Pine Chemicals Market Size
The global Pine Chemicals Market Size was valued at USD 6 Billion in 2023 and it is forecast to grow at a CAGR of 6.4% during the forecast period. The rising demand for Pine Chemicals from end-use industries such as Paints & Coatings, Adhesives & Sealants, Printing inks, Surfactants, Lubricants, and others will further drive the Pine Chemicals demand in the forecast period.
The Pine Chemical market has evolved over many years and is currently used for multiple applications. According to American Chemistry Council Pine Chemicals are believed to reduce greenhouse gas emissions, improve product performance, and increase the reuse of materials. During the production of paper pulp in the kraft pulping process, black liquor is created as by-product which is further processed to get Crude
Global Pine Chemicals Demand, By Type 2016 - 2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Tall Oil and Crude Sulphate Turpentine. Both these products are distilled to get the final refined products of Tall Oil and Crude Turpentine. Some of the commonly known derivatives of Crude Tall Oil in the Pine Chemicals market are Tall Oil Rosin, Tall Oil Fatty Acids, Tall Oil Pitch, Tall Oil Rosin Ester, Distilled Tall Oil, and Tall Oil Heads. Apart from the kraft pulping process, there are also some direct processes that are used to produce Pine Chemicals such as Gum Rosin, Gum Turpentine, Wood Turpentine, and Wood Rosin. However, Tall Oil is only produced in the kraft process and occupies a major share of Pine Chemicals. In terms of market by type, the Pine Chemicals market is segmented into four types Tall Oil, Rosin, Turpentine, and others. Moreover, the application of Pine chemicals is segmented into adhesives & sealants, paints & coatings, printing inks, surfactants, lubricants, and others.
Pine Chemicals Demand Overview
Asia Pacific is the largest Pine Chemicals market, accounting for more than 40% market share in 2022. With the strong and versatile presence of end-use industries in developing countries, the region is estimated to remain the largest consumer of Pine Chemicals and is forecast to be the fastest-growing region from 2023 to 2032.
Global Pine Chemicals Demand, By Application 2016 - 2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
On the back of the huge adhesive and paints industry, China dominates the regional Pine Chemicals market, Followed by Japan, South Korea, and India Pine Chemicals demand in these countries is driven by end-use such as automotive, construction, electronics, and packaging. Over the decade Asia Pacific has emerged as a major consumer of paints & coating, adhesives & sealants, and is anticipated to maintain this position throughout the forecast period. In addition to its substantial demand, Asia Pacific is anticipated to be the fastest-growing market in the global Pine Chemicals market.
A huge population and increasing standard of living have led to an increase in the consumption of products like paints, coatings, adhesives, surfactants, and printing inks in various end-use industries. For the last ten years, China has been the largest automobile producer, with over 30 million vehicles produced in the last year. Countries like India, Japan, and South Korea are also huge automobile producers having a combined production of over 18 million vehicles. In terms of the construction industry, India and South Asian countries have a lot of promising prospects. With India aiming to become a 5 trillion economy, the Indian government and domestic industries have launched multiple infrastructure projects like the construction of Roads, Railways, Ports, and the development of smart cities which is anticipated to drive the demand for adhesives and paints during the forecast period.
North America is the second largest Pine Chemicals market with the USA accounting for the lion’s share in regional Pine Chemicals demand. The USA has a highly developed economy with the largest nominal GDP of over USD 20 trillion. The USA has developed a transportation and infrastructure system and has the second-highest purchasing power parity. With such a developed market the country has a huge demand for paints, coating, adhesives, and sealants, which has increased consumption of pine chemicals in the country.
Global Pine Chemicals Demand, By Region 2022 (Kilotons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Pine Chemicals Market Dynamics
Pine Chemicals Market Drives: Increasing Purchasing power in developing countries
The growth of Pine Chemicals is expected to accelerate in developing nations due to rapid advancements in industries such as automotive, construction, consumer goods, and electrical & electronics. The increased disposable income in these countries has resulted in higher purchasing power and improved quality of life. Resulting in increased demand for adhesive, paints, and printing inks in multiple industries which in turn will drive the Pine Chemicals market during the forecast period.
Pine Chemicals Market Restrain: Use of Crude Tall Oil in Biofuel
Many Stakeholders in the Biofuel industry are exploring the use of
Crude Tall Oil in Biodiesel. Diverting the supply of Crude Tall Oil feedstock from Pine Chemicals to the production of biodiesel would cause an imbalance in demand. Crude Tall Oil is already scarce renewable feedstock, any of its use in biodiesel would cause a significant supply crunch in the Pine chemicals market. Hence, any incentive policy or mandatory policy, development in CTO to biodiesel technology would act as restrains for the growth of Pine Chemicals Market.
Key players in the Pine Chemicals market
Kraton Corporation, Ingevity,
Takasago International Corporation, Pine Chemical Group, Harima Chemicals Group, and Arakawa Chemical Industries are some of the key players in the Pine Chemicals market.
Recent Development in the Pine Chemicals Market
In November 2023, Ingevity revealed its decision to close down the pine chemicals plant in DeRidder, Louisiana, by the first half of 2024. This move comes as a response to the heightened competition for its main raw material. The facility utilizes crude tall oil (CTO) obtained as a byproduct from pulp and paper production, for the manufacturing of adhesives and various other commodities.
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