The petroleum resins market is estimated to be valued at USD 3.20 billion in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024-2031. Rising consumption of petroleum resins in coatings, inks, adhesives and other applications is expected to drive the market growth. Petroleum resins are highly demanded from paints and coatings manufacturers due to their excellent adhesion, compatibility and gloss.
The growth of the global petroleum resins market is driven by increasing demand from coating industry and growing consumption of hot-melt adhesives
Coating industry accounts for over half of the global petroleum resins consumption. Growing construction and automotive industries globally has increased the demand for protective and decorative coatings. Petroleum resins provide properties like flexibility, durability, and adhesion in coatings and thus find wide usage. The automotive refinish coatings market alone is expected to grow at over 5% annually which will boost petroleum resins demand.
Petroleum resins also find huge application as adhesive components in hot-melt adhesives. Hot-melt adhesives are increasingly replacing solvent-based adhesives due to their low volatility and fast bonding properties. Rising packaging and non-
Growing Demand from Construction Industry Is Driving the Market Growth
The construction industry is growing rapidly across the globe owing to rapid urbanization and increasing investment in infrastructure development. Petroleum resins are widely used in various construction applications such as paints & coatings, adhesives & sealants, and flooring & paving. They provide enhanced performance, improved resistance to dampness & moisture, and better adhesion to substrates in construction products. With the continuous growth of the construction sector, the demand for petroleum resins from this industry is also growing significantly, which is positively impacting the overall market.
Increasing Demand for Hot Melt Adhesives Is Fuelling Market Revenue
Petroleum resins find major application as hot melt adhesives across diverse industries such as packaging, woodworking, automotive, and footwear. Their excellent adhesion, flexibility, tackiness and relatively cheaper price than other adhesive types make them ideal for hot melt adhesive formulations. The global hot melt adhesives market is growing at a healthy rate due to rising demand from packaging and nonwoven hygiene product manufacturing industries. Petroleum resins, being key raw materials in manufacturing hot melt adhesives, are witnessing considerable demand growth in turn. This growing consumption of petroleum resins from the hot melt adhesives industry is propelling the market revenue.
Stringent Environmental Regulations Restraining Market Growth
Growing environmental concerns regarding petroleum resin production and their extensive usage are hampering the market growth. Various regulatory agencies worldwide have imposed stringent regulations on VOC (volatile organic compound) emissions during petroleum resin manufacturing. These resins are used in applications such as coatings, sealants, and adhesives that release VOCs, which contribute to air pollution. Additionally, end-use industries are facing issues regarding managing and disposing of petroleum resin waste. Thus, ongoing sustainability-centric trends are prompting manufacturers to explore eco-friendly alternatives to petroleum resins, which may challenge the existing market dynamics.
Intense Competition from Bio-Based Resins
With rising environmental awareness and sustainability becoming a focal point across industries, bio-based and plant-derived resins are emerging as potential alternatives to conventional petroleum resins. Rosin ester resins, terpene resins, and citrus oil resins offer comparable performance to petroleum resins but with lower toxicity and biodegradability. Many leading companies are investing heavily in R&D to develop green resin chemistries based on renewable feedstocks. Large corporations in end-use markets are also shifting preference towards bio-based materials. This intense competition from bio-based resins is posing a major restraint to the petroleum resins industry growth.
Opportunities in Emerging Economies
Developing countries in Asia Pacific and Latin America are expected to drive promising market opportunities for petroleum resins over the coming years. Rapid urbanization and industrialization in countries like India, Indonesia, Brazil, and Mexico are fueling significant infrastructure development and manufacturing sector expansion. This is generating high demand for construction materials, paints & coatings, packaging, and other petroleum resin applications. The relatively untapped developing markets offer huge growth potential for petroleum resin manufacturers looking to expand their geographic reach.
Increasing Application Diversity
Petroleum resin producers are consistently focusing on exploring new application areas to leverage growth opportunities. Recent research and development activities have enabled wider usage of petroleum resins in applications like paper capsules, pressure sensitive tapes, chewing gum bases, foams, and cosmetics. Growing product portfolios catering to diverse industries will aid market players in reducing dependency on traditional end-uses and offsetting threats from substitutes. Ongoing innovations helping petroleum resins penetrate emerging application segments are expected to open up fresh revenue streams for market participants going forward.
Link: https://www.coherentmarketinsights.com/market-insight/petroleum-resins-market-1251
Key Developments
- In March 2024, SABIC launched a new resin called LNP ELCRES SLX1271SR, which is a finalist for the 2024 Edison Best New Product Awards in the Advanced Materials category
- In February 2022, Eastman Chemical Company introduced a novel line of low molecular weight hydrocarbon resins called "Eastman Crystex Lite". These resins are engineered to provide excellent adhesion and color stability in various applications, particularly in hot melt adhesives, pressure-sensitive adhesives, and other related fields.
- In 2022, Arakawa Chemical Industries unveiled a cutting-edge hydrogenated petroleum resin that boasts enhanced chemical resistance and thermal stability. This new resin represents a significant advancement in the field of petroleum-based resins, offering improved performance characteristics for a wide range of applications.
- In December 2021, Ford made a groundbreaking announcement revealing their utilization of 100% recycled ocean plastics to create a component for the Bronco Sport compact SUV. This initiative marks a significant milestone as Ford becomes the first automaker to incorporate 100% recycled ocean plastics in the manufacturing of auto parts, showcasing their commitment to sustainability and environmental responsibility.
Key Players
Arakawa Chemical Industries, Eastman Chemical Company, Exxon Mobil Corporation, Ltd., Kolon Industries, Inc., Lesco Chemical Limited, Zeon Corporation, Seacon Corporation, Neville Chemical Company, Total Cray Valley, Anglxxon Chemical Co., Ltd., Puyang Ruisen Petroleum Resins Co., Ltd., Innova (Tianjin) Chemical Co., Limited, Shandong Landun Petroleum Resin Co., Ltd., Shanghai Jinsen Hydrocarbon Resins Co., Limited, Synthomer PLC, Dycon Chemicals, and PROMAX
