Terpene Resins Market

Terpene Resins Market Size

The global terpene resins market was valued at USD 991 million in 2022 and is projected to reach USD 1,450 million by 2027, growing at a cagr 7.9% from 2022 to 2027. The overall increase in demand for terpene resins in emerging regions such as Asia Pacific and Middle East & Africa is driving the market. Rising demand from end-use industries including inks & coatings, plastic & rubber processing, pulp & paper, leather processing, chewing gum, and adhesives & sealants is driving the global market.

Global Terpene Resins Market Trends

Note: e-estimated, p-projected

Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

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Terpene Resins Market Dynamics

Driver: Increasing demand for terpene resins from adhesives & sealants

Terpene resins are used as tackifiers in adhesives & sealants to increase the stickiness or adhesion of the product. Tackifiers are substances added to adhesives to improve their ability to adhere to surfaces. Terpene resins are particularly effective in this regard because they have a high molecular weight and a high degree of branching, which gives them good compatibility with other types of adhesives, such as rubber and synthetic resins. Terpene resins can also improve the flexibility and impact resistance of adhesives & sealants. Terpene-based adhesives are used in different end-use industries, including packaging, automotive, construction/assembly, and footwear. The growth in these end-use industries is expected to drive the market demand for terpene resins.

Restrain: Limited feedstock supply and volatility of raw material prices

Price and availability of raw materials is a key factor for terpene resin manufacturers when deciding the cost structure of their products. Major raw material feedstocks required to produce terpene resins are derived from natural and petroleum-based resources. The limited availability of natural feedstocks and higher regional concentration of suppliers in certain regions are projected to impact the terpene resins market. Furthermore, fluctuations in oil prices and a weak global economy may also restrain the growth of this market.

Opportunity: High demand for bio-based resins

High demand for bio-based resins is a significant opportunity for the terpene resins market. Bio-based resins are made from renewable resources, such as plant-based materials, and have a lower carbon footprint compared to traditional petroleum-based resins. This makes them a more sustainable and environmentally friendly alternative to traditional resins. The increasing concern for the environment and the need to reduce dependence on fossil fuels is creating huge opportunities for bio-based terpene resins. The government regulations to reduce greenhouse gas emissions and the increasing consumer awareness about the environmental impact of traditional resins are also contributing to the growing demand for bio-based resins. The use of bio-based terpene resins in various industries, such as construction, automotive, and packaging are expected to increase in the near future.

Challenge: High cost of raw materials

Terpene resins are derived from natural sources, such as pine and other coniferous trees, which are often found in remote and hard-to-access locations. The cost of harvesting and transporting these raw materials can be high, which is a major factor contributing to the high cost of terpene resins. In addition, the process of extracting and purifying the terpenes from the raw materials is also expensive and energy intensive. This includes the cost of equipment, labor, and energy required to separate the terpenes from the raw materials, as well as the cost of purifying and refining the terpenes to a suitable purity level for use in resins.

Solid segment accounted for the largest share amongst product type in the terpene resins market

Based on product type, the terpene resins market has been classified into solid and liquid. Terpene resins are manufactured and supplied in the above-mentioned forms to meet specific application requirements. Terpene resins are manufactured and supplied in solid forms, such as flaked, granular, and powered, which can be used in various applications, including adhesives & sealants, paper & pulp, leather processing, and chewing gums. The liquid form of terpene resins is normally supplied in containers to avoid environmental-related conditions, such as weather, temperature, and moisture.

Industrial grade segment to lead the grade in the overall terpene resins market

Based on grade, the terpene resins market has been classified into industrial and technical grades. The industrial grade resin refers to a type of plastic or polymer material that is suitable for use in industrial applications. It is typically made to be strong, durable, and resistant to wear and tear. Whereas, technical grade resin, is a type of resin that is specifically formulated to meet the technical requirements of a particular application or industry. It may have specific properties, such as high-temperature resistance, UV resistance, or chemical resistance, that make it suitable for use in certain applications. In general, technical grade resin has more stringent quality control and purity standards than industrial grade resin.

Adhesives and sealants application segment to lead the terpene resins market

The terpene resins market, by application, is segmented into inks & coatings, plastic & rubber processing, pulp & paper, leather processing, adhesives & sealants, chewing gum, and others, which include tires, pharmaceuticals, food & beverage, polymer modifiers, and aromatic oils. Terpene resins are a versatile and natural material used in a wide range of applications in the adhesives & sealant industry making it the leading segment in the applications. They are used as a binder, sealant, and coating material, and are valued for their natural origin, low toxicity, and environmental friendliness. Terpene resins are commonly used in water-based adhesives & sealants, and also used as a raw material in the production of other adhesives & sealants, such as rosin-based adhesives and hot-melt adhesives. They are also used in the production of varnishes, lacquers, and other coatings to protect and enhance the appearance of various materials.

Asia Pacific is estimated to grow at the fastest growth rate in the global terpene resins market.

The Asia Pacific region accounted for the largest market share in 2021 and is also expected to grow at the highest CAGR, during the forecast period. The market is driven by increasing demand from end-use industries coupled with the superior properties of terpene resins, such as chemical inactivity, non-toxicity, and effectiveness as compared to that of some of the conventionally used products that is expected to boost the market growth during the forecast period in the region.

Source: Secondary Research, Primary Interviews, and MarketsandMarkets Analysis

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Key Market Players

The key players in the terpene resins market Mangalam Organics Limited (India), Yasuhara Chemical Co. Ltd (Japan), Ingevity (US), Kraton Corporation (US), Baolin Chemical Industry Co. Ltd (China), Lesco Chemical Company (China), Arakawa Chemicals (Japan), Xinyi Sonyuan Chemical Co. Ltd (Japan). These players have established a strong foothold in the market by adopting strategies, such as new product launches, strategic partnerships, investment & expansions, and acquisitions between 2019 and 2022.

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Scope of the Report

:

This research report categorizes the terpene resins market based on Product type, Grade, Applications and Region.

By Product Type:

• Solid
• Liquid

By Grade:

• Technical
• Industrial

By Applications:

• Inks & coatings
• Adhesives & sealants
• Chewing gums
• Pulp & paper
• Plastic & rubber
• Leather processing
• Others

By Region:

• North America
• Asia Pacific
• Europe
• Middle East & Africa
• South America
• The terpene resins market has been further analyzed based on key countries in each of these regions.

Recent Developments

• 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.
• 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.

Frequently Asked Questions (FAQ):

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