PIPERYLENE MARKET ANALYSIS

Piperylene or 1, 3 - Pentadiene is a base raw material for chemical industry with formula C₅H₈ and molecular weight 68.12. It is obtained as a derivative of ethylene from crude oil, waste incineration, exhaust gases, and combustion of biomass.

Piperylene is used as a monomer in manufacturing adhesives, resins, and plastics, attributing to properties such as lightweight, toughness, high mechanical strength, and resistance towards radiation and corrosion. Increasing use of lightweight components in aerospace and automotive industry is expected to fuel the growth of the piperylene market over the forecast period.

Market Outlook

• Piperylene-based products are used in manufacturing parcel tapes, diaper fastenings, envelops, building & construction materials, road markings, and others. The upsurge in end-use industries such as automotive, manufacturing, and aerospace is expected to be a major factor propelling the growth of piperylene market. According to a report published by Just-Auto in August 2018, the global automotive industry is growing continuously, wherein global sales for light vehicles increased by 3.7% in 2018 in comparison with the previous year.
• Asia Pacific is projected to witness the highest revenue share in the global piperylene market over the forecast period, owing to growing automotive and manufacturing industries in the region. According to India Brand Equity Foundation (IBEF) report published in October 2018, Automotive industry in India was 4^th largest in the world accounting for 4.2 billion sales (excluding two-wheelers) in 2017, recording an increase of 9.5% in comparison with 2016.
• According to a report published by the United Nations Industrial Development Organization (UNIDO) in March 2018, worldwide manufacturing output of piperylene retained a growth of 4.2% in the first quarter of 2018 and China, the world’s largest pipeline manufacturer, continued a growth of 6.3% independently. This scenario is projected to fuel demand for piperylene from manufacturing industry worldwide, largely driven by emerging economies such as China and India.

Key Players

Major players operating in the global piperylene market include, Shell Chemicals, LOTTE Chemical Corporation, Chevron Phillips Chemical Company, ZEON Corporation, The Dow Chemical Company, LyondellBasell Industries N.V., Eastman Chemical Company, Shanghai Shangyi Chemical Technology Co., Ltd., and Nova Chemicals.

Major players operating in automotive, aerospace, and construction industry are cooperating with piperylene manufacturers. The cooperation is focused on reducing maintenance costs by adopting piperylene-based coatings, which offer enhanced protection for a long duration.

Piperylene Market Taxonomy

On the basis of application, the global piperylene market is segmented into:

• Plastics
• Adhesives
• Resins
• Others (Paints, Rubber, Epoxy Hardener, and Tackifier)

On the basis of region, the global piperylene market is segmented into:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • Italy
  • France
  • Russia
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • ASEAN
  • Australia
  • South Korea
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East
  • GCC
  • Rest of Middle East
• Africa

Key Developments

• In June 2018, Exxonmobil has started the production of “Escorez” Hydrocarbon resin as well as halobutyl elastomer (rubber) at its integrated petrochemical complex at Singapore. The hydrocarbon resin plant will have a total production capacity of 90 kilo tons per year to meet the demand for hot melt adhesives used in baby diapers and packaging solutions. As piperylene is used as a raw material for manufacturing hydrocarbon resin, the demand of piperylene is estimated to rise significantly in Singapore.
• In May 2019, Eastman Chemical Company announced the expansion of non-hydrogenated as well as hydrogenated hydrocarbon resin at two of its petrochemical facilities – Middelburg (The Netherlands) and Pennsylvania (United States). The expansion will be completed by mid-2020 and the hydrocarbon resins will then further be used in manufacturing hot-melt adhesives. The expansion in the hydrocarbon resin plants will further drive-up the demand for piperylene in the United States and Netherlands.
• In July 2019, Henkel announced its plans to invest US$ 45 Mn to expand its UV acrylic adhesives plant in Salisbury, North Carolina (United States). The UV acrylic adhesives will be further used for manufacturing adhesives labels and tapes. As piperylene acts as binder in manufacturing of adhesives, the expansion will further increase the demand for piperylene in the U.S.