C5 Resins Market Expected to Reach $1.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “C5 Resins Market," The C5 resins market was valued at $0.8 billion in 2022, and is estimated to reach $1.2 billion by 2032, growing at a CAGR of 4.5% from 2023 to 2032.

C5 resin is an aromatic hydrocarbon, and it is produced from piperylene and isoprene by using AlCl3 catalyst. C5 resin is an excellent tackifying, homogenizing, and reinforcement agent due to which it has been widely used in various end use sectors such as paints and coatings, printing ink, adhesives and sealant, building and construction, and others. In addition, the C5 fraction is a co-product of naphtha cracking and is used as a raw material for synthetic rubber and petroleum resins.

Expansion of industrial sectors and high demand for building and infrastructure activities have enhanced the overall performance of the paint and coatings industry. For instance, SRC petroleum C5 resins is used as tackifiers in road making paints. This factor is projected to boost the C5 resins market during the forecast period. 

Furthermore, growing automotive industry has led to rise in the demand for tires, cables, and OEM equipment where C5 resins are widely used in rubber compounding process which will help in the increase of the potential sales of C5 resins market during the forecast period. Also, sustained economic growth and development of the paints and coatings industry have increased the popularity of C5 resin market.

The growing demand for C5 resins in the packaging industry is expected to act as a driving factor. In addition, increase in investments in the building infrastructure in countries such as the U.S., China, Japan, Mexico, and India, have led the building & construction sector to witness a significant growth where C5 resins-based adhesives are used to make door and window assembly. In addition, sustainable economic growth coupled with increasing demand for consumer goods has led the automotive & transportation sector to witness a significant increase in demand where C5 resins are widely used in making OEM (Original Equipment Manufacturer) components. These factors are anticipated to contribute toward global C5 resins market growth.

The utilization of C5 resins has increased in the paints and coatings, industrial, packaging, and other sectors which is expected to fuel the market expansion during the forecast period. Rise in demand for processed food & beverages in the developing regions, such as Asia-Pacific and LAMEA, in turn, led to enhance the overall packaging industry where C5 resins play a significant role in making tapes, wire, packaging bags, and others.

However, the high price of C5 resins combined with the availability of substitute products, such as virgin resin, C9 resin, hydrocarbon resin, petroleum resin, and others are expected to hamper the growth of the market. Conversely, an increase in the demand for C5 resins in emerging economies is expected to create lucrative opportunities for future market growth.

The C5 resins market is segmented on the basis of application and region. On the basis of application, it is divided into paints and coatings, printing ink, adhesives, rubber, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

By application, the market is divided into paints and coatings, printing ink, adhesives, rubber, and others. The paints and coatings segment dominated the global market, in terms of revenue in 2021 with 34.8% share in the global market. Petroleum C5 resins have high strength which enhances rigidity, tenacity, and adhesive force of hot melt paints due to which it is extensively used in paints and coatings applications. For instance, petroleum C5 resins is widely used in hot melt road paints and in coatings. In addition, technological advancements in this industry have heavily contributed to their overall potential sales; thus, offering the most lucrative opportunities during the forecast period.

Region wise, the C5 resins market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The C5 resins market accounted for a major market share in 2021 and is projected to grow at the highest CAGR during the forecast period. The demand for homes among India's middle-income population is anticipated to rise in the coming years. The Indian government is actively working to close the gap between demand and supply. Approximately 2 million new housing units are constructed annually in metropolitan areas, whereas 4.5 million are constructed annually in rural areas. These factors are anticipated to boost the Asia-Pacific C5 resins industry during the forecast period.

Key players operating in the global C5 resins market include Dycon Chemicals, ECOPOWER, KPL International Limited, Langfang Tenroads Glass Products Co., Ltd., Neville Chemical Company, Paari Chem Resources, Qingdao Eastsun New Materials Corporation Limited, Resin Chemicals Co., Ltd., Shandong Landun New Material Co., Ltd., and Zibo Senlos Import & Export Co., Ltd.

Key findings

• Based on application, the paints and coatings segment is expected to grow at a CAGR of 4.6%, in terms of revenue, during the forecast period.
• Region wise, Asia-Pacific garnered highest share in 2022 in terms of revenue.