Market Overview

The global pine-derived chemicals market is estimated to be valued at USD 5.4 billion in 2022 and is projected to reach USD 6.8 billion by 2027, recording a CAGR of 4.4%, in terms of value.

Pine-derived chemicals are bio-based, renewable chemicals extracted from pine trees. These chemicals are derived from the carbonization of wood and the distillation of oleoresins. Most distillate products are also made from tree stumps, rubber, kraft pulp by-products, and tree trunks. During the papermaking process, chemicals are extracted from the pine as a by-product of the pulping process, producing crude sulfated turpentine and crude tall oil. In addition, products such as creosote, charcoal, methanol, essential oils, tannins, phenols, and pharmaceuticals are obtained through the wood carbonization process. Chemicals derived from pine trees are used in adhesives, resins, surface coatings, printing inks, soaps and detergents, fabric softeners, air fresheners, and more.

The demand for these products is growing exponentially as consumers tend to prefer eco-friendly products. These chemicals use natural and renewable products as raw materials to develop both basic and necessary items and act as a carbon footprint reduction mechanism. Pine-derived chemicals are derived from living trees, pine stumps and logs where the industry relies on forestry-derived raw materials. Crude tall oil (CTO) is a very prominent example of pine chemistry with diverse uses. The American Chemistry Council (ACC) has assumed that the global availability of CTOs will increase to 2.26 million tonnes per year by 2030, driven by the growth of pine-derived chemicals over chemical substitutes.

Major government agencies, such as the Environmental Protection Agency (EPA), Food and Drug Administration (FDA), American Chemical Society, and Pine Chemicals Association, regulate pine-derived chemicals. These organizations are responsible for registering products and regulating their safety, use, and acceptable residue levels in food and other uses. The tightening of rules and regulations for chemicals from pine wood is mainly due to environmental degradation. These regulations have largely affected existing pine-derived chemical products and slowed the introduction of new products.

However, the world's developing countries, with their rapidly growing agricultural sectors, have tremendous growth opportunities. Rapid population growth and increasing industrialization are increasing the demand for food. More than 90% of all wood products manufactured in developing countries are used domestically. FAO expects this trend to remain the same over the next 20 years. Rapid population growth and increasing industrialization are increasing the demand for food. This will boost the market for pine-derived chemicals. Various investments have been made through mergers, acquisitions and partnerships by leading companies in the developing regions. These developments in the pine-derived chemical industry will increase the need for pine-derived raw materials, increasing their demand and applications in the consumer segment.

In emerging markets with low labour costs, common forest workers work on their own, accept low wages due to low bargaining power, and work in difficult terrain with limited or no mechanization and modern safety equipment. In addition, gum resin farmers are leaving the forests for higher paying urban jobs, causing labour shortages and production shortages, leading to higher wages and production costs. Outdated forest management practices limit the production of pine chemicals.

Type Insights

The Tall oil fatty acid segment is expected to account for the largest market share in the market. TOFA is used in the manufacturing of soaps, detergents, mining, paints, coating, metalworking fluid, corrosion inhibitors, fuel additives, construction chemicals, rubber, tires, and metallic stabilizers. TOFA is obtained from a natural source and it is not chemically modified, these factors are projected to drive the segment in the global market during the study period.

Source Insights

Based on source, the by-product of the sulfate pulping is the largest segment in the overall pine-derived chemicals market. Sulfate treatment is used to produce pinewood pulp, which is made from pure cellulose fibers. The whole process is called Kraft process and it is the main technique for extracting pine chemicals. The two major by-products from this process are CTO and CST, which are widely used in end-use industries.

Application Insights

By application, the adhesives and coatings segment is expected to account for the largest market. Adhesives and sealants are versatile products made from pine wood. The automotive and construction industries are two major industries where adhesives and sealants are widely used. Rosin's natural tackiness makes it an ideal adhesion promoter when added to adhesives and sealants.

Process Insight

The tapping process segment is expected to account for the largest market share during the forecast period. Pine oleoresin or gum is harvested from live pine trees. Tapping repeats, the process of wounding the tree trunk, removing the bark and underlying tissue, followed by (or not) applying a chemical irritant. Crude oleoresin is collected from wounded trees and evaporated by steam distillation to obtain turpentine. After turpentine, which is widely used in the production of adhesives and sealants, paints and coatings, molten rosin remains at the bottom.

Key Companies Insights

Key players are developing various strategic initiatives to expand their business footprints and gain competitive advantage. They are also focus on strategic initiatives such as mergers and acquisitions, collaborations, partnerships, fundraising and investments, and innovative product development and launches to expand expertise and product portfolio. Moreover, competition in the global market is increasing as companies focus on expanding their product offerings, entering new markets, and acquiring new customers.

Some of the key players operating in the global Pine-Derived Chemicals Market include:

·         Eastman Chemical Company

·         Harima Chemicals Group

·         Ingevity Corporation

·         Kraton Corporation

·         Mentha & Allied Products Pvt Ltd

·         Mahendra Rosin & Turpentine Pvt Ltd

·         Arakawa Chemical Industries Ltd

·         George-Pacific Chemicals

·         Forchem OYJ

·         Florachem Corporation

·         Dart (Dérivés Résiniques Et Terpéniques

·         Foreverest Resources Ltd

·         Wuzhou Sunshine Forestry & Chemicals Co. Ltd

·         Guilin Songquan Forest Chemical Co. Ltd

·         Midhills Rosin & Terpenes

·         Resinas Alfonso Criado Martín

·         Florpinus Chemical Industries

·         Pinechemical Group Oy

·         Punjab Rosin & Chemical Works

·         Keichem

·         Other Players

Segments

By Source

·         Living trees

·         Dead pine stumps & logs

·         By-product of sulfate pulping

By Type

·         Tall oil fatty acid

·         Tall oil rosin

·         Gum turpentine

·         Gum rosin

·         Sterols

·         Pitch

·         Other types (crude sulfate turpentine and its derivatives)

By Application

·         Adhesives & sealants

·         Paints & coatings

·         Surfactants

·         Printing inks

·         Other applications (food additives, cosmetics, and seed coatings)

By Process

·         Kraft process

·         Tapping process

By Geography

·         North America

o   U.S.

o   Canada

o   Mexico

·         Europe

o   U.K.

o   Germany

o   France

o   Italy

o   Spain

o   Russia

·         Asia-Pacific

o   Japan

o   China

o   India

o   Australia

o   South Korea

o   ASEAN

·         Latin America

o   Brazil

o   Argentina

o   Colombia

·         MEA

o   South Africa

o   Saudi Arabia

o   UAE

o   Egypt

Key Benefits:
• The analysis provides an overview of the factors driving and limiting the growth of the market including trends, structure and others.
• Market estimation for type and geographic segments is derived from the current market scenario and expected market trends.
• Porter’s Five Force Model and SWOT analysis are used to study the global Pine-Derived Chemicals market and would help stakeholders make strategic decisions.
• The analysis assists in understanding the strategies adopted by the companies for the growth of this market.
• In-depth analysis of the types of Pine-Derived Chemicals would help in identifying future applications in this market.

Reasons to Purchase this Report:
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support

Objectives of the Study:
• To provide with an exhaustive analysis on the Pine-Derived Chemicals Market by Product, By Application, By End User and by Region.
• To cater comprehensive information on factors impacting market growth (drivers, restraints, opportunities, and industry-specific restraints)
• To evaluate and forecast micro-markets and the overall market
• To predict the market size, in key regions— North America, Europe, Asia Pacific, Latin America and Middle East and Africa.
• To record and evaluate competitive landscape mapping- product launches, technological advancements, mergers and expansions