Terpene Resins Market

The global Terpene Resins Market is valued at USD 1.1 Billion in 2022 and is projected to reach a value of USD 1.84 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 7.7% between 2023 and 2030.

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The cationic polymerization of terpenes produces low molecular weight hydrocarbon polymers known as Terpene Resins. The adhesives, sealants, and wax coating industries all use these materials. The global Terpene Resins market is expected to dominate during the forecast period. Terpene also frequently has a potent smell and a high degree of resistance. It is used extensively in the industrial sector as an essential oil, fragrance, and flavoring agent. The market is expanding due to rising terpene demand in end-use sectors such as cosmetics, food & beverage, paints & coatings, rubber, and pharmaceuticals. Polymerization is the main method to precipitate straight Terpene Resins.

These resins are employed in some food and beverage applications because they are chemically inert. Terpene saps are characterized by their extremely warm strength and are clear pale yellow or darker indeterminate mixtures in appearance. Also, the market growth is anticipated to be aided by unique qualities such as chemical inactivity, non-toxicity, and efficacy compared to some commonly used products. Throughout the projection period, Terpene Resins demand is anticipated to increase significantly globally. Throughout the projection period, Terpene Resins will likely increase as an alternative to hydrocarbon-based resins across all end-use sectors, creating profitable opportunities for market participants.

Terpene Resins is also useful in the food and pharmaceutical industries due to its non-toxicity and chemical inactivity, boosting the market's international expansion. The market is expanding due to rising terpene demand in end-use sectors such as cosmetics, food & beverage, paints & coatings, rubber, and pharmaceuticals. However, throughout the projected period, the growth of the global market for Terpene Resins is anticipated to be constrained by relatively restricted availability compared to traditional resins and relatively higher Terpene Resins extraction prices. The market is being driven by Terpene Resins, which are increasingly used in various applications due to their excellent qualities, including good adhesion, non-toxicity, high chemical resistance, better moisture resistance, superior mechanical properties, good mechanical properties, good fatigue resistance, low shrinkage, strong durability.

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Economic Insights

In 2023, a global recession is predicted to occur due to several simultaneous rate increases. To combat inflation, central banks around the world are concurrently raising interest rates. Also, the global GDP is anticipated to grow by more than 2%, increasing the likelihood that the economy will enter a recessive phase. As Russia proclaimed unofficially that it was encroaching on Ukraine, growing instability and unrest ensued. This was Europe's largest warlike conflict following the Second World War's conclusion.

Top Market Trends

1. Rising Demand from the Paper & Pulp Industry: The demand for Terpene Resins will increase in the pulp and paper, ink, and coating industries during the forecast period. Terpene has a variety of health benefits, including as antibacterial, antiseptic, and anti-carcinogenic properties. The global market is growing tremendously due to the pharmaceutical industry's rapid expansion. The increased usage of flavors in pharmaceutical, nutraceutical, and dietary supplement applications is also anticipated to fuel market expansion.

2. Rising Demand for Adhesive and Sealants Industry: The market is driven by several reasons, including the rising demand for Terpene Resins from adhesive and sealant applications and the rising acceptance of coatings containing Terpene Resins. The market is also anticipated to be driven by expanding industrialization and an escalating population in developing nations in the Asia Pacific, the Middle East, and Africa.

Market Segmentation

The global Terpene Resins market can be categorized on the following: Product Type, Grade, Application, and Region. Based on Product Type, the market can be categorized into Solid and Liquid. Furthermore, based on Grade, the market can be further split into Technical and Industrial. In addition, based on Application, the market can be further fragmented into Inks & Coatings, Adhesives & Sealants, Chewing Gums, Plastic & Rubber, Leather Processing, and Other Applications. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product Type

Solid Resins to Dominate Market Owing to Rising Utilization in a Wide Range of Applications

The segment of solid resins will dominate the global Terpene Resins market during the forecast period. Terpene Resins that is solid is simpler to handle, store, and transport than liquid Terpene Resins. It also has a broad range of uses in various end-use sectors, including packaging, nonwovens, bookbinding, construction/assembly, tapes and labels, and graphics. It also makes a superb tackifying material for hot-melt adhesive and pressure-sensitive labels for adhesives & sealants. Liquid resins will grow with the fastest-growing CAGR during the forecast period due to their cost-effective nature and good resistance to aging. The technical grade grows with the fastest-growing CAGR during the forecast period owing to more stringent quality control and purity standards.

