Terpene Resins Market Forecasts to 2028 – Global Analysis By Product (Liquid and Solid), Grade (Industrial and Technical), Application (Chewing Gums, Inks & Coatings, Leather Processing, Adhesives & Sealants, Plastic & Rubber, Pulp & Paper and Other Appli

Terpene Resins Market Forecasts to 2028 – Global Analysis By Product (Liquid and Solid), Grade (Industrial and Technical), Application (Chewing Gums, Inks & Coatings, Leather Processing, Adhesives & Sealants, Plastic & Rubber, Pulp & Paper and Other Applications), and By Geography

According to Stratistics MRC, the Global Terpene Resins Market is accounted for $991.0 million in 2022 and is expected to reach $1746.0 million by 2028 growing at a CAGR of 9.9% during the forecast period. Terpene resin is an organic substance that is derived from plants, such as citrus fruits or wood. A solid substance with a light colour called terpene resin is soluble in many solvents. Terpene also frequently has a potent smell and a high degree of resistance. It is utilised extensively in the industrial sector as an essential oil, fragrance, and flavouring ingredient.

According to the National Bureau of Statistics of China, the revenue in the consumer electronics and household appliances segment reached CNY 934.64 million (USD 138 million) in 2021. According to IBEF, in 2024, the Indian e-commerce market is predicted to reach USD 111 billion by 2025 and USD 350 billion by 2030.

Market Dynamics

Driver

Increasing demand for terpene resins from adhesives & sealants

Terpene resins are employed as tackifiers in adhesives and sealants to boost the product's stickiness or adhesion. Tackifiers are materials that are added to adhesives to increase their adherence to surfaces. Because of their large molecular weight and high branching, terpene resins are particularly effective in this aspect because they blend well with other forms of adhesives like rubber and synthetic resins. Terpene resins can also make adhesives and sealants more flexible and impact-resistant. Different end-use sectors, such as packaging, automotive, construction/assembly, and footwear, use terpene-based adhesives. The market demand for terpene resins is anticipated to be driven by the expansion of these end-use industries.

Restraint

Limited feedstock supply and volatility of raw material prices

Terpene resin producers consider the cost structure of their goods, as well as the price and availability of raw ingredients, when making these decisions. The majority of the raw materials used to make terpene resins come from natural and petroleum-based resources. The market for terpene resins is expected to be impacted by the restricted supply of natural feedstock’s and the increasing regional concentration of suppliers in some countries. Furthermore, the development of this sector can be constrained by changes in oil prices and a fragile global economy.

Opportunity

High demand for bio-based resins

The market for terpene resins has a sizable opportunity due to the high demand for bio-based resins. When compared to conventional petroleum-based resins, bio-based resins have a lower carbon footprint since they are produced from renewable resources, such as plant-based materials. The demand for bio-based terpene resins is skyrocketing as environmental awareness and the need to reduce reliance on fossil fuels rise. The market for bio-based resins is rising as a result of government restrictions to minimise greenhouse gas emissions and rising consumer awareness of the environmental impact of conventional resins. In the near future, it is anticipated that more industries, including construction, automotive, and packaging, would adopt terpene resins made from bio-based materials.

Threat

High cost of raw materials

Terpene resins come from organic materials like pine and other coniferous trees, which are typically located in inaccessible, isolated regions. The price of harvesting and shipping these raw materials can be significant, which is one of the main reasons terpene resins are so expensive. Additionally, it costs money and requires a lot of energy to extract and purify the terpenes from the raw materials. This covers the price of the machinery, labour, and energy needed to separate the terpenes from the raw materials, as well as the price of purifying and refining the terpenes to a purity level suitable for usage in resins.

Covid-19 Impact

The COVID-19 epidemic has hampered the functioning of sectors of the global economy like the food and beverage and cosmetics industry. The lockdown has decreased demand for food and drink as well as cosmetics, which has also decreased demand for terpene resins. Terpene resins are utilised as flavouring agents in numerous supplements, but their usage in the pharmaceutical business is anticipated to accelerate market expansion. Terpene's market growth is currently on the decline, but following the lockout, the market is anticipated to expand significantly.

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

The industrial segment is estimated to have a lucrative growth. Terpene industrial-grade resins are utilised as adhesives in many industries, including construction, wood products, paper and packaging, and wood products. Because they are made from renewable resources like pine and other tree species, terpene resins are a better option for the environment than resins based on petroleum. The majority of the market for terpene resins is dominated by industrial-grade terpene resins because of their wide range of uses.

The plastic & rubber segment is expected to have the highest CAGR during the forecast period

The plastic & rubber segment is anticipated to witness the highest CAGR growth during the forecast period, due to their outstanding and distinguishing characteristics, such as exceptional adhesion, strong heat resistance, good chemical resistance, and low toxicity. They are suitable for adhesives and binders in the production of paper goods, such as packaging materials and paperboards, due to their properties. Since they have great resistance to organic solvents and good toughness characteristics, inks and coatings will expand at the fastest CAGR during the projection period.

Region with highest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to the rising demand for paper and packaging products, the expansion of the consumer goods sector, and supportive government policies and regulations are just a few factors that are projected to have an impact on market demand. The main causes of the development are South Korea, China, and India's robust economies. Due to the region's low cost of production and capacity to better serve the local expanding markets; manufacturers have migrated there, driving the market for terpene resins in the area.

Region with highest CAGR

North America is projected to have the highest CAGR over the forecast period, owing to factors including increased demand from regionally important sectors like rubber and food & beverage. Additionally anticipated to support regional prosperity is the expansion of the cosmetic and personal care industries.

Key players in the market

Some of the key players profiled in the Terpene Resins Market include Ingevity, Mangalam Organics Limited, Henan Tianfu Chemical Co. Ltd, Arakawa Chemical Industries, Ltd., Yasuhara Chemical Co. Ltd, Dujodwala Resins and Terpenes Ltd., Resin Chemicals Co. Ltd, Lesco Chemical Limited, Foreverest Resources Ltd., Baolin Chemical Industry Co. Ltd, Kraton Corporation, Megawide Chemicals Co. Ltd, Akrochem Chemical, Xinyi Sonyuan Chemical Co. Ltd and Hwalong.

Key Developments

In April 2022, Ingevity has developed new biobased oilfield products such as EnvaWet UHS 3100 and EnvaDry P-FL, derived from pine-based tree oil. These products provide unique performance and sustainability advantages.

In March 2022, Yasuhara signed an agreement with Leaf Resources to purchase terpenes for the next five years. This agreement helps strengthen Yasuhara’s terpene resins business.

Products Covered
• Liquid
• Solid

Grades Covered
• Industrial
• Technical

Applications Covered
• Chewing Gums
• Inks & Coatings
• Leather Processing
• Adhesives & Sealants
• Plastic & Rubber
• Pulp & Paper
• 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