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  • Published On : Oct 2022
  • Code : CMI5300
  • Industry : Advanced Materials
  • Pages : 119
  • Formats :

The global C5 resins market size was valued at USD 483.7 Kilo Ton in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 3.76% from 2022 to 2030. High growth in the construction sector is expected to fuel demand for adhesives, sealants, paints, and coatings. This in turn is propelling market growth of C5 resins. The C5 resin market will get benefit from this growth, as these construction materials are used in construction projects. Moreover, increasing penetration of electric vehicles is another key factor uplifting growth of the C5 resins market.

Global C5 Resins Market: Regional Insights

Regionally, Asia pacific is expected to dominate the global C5 resins market over the forecast period owing to the presence of economies such as China, India, and Japan. China accounts for more than one-fourth of the global coatings market currently. According to the China National Coatings Industry Association, the industry has been registering a growth of 7% through recent years. It was estimated that from 2019, the construction of at least ten large coatings investment projects in China had been reported publicly. Also, Japan is the world’s third-largest by nominal GDP and fourth-largest by purchasing power parity. Japan’s GDP growth has been stagnant and has been hovering around 1% for the past decade. In 2018 Japan’s economy registered a growth rate of 0.6%, which slightly decreased to 0.3% in 2019. The country’s economy further contracted in 2020 due to the COVID-19 crisis.

Furthermore, India is a growing economy and holds great potential for future market opportunities. According to the International Monetary Fund (IMF) projections, the GDP of the country is expected to grow by 9.5% in 2021. The country has resumed its industrial activities post Covid-19 pandemic which is expected to drive economic growth during the forecast period.

North America is also projected to witness fastest growth in the global market over the forecast period owing to the strong presence of paints and coating industry. According to the American Coatings Association (Coatings Tech), the paints and coatings industry in the United States accounted for USD 25.21 billion in 2020 and is expected to reach USD 28.06 billion by 2022. Similarly, in terms of volume, the paints and coatings industry stood at 1,337 Kilo Ton gallons in 2020 and is expected to reach 1,416 Kilo Ton gallons by 2022.

Figure 1. Global C5 Resins Market Share (%), By Region, 2021

C5 Resins  | Coherent Market Insights

Global C5 Resins Market Drivers:

Growing demand for adhesives and sealants from packaging industry is primarily fueling the market growth. C5 resins are widely used as tackifiers, homogenizing agents, and performance modifiers to produce hot melt adhesives for manufacturing industry. The adhesives and sealants manufactured using C5 resins are used in rigid packs, to seal the flexible packaging, and for attaching labels. Moreover, these resins are resistant to environmental factors such as water, acids, and alkaline, hence have excellent adhesion and also help in reducing the manufacturing cost.

Expanding construction industry due to growing demand for commercial and residential sector is also anticipated to fuel the market growth. Moreover, growth in global refurbishing activities has created the demand for various products, such as coatings, paints, adhesives, and others. For instance, the government stimulus plans such as the USD 1.2 trillion Bipartisan Infrastructure Bill in the United States are likely to result in the growth of the construction industry over the forecast period. In addition, Latin America is anticipated to witness double-digit growth in 2021.

Global C5 Resins Market Opportunities:

Growing demand for wallpapers and plywood bonding from construction industry is projected to offer significant growth opportunities over the forecast period. These resins are widely used as tackifiers for aliphatic polymers such as styrene-isoprene-styrene block copolymers, styrene-ethylene butylene-styrene block copolymers, polyethylene, amorphous polyolefins, butyl rubber, natural rubber, EPDM rubber, and petroleum waxes.

Increasing penetration of electric vehicles due to advancement in the technology will bring enormous growth opportunities for market players in the near future. The automotive sector is the largest consumer for rubber products.  Rubber are used to manufacture air bags, dust covers, tires, and bumpers.

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C5 Resins Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: 483.7 Kilo Ton
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 3.76% 2030 Value Projection: 674 Kilo Ton
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Application: Paints and Coatings, Adhesives and Sealants, Printing Inks, Rubber Compounding, Other Applications
Companies covered:

Arakawa Chemical Industries Ltd, Cray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen, Hydrocarbon Resins Co., Limited, Zibo Luhua Hongjin New Material Co. Ltd, and ZEON CORPORATION

Growth Drivers:
  • Growing demand for adhesives and sealants from packaging industry
  • Expanding construction industry
Restraints & Challenges:
  • Increasing replacement of C5 resins with hydrogenated hydrocarbon resins

Global C5 Resins Market Trends:

Increasing purchasing power of consumers and improved standards of living are increasing the demand for interior of the houses which is projected to augment the demand for wallpapers. All these factors are acting as a major trend in the global C5 resins market.

Key players are expanding production capacity of C5 resins in order to meet growing demand across end-user industries. For instance, in June 2021, Kolon Industries Inc. have added another 15,000 tons of annual capacity in its hydrocarbon resin (HCR) manufacturing. The addition gives Kolon a total capacity of 200,000 tons annually, making it the second-largest manufacturer in the world.

Global C5 Resins Market Restraints:

Increasing replacement of C5 resins with hydrogenated hydrocarbon resins due to their superior adhesive strength and improved resistivity against heat and cold is expected to hamper the market growth. They are widely used in the adhesives and labels market over C5 resins.

Negative impact of Covid-19 pandemic on the global economy has hampered the construction activities worldwide in order to follow lockdown norms. This had severely affected the market of C5 resins during the pandemic.

