatures. Paraffin oil, which is a chemical preservative, is used in the food industry to make fruits, vegetables, and confectionery seem glossy; it also helps delay moisture loss and spoiling. Paraffin oil is also utilized in lubrication, electrical insulation, and candles. In the textile industry, paraffin oil is primarily used for weaving, spinning, and lubricating the sewing machines.

However, development of bio-based products is projected to hinder the expansion of the market. On the contrary, growth in the packaging industry is expected to offer ample growth opportunities for the paraffin oil industry. In packaging, paraffin oil and paraffin-based oil mixtures are used to provide gloss, sealing, moisture, freshness, and grease barriers. Water vapor resistance, gas and odor barrier, improved process efficiency are all advantages of paraffin oil packing. The food and beverage industries account for the majority of packaging demand. Medical items, on the other hand, are the most prominent consumers of folding boxes.

The paraffin oil market is segmented into grade, application, and region. On the basis of grade, the market is categorized into technical, pharmaceutical and cosmetics. On the basis of application, the market is categorized into cosmetics & personal care, pharmaceuticals, food, textiles and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The paraffin oil market  share is analyzes across all significant regions and countries.

The major players operating in the global Paraffin oil market include BASF SE, Baker Hughes, BP plc, Cepsa, China National Petroleum Corporation, Evonik, Eni S.P.A, Exxon Mobil, Gulf Oil International, Honeywell International, HollyFrontier Refining & Marketing LLC, Linde Plc, Mitsui Chemicals, Sasol, and Shell Plc.

COVID-19 impact analysis:

• The demand for paraffin oil declined during the COVID-19 in higher in matured markets such as the U.S., Germany, France, and the UK since these nations were among the most affected during the first wave of COVID-19, encountering temporary closures or decline in production activities in various factories.
• During the pandemic, consumers purchased less makeup and clothes and hence, demand for paraffin oils declined in the cosmetics & personal care and textile industries. Further, the closure of restaurants and bars led to a drop in paraffin oils demand in the food sector. However, the pharmaceuticals industry registered an upsurge in paraffin oils demand due to rise in pharmaceutical production and consumers buying more than their average number of medications during the COVID-19 crisis.
• Further, the COVID-19 pandemic has had a detrimental effect on the cosmetics industry globally, causing great loss to businesses that cannot be measured causing tremendous loss to businesses that cannot be quantified. However, demand for cosmetics and personal care has been slightly increasing from mid-2020 in the U.S.
• Therefore, increasing demand from the pharmaceuticals industry along with growing demand for cosmetics & personal care products is predicted to propel the paraffin oil market during the pandemic.

Key findings of the study:

• By grade, the pharmaceutical segment was the highest revenue contributor to the market in 2021.
• By application, the pharmaceuticals segment is the fastest growing segment.
• By region, Asia-Pacific was the highest revenue contributor to the market in 2021, growing with a CAGR of 4.7%.
• China was the highest revenue contributor to the market in 2021, growing with a CAGR of 4.8%.
• South Korea and Japan are expected to witness considerable CAGRs of 4.0% and 4.5%, respectively, during the forecast period.