Pine-Derived Chemicals Market Size, Share, Growth, and Industry Analysis, By Type (Tall Oil, Gum Rosin, Turpentine and Pine Oil), By Application (Adhesives, Paints & Coatings, Fragrances, Food Additives and Pharmaceuticals), and Regional Insights and Forecast to 2033

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PINE-DERIVED CHEMICALS MARKET OVERVIEW

The global Pine-Derived Chemicals Market size was USD 6.1 billion in 2022 and is projected to touch USD 9.65 billion by 2028, exhibiting a CAGR of 5.9% during the forecast period. 

Pine-derived chemicals refer to carbonized wood or distillation products derived from oleoresin, which include renewable chemicals bio-based from a pine tree. Most distilled goods originate from stumps, gum, sulfate pulp byproducts, and logs. Pine-derived chemicals are produced as byproducts in pulping in the form of crude sulfate turpentine and crude tall oil during papermaking. Carbonization generates creosote, charcoal, methanol, essential oils, tannin, and phenol. Apart from this, medicines, adhesives, resins, surface coatings, printing inks, soaps and detergents, plasticizers, and aroma compounds also have pine-derived materials as constituents.

Most notably, the increasing demand from consumers for green, eco-friendly, and sustainable products has peaked interest in bio-based alternatives for petroleum-derived chemicals. Pine trees are abundant in all parts of the earth and thus can serve as green and renewable sources for the manufacture of terpenes, rosins, and tall oils, among other compounds. These produced pine compounds are used in a variety of industrial applications, including adhesives and sealants, flavors and fragrances, paints and coatings, and pharmaceuticals. All these factors put very great pressure on making the pine-derived chemical industry thrive and progress.

GLOBAL CRISIS IMPACTING PINE-DERIVED CHEMICALS MARKET

Initial Low Demand in the Phase of Pandemic Where Supply Chain and Manufacturing Delays were the Culprits

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Lockdowns even in major supply shortages for raw materials such as pine oleoresin and tall oil feed stocks, everything that was caused by much of the interruption of a supply chain and labor in travel bans and lockdowns especially in prevailed in the North America. Demand was greatly softened in paints, coatings, adhesives, surfactants, and printing inks - all because of less industrial activity around the world. Companies across the value chain were forced to look for an alternative supplier and adjust accordingly to sporadic shortages of feedstock. A significant contraction due to labor and logistics disruptions; demand fell across industrial sectors.

LATEST TRENDS

Shift of Consumers Towards Environment Friendly and Sustainable Products to Pace Up the Market Growth

One of the factors is an increase in consumer demand for eco-friendly and sustainable product offerings. These incredible factors promote the growth and development of the pine chemical industry. This has kindled interest in bio-based alternatives for chemicals obtained from petroleum. Pine trees are widespread throughout the globe and, therefore, they can be seen as an abundant, renewable, and eco-friendly reservoir of terpenes, rosin, tall oil derivatives, etc. These pine-derived chemicals find application in a wide variety of fields such as adhesives, flavors and fragrances, paints and coatings, and pharmaceuticals.

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PINE-DERIVED CHEMICALS MARKET SEGMENTATION

By Type

Based on the type, the market is sectioned into tall oil, gum rosin, turpentine and pine oil.

• Tall Oil: Tall oil, is considered a bio-based byproduct of the Kraft pulping process, which is effectively utilized for producing various products such as adhesives, sealants, and coatings owing to its characterized binding properties along with its biodegradable nature.

• Gum Rosin: It is most preferably utilized with its lower cost renewable nature and versatility in chemical properties. A solid form of chemical derived from the pine trees, primarily derived from the distillation process of oleoresin, constitutes a considerable portion of the global pine-derived chemicals market.

• Turpentine: As for the pharmaceutical industry, turpentine is used for its therapeutical properties in some of the topical formulations, as well as being a constituent of some tradition medicines. Turpentine is volatile essential oil derived from the distillation of pine resin and finds extensive use as a solvent in paints and coatings owing to better thinning and cleaning properties.

