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Petroleum Resins Market is Anticipated to Witness High Growth Owing to Increasing Demand from Rubber and Coatings Industry

Petroleum Resins Market is Anticipated to Witness High Growth Owing to Increasing Demand from Rubber and Coatings Industry

Petroleum resins or hydrocarbon resins are semi-solid materials produced from the refinement of crude oil as co-products of petroleum cracking. Petroleum resins find application as tackifiers in various adhesives, paints, rubber and printing ink formulations owing to their adhesion properties and ability to modify viscosity and tack. Rising demand for pressure sensitive adhesives from end-use industries like packaging, tapes and labels has been a major factor driving growth of petroleum resins market globally.

The Global petroleum resins market is estimated to be valued at US$ 4259.01 Mn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030.

Petroleum resins find vast application as tackifiers in hot melt adhesives, pressure sensitive adhesives, sealants and coatings. These resins provide tack, adhesion and film forming properties to adhesives. The market has been primarily driven by the flourishing packaging industry globally which utilizes petroleum resins based pressure sensitive adhesives that find application in case sealing, tapes and labels.

Key Takeaways

Key players operating in the petroleum resins market Siemens Healthineers AG, Shimadzu Corporation, Koninklijke Philips, Hologic, Inc., Fujifilm holdings corporation, Esaote SPA, Carestream Health, Samsung Medison (Samsung Electronics Co. Ltd), and Canon Inc. (Canon Medical Systems Corporation), among others. These companies have major presence across the globe and continuous investment in R&D to develop new grades of petroleum resins.

Secondly, the global demand for adhesives has been increasing steadily over the past few years from packaging, construction and other manufacturing industries. Petroleum resins based adhesives account for over 20% of the global demand. Growth in the adhesive industry especially in Asia Pacific region will positively impact sales of petroleum resins during the forecast period.

Lastly, over the years resin manufacturers have been focusing on developing bio-based and hybrid petroleum resins through technological innovations. The bio-based resins offer reduced dependency on petroleum feedstock and find increasing preference among end-users concerned about sustainability. The hybrid resins exhibit enhanced properties over conventional grades.

Market Trends

The shift towards sustainable and bio-based products across industries offer lucrative opportunities for petroleum resins manufacturers. Resin companies are investing in developing resins from renewable feedstock like tall oil, terpene and vegetable oil to replace conventional petroleum-based grades.

Secondly, the development of hybrid resins incorporating bio-based components is also a key market trend. Hybrid resins combining advantages of petroleum as well as plant-derived components have better performance characteristics and environmental profile. The hybrid resins will gather steam and replace partially petroleum-based conventional resins during the forecast period.

Market Opportunities

Rising consumption of pressure sensitive adhesives especially in Asia Pacific region due to growth in packaging and labeling industry is a key growth opportunity. Petroleum-resins based PSAs account for over 30% of the global PSA demand.

Secondly, the road mark application is witnessing increasing demand for thermoplastic road marking paints which use petroleum resins as binders. The development of optimized thermoplastic paint formulations will drive the consumption of petroleum resins during the forecast period.

Impact of COVID-19 on Petroleum Resins Market Growth

The outbreak of COVID-19 has significantly impacted the growth of petroleum resins market. During the initial lockdown phases, there was a steep decline in demand from key end-use industries like automotive, construction, and packaging. This led to weakened revenues and restricted business activities of petroleum resins manufacturers. Supply chain disruptions further aggravated the problems for companies during early 2020.

As lockdowns were gradually lifted, some recovery was seen driven by restarting of projects in construction and easing of restrictions. However, demand is yet to reach pre-pandemic levels. Companies have adapted to new safety protocols and enhanced focus on e-commerce packaging to tackle challenges. Going forward, recovery in automotive and construction end markets along with expansion into new applications would be crucial for market to regain lost momentum in coming years. Innovation and strategic collaborations can help petroleum resins players gain competitive edge in the dynamic market environment.

Asia Pacific Region Dominates Petroleum Resins Market in Terms of Value

Asia Pacific currently holds the largest share of global petroleum resins market in terms of value. Countries like China, India, Japan and South Korea are major consumers owing to thriving end-use industries. Established automotive and robust construction activities support steady demand growth. Additionally, emerging economies are witnessing accelerated infrastructural developments and industrialization which is benefiting regional market expansion. Rapid urbanization coupled with rising disposable incomes is positively impacting consumption. With growing automotive production and governmental initiatives for infrastructure sector, Asia Pacific region is expected to maintain its dominance during forecast period as well.

Europe is the Fastest Growing Regional Market for Petroleum Resins

Among regions, Europe is anticipated to expand at the fastest pace in global petroleum resins market over coming years. This can be attributed to prevalence of major automotive companies and revived construction spending across countries. Increasing investments into R&D of advanced specialty products is driving European market rise. Manufacturers are focusing on developing innovative bio-based and hybrid resins to capitalize on growing environmental regulations. Moreover, recovery in regional automotive manufacturing post pandemic will further fuel Europe petroleum resins demand until 2030.

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