Global Pine-Derived Chemicals Market - 2022-2029

Market Overview

Pine-derived chemicals market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Compounds obtained from natural renewable sources such as pine or pine trees are known as pine-derived chemicals. These compounds are collected from the range of different parts of the pine tree including pine, log and even after the distillation process of the mentioned sources. During the production of gum or other products, many chemicals are produced as by-products. Rise in the innovations of technologies related with the production method of these chemicals will influence the market growth. Furthermore, growing demand from the construction industry owing to the increase in the urbanization across the globe is the driving factor for the growth of pine-derived chemicals market. Also, the enhanced focus of many end-users on the adoption of environmentally friendly chemical products will accelerate the market's growth.

Market Dynamics:

Increasing application of pine-based chemicals in various industry

Pine-derived chemicals are used in various industries. They have applications like perfumes, fragrances, and cosmetics to food additives, automobile adhesives, and printing inks to oil wells. Pine-derived chemicals produce flavors in soft drinks, food, soaps, household cleaners, vitamins, food additives, and other applications. They are also used in the automobile industry for the production of tires. Gum rosin is exceptionally needed in printing, glues, and oils. As various countries' governments are shifting towards eco-friendly options, the rosin portion supports the pine compound industry and records half the global pine chemicals market. Many small-scale businesses that consume rosin positively affect the market's demand. Pine wood chips are gone through solvent distillation and form wood turpentine-derived synthetic camphor, turpentine resins, fragrance, and flavors. Growing demand from the construction industry owing to the increase in urbanization across the globe is the driving factor for the growth of the pine-derived chemicals market. Also, the enhanced focus of many end-users on adopting environmentally friendly chemical products will accelerate the market's growth.

Furthermore, carbon dioxide emissions are increasing due to the rising fossil fuel consumption. Lower carbon emissions led to the use of more eco-friendly pine-derived chemicals, thereby stimulating the growth of the pine-derived chemicals market. The rise in the innovations of technologies related to producing these chemicals influences the market growth of pine-derived chemicals.

Market Segmentation:

Tall oil fatty acid segment accounted for the highest share in global pine-derived chemicals market

In 2021, Tall oil fatty acid had the highest revenue share of over XX percent. Tall oil fatty acid is consumed in various applications, including alkyd resins, oilfield chemicals, metalworking fluids, liquid cleaners, textile chemicals, fuel additives, construction chemicals, rubber and tire processing aids, PVC stabilizers, ore flotation, and fatty esters and amines. It is a mixture of resin acids such as abietic and fatty acids, such as oleic and linoleic, with some sterols and other compounds. It is also known as tallol or liquid Rosin. It is available at a low cost having yellow black odors liquid channel chemical compound that is a product of crude tall oil vacuum distillation. Their derivatives include dimers, alkyds, PVC stabilizers, synthetic lubricant polyamides, and oilfield chemicals. It is specifically designed for the fuel segment as a diesel fuel additive. TOFA is typically sold in liquid bulk but is also available in totes (IBC tanks) and drums. Tall oil fatty acid is 100% bio-based content. They have properties like low viscosity liquid and long fatty acid chain. They have light color and good color stability with good air-drying properties. They have high demand due to their nature; these factors are projected to drive the global pine-derived chemicals market segment during the study period.

Geographical Penetration:

Asia Pacific is the dominating region during the forecast period

In 2021, Asia Pacific is expected to generate the highest market share in the forecast period. It was rising product demand for the adhesive and sealant application in the Asia Pacific. The increasing adoption of gum rosin in the printing inks will fuel the market growth in the region, in which India and China are the leading countries. China has the most local farmers of pine at 200,000, followed by South America with 6,500 local farmers. In China, the largest oleoresin producer, tapping is seasonal employment, lasting about 6 to 9 months per year. China is the largest exporter of rosins. In 2019 China was the largest in Gum Turpentine Production. It produces 140 000T. That is 56 % of the total production. In 2019, Turpentine demand in China was 90000 T. China is the highest contributor to gum rosin production, 805 000 T, which is 52 %. The Asia Pacific has the fastest growth in the forecast period.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Eastman Chemical Company, Harima Chemicals Group, Inc., Ingevity, Kraton Corporation, Mentha And Allied Products Limited, Mahendra Rosin and Turpentine Pvt. Ltd., Arakawa Chemical Industries, Ltd and Georgia-Pacific Chemicals among others. Some major companies follow merger and acquisition facilities to expand their business. For instance, in March 2018, Ingevity completed the acquisition of Georgia-Pacific's pine chemicals business for $310 million. This acquisition provides a stronger platform from which the company accelerates the growth of the chemical segment. In April 2022, Kraton announced a significant investment in its Alpha Methyl Styrene (AMS) Resins facility in Niort, France. This expansion helped to increase 15 % production at the Niort manufacturing facility by 2023. In October 2021, Kraton Corporation To Be Acquired By Chemical Co. Ltd. In March 2022, Kraton Corporation Completed Merger with DL Chemical. The merger enables Kraton to strengthen its global presence by leveraging DL Chemical's manufacturing capabilities and footprint in the Asian market. In March 2022, Kraton collaborated with SABIC to deliver certified renewable styrenic block copolymers in Europe.

COVID-19 Impact:

Negative impact on the global pine-derived chemicals market

Covid is impacted negatively on the pine-derived chemicals market due to the raw material shortage. The demand for pine-derived chemicals is slightly decreased, so producers are seeking alternative sourcing partners to keep operations running. Pine pulp mills in the US faced a labor shortage, so they started reducing their production. The demand for tall oil derivatives for oilfields declined sharply in the USA. Gum Rosin production declined mainly in China during the pandemic. Lower TOR production due to fractionation plants operating at a lower rate. Though there was no direct impact of the pandemic on the pine-derived chemicals market, the isolation rules have resulted in short-term supply disruption and prolonged trade restrictions impacting end-products manufacturers, hampering the local/domestic players in the market. Due to government restrictions and supply chain disruptions, manufacturers had to look for alternative local sourcing partners who could supply them with raw materials. The workforce associated with end-user manufacturers was at higher risk of infection, which led to a shortage of skilled labor in the production.

The global pine-derived chemicals market report would provide an access to approximately 77 market data tables, 80 figures and 170 pages