April 18, 2024

Petroleum Resins Market is Paving the Way for Sustainability Trends Through Bio-Based Feedstocks

The petroleum resins market is a crucial component of the adhesives and sealants industry providing key properties like tack, tackification and adhesion. Petroleum resins find extensive usage as modifiers in hot melt and pressure sensitive adhesives along with road marking paints and printing inks owing to their ability to reduce costs and improve performance. They are produced through polymerization of aliphatic and aromatic hydrocarbon streams obtained from petroleum sources.

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.

Key Takeaways

Key players operating in the petroleum resins are 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 players are focusing on capacity expansions and new product launches to capitalize on the burgeoning demand. The global petroleum resins market is projected to surpass a valuation of US$ 6,500 Mn by 2030 driven by its widespread application in road marking, printing inks, tires, and adhesives industries. With the growing focus on sustainability, manufacturers are investing in R&D to develop bio-based alternatives derived from raw materials like tall oil, vegetable oil and terpene which help reduce dependence on crude oil. Some of the major players in the petroleum resins market like Evonik Industries AG and Eastman Chemical Company are actively pursuing innovations in bio-based feedstock chemistry.

The growing infrastructure development activities especially in the Asia Pacific region along with increasing automotive production is anticipated to propel the demand for petroleum resins in the coming years. Key market players are expanding their manufacturing footprints to emerging nations in Southeast Asia, Latin America and MEA to cater to the growing regional demand.

Market key trends

One of the key trends gaining traction in the Global Petroleum Resins Market Share is the shift towards renewable and sustainable feedstock sources. Strict environmental regulations along with growing consumer preference for green chemicals is compelling manufacturers to develop bio-based petroleum resin alternatives. This is anticipated to open up new avenues of growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The petroleum resins industry has moderate entry barriers as it requires substantial investments in research and development to produce innovative products. Thus, new companies find it difficult to compete with the existing major players.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are numerous global buyers for petroleum resins. However, switching costs are low, giving buyers moderate influence over suppliers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. There are multiple global suppliers for raw materials used to produce petroleum resins like propylene, benzene etc. However, requirements are commodity-based restricting supplier influence.

Threat of new substitutes: Threat of substitutes is moderate as other polymers like epoxies, phenolics provide alternatives but cannot completely substitute petroleum resins owing to properties and cost advantages.

Competitive rivalry: The competitive rivalry is high among major players to grow their market share globally and develop innovative applications.

Geographical regions with high value concentration: North America and Europe hold major value shares in the global petroleum resins market due to well established end-use industries and high per capita consumption.

Fastest growing region: Asia Pacific region is expected to witness fastest growth during the forecast period due to rapid industrialization, rising per capita incomes and increasing use of petroleum resins in construction and adhesive industries of China and India.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it