Figure 2. Global C5 Resins Market Share (%) in terms of Values, By Application  2021

C5 Resins  | Coherent Market Insights

Global C5 Resins Market Segmentation:

The global C5 resins market report is segmented into application and geography

Based on application, the market is segmented into Paints and Coatings, Adhesives and Sealants, Printing Inks, Rubber Compounding, and Other Applications. Out of which, Adhesives and Sealants is expected to dominate the global market over the forecast period. Adhesives and sealants is one of the largest consumer of C5 hydrocarbon resins. These resins offer good adhesion property.  Moreover, they are widely used to produce pressure sensitive adhesives, hot melt adhesives, and other adhesives. Furthermore, several key players have been investing in the production of adhesives and sealants to increase market presence, which, in turn, augments demand for C5 resins. For instance, in February 2020, Henkel Adhesives Technologies announced the inauguration of its new production facility in Kurkumbh, India, near Pune. The plant received a total investment of about EUR 50 Kilo Ton and is aimed to serve the growing demand of Indian industries for high-performance solutions in adhesives, sealants and surface treatment products.

Paints and Coatings segment is also expected to witness significant growth in the near future and this is owing their aliphatic chemical composition, these resins offer various characteristics to paints such as improved adhesion, pigment wetting, film gloss, alkali resistance, acid resistance, and film hardness. They also support flow and levelling, as well as reducing VOCs content in paints &coatings.

Global C5 Resins Market: Key Developments

In February 2020, the newest product offering from Total Cray Valley, Wingtack 102, is an aliphatic resin with a high softening point and lower molecular weight distribution than typical 100˚C hydrocarbon resins. This provides excellent compatibility with many aliphatic polymers, resulting in formulations with superior stability. Wingtack 102 has  35%  lower  volatility  than  other  similar  hydrocarbon  resins,  giving  it exceptionally low odor and low product volatility.

Global C5 Resins Market: Key Companies Insights

The global C5 resins market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global C5 resins market are Arakawa Chemical Industries Ltd, Cray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen, Hydrocarbon Resins Co., Limited, Zibo Luhua Hongjin New Material Co. Ltd, and ZEON CORPORATION

*Definition: C5 resins are widely used in sealing and adhesive applications. They are highly compatible with natural rubber, synthetic elastomers, and base polymers, and are also UV resistant. They are also used in road marking paints, where they are used to improve the rigidity of the paint material. Additionally, they exhibit excellent chemical and heat stability, and are available in a range of molecular weights.

C5 Resins are widely used in a range of industrial and consumer applications, such as hot melt adhesives and sealants. These resins have low softening points and exhibit good bonding properties. They are also compatible with most base polymers and polymer modifiers. These resins are used in road paints and hot melt adhesives. They are also used in the manufacture of synthetic rubber formulations. They are yellow, brittle thermoplastic solids with excellent transparency and waterproof properties.

Market Dynamics:

The C5 Resins market is growing primarily due to the rising demand for adhesives, sealants, and paints and coatings. These products have several applications in the automotive, medical, and paper industries. The rise in electric and hybrid vehicle production is also likely to spur the growth of the C5 resin market. Moreover, the rise in construction industry is also anticipated to fuel market growth. This segment uses C5 resin extensively in paints, coatings, adhesives, and sealants.

On the other hand, increasing replacement of C5 resin with hydrogenated hydrocarbon resins is projected to hamper market growth.

Key features of the study:

  • This report provides in-depth analysis of the global C5 RESINS market, and provides market size (US$ Kilo Ton) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global C5 RESINS market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Arakawa Chemical Industries Ltd, Cray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen, Hydrocarbon Resins Co., Limited, Zibo Luhua Hongjin New Material Co. Ltd, and ZEON CORPORATION
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global C5 RESINS market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global C5 RESINS market

Detailed Segmentation:

  • Global C5 Resins Market, By Application:
    • Paints and Coatings
    • Adhesives and Sealants
    • Printing Inks
    • Rubber Compounding
    • Other Applications
  • Global C5 Resins Market, By Geography:
    • Asia-Pacific
    • North America
    • Europe
    • South America
    • Middle East & Africa
  • Company Profiles
    • Arakawa Chemical Industries Ltd
    • Cray Valley
    • DuPont
    • Eastman Chemical Company
    • ENEOS Holdings Inc.
    • Exxon Mobil Corporation
    • Henan Anglxxon Chemical Co. Ltd
    • Kolon Industries Inc.
    • Lesco Chemical Limited
    • Neville Chemical Company
    • Puyang Ruisen Petroleum Resins Co. Ltd
    • Seacon Corporation
    • Shanghai Jinsen Hydrocarbon Resins Co., Limited
    • Zibo Luhua Hongjin New Material Co. Ltd
    • ZEON CORPORATION

Frequently Asked Questions

The global C5 resins market size is estimated to be valued at 483.7 Kilo Ton Ton in 2021 and is expected to exhibit a CAGR of 3.76% between 2022 and 2030
Growing demand for adhesives and sealants from packaging industry along with the expanding construction industry are fuelling growth of the market.
The Adhesives and Sealants segment is the leading component segment in the market.
Increasing replacement of C5 resins with hydrogenated hydrocarbon resins is the major factor restraining growth of the market.
Arakawa Chemical Industries Ltd, Cray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen, Hydrocarbon Resins Co., Limited, Zibo Luhua Hongjin New Material Co. Ltd, and ZEON CORPORATION

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