Global Petroleum Resin Market size-
Industry Trends & Forecast Report 2026.
The global petroleum resin market is growing at a potential
growth rate Year-over-Year (YoY) and has reached USD 3.2 billion in 2020. The
market is further expected to touch USD billion by 2027, growing at a CAGR
of almost 7% during 2021-2027 (forecast period). Petroleum resin, produced from
the by-products of cracking processes, is likely to witness a growth in the
market during the forecast timeframe due to a rise in the demand for adhesives,
paints and coatings, printing inks, and personal hygiene products. Furthermore,
the rapidly urbanizing population in Asia pacific region will fuel the growth
of the petroleum resin market.
Global Petroleum Resin Market Overview:
Petroleum Resins are by-products of the cracking process and are
also known as “Hydrocarbon Resins.” Hydrocarbon Resins (HCR) are synthetic
resins, produced by polymerization and various chemical processes. Aliphatic
(C5), Aromatic (C9), DCPD (Dicyclopentadiene) hydrocarbons are often used as
feedstock for HCR. The mixture of these hydrocarbons is also used as a
feedstock to produce hydrocarbon resins. Petroleum resins are known for their
improved flow, enhanced water, and heat resistivity. The petroleum resins have
several areas of application, such as Paints and coatings, adhesives, tapes and
labels, packaging materials, etc. Adhesives, and hot melt adhesives are
emerging as the biggest market for petroleum hydrocarbon resins.
Petroleum Resin Market Forecast and
Increasing urban population in
The rise in the urban population in the Asia-Pacific region is
one of the major drivers for the growth of the petroleum resin market.
According to the Total and Urban Population Data of UNCTAD by the United
Nations, 49% population of Asia-Pacific is still living in rural areas. Because
Asia has 2 of the world’s most populated countries, the number of people living
in rural areas is huge and in upcoming years the rate of urbanization is only
going to go up. The demand for adhesives and sealants, paints and coating,
tapes and labels is rapidly growing in the Asia-pacific region owing to the
rapid rise in construction work, increasing investment in the automotive
sector, and rise in Industrialization. Increased construction work, the rapidly
growing packaging industry and constantly improving lifestyles are some of the
drivers, helping the petroleum resin market grow.
Excellent adhesion properties at high
Petroleum resin has excellent adhesion and is highly stable even
at high temperatures. This, along with their anti-aging properties, fluidity,
low volatility and minimized odor, and good resistivity towards the water,
contribute towards their rapidly growing demand in the end-user industry.
Paints and coating are where petroleum resins are used extensively due to their
excellent adhesive properties. In paints and coatings, petroleum resins provide
enhanced pigment wetting, gloss, adhesion, and film hardness. Along with this,
they also improve the flow and provide water resistance.
Volatile nature of the price of the
feedstock and introduction of bio-friendly resins.
Feedstock for petroleum resins is a by-product of naphtha
cracking. The pricing of naphtha is directly dependent on the pricing of crude
oil. The crude oil market is very volatile, and prices change every day. This
volatility in the crude oil market directly influences the prices of petroleum
resins, which negatively affects the profits of manufacturers and distributors.
In recent times, the shift of the market is towards bio-friendly
resins, which will also affect the market of petroleum resins negatively and
will hamper the market growth.
Impact of COVID-19 in industry
The global economy and humanity have been pushed into a crisis
due to the COVID-19 pandemic. Due to the high infection rate and adverse impact
on public health systems, various governments have enforced nationwide
lockdowns significantly impacting manufacturing supply chains, trade, and
related services. Players are currently considering digital solutions that
would enable them to serve the community and provide new opportunities to do
business. The production, manufacturing, supply chain, and other operations,
have slowed down globally aimed to limit the spread of the coronavirus. The
global impact of the coronavirus disease 2019 (COVID-19) is likely only
beginning and it significantly affected the market in 2020. The second wave of
COVID-19 has started, and with the cases of the second strain of COVID-19
increasing, the countries are again announcing nationwide lockdowns. Despite
the growing uncertainty and panic, technology suppliers must continue to focus
on their long-term investments, maintain engagement with partners and
prospects, and look to specific markets for stability.
Petroleum Resin Market: By Type
Based on the type of feedstock used to produce petroleum resin,
the market is divided into C5-resin, C9-resin, DCPD-resin, and HHCR resin.