• Pine Oil: Especially used popular in Asia-Pacific and Europe due to high usage in home care and industrial cleaners, pine oil is a form of distilled product of pine resin which is rich in terpene alcohols (mainly α-terpineol).

By Application

Based on the application type, the market is fragmented into adhesives, paints & coatings, fragrances, food additives and pharmaceuticals.

• Adhesives: The largest share was held by the adhesives & sealants application segment with growing demand for bio-based adhesives in the construction and packaging industries. Pine-derived chemicals are thus becoming very popular in the production of adhesives and sealants with excellent binding properties and environmental benefits.

• Paints and Coatings: The fragment of paints & coatings is likely to experience a promotional growth on the account of need for eco-friendly and sustainable coatings for the construction and automotive industries. Pine-derived chemicals present excellent film-forming properties and durability and thus are suitable for a vast range of applications.

• Fragrances: Consumer preference for naturally sourced and plant-based macronutrients has ushered in widespread adoption in aromatherapy and cosmeceuticals. Strong post-pandemic recovery with increased hygiene and wellness products in demand containing natural scents.

• Food Additives: The growing demand for natural and clean-label foods, as the number of rosin-based materials that have been approved for food use in several countries, rose sharply. Initially, limited activity occurred due to the closure of food service and processing units, but later, there was a stabilization in growth levels as food manufacture adapted to demand shifts (e.g., packaged foods, functional beverages).

• Pharmaceuticals: For their antimicrobial, anti-inflammatory, and expectorant properties. Mainly grown in herbal and plant-based medicine and used in OTC remedies and traditional medicine.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                         

Driving factors

Advanced Demand from the Construction Industry in Bio-Based Adhesives and Coatings

With the increasing use of pine resin as eco-friendly adhesives and coatings, industries have continued to replace one for another in pursuit of sustainable and renewable alternatives. Pine trees produce resins from sap, and these natural resins are biodegradable and environment friendly. These show terrific adhesive properties and thus make this a great alternative to create eco-friendly adhesives and coatings. Pine resin is mostly used for sealing and protecting materials in the construction and automotive industries. The market for pine resin is predicted to grow as a natural alternative to synthetic chemicals. The other main advantages of pine resins consist of versatility and performance. The ability of the resins to bond with flexible materials makes pine resin-type adhesives very useful for applications requiring adhesion in construction, where materials such as wood, tiles, stones, and so on will be bonded into solid commercial joints under variable conditions.

Expansion of Pine Oil in Pharmaceutical Industry to Expatiate the Market Shares Rapidly

The therapeutic application of pine oil is wide, whereas it serves as a very essential agent in the pharmaceutical industry. Derived from the needles, twigs, and cones of pine trees, pine oil is endowed with bioactive components such as alpha and beta-pinene and limonene, which exhibit wide-ranging antimicrobial, anti-inflammatory, and antioxidant effects, thereby adding a significant weight of activity in its formulations. One of the main applications of pine oil in the pharmaceutical industry is as an antimicrobial agent. Whenever an antimicrobial property is referred to, pine oil has been identified to exert variable levels of action against bacteria, fungi, and viruses, giving it significant potential as a source of natural products with antimicrobial activities.

Restraining Factor

Regulatory Measures by Government in Regard to Environmental Concerns to Downturn the Market Growth

Severe government regulations represent a significant challenge for the pine-generated chemicals market as they impede the supply chains, market entries, and several industrial processes. Legislations related to forestry management, environmental protection, and chemical safety can greatly impact the supply and sustainability of the pine feedstock for chemical extraction. The laws imposed usually restrict the harvesting of pine trees through regulations that protect the natural environment and enhance the sustainability of forest management. The price for chemical manufacturers that have to comply with environmental regulations on air and water quality, emissions, and waste will increase accordingly. These regulatory measures imposed by the government to retard the development of the worldwide Pine-Derived Chemicals market growth.

