PETROLEUM RESINS MARKET ANALYSIS

Petroleum resins are low molecular weight thermoplastic hydrocarbon resins obtained from cracked petroleum fractions. It has a tackifying effect, which is slight sticky effect and hence, is used in coatings, paints, varnishes, printing inks, paper, lithographic inks, adhesives, concrete curing compounds, rubber, and other applications. It is available in powders, crushed nuggets, flakes, solid block, beads, solutions, and dispersions forms.

Global petroleum resins market was valued at US$ 3149.18 Mn in 2021 in terms of revenue, exhibiting a CAGR of 8.35 % during the forecast period (2022 to 2030).

Drivers

The increasing application of the petroleum resin market for the production of hot-melt adhesives is the key growth driver in the petroleum resin market in the global market during the forecasted period. Not only this, but the growing consumption of paints and coating industry in the petroleum resin market in the global market also drives the market as it is used in road-making paints production and many other types of paints also for the construction industry and automotive industry.

The pandemic of COVID 19 has affected the petroleum resin market and all the other businesses in a bad way. Owing to the lockdown situation and post lockdown scenario, most of the manufacturing units were shut down and hence pushed various economies towards forced recession. During the COVID outbreak, the manufacturing and production units of the petroleum resin market faced a steep downfall in revenue.

 It is expected that the petroleum resin market in the market is expected to recover from these losses at the end of the first quarter in the coming year during the forecasted period from 2021 to 2030

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

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Market Restraints

The petroleum - resin market is growing at a fast pace in the global market, but some factors restraints the growth of the petroleum resin market, like the increasing prices of raw material in the petroleum resin market, poses a threat to its growth. Moreover, the presence of favorable substitutes in the market, such as rosin resin, hampers the growth of the petroleum resin market in the global market.

Market Trends

Strengthening the product portfolio with innovative products is the growing trend in the global petroleum resins market, as the market for petroleum resins is consolidated with a few global players holding major shares in the market.

As a result, to win an edge over the other competitors, the manufacturers are using product innovation as a differentiating property. There has also been constant research and development for the development of higher grade with improved properties and thermal stability in the global petroleum resins market.

Figure 2. Global Petroleum Resins Market value Share (%), By End-use Industry, 2021

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Automotive industry accounted for the highest market share in 2021 owing to the use of petroleum resins in rubber compounding to enhance modulus of the compound and chipping resistance.

 Recent Developments

• In December 2021- Ford has disclosed that the company is now using 100-percent recycled ocean plastics to develop a Bronco Sport compact SUV component. Ford alleges to be the first automaker to use 100-percent recycled ocean plastics to manufacture auto parts. The firm also claimed that recycled plastic generated from ocean debris is qualitatively equivalent to petroleum-based resin but saves up to 10% and requires less energy to produce.
• In September 2019, for manufacturing the tire product throughout the Asia-Pacific region, a new tire additive division had been set up in Shanghai, China, by the Eastman for optimizing the manufacturing process for enhancing the tire products performance at the headquarters of Eastman’s that is in China.

Competitive Section

Major players operating in the global petroleum resins market include 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.