C5-resin had the biggest share of the market previously and is likely to
maintain the same growth rate during the forecast period. Excellent adhesive
strength, anti-aging properties, enhanced thermal resistivity, and protection
against water are some of the major properties encouraging the use of C5-resin.
C9-resin and DCPD-resin market are growing with notable CAGR and are likely to
maintain the same growth rate.
Petroleum Resin Market: By End Use
Based on the End-use, the petroleum resin market is segmented
into adhesives and sealants, paints and coatings, printing inks, personal
hygiene products, the automotive, rubber industry, and others, etc. The
adhesive and sealant market are likely to dominate the global market for the
forecast period. With the increasing number of urbanizing population with an
ever-increasing need for personal hygiene products, the rapidly growing
industrial sector is going to drive the market. The automotive sector with a
high demand for rubber will also be contributing to the growth of the market.
Petroleum ResinMarket: Regional Insight
global scale, the petroleum resin market is fragmented into the Asia-Pacific
region, Europe, North America, South America, and the Middle East. Asia-Pacific
region is most likely to dominate the petroleum resin market followed by North
America and the others. The developing countries in the Asia-Pacific region
such as China. Japan and India have major opportunities for industrial
production, retail sales, and fixed-asset investment for Petroleum Resin.
Several other economies such as Indonesia, the Philippines, and Singapore in
the Asia Pacific region are also forecast to grow at modest rates. The
company's productivity is directly proportional to the productivity of workers.
Hence, businesses in these regions are commonly embracing different instruments
to help workers increase their productivity.
Source: BlueWeave Consulting
· First announced in August
2019, Reliance Industries and Saudi Aramco are trying to finalize a deal worth
USD 15 billion. Mukesh
Ambani is trying to sell 20% stake in Reliance Jamnagar
refinery to Saudi Aramco, as Reliance try to shift their focus from Energy
segment of Oil and Gas business to Chemical business.
- In October
2020, Total Cray Valley announced that their hydrocarbon resin business in
France is not for sale: If reports from the last year were to be believed,
Total Cray Valley were planning to sell their resin business in France, but in
October 2020, Total cleared the air and said their France business is not for
resin market is fragmented owing to the presence of number of companies that
provides varied petroleum resin products. However, the companies that hold the
majority share of Petroleum resin market are Brasken,
Cymetech (Owned by Sojitz), Reliance Industries, Henghe Petrochemical Co., Ltd,
Shandong ShenxianRuisen Petroleum Resins Co., Ltd, Cepsa, Mitsui Chemicals,
Ineos Phenol, ExxonMobil, Rain carbon, Zeon Corporation, Idemitsu, Puyang Changyu
Petroleum Resins, Lesco, Kolon Hydrocarbon, PuyangTiancheng Chemical Co.,Ltd.
Arakawa Chemical Industries, Eastman Chemical Company, BASF, Dow Chemicals, and
other prominent players.
the petroleum resin market, prominent market participants compete based on
price and product quality. Small and medium-sized market players are expected
to show considerable improvements in the foreseeable future, given the moderate
level of capital expenditure needed to set up a business. The large-sized
companies, however, are likely to aim for global expansion, in a bid to gain a
more considerable brand reputation.
Scope of the
Historical data – 2017-2020
Base Year – 2021
Forecast – 2022 – 2027
Revenue in USD Billion
Canada, Germany, UK, Germany, France, Italy, Spain,
Italy, Japan, China,
India, Japan, Singapore, South Korea, Brazil,
Arabia, GCC Countries, UAE, South Africa,
By Types, By End-Use Industry and By Region
Cymetech (Owned by Sojitz), Reliance Industries,
Henghe Petrochemical Co.,
Ltd, Shandong ShenxianRuisen
Co., Ltd, Cepsa, Mitsui Chemicals, Ineos Phenol,
Rain carbon, Zeon Corporation, Idemitsu,
Changyu Petroleum Resins, Lesco, Kolon
PuyangTiancheng Chemical Co., Ltd.
Chemical Industries, Eastman Chemical Company,
Dow Chemicals, and others
Scope of the Report
Aliphatic C5 Resins
Aromatic C9 Resins
Hydrogenated hydrocarbon Resins (HHCR)
By End Use
Ø Adhesive and sealants
Ø Pressure Sensitive Adhesives (PSA)
Ø Holt Melt Adhesives (HMA)
Ø Paints and Coatings
Ø Printing Inks
Ø Rubber Compounding
Ø Tapes and Labels
Middle East and Africa