C5 RESINS MARKET ANALYSIS

The global C5 resins market was valued at US$ 820.0 Mn in 2022, and is expected to exhibit a CAGR of 5.1%, over the forecast period (2023-2030) to reach US$ 1,225.4 Mn by 2030. High growth in the construction sector is expected to fuel the demand for adhesives, sealants, paints, and coatings. This, in turn, is propelling the global C5 resins market growth. The Global C5 resin market will benefit from the growth, as the construction materials are used in construction projects. Moreover, the increasing penetration of electric vehicles is another key factor driving the growth of the C5 resins market.

Global C5 Resins Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic has had a severe negative impact on the global economy, resulting in the most serious economic crisis since The pandemic has disrupted global supply chains, weakened demand for imported goods and services, and caused a decline in international tourism and business travel Lockdown measures implemented by many countries have hit small and medium-sized enterprises particularly hard. The construction industry has been affected by these measures, with construction activities worldwide hampered in order to follow lockdown norms. The market of C5 resins has been severely affected by the pandemic due to the economic downturn. The pandemic has caused thousands of job losses and a disruption of the production process in several sectors, negatively affecting the GDP of many countries

Figure 1. Global C5 Resins Market Share (%), By Application, 2022

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Global C5 Resins Market: Drivers

• Growing demand for adhesives and sealants from the packaging industry: The growing demand for adhesives and sealants from the packaging industry is primarily fueling the market growth. C5 resins are widely used as tackifiers, homogenizing agents, and performance modifiers to produce hot melt adhesives for the manufacturing industry. The adhesives and sealants manufactured using C5 resins are used in rigid packs, to seal flexible packaging, and for attaching labels. Moreover, these resins are resistant to environmental factors such as water, acids, and alkaline; hence have excellent adhesion and also help in reducing the manufacturing cost and drives the global C5 market growth.
• Expanding construction industry: The expanding construction industry due to the growing demand of the commercial and residential sectors is also anticipated to the fuel market growth. Moreover, growth in global refurbishing activities like cosmetic renovations, upgrading, major repair work, alterations, conversions, extensions and modernisations has created demand for various products such as coatings, paints, adhesives, and others. For instance, government stimulus plans(package of economic measure a government), such as the US$ 1.2 trillion Bipartisan Infrastructure Bill in the U.S. are likely to result in the growth of the construction industry over the forecast period.

Global C5 Resins Market: Restraints

• Increasing replacement of C5 resins with hydrogenated hydrocarbon resins: Increasing replacement of C5 resins with hydrogenated hydrocarbon resins due to their superior adhesive strength and improved resistivity against heat and cold is expected to hamper the market growth. They are widely used in the adhesives and labels market over C5 resins.
• Counterbalance: Petroleum resins improve tensile strength and increase fatigue resistance. Of rubber, bio-composite, and epoxy resin They also slow the formation of cuts by releasing stress at the crack tip, among other benefits.

Global C5 Resins Market: Trends

• Rising purchasing power of consumers: The increasing purchasing power of consumers and improved standards of living are increasing the demand for the interior of the houses, which is projected to augment the demand for wallpapers. All these factors are acting as a major trend in the global C5 resins market.
• Expansion by key players in production capacity of C5 resins: Key players are expanding the production capacity of C5 resins in order to meet the growing demand across enduser industries. For instance, in June 2021, Kolon Industries Inc. is a Korean chemical and manufacturing company which added another 15,000 tons of annual capacity to its Hydrocarbon Resin (HCR) manufacturing. The addition gives Kolon Industries Inc., a total capacity of 200,000 tons annually, making it the second-largest manufacturer in the world.

Global C5 Resins Market: Market Segmentation

The global C5 resins market is segmented into application and regional.

