Pine Chemicals Market Size, Share & Trends Analysis Report By Product Type (Tall Oil, Rosin, Turpentine, Others), By Application (Paints and Coatings, Solvents and Disinfectants, Printing Ink, Synthetic Rubber, Flavors and Fragrances) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Pine Chemicals Market size was valued at USD 5.8 billion in 2023. It is estimated to reach USD 9.3 billion by 2032, growing at a CAGR of 5.5% during the forecast period  (2023–2032).

Pine chemicals are a class of products derived from the processing of pine trees, specifically from their bark, wood, and resin. These chemicals are used in various industries because of their unique properties and versatility.

The increasing use of pine chemicals in the mining industry to boost the productivity and efficiency of mining processes, such as mineral extraction and recovery from ores, is one of the important reasons driving the growth of the pine chemicals market. Furthermore, lubricants are increasingly used as antiwear, antioxidant and antifoaming agents, demulsifying and emulsifying agents, and rust and corrosion inhibitors. This and the increased use of pine compounds worldwide in the flavors and fragrances industry are driving market expansion.

Market Dynamics

market drivers

Rising demand in the paints and coating industry

The paint and coatings industry is a large consumer of pine chemicals, particularly Rosin and turpentine. Due to its tackifying and adhesive properties, Rosin is used as a resin in various paint formulations, enhancing adhesion and durability. Turpentine, a solvent derived from pine trees, is used to thin and dissolve paint resins, facilitating application and drying. As global construction activities, infrastructure development, and consumer demand for high-quality coatings grow, so does the demand for pine chemicals in the paint and coatings industry.

In addition, the construction industry is vital to the paints and coatings market. According to a 2023 report, the US construction industry is expected to increase by 6.1% to USD1,419,192 million in 2023. Architectural coatings are in high demand due to increased urbanization, infrastructure projects, and the construction of residential and commercial buildings worldwide. According to the National Association of Home Builders, residential construction will fall by 3.4% in 2024, while single-family home construction is expected to increase by 3.7%. These coatings contain pine-derived Rosin, which improves adhesion, flexibility, and weather resistance.

Similarly, pine chemicals find use in automotive coatings, where performance and durability are essential. Rosin-based resins aid in creating coatings that protect against environmental factors, corrosion, and UV radiation. The International Organization of Motor Vehicle Manufacturers (OICA) reported that total automobile production would be around 81.6 million in 2022. This represents a 5.7% increase from 2021 and a 6% increase from 2021. The consistent growth of the paints and coatings industry, driven by global construction, automotive, and industrial activities, highlights the importance of pine chemicals in meeting raw material demands. As the construction and automotive industries grow, demand for pine chemicals will remain high, influencing global market trends.

Market restraints

Raw materials and price volatility

Pine chemical production relies heavily on the availability and cost of raw materials derived from pine trees, such as oleoresin and wood. Several factors, including environmental conditions, disease outbreaks, and changes in forestry practices, can influence the abundance and cost of these raw materials. The inherent variability in the supply of pine tree resources creates uncertainty and threatens the overall stability of the pine chemicals market. Pine tree growth and oleoresin production are climate-sensitive. Unfavorable weather patterns like droughts or heavy rains can impact pine forest health and productivity.

Furthermore, disease outbreaks, such as pine beetle infestations, have been shown to have an impact on pine tree populations. In recent years, areas such as the western United States have experienced pest outbreaks such as the mountain pine beetle, causing significant damage to pine forests. This impacts the availability of pine resin in the pine chemicals industry. Prices for raw materials used in producing pine chemicals, such as oleoresin and wood, can fluctuate due to market conditions, global demand, and supply chain disruptions. In April 2023, the price of rosin and resin acids in the Netherlands reached USD 3771 per ton, up 27% from the previous year. For example, global economic conditions, trade dynamics, and supply-demand imbalances all impacted rosin prices. Unexpected events, such as natural disasters affecting pine tree resources, can contribute to short-term price increases.

Market opportunity

Increasing demand for bio-based products

The increasing global demand for bio-based products creates a significant opportunity for the pine chemicals market. Pine-derived products, known for their renewable and biodegradable nature, complement the growing consumer and industrial emphasis on sustainability. As businesses and consumers seek alternatives to traditional, fossil fuel-based chemicals, using pine chemicals becomes a viable option, helping to create a more sustainable and environmentally friendly product landscape. According to Nielsen's survey, 73% of global consumers are willing to change their consumption habits to reduce their environmental impact. This shift in consumer attitudes toward sustainability creates a favorable environment for bio-based products such as pine chemicals.

