PUBLISHER: Markets & Data | PRODUCT CODE: 1757048
PUBLISHER: Markets & Data | PRODUCT CODE: 1757048
Global hydrocarbon resin market is projected to witness a CAGR of 5.68% during the forecast period 2024-2032, growing from USD 3.27 billion in 2024 to USD 5.09 billion in 2032. Growing adhesives, sealants applications in the building and construction as well as in the automotive sector are resulting in the demand of the hydrocarbon resin market. Additionally, the automotive industry employs hydrocarbon resins in protective coatings, preserving vehicles and extending their average lifespan and rubber formulations for improved performance, durability, and heat resistance. These hydrocarbon resins play a key role in tire manufacturing, enhance the structural integrity of the components in a vehicle to complement the global automobile industry's drive to lighter, fuel-efficient vehicles.
The hydrocarbon resins market is significantly dynamic and competitive, where Asia-Pacific is in dominance with the largest consumption due to a huge base of manufacturing. Europe and North America also remain significant contributors to this market, mainly because of the technology and environmental regulations involved. The market is slowly moving toward bio-based resins due to sustainability trends, and mergers and innovations are still creating further growth in the market.
Automotive Industry Drives the Global Hydrocarbon Resin Market
The hydrocarbon resins find applications in the manufacture of tires, coatings, adhesives, and many other parts in the automobile industry due to their durability, heat resistance, and adhesive features. Hydrocarbon resins, particularly C5 and C9, are applied in the manufacturing of tires as tackifiers because it enhances layer-to-layer adhesion between rubbers, giving rise to durability and performance along with wear resistance, which is of prime importance in automotive tires for safety and efficiency. The growing demand for high-performance tires, especially in electric vehicles (EVs) and high-speed vehicles, is expected to boost demand for hydrocarbon resins. The Asia-pacific region with largest automotive industry in the world witnessing robust growth in automobile manufacturing on the back of rising population and increasing higher disposable incomes in the countries like China, India, Japan, South Korea, Indonesia, etc. For instance, China's automobile sale in 2023 grew by 16% reaching 30 million units from 27 million units in 2022.
For instance, in response to the growing demand, in September 2024, Shanghai Huaqing Petroleum Development Group plans to setup new high-end, flexible and intelligent tire manufacturing plant located in Yongzhou, China. The plant will produce 21.1 million units annually for catering to the automotive industry's thrust. The company signed an agreement with the local authorities to implement the project in phases. The first phase of the project will be built on an area of 300 acres and will have annual out 7.25 million units of tire per year. Five major technical advances will be implemented in the plant, including a flexible modular production process and fully electric nitrogen vulcanizers.
Rising Application of Adhesives and Sealants in the Construction Industry Boosting the Global Hydrocarbon Resin Market
Hydrocarbon resins enhance the strength and life of construction materials, and therefore, prove to be essential in applications such as flooring, roofing, and insulation. Adhesives in construction are composed of C5 resins, C9 resins, that weld the portions of wood, metal, and different plastics that hold the building structures together. Sealants fill gaps, providing an air- and water-tight seal, and thus, make for energy efficiency as well as weather-tight protection against environmental elements. Growth in demand for construction chemicals is being generated in the emerging markets of Asia-Pacific and Latin America due to constant urbanization and infrastructure development.
Asia-Pacific region holds the largest share in the construction market facilitating the smother growth ways for hydrocarbon resins where it is employed to manufacture adhesives, sealants, coatings, and waterproofing, etc. In January 2024, 'Vinhomes JSC', Vietnam's one of the largest real-estate companies, showcased a USD 966 million investment plan to be unveiled into changing residential landscapes across the many regions of Vietnam. The firm is launching new smart, green, mega-urban projects. Project area of over 1250 ha spread over various communes. Such projects will have a high demand of adhesives and other construction chemical, made from hydrocarbon resins. Similarly, Indonesia Green Affordable Housing Program (IGAHP) supported by Global Buildings Performance Network aimed to build 1 million units of green and affordable housing by 2030 which will create enormous growth opportunities for hydrocarbon resins used in construction.
