The increasing demand for adhesives and sealants is anticipated to open up the new avenue for Petroleum Resins Market

Purvaja Jadhao

posted on 9 months ago — updated on 2 seconds ago

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The Petroleum Resins Market is estimated to be valued at US$ 3,697.05 Mn or $3.7 billion in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The increasing demand for adhesives and sealants is anticipated to open up the new avenue for Petroleum Resins Market

Market Overview:
Petroleum resins are amorphous thermoplastic polymers made from petroleum-based feedstock materials, through either thermal or catalytic polymerization. They are mainly used for applications such as adhesives, inks, paints, rubber compounding, and others. Different types of petroleum resins include C5 resins, C9 resins, hydrogenated hydrocarbons (HHCs), and modified and specialized petroleum resins. Among applications, adhesives and sealants hold the largest share in the petroleum resins market owing to increasing use of petroleum resins in hot melt and pressure sensitive adhesives.

Market Dynamics:
The increasing demand for adhesives from packaging and construction industries is a major driver for the petroleum resins market. According to statsista, the global adhesive market was valued at over US$ 53.3 billion in 2020 and is projected to reach around US$ 78 billion by 2027, growing at a CAGR of over 5.7% during the forecast period. Petroleum resins find major application in hot melt and pressure sensitive adhesives owing to their excellent tackifying properties. The growth of the global adhesives market directly impacts the demand for petroleum resins.
Another driver for the market is increasing use of liquid synthetic rubbers derived from petroleum resins. Petroleum resins serve as a tackifying agent in liquid synthetic rubbers and find extensive applications in tires, footwear, mechanical goods, pharmaceutical stoppers, and others. According to a report by Global Market Insights, the global liquid synthetic rubber market was valued at US$ 2.7 billion in 2019 and is projected to exceed US$ 4 billion by 2026, growing at over 5% CAGR during the forecast period. This growing demand for liquid synthetic rubbers from different end-use industries also supplements the growth of the petroleum resins market.
Segment Analysis
The global Petroleum Resins Market Share is segmented by type into C5 resins, C9 resins and hydrogenated hydrocarbon resins. Among these, the C5 resins segment dominates the market and accounts for more than 35% share of the global petroleum resins market. C5 resins provide better performance properties such as viscosity control, adhesion promotion and gloss enhancement. These properties make C5 resins widely suitable for applications such as printer inks, road marking, rubber products, hot melt adhesives, and coatings.

PEST Analysis
Political: There are no significant political risks impacting the petroleum resins market globally.
Economic: The growing construction and automotive industries along with increasing disposable incomes in developing countries are driving demand for petroleum resins positively impacting the market growth.
Social: Increasing urbanization and changing lifestyles are increasing the demand for coated and sealed products using petroleum resins.
Technological: Advancements in resins manufacturing technologies have improved the performance characteristics of petroleum resins making them suitable for a wider range of applications.

Key Takeaways
The global petroleum resins market is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing consumption in construction and automotive sectors. The market size for 2023 is US$ 3697.05 Mn.

Regional analysis: Asia Pacific is expected to dominate the global petroleum resins market over the forecast period. Rapid urbanization and growth in end-use industries in countries such as China and India are driving the demand for petroleum resins in the region.

Key players operating in the petroleum resins market are 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, and Anglxxon Chemical Co., Ltd. The key players are focusing on new product launches and capacity expansion strategies to strengthen their market share.