Moreover, government initiatives promoting the use of bio-based products and regulations encouraging sustainable practices help create market opportunities. For example, the European Union's Bioeconomy Strategy emphasizes the importance of sustainable and bio-based products, creating an environment promoting the growth of industries such as pine chemicals. Under FAR Subpart 23.4, federal agencies must prioritize bio-based products when purchasing from the BioPreferred Program.

Furthermore, the renewable chemicals market, which includes bio-based products, is experiencing significant growth. According to the US Department of Energy, producing renewable chemicals can reduce greenhouse gas emissions by up to 90% compared to traditional petroleum-derived substances. Furthermore, the European Union has set a target of 20% of all chemicals produced in Europe being bio-based by 2030. The increasing focus on sustainability and the need to reduce carbon emissions drives the value of the renewable chemicals market.

Regional Analysis

Europe dominates the global market

The global pine chemicals market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe is the most significant global pine chemicals market shareholder and is estimated to grow at a CAGR of 5.4% over the forecast period. Europe dominated the market studied, accounting for more than 45% of the total market volume, with Germany and Italy being the region's leading consumers. The German Adhesives Association estimates that the adhesives, sealants, and tape industries will generate more than EUR 3.7 billion (USD 4.2 billion) in annual sales by 2023. The Energy Information Administration (EIA) and BP Plc estimate that Germany will produce 54 thousand barrels of oil equivalent biofuels daily by 2021. Rapeseed and used cooking oil comprised most of the raw materials used in biodiesel production. Tall oil, combined with other products, accounts for approximately 4%. The volatile legislation governing biofuels prevents businesses from investing in new technologies.

Additionally, the German biofuel industry requires a stable framework to ensure ongoing market growth. In the first half of 2022, approximately 1.23 million metric tons of biodiesel and hydrotreated vegetable oil (HVO) were blended. This represents a 6.3% increase over the same period in 2021. This will continue to grow over the forecast period, driving up demand for pine chemicals. Germany is Europe's largest lubricant producer. The country is known for its advanced engineering sector and lubricant innovation. Industrial solid sector growth in the region has increased metalworking fluid volumes, indicating a stable market for the overall lubricant market in Germany. According to the Federal Office of Economics and Export Control, domestic lubricant demand in Germany in October 2023 was 52,234 metric tons, down 7% from the same month in 2022. In May 2023, domestic lubricant sales in Germany, including process oils, fell 10%. However, in February 2023, Germany's domestic and international lubricant demand reached a three-month peak. During the forecast period, demand for pine chemicals is expected to rise due to increased production in Germany and a greater need for lubricants.

Furthermore, the Italian paints and coatings market is highly fragmented, with approximately 600 manufacturers of decorative and architectural paints in the country. The Italian Construction Association (ANCE) predicts increased investment in the construction industry. There are also numerous lubricant blending units throughout the country. Furthermore, Eni is Italy's leading refiner and distributor of petroleum products. The company provides lubricants to a variety of industries.

North America is anticipated to exhibit a CAGR of 5.6% over the forecast period because of its easy access to pine trees; this region is seeing increased production units. This is significantly benefiting the pine chemicals industry in these regions. The climate in the area is also ideal for pine growth. Pine-derived chemicals are in high demand due to their operational benefits, increased industrialization, and diverse applications. The availability of pine trees in the region, combined with rising demand from the United States, is boosting North America's industry.

Asia-Pacific will also see a high demand for pine-derived chemicals. The government's efforts to reduce carbon footprints will help expand the market for environmentally friendly products. Increased adoption of paints and coatings, adhesives, and lubricants is driving market dynamics in the region. According to Akzo Nobel India, a paint manufacturing company, India's paints and coatings sector is expected to be worth approximately USD 12.0 billion by the end of 2028.

In the Middle East and Africa, the market for pine chemicals is expanding steadily. The market is driven by increased industrial activity, particularly in construction, paints and coatings, adhesives, and food processing. Furthermore, growing awareness of sustainable and eco-friendly products drives demand for pine-based chemicals in the region.

Segmental Analysis

The global pine chemicals market is segmented based on product type, application, and region.

The product type is further segmented into tall oil, Rosin, and Turpentine.

Elevated Oil accounts for the largest share of the market.

