Market Overview:
Petroleum resins are specialty chemicals derived from coal tar or petroleum fractions. They are solid organic polymers mostly used in rubber compounding, printing inks, adhesives, tires, shoes, roofing materials, and packaging. Petroleum resins impart water-repellency, moisture resistance and good adhesion properties to materials. They are extensively used in the packaging industry for providing gloss, water and weather resistant coatings to paper and paperboard materials. Petroleum resins also extend the rubber in tires and provide strength and resilience for applications. Owing to their ability to act as binders and tackifiers, petroleum resins find applications in gum base, chewing gum, hot melt adhesives and caulks.
Market key trends:
One of the key trends in the petroleum resins market is its growing use in the packaging industry. Petroleum resins effectively bind pigments and impart enhanced gloss, hardness and water resistance to paper and paperboard packaging materials. Changing lifestyle and urbanization are augmenting demand for packaged food and beverages which is catalyzing market growth of petroleum resins. Additionally, increasing e-commerce sales and rising demand for protective and moisture resistant packaging solutions from industries such as pharmaceuticals, personal care and chemicals is propelling the adoption of petroleum resins. Petroleum resins also find increasing usage in modifying asphalt for road construction. Growing infrastructure development and road networks globally will further drive the demand for petroleum modified asphalt and subsequently petroleum resins over the forecast period.
Porter’s Analysis
Threat of new entrants: The Petroleum Resins Market Share requires high capital investment for R&D and facilities. Strict environmental regulations also make market entry difficult for new players.
Bargaining power of buyers: Large buyers such as paints & coatings and adhesives manufacturers can negotiate lower prices. However, the presence of numerous small and regional buyers limits their bargaining power.
Bargaining power of suppliers: Major raw material suppliers such as petroleum refineries and aromatic extraction plants hold strong influence over resin producers with regards to pricing and supply.
Threat of new substitutes: Rising preference for bio-based and recycled resins poses a threat. However, petroleum resins continue to be superior in performance and cost efficiency for many applications.
Competitive rivalry: The market is fairly consolidated with top players competing on pricing, product portfolio and regional expansion.
Key Takeaways
The global petroleum resins market is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing demand from the building & construction industry. The paints & coatings segment accounts for over 50% share of the market.
Regionally, Asia Pacific dominates the global petroleum resins market and is expected to register fastest growth during the forecast period. Rapid industrialization and infrastructure development along with rising discretionary income in China, India are driving the growth of end-use industries in the region.
Key players operating in the petroleum resins market are Arakawa Chemical Industries, Eastman Chemical Company, Exxon Mobil Corporation, Ltd., Kolon Industries, Inc., Lesco Chemical Limited, Zeon Corporation, Seacon Corporation, Neville Chemical Company, Total Cray Valley, and Anglxxon Chemical Co., Ltd. The market is expected to witness consolidation activities through mergers and acquisitions over the next decade.
Read More:
https://www.dailyprbulletin.com/petroleum-resins-market-demand-share-analysis/