Global C5 resin market: By application

• Based on application, the market is segmented into paints and coatings, adhesives and sealants, printing inks, rubber compounding, and other applications. Out of which, adhesives and sealants is expected to dominate the global market over the forecast period. Adhesives and sealants is one of the largest consumers of C5 hydrocarbon resins. These resins offer good adhesion properties.  Moreover, they are widely used to produce pressure-sensitive adhesives, hot-melt adhesives, and other adhesives. Furthermore, several key players have been investing in the production of adhesives and sealants to increase their market presence, which, in turn, is augmenting the demand for C5 resins. For instance, in February 2020, Henkel Adhesives Technologies announced the inauguration of its new production facility in Kurkumbh, India. The plant received a total investment of about USD $53.34 Million and is aimed at serving the growing demand of Indian industries for high-performance solutions in adhesives, sealants, and surface treatment products.
• The paints and coatings segment is also expected to witness significant growth in the near future, owing to its aliphatic chemical composition. These resins offer various characteristics to paints such as improved adhesion, pigment wetting, film gloss, alkali resistance, acid resistance, and film hardness. They also support flow and levelling, as well as reduce Volatile Organic Compound (VOCs) content in paints and coatings.

Figure 2. Global C5 Resins Market Share (%), By Region, 2022

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Global C5 Resins Market: Regional Analysis

• Regionally, Asia Pacific is expected to dominate the global C5 resins market over the forecast period owing to the presence of economies such as China, India, and Japan. China accounts for more than one-fourth of the global coatings market currently. In 2020 According to the China National Coatings Industry Association, the industry has been registering a growth rate of 7% in recent years. Japan is the world’s third-largest by nominal Gross Domestic Product (GDP) and fourth-largest by purchasing power parity. Japan’s GDP growth has been stagnant and has been hovering around 1% for the past decadeThe country’s economy further contracted in 2020 due to the COVID-19 crisis.
• Furthermore, India is a growing economy and holds great potential for future market opportunities. According to International Monetary Fund (IMF) projections, the GDP of the country is expected to increase 9.5% in 2021. The country has resumed its industrial activities post-COVID-19 pandemic, which is expected to drive economic growth during the forecast period.
• North America is also projected to witness the fastest growth in the global C5 resin market over the forecast period owing to the strong presence of paint and coating industries. According to the American Coatings Association (Coatings Tech), the paints and coatings industry in the U.S. accounted for USD 25.21 billion in 2020 and is expected to reach US$28.06 billion by 2022. Similarly, in terms of volume, the paints and coatings industry stood at 1,337 Kilo Tons in 2020 and reached 1,416 Kilo Tons in 2022.

Global C5 Resins Market: Key Developments

• In February 2020, Total Cray Valley introduced a new product called Wingtack 102. It is an aliphatic resin that acts as a tackifier and has a high softening point. Compared to typical 100°C hydrocarbon resins, Wingtack 102 has a lower molecular weight distribution. This provides excellent compatibility with aliphatic polymers, resulting in formulations with superior stability. Wingtack 102 has 35% lower volatility than other similar hydrocarbon resins, giving it exceptionally low odor and low product volatility.
• In June 2022, ENEOS Corporation and iXs Co.,Ltd have began joint study on maintainance and inspection service business using robotics
• In November 2022, DuPont announced the termination of previously announced agreement to acquire shares of Rogers Corporation. DuPonts is paying Rogers a termination fee of $162.5 millions by agreement.

Global C5 Resins Market: Key Companies

The global C5 resins market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing Research and Development and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on a regional and global basis. Some of the key players in the global C5 resins market are Arakawa Chemical Industries Ltd, Cray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen, Hydrocarbon Resins Co., Limited, Zibo Luhua Hongjin New Material Co. Ltd, and ZEON CORPORATION.

*Definition: C5 resins are widely used in sealing and adhesive applications. They are highly compatible with natural rubber, synthetic elastomers, and base polymers and are also UV resistant. They are also used in road marking paints, where they are used to improve the rigidity of the paint material. Additionally, they exhibit excellent chemical and heat stability and are available in a range of molecular weights.