Based on Grade

Industrial Grade to Account for Largest Market Share Owing to Increasing Applications

The industrial-grade Terpene Resins market will accommodate the largest market share during the forecast period. Terpene industrial-grade resins are used as adhesives in various sectors, including paper and packaging, wood products, and construction. Terpene Resins are a more environmentally friendly choice than resins based on petroleum because they are produced from renewable resources like pine and other tree species. They can be used in food and medicinal applications because they are non-toxic and have a mild smell. Industrial-grade Terpene Resins have a broad range of applications and hold the lion's share of the market for Terpene Resins.

Based on Application

Plastic and Rubber to Accommodate Largest Market Share Owing to its Superior and Unique Properties

The segment of plastic and rubber will dominate the global Terpene Resins market during the forecast period. Terpene Resins have superior and distinctive qualities like good adhesion, strong heat resistance, good chemical resistance, and low toxicity, making them highly sought-after in the plastic and rubber industries. There is a growing demand for Terpene Resins throughout the projection period. Their qualities make them appropriate for adhesives and binders in producing paper products, including packaging materials and paperboards. Inks and coatings will grow with the fastest-growing CAGR during the forecast period as they possess excellent resistance to organic solvents and good toughness factors.

Based on Region

Asia Pacific to Lead Global Sales Owing to Rising Demand for Paper and Packaging Products

The global Terpene Resins market is expected to be dominated by the region of Asia Pacific during the forecast period. Some variables anticipated to influence market demand include numerous manufacturing industries in nations like China and Japan, the rising need for paper and packaging products, expanding consumer goods industry, and favorable government policies and regulations. The strong economies of South Korea, China, and India are mostly to blame for the development. The Terpene Resins market in the region is being driven by manufacturers that have relocated there because of the region's low cost of production and ability to serve the local growing markets better.

North America is expected to grow with the fastest-growing CAGR during the forecast period. Factors such as rising demand from key industries such as rubber and food & beverages within the region will increase the footprint of the North American Terpene Resins market during the forecast. Expanding the cosmetic and personal care industry is also expected to contribute to regional growth.

Competitive Landscape

The global Terpene Resins market is expected to be dominated by a handful of players. Heavy investments are being made within their research and development departments to widen their product portfolios. The market leaders are also focused on partnering with local and regional players to expand their international presence. Also, the dominant players are looking to invest in marketing strategies to appeal to wider consumers.

The key players in the global Terpene Resins market include - Eastman Chemical Company (U.S.), Kratom Corporation (U.S.), Mangalam Organics Ltd. (India), Yasuhara Chemical Co. Ltd (Japan), Ingevity (U.S.), Bolin Chemical Industry Co. Ltd (China), Lesko Chemical Company (China), Arakawa Chemicals (Japan), Xinyi Son yuan Chemical Co. Ltd. (Japan), BOC Sciences (U.S.), Skyrun Industrial (China), Grenhall Industries Inc. (Canada) among others.

Recent Market Developments

· March 2022: Yasuhara announced they signed an agreement with Leaf Resources to purchase Terpene Resins for the next five years. The agreement is expected to strengthen Yasuhara’s Terpene Resins business.

· April 2022: Ingevity announced they were developing a new biobased oilfield product called EnvaWet UHS 3100 and EnvaDry P-FL derived from pine-based tree oil. These products will provide unique performance and sustainability advantages.

Segmentation of the Global Terpene Resins Market