The Total Addressable Market (TAM) for C5 Resins was valued at USD 760 million in 2022. It is estimated to reach an expected value of USD 1180 million at a CAGR of 4.9% during the forecast period (2023-2031).
C5 resins are fully compatible with natural rubber, many olefins (LDPE), and synthetic elastomers of low polarity. These resins are available in a range of molecular weights and softening points and offer superior tack. In addition, they possess excellent stability to heat. The packaging industry's rising demand for adhesives and sealants and the development of the construction sector are anticipated to fuel growth in the market under study. Increasing application in hot-melt adhesives, rising usage for wallpapers in the construction industry, and increasing popularity of EVs are likely to stand as opportunities for the market studied during the forecast period.
Rising Demand for Adhesives and Sealants from the Packaging Industry
The C5 resins are increasingly used as homogenizing agents, tackifiers, and performance modifiers. Hence, they are extensively used in the manufacturing of hot melt adhesives. The adhesives and sealants produced using C5 resins are used to manufacture rigid packs, seal flexible packaging, and attach labels. These resins are resistant to acids, water, and alkaline, exhibiting excellent adhesion and helping in reducing production costs. Factors such as changing lifestyles, eating habits, growing spending powers, and rising dependency on the e-commerce industry are likely to benefit the global packaging industry. The rising use of C5 resins in the adhesives and sealants increasingly used in the packaging industry is likely to fuel the global C5 resins market during the forecast period.
Factors boosting the growth of the packaging industry include an aging population, rising spending power, rapid urbanization, and the development of the retail sector in places like Asia, Eastern Europe, and the Middle East.
Expansion of the Construction Industry
The C5 resins are increasingly used in manufacturing adhesives and coatings that find applications in the construction industry. In addition, the product has improved tack, superior peel strength, and demonstrates excellent shear strength. Moreover, C5 resins offer superior pigment wetting, gloss, film hardness, and enhanced adhesion when used in paints. It also improves flow and leveling, reduces the VOCs, and offers enhanced resistance to water and mildew. Owing to the properties mentioned above of C5 resins, it is used across the construction industry to manufacture coatings, adhesives, paints, and others.
The construction industry is anticipated to witness substantial growth during the forecast period owing to the rising demand for residential and commercial construction across the world. The rising number of construction projects, including residential, commercial, and industrial, in developing economies, such as China, India, South Korea, and others, has boosted the growth of the construction industry. In addition, expanding construction and refurbishing projects in the North American region has further fueled adhesives, paints, coatings, and others, thereby fueling the construction industry in the region.
Replacement of C5 Resins
Hydrogenated Hydrocarbon Resin (HCCR) is used in manufacturing paints & coatings, adhesives, tackifiers, rubber compounding, and others. HCCR exhibits superior adhesive strength and improved resistivity against heat and cold. By adding HHCR to a bipolar film, the rigidity, transparency, and vapor barrier properties get improved. In addition, the white water HCCR is also used in manufacturing hot melt adhesive hygiene products.
In addition, the benefits of using HHCR technology include a smooth flow of operation, high mass transfer rate, homogeneous mixing, high resin concentration, low use of solvent, and lower energy costs. In addition, the technology is operated in a closed system, batch or continuous operation is possible, consistent production of quality products can be guaranteed, and it has a less complex plant structure. These benefits of HCCR result in increased production of HCCR over C5 resins, which impedes the market growth.
Extensive Use of Rubber Products in the Tire and Automobile Components
Various automotive parts and components are manufactured using rubber. The automotive sector is the primary consumption industry for rubber products. Tires, airbags in the automotive that provide cushioning at the time of the collision, dust covers, bumpers that protect the vehicles from external damage, belts, hoses, gaskets, covers, and mats are all manufactured using rubber. The extensive use of rubber products in tire and automobile components boosts the demand for rubber compounding, further promoting the C5 resins market growth over the forecast period.
| Study Period | 2020-2032 | CAGR | 4.9% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | Asia Pacific | Fastest Growing Market | Europe |
By region, the global C5 resins market is segmented into Asia-Pacific, Europe, South America, North America, and Middle East & Africa.
Asia-Pacific accounted for the largest market share and is estimated to grow at a CAGR of 4.4% during the forecast period. China has been majorly driven by the ample developments in the residential and commercial construction sectors and supported by the growing economy. In China, the housing authorities of Hong Kong launched several measures to push start the construction of low-cost housing. The officials aim to provide 301,000 public housing units by 2030. In the adhesive sector, DuPont has decided to invest approximately USD 30 million in building a new manufacturing facility in Zhangjiagang, Jiangsu Province, in East China. The company's new facility will produce adhesives to serve customers in the transportation industry, primarily supporting two mega industry trends: vehicle electrification applications and lightweight. Construction is expected to begin in Q3 2021, and the facility will be operational by early 2023. C5 Resins are used in the tire and other automotive components due to enhanced mechanical properties. In addition, improved braking efficiency and fuel consumption of the product will likely further benefit its usage in the tire and automotive components. The growth in automotive production in China will likely promote the demand for tires and automotive components, which will benefit the C5 resin products.
Europe is the second largest region. It is estimated to grow at an expected CAGR of 4.9% during the forecast period. The primary end users of the C5 resins market include the paints and coatings industry, adhesives and sealants, printing inks, and the rubber compounding industry. Paints, coatings, adhesives, and sealants are used in the construction and automotive sectors. Germany has the most significant construction industry in Europe. The construction industry in the country has been growing at a slow pace, majorly driven by the increasing number of new residential construction activities. According to Statistisches Bundesamt (Destatis), the construction of new dwellings increased to 327.26 thousand in 2020, compared to 317.82 thousand in 2019. The construction industry registered significant growth in the country despite being severely impacted by the pandemic. Also, the stock of new dwellings in residential and non-residential buildings amounted to 42.8 million by the end of 2020, growing by 0.7% compared to the previous year. Compared to 2010, the stock increased by 5.7% or 2.3 million dwellings. Furthermore, according to the Federal Statistical Office (Destatis), in May 2021, the construction of 32,384 dwellings was permitted in Germany, which was an increase of 8.7 % compared to April 2021. Thus, the demand for C5 resins is expected to increase with the growing construction industry.
North America is the third largest region. In the United States, the demand for home paints accounts for about 40% of the total paints and coatings industry revenue; commodity finishes for 25%; special-purpose coatings for 20%; and varnish removers and paint thinners own 5%. Therefore, the increasing demand for such paints is simultaneously driving the production of paints in the country. Major factors driving the adhesive demand include growing demand from the residential construction sector. The rubber industry in the United States has grown over the years. The country is a significant consumer of rubber and tire. In addition, the country also produces several specialty rubber chemicals. The United States also imports rubber from Asian countries. Thus, imported rubber is used to process and manufacture various rubber products. Natural rubber consumption is lower-than-expected performance during April-June 2020 in the United States, exhibiting a decline of 8.9% compared to 2019. The United States represents one of the largest and most advanced tire markets globally and is home to some of the largest tire manufacturers in the world, such as Goodyear Tire & Rubber Co., Cooper Tire & Rubber Co., Michelin, and Bridgestone Americas Tire Operations (over 70% of the market share is reported with these four companies). Over the years, the might of the US rubber industry has grown by leaps and bounds. The country continues to be a significant force in rubber consumption, apart from being a major producer and consumer of rubber. It is likely to remain the same in the forthcoming years. All such factors drive market growth.
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The global C5 resins market is segmented by application and region.
By application, the global C5 resins market is segmented into paints and coatings, adhesives and sealants, printing inks, rubber compounding, and other applications. The adhesives and sealants segment accounted for the largest market share and is estimated to exhibit a CAGR of 4.2% during the forecast period. Hot melt adhesives are used in packaging, hygiene, assembly, and other applications, whereas pressure-sensitive adhesives are used in tapes and labels. With the increasing awareness of hygiene among people and in addition to the COVID-19 outbreak, the demand for hygiene products such as diapers and feminine care products is increasing globally, thereby increasing the demand for hot-melt adhesives. Automotive adhesives are lighter and much more than substitutes for mechanical fasteners like nuts and bolts, rivets, and welds. To fulfill the increased requirements of EV production and current car assembly, adhesive producers are modifying their products (including tapes and films). Meanwhile, automakers increasingly recognize the advantages of lighter vehicles, lower vibration levels, a paint alternative, broad stress distribution, lack of metal distortion, less panel corrosion and longer life rigidity, better bonding of dissimilar materials, and lower costs and faster assembly. Thereby, increasing the demand for adhesives from the electric vehicle industry.
The paints and coatings segment is the second largest. Hydrocarbon resins (c5) are used as additives in coatings to preserve the surfaces of a variety of materials. These resins offer various properties to coatings, such as good adhesion to concrete or asphalt pavement, good wear resistance and water resistance, good affinity with inorganic substances, easy coating, good weather resistance, fast drying, high firmness, and can improve the physical and chemical properties of the layer, as well as improve ultraviolet and weather resistance. Therefore, are widely used for road signs and road marking. Petroleum resin road marking paint is growing more popular, and demand is increasing yearly. The production of paints and coatings is increasing steadily in the global market, owing to its demand from construction, automotive, industrial coating, and other applications. Therefore, owing to the abovementioned factors, with the increasing demand for paints and coatings, the demand for C5 resin is expected to increase during the forecast period.
The rubber compounding segment is the third largest. C5 resins are used in rubber compounding, which requires a high degree of tackiness, such as various tires, materials for re-treading, conveyor belts, V-belts, industrial hoses, cable and roll coverings, lining materials, and other rubber products. Due to their low softening point and tackiness and having strong mutual solubility with natural rubber particles, C5 resins are widely used in rubber. They also have little impact on the vulcanization process and improve the reinforcing properties. Furthermore, they improve the rubber extrudability and the resistance of rubber goods to aging. It also offers better dispersion of carbon black, process reliability, and unparalleled performance. Therefore, owing to the abovementioned factors, the rising demand for rubber in the automotive industry is further promoting the C5 resins market over the forecast period.
