by Market Overview:
Petroleum resins are amorphous polymers derived from petroleum distillates through polymerization process. They provide tack, adhesion, water resistance and flexibility to various applications. Petroleum resins have excellent compatibility with asphalt, synthetic and natural rubber, polymers and various other substrates. They improve processing properties, tack, gloss, adhesion and flexibility to the final products.
Market key trends:
One of the major trends in the petroleum resins market is increasing demand from saturated resin substrate and rubber processing industries. Saturated petroleum resins are majorly used in applications such as a tackifier for pressure sensitive adhesives, synthetic rubbers, polyolefin compounding, roadmarking paints, and industrial tapes among others. Growing demand from tire manufacturing, industrial tapes, paper & packaging and road construction industries globally is expected to boost the growth of saturated petroleum resins during the forecast period. Moreover, petroleum resins are economically viable solution and have superior performance when compared with other synthetic resins. This is further propelling demand for petroleum resins from various end use industries.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements for setting up manufacturing plants to produce petroleum resins. Established players have significant economies of scale and customer loyalty advantages.
Bargaining power of buyers: Buyers have moderate bargaining power as petroleum resins have applications across various end-use industries. However, established relationships with major buyers limit switching to alternative products.
Bargaining power of suppliers: Few major companies control the supply of raw materials for petroleum resins production globally. This provides suppliers significant influence on pricing.
Threat of new substitutes: Substitutes include synthetic resins, but petroleum resins have unique properties that are difficult to replace fully.
Competitive rivalry: Intense competition among major players to expand market share.
SWOT Analysis
Strength: Unique combination of physical and chemical properties of petroleum resins makes them preferred choice for applications. Established global supply chain and production capabilities.
Weakness: Fluctuating raw material prices can impact margins. Rising environmental regulations for VOC emissions during manufacturing.
Opportunity: Growing paints and coatings industry especially in Asia Pacific creating new demand avenues. Development of bio-based and hybrid petroleum resins.
Threats: Increased preference for water-based and powder coating technologies in certain end-uses. Volatility in crude oil prices affects resin prices.
Key Takeaways
The global Petroleum Resins Market Share is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing demand from paints and coatings industry. The paints and coatings segment accounted for over 50% share of global petroleum resins consumption in 2023.
Regional analysis: Asia Pacific dominated the global market in 2023 with over 40% share and is expected to witness fastest growth during forecast period. China, India, Indonesia, and Vietnam are major consumers as well as production hubs for petroleum resins in Asia Pacific.
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 petroleum resins market is moderately consolidated in nature with top 5 players accounting for over 50% of global capacity.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
