In London, market research firm Technavio is forecasting 8% compound annual growth for soy-based chemicals through 2022. Demand drivers include biofuels, in agriculture-based economies such as India, China, and Brazil and in countries like the US and Germany, which are looking to reduce dependence on imported crude oil.
Rising environmental concerns and demand for natural products are also expected to boost growth for soy-based chemicals in the wax industry. “Due to similar properties and functionality offered by soy wax, the major vendors in the candle industry are opting for soy wax than paraffin wax,” Technavio says.
However, Technavio notes that volatile commodity prices have impacted soybeans prices, which have yet to stabilize despite improvements in the global economic outlook. “Many vendors do not have the adaptability to cater to market volatility,” it adds.