July 21, 2024

Petroleum Resins Market IS Expected TO DRIVEN BY GROWING DEMAND FOR Adhesives AND Sealants

Petroleum resins are widely used as performance enhancers in various adhesives and sealants applications owing to their unique properties. They are used to formulate pressure sensitive adhesives, hot melt adhesives, construction adhesives amongst others. They provide benefits like added tackiness, flexibility, adhesion and cohesion properties along with resistance to UV exposure and weathering effects. With growing construction activities globally and increasing demand for packaged goods there has been a surge in demand for adhesives and sealants. Rapid urbanization and infrastructure growth in developing regions has further propelled the market.

The global Petroleum Resins Market is estimated to be valued at Us$ 3697.05 Mn in 2023 and is expected to exhibit a Cagr OF 21% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the petroleum resins market is growing preference towards environmentally sustainable bio-based resins. Strict environmental regulations regarding VOC emissions have compelled manufacturers to develop bio-based and green solutions. Some key players have developed sustainable resins using renewable feedstock like vegetable oils and terpenes. For instance, Kraton Corporation provides bio-based polyterpene resin under the trade name of XPN. Growing ‘green product’ demand from end-use industries and governmental support for bio-economy will continue to boost development of more sustainable petroleum resin alternatives in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the petroleum resins market is capital intensive and requires high investment for setting up of new production plants. However, there are low barriers to switch between suppliers.

Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitute products. Buyers can switch to alternative resins like hydrocarbon resins if prices increase.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material prices fluctuate frequently. However, suppliers have limited bargaining power due to availability of substitutes.

Threat of new substitutes: The threat of substitutes is high as hydrocarbon resins, phenolic resins, and acrylic resins can be used as alternatives in applications like printing inks, adhesives, paints, and coatings.

Competitive rivalry: The competition in the market is high due to presence of numerous international and domestic players competing on basis of product quality and pricing.

Key Takeaways

The Global Petroleum Resins Market Size is expected to witness high growth over the forecast period. The global Petroleum Resins Market is estimated to be valued at US$ 3697.05 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030.

The Asia Pacific region is anticipated to be the fastest growing as well as dominating regional market owing to increasing resin demand from various applications in China, India, and other Southeast Asian countries. Increasing applications in construction, automotive, and packaging industries are driving the demand.

Key players:

 

Key players operating in the petroleum resins market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. ExxonMobil Corporation, Eastman Chemical Company, Kolon Industries Inc., Arakawa Chemical Industries Ltd., and Zeon Corporation are some of the leading players in the global market.

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