Pine Chemicals Market Forecasts to 2028 – Global Analysis By Product Type (Rosin, Turpentine, Tall Oil and Other Product Types), Source (Kraft Pulp, Aged Pine Stumps and Pine Trunks), Application and By Geography

Pine Chemicals Market Forecasts to 2028 – Global Analysis By Product Type (Rosin, Turpentine, Tall Oil and Other Product Types), Source (Kraft Pulp, Aged Pine Stumps and Pine Trunks), Application and By Geography

According to Stratistics MRC, the Global Pine Chemicals Market is accounted for $5.69 billion in 2022 and is expected to reach $8.26 billion by 2028 growing at a CAGR of 6.4% during the forecast period. Pine chemicals are obtained from the materials that are derived from the pine tree belonging to the genus Pinus. Pine trees originated in the northern hemisphere and are now found all over the world. Pine chemicals are generated from the carbonization or oleoresin of wood distillation. Additionally, these chemicals are primarily obtained from three sources: dead pine stumps and logs as a by product of living trees, sulphate pulping, and sulphate pulping. Pine chemicals are used in a variety of industries, including resins, soaps & detergents, plasticizers, fragrance chemicals, surface coatings, and many more.

According to the German Adhesives Association, the adhesives, sealants, and tape industries will generate an annual turnover of more than EUR 4 billion (USD 4.57 billion) in 2020.

Market Dynamics

Driver:

Increasing demand for bio-friendly products

The demand for these products is exponentially increasing because consumers are inclined more toward environment-friendly products. These chemicals use natural and renewable resources as raw materials to create basic and necessary commodities, while also serving as a method to reduce the carbon footprint. The pine-derived compounds are derived from living trees, pine stumps, and logs, for which the industry relies on raw materials from the forestry sector. Crude Tall Oil (CTO) is a prominent example of pine chemistry with numerous applications.

Restraint

Stringent regulations imposed by government

Pine chemicals are regulated by major government bodies such as the Environmental Protection Agency (EPA), the Food and Drug Administration (FDA), the American Chemistry Council, and the Pine Chemicals Association. These organizations are in charge of registering products and regulating their safety, usage, and residue levels permitted in food and other applications. The increased rigor in the norms and regulations governing pine-derived compounds is mostly due to environmental degradation. These regulations primarily impact existing pine-derived chemical products while delaying the introduction of new products.

Opportunity

Opportunities in developing countries

There are huge growth opportunities in the world's developing countries where the agriculture sector is growing rapidly. The high population growth and growing industrialization result in increased food demand. More than 90% of total industries’ wood products manufactured in developing countries will be utilized domestically. The FAO projects that the trend will continue to be the same for the next two decades. The high population growth and growing industrialization result in increased food demand. This will boost the pine-derived chemicals market. There have been quite a few investments by means of mergers, acquisitions, and partnerships by key players in developing regions. These developments in the pine-derived chemicals industry will drive the need for raw materials obtained from pine trees and increase its demand and application into the end-consumer segment. It would also provide employment and generate income opportunities in developing countries.

Threat

Rising labour costs

Labourers work for themselves in communally owned woods in emerging countries where labour costs are cheap, accepting lower wages due to little bargaining power and labouring in challenging terrain with limited or no mechanisation or contemporary safety equipment. Furthermore, gum resin farmers are leaving the forest for better-paying occupations in the city, causing a labour and production scarcity, leading to wage increases and an increase in production costs.

Covid-19 Impact

During the Corona virus pandemic, the world economy was impacted drastically, and each area experienced a colossal misfortune. Agricultural nations noticed a pessimistic GDP rate, which contributed to business layoffs. This compelled many small companies to shut down, leaving daily wage workers unemployed. While the administering bodies proposed, all guidelines and rules were loosened the following year. The enterprises opened, and production cycles, supply, and request began. After bearing losses, areas like auto, oil and refineries, development, production, and others planned to produce more and generate more revenue. During the lockdown, chemical production was impacted adversely.

The rosins segment is expected to be the largest during the forecast period

The rosins segment is estimated to have a lucrative growth. Rosin is an essential element in CTO processing and is frequently derived from pine trees or pine stumps. Because of the rosin's flexibility, it is a prominent source of colour and sticky resins, gums, drink stabilisation, and a variety of other applications. Rosin is primarily used to improve adhesive strength, flexibility, and viscosity. Rosin gum is derived from a variety of pine species native to China, Brazil, Indonesia, Mexico, and Vietnam.

The paints & coatings segment is expected to have the highest CAGR during the forecast period

The paints & coatings segment is anticipated to witness the fastest CAGR growth during the forecast period, as it inexpensive and safe to use. Changing lifestyles, increased consumption of healthy and ecologically friendly goods, particularly in metropolitan areas, and rising environmental concerns are propelling the pine chemicals market in the paints and coatings industry. The market has grown as a result of an increase in the use of pine chemicals in the manufacture of paints and coatings that help with house renovations as well as the painting of rooms and offices.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period attributable to the developed industry in this region. The region's demand for adhesive is expanding in the electronics and automotive industries. These industries are mostly responsible for the drop in output. Yet, overall adhesive output in Germany continues to rise, fuelled by expansion in other industries such as packaging and construction. Throughout the projected period, demand for pine chemicals is expected to be driven by rising demand for biofuels.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period, because to the ease of conducting business, increased environmental concerns, and an increase in demand for pine chemicals due to the favourable climate and operational benefits from pine chemicals. Furthermore, due to low labour costs and the implementation of modern processing processes, the majority of pine chemical production, particularly gum rosin, is carried out in Asia Pacific, influencing overall market circumstances.

Key players in the market

Some of the key players profiled in the Pine Chemicals Market include Arakawa Chemical Industries Ltd., Pine Chemical Group, Plasmine Technology Inc., Resinall Corp., Ingevity Corporation, Harima Chemicals Group, Kraton Corporation, DRT, Florpinus Chemical Industries, Wuzhou Sunshine Forestry & Chemicals Co. Ltd, Punjab Rosin & Chemical Works, Mahendra Rosin & Turpentine Pvt Ltd, Florachem Corporation, Foreverest Resources Ltd, Mentha & Allied Products Pvt Ltd and Guilin Songquan Forest Chemical Co. Ltd

Key Developments

In May 2022, Ingevity Corporation announced a general price increase for tall oil fatty acids, distilled tall oil, derivative products, and rosin-based resins associated with its industrial specialties portfolio.

In November 2021, DRT announced signing a new distribution partnership with IMCD Italy to market its products across all industrial segments.

In September 2021, Kraton Corporation signed an agreement with DL Holdings Co, Ltd. As per the agreement, Kraton Corporation stockholders will receive USD 46.50 in cash for each share of Kraton common stock they own.

In March 2020, Harima Chemicals Group announced its partnership with Takasago International Corporation—a leading manufacturer in the flavors and fragrances industry.

Product Types Covered:
• Rosin
• Turpentine
• Tall Oil
• Other Product Types

Sources Covered:
• Kraft Pulp
• Aged Pine Stumps
• Pine Trunks

Applications Covered:
• Adhesives & Sealants
• Printing Inks
• Paints & Coatings
• Surfactants
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements