Petroleum Resins Market Expected to Reach $4 Billion by 2028—Allied Market Research

According to a new report published by Allied Market Research, titled, “Petroleum Resins Market," The petroleum resins market was valued at $2.5 billion in 2018, and is estimated to reach $4 billion by 2028, growing at a CAGR of 5.2% from 2023 to 2028.

Petroleum resins are thermoplastic hydrocarbons with a low molecular weight and derived from cracked petroleum fractions. Polyurethanes are produced by polymerizing mixtures of unsaturated monomers, such as aromatic vinyl compound, diolefins, and olefins which are byproducts of cracking gas oil, petroleum naphtha and natural gas liquids. The various forms of petroleum resins include powder, flakes, solid blocks, solutions, beads, crushed nuggets, and dispersion. Coatings, paints and varnishes, adhesive, paper, lithographic inks, rubber, printing inks, and concrete-curing compounds use them.

Petroleum resins have various advantages over other types of resin. C5 aliphatic and C9 aromatic resins are modifiable and useful for a variety of industrial applications. This covers the hydrogenation of all petroleum resins to enhance their stability, color and flavor as well as the modification of their compatibility. Petroleum resins have been in high demand over the years due to their lack of color and odor, as well as their absence of adverse health effects. Demand for petroleum resins is benefiting from the change of customer expectations and regulatory mandates, which is driving the growth of the market.

The demand for specialized hot melt adhesives has increased as a result of the introduction of new criteria, such as defined compatibility, thermostability and softening point. Resins are formulated with these and other stringent application and product requirements in mind. The building and construction industry is rapidly expanding and becoming increasingly organized. Globally, petroleum resins are used to produce adhesives. This increases the demand for petroleum resins globally. The low compatibility range of petroleum resins with base polymers has a negative impact on the demand for petroleum resins, which in turn has a negative impact on the growth of the global hydrogen resins market.

Tackifiers made from petroleum resin are sensitive to price fluctuations as they are derived from feedstock based on petroleum. In addition, in contrast to tackifiers that are manufactured from natural feedstock, these resins have a limited range of compatibility with base polymers. The expansion of the petroleum resin market is being hampered by these factors. The government is mandating laws and initiatives to increase automobile production, hence surging the demand for petroleum resins. In addition, development of improved process technologies is estimated to provide lucrative opportunities for market expansion.

The market for petroleum resin is expanding in a number of other countries, such as Japan and South Korea. Expanding global demand for e-commerce, growing need for hot melt adhesive technology, and surging need for specialized applications of petroleum resin in packaging are anticipated to continue to be important growth drivers. The petroleum resins market is segmented into type, application, end-use industry and region. Depending on type, the market is divided into C5 resins, C9 resins, hydrogenated hydrocarbon resins, C5/C9 resins and dicyclopentadiene (DCPD) resin. On the basis of application, it is categorized into adhesives & sealants, printing inks, paints & coatings, rubber compounding and others.

On the basis of end-use industry, it is classified into building & construction, tire industry, personal hygiene, automotive and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The major players operating in the global petroleum resins market Arakawa Chemical Industries,Ltd., Exxon Mobil Corporation, Henan Anglxxon Chemical Co.,Ltd., INNOVA (TIANJIN) Chemical Co.,LTD, Kolon Industries, Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Tiancheng Chemical Co.,Ltd., RuiSen ReSin Co. Ltd., and Synthomer PLC.

Key Findings Of The Study:

• Asia-Pacific is projected to grow at the highest CAGR of approximately 5.4%, in terms of revenue, during the forecast period.
• By resin, the C5 Resins segment is anticipated to grow with CAGR 5.3%, in terms of revenue, during the forecast period.
• By application, the adhesives and sealants segment is anticipated to grow with CAGR 5.2%, in terms of revenue, during the forecast period.
• By end-use industry, the building and construction segment is anticipated to grow with CAGR 5.0%, in terms of revenue, during the forecast period.

Impact of Covid-19

• Increased Demand for Packaging: The pandemic led to a surge in demand for packaging materials, especially for e-commerce and food delivery services. Petroleum resins are commonly used in the production of packaging adhesives and films, which saw increased demand as people shifted to online shopping and takeout orders.
• Medical Supplies and Personal Protective Equipment (PPE): The healthcare industry faced an unprecedented demand for PPE and medical supplies during the pandemic. Petroleum resins are used in the production of various medical products, such as tapes, dressings, and sterile packaging materials.
• Adhesive Demand for Home Improvement: With more people staying at home due to lockdowns and remote work arrangements, there was a rise in home improvement and DIY projects. This led to an increased demand for adhesives and sealants containing petroleum resins.
• Hygiene Products: There was a heightened awareness of personal hygiene and sanitation, leading to an increased demand for hygiene products like disposable wipes and diapers. Petroleum resins are used in the manufacturing of these products.