Growing Demand for Packaging Solutions Driving the Hydrocarbon Resin Market
Hydrocarbon resin's application is prompted by expansion in the food and beverages sector, the consistently increasing e-commerce platform, and sustainability in packaging solutions. The pack continues to develop as customers still demand safety, convenience, and sustainability. In this case, hydrocarbon resin has become central with respect to adhesives, coatings, and films. This surge in demand for packaging materials will be one of the major growth drivers of hydrocarbon resin market in the near future. Hydrocarbon resins, such as., C5 and C9, are the crucial for food-safe adhesives and coatings, which ensure the food product remains safe from contamination and degradation. Their application in flexible packaging, pouches, sachets, and wrap-around films, and barrier applications in general assists in enhancing barrier properties against moisture and oxygen, thus contributing to food preservation and safe consumption.
Global packaging growth, largely at the behest of less developed markets where urbanization and adoption of western lifestyles increase demand for packaged goods, has been fast paced over the last ten years. E-commerce continues to boost growth. In this regard, the EU is out in front as a global leader in guiding circular economy principles, supporting strategies such as alternative materials, the development of bio-based plastics, the design of recyclable packaging, and increased recycling efficiency.
For instance, in February 2025, Super Bond Adhesives Private Limited announced that they are setting up South Asia's largest hot melt adhesive (HMA) manufacturing unit in Wada, Gujarat, India. Being hydrocarbon resin is used in manufacturing of HMA, the demand for hydrocarbon resin will increase.
Asia-Pacific Dominates the Hydrocarbon Resins Market
Asia-Pacific is the dominant region in the global hydrocarbon resins market, mainly due to its strong automobile, construction, and packaging sectors. The automotive sector comprises a few leading names from the world's automotive sector that include Toyota Motor Corporation, Honda Motor Co., Ltd., Hyundai Motor Company, Nissan Motor Co., Ltd. All these large auto manufacturers have created a huge demand for hydrocarbon resins in tire manufacturing, coating, and adhesives used in vehicle production. While the region is slowly shifting toward electric vehicles and ensuring less carbon emission, lightweight material demand and advanced adhesives will emerge, thus giving a boost to the hydrocarbon resin market. Additionally, Asia-Pacific countries are shifting towards the sustainability-related initiatives, and the packaging industry is no different. While the compatibility of hydrocarbon resins with sustainable and biodegradable materials is increasing, its use has also started in the manufacturing of various eco-friendly packaging adhesives.
Future Market Scenario (2025 - 2032F)
Electric vehicle demand rising on the backdrop of environmentally driven regulations and consumer demand for eco-friendly transportation globally, the demand from the automotive sector would increase significantly. Resins used in lightweight adhesives and in the production of tires in electric vehicles would show sharp demand.
Concerns for the environment are expected to drive higher demand for hydrocarbon bio-based resins. Thus, many companies are investing in the development of more environmentally friendly resin solutions with reduced dependence on petroleum-based feedstock without compromising performance characteristics for a wide array of industries.
The rapid growth of the e-commerce industry is expected to contribute to a surge in demand for adhesives. As hydrocarbon resins are among the key building blocks in such adhesive formulations, demand is bound to rise with the evolving packaging industry.
Resin production technologies continue to improve and, therefore, are likely to yield higher efficiency and quality of hydrocarbon resins. Further advances in polymerization techniques, optimization of feedstock, and customization of resin properties will provide routes to new applications in high-performance adhesives, coatings, and sealants.
The hydrocarbon resin market will see considerable growth in the emerging economies like Asia-Pacific, Latin America, and Middle East, due to rapid industrialization, urbanization, and infrastructure development. Consequently, this will raise the demand for building materials, automotive components, and adhesives.
Key Players Landscape and Outlook
The hydrocarbon resins market is one of innovativeness, as key players have been developing ways of making their production more efficient and environmentally friendly, and of high quality. Companies are optimizing production processes, adding capacity to keep up with increasing demand in order to be competitive in the marketplace. Intensified competitive scenarios among major participants are through strong strategic collaborations and advanced development in major production technologies in this dynamic market of hydrocarbon resin.
In May 2023, Kolon Industries Inc., South Korea's industrial materials manufacturer announced to invest USD 18 million to expand its high-purity aromatic petroleum resin production line at its Yeosu plant in the southwestern South Jeolla Province. By the expansion, the production capacity of Hydrocarbon Resin will increase from the current 11,000 tons to 21,000 tons.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.