Advanced Extraction Technologies to Aid the Sales in the Market

Opportunity

The advent of superior compounds derived from pine with ameliorated purity and performance attributes is made possible with advancements in extraction, purification, and processing technology. T

here are numerous key factors that drive the expansion and development of the chemical industry from pine, including increasing consumer demand for sustainable and environment-friendly products, which opened interest in bio-based alternatives to petroleum-based chemicals.

Lower Demand was to be Seen with the Rise in Labor Costs

Challenge

In developing countries where labor is cheaper, communities work for themselves in communally owned forests and get paid less owing to low bargaining power while working under difficult conditions in poorly mechanized and unsafe environments.

Gum resin farmers are now abandoning the forests for better pay in cities, leaving a scanty labor pool and low production, causing a rise in salaries and then increasing production costs. Old forestry management systems limit the output of pine chemicals.

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PINE-DERIVED CHEMICALS MARKET REGIONAL INSIGHTS

• North America

North America pine-derived chemicals market share is poised for robust growth with increasing demand for sustainable and renewable chemicals in all the industries. Key market players are present in this region, along with the advancement of extraction technologies, which attract the consumers toward this market. Stringent environmental regulations and a rising preference for sustainable chemicals in industrial processes fuel the US market of pine-derived chemicals. The growing use of pine-derived chemicals in adhesives, paints and coatings along with massive funds in research development bring about the success factor for the market within the country.

• Asia Pacific

This region has the highest growth in the pine-derived chemicals market in Asia Pacific, especially by expanding the industrial base and increased needs of sustainable chemicals in nations such as China, India, and Japan. Construction, automotive, and personal care industries are a few commercial drivers in this growth. Also, government initiatives toward sustainable practices promote the development of bio-based products and help in market growth.

• Europe

Pine-derived chemicals in Europe are quite a major segment of the pine chemicals market and backed by stringent environment regulations and increased emphasis on sustainability. Well-established paper and pulp industries drive the main share of the market in the region, especially in Sweden and Finland. Rising demand for eco-friendly adhesives, coatings, and personal care products are also contributing to market growth in Europe.

KEY INDUSTRY PLAYERS

Major Market Players Embrace Procurement Techniques to Remain Competitive

Conspicuous companies in this market incorporate well-established, fiscally steady Pine-Derived Chemicals arrangements, services suppliers, and administrative bodies. These companies have been working within the advertise for a few a long time and have an expanded item portfolio and state-of-the-art innovations. These players have received different development procedures, such as organizations, assertions and collaborations, modern item dispatches and upgrades, and acquisitions to expand their impression within the Pine-Derived Chemicals market.

The increment within the utilization of progressed innovations in office administration administrations beside the ceaseless venture to upgrade benefit capabilities are major steps embraced by industry players to extend their market share. These major players are continually creating their fragments and growing their businesses. These companies are joining up with businesses majorly included in innovations such as cloud platform, an easy-to-use framework that unites all the innovation and applications utilized to run buildings in one put.

List Of Companies Profiled

• UPM - Kymmene (Finland)
• Metsä Group (Finland)
• Stora Enso (Finland - Sweden)
• Weyerhaeuser (U.S.)
• International Paper (U.S.)
• Georgia - Pacific (U.S.)
• Rayonier (U.S.)
• Domtar (Canada)
• Nippon Paper Industries (Japan)
• Oji Holdings (Japan).

KEY INDUSTRY DEVELOPMENTS

• March 2022: The company that specializes in manufacturing specialty polymers and generating many of its high-value bio-based products from pine wood pulping by-products, Kraton Corp., announced a formal merger agreement with DL Chemical.

REPORT COVERAGE

The Pine-Derived Chemicals market is characterized by seriously competition, with various players competing for showcase share. The competitive scene incorporates a blend of built-up companies and rising new companies, each advertising a run of instruments with shifting highlights and capabilities. The showcase is driven by development, with companies ceaselessly improving their items to supply way better client involvement, more precise approval, and integration with other advancement apparatuses. The competitive competition is assisted escalates by the presence of both free and paid apparatuses, catering to distinctive fragments of clients.