Tall Oil

Tall oil is expected to grow at a CAGR of approximately 5.7% before the end of the forecast period. Tall oil is a valuable product derived from the processing of pine trees, primarily as a byproduct of Kraft pulping in the paper and pulp industry. It is derived from black liquor, a mixture of lignin and pulping chemicals. Tall oil comprises fatty acids, rosin acids, and neutral materials. This versatile product has applications in various industries, including soaps, detergents, lubricants, paints, and coatings. Tall oil's composition makes it useful for producing tall oil fatty acids (TOFA) and tall oil rosin (TOR), critical components in creating adhesives, inks, and other chemical products.

Rosin

Rosin is a natural resin derived from the oleoresin of pine trees, primarily of the genus Pinus. Extraction involves tapping pine trees to collect the sticky sap or resin. Rosin is a solid material commonly used in various industries, including adhesives, inks, coatings, and rubber. It is valued for its adhesive and tackifying properties, which provide cohesion in formulations. Rosin's versatility is evident in its various derivatives, including gum, wood, and tall oil rosin (TOR), each tailored to a specific application. Due to its renewable and sustainable nature, Rosin remains popular in industries seeking environmentally friendly solutions.

The market can be bifurcated by application into Paints and Coatings, Solvents and Disinfectants, Printing Ink, Synthetic Rubber, and Flavors and Fragrances.

Paints and Coatings generates the most revenue in the market.

Paints and Coatings

Pine chemicals are used extensively in the paints and coatings industry, particularly in the formulation of adhesives, varnishes, and paints. Rosin, tall oil, and turpentine add valuable properties to these formulations. Rosin provides tackiness and adhesion, which improves coating performance. Turpentine acts as a solvent, facilitating the dispersion of pigments and resins in paint formulations. Tall oil derivatives, such as tall oil rosin (TOR), help coatings retain their adhesive properties. The sustainable and renewable nature of pine-derived products is consistent with the growing demand for environmentally friendly coatings in various applications, ranging from architectural paints to industrial coatings.

Solvents and Disinfectants

Pine chemicals, particularly turpentine, act as natural solvents in various applications. Turpentine's solvent properties are ideal for cleaning products, solvents, and disinfectants. Its ability to dissolve resins and oils makes it helpful in cleaning surfaces and as a natural alternative in disinfectant formulations. The use of pine-derived solvents corresponds to the demand for environmentally friendly cleaning solutions, helping to develop sustainable and bio-based options in the solvents and disinfectants market.

Impact of covid-19

During the Coronavirus episode, the world economy was impacted drastically, and each area experienced a colossal misfortune. Agricultural nations noticed a pessimistic GDP rate, which contributed to business layoffs. This compelled many small companies to shut down, leaving daily wage workers unemployed. While the administering bodies proposed, all guidelines and rules were loosened the following year. The enterprises opened, and production cycles, supply, and request began.

After bearing losses, areas like auto, oil and refineries, development, production, and others planned to produce more and generate more revenue. During the lockdown, chemical production was impacted adversely. 

However, the demand for chemicals utilized in the medical care and cleanliness areas was rising. The chemical sector experienced a decline of 37% in production during the first stage of the pandemic. During May 2020, the production increased by 38% in the chemicals and petrochemicals area. The production of pine chemicals went down by 50% in total, including rosin, TOFA, turpentine, TOR.

The general business declined by 25% because of a decrease in the inaccessibility of laborers and machines. Lack of funds closed businesses and manufacturing units, and decreased demand for chemicals drastically affected the international global market. 

Market Recovery Timeline from the Impact of COVID-19 and its Challenges

The construction business is the world's most significant and most valued industry. India has a GVA of 1.4 %, making it one of the fastest emerging economies. Hence construction business is ever-expanding in this region. Due to the lockdown, this sector declined by practically 100 % as stay orders were placed in the length. Thus, the other ward fragments, including the concrete business, metal and material industry, cement, and paints and coatings industry, were unfavorably impacted. With the issue of raw material, workers were the most impacted assets in almost all industries because of the layoffs and less availability of jobs.

The chemical industry plays a vital role in the economic growth for recovering from the losses due to the pandemic. The key players of the pine chemical industry are strategizing for market growth over the short-term period. The industry is subjected to more sustainable, environment-friendly, and clean energy products. Crude tall oil is likely to be in high demand as the fuel and energy sector is growing along with the technology, and the need for reduction in carbon emissions has become a necessity. Therefore, market players process CTO and end-use applications, increasing the demand for pine chemicals as derivatives.

The industry assumes a key role in rising from the repercussions of the pandemic. The central participants of the sector are planning to achieve short-term growth. The business is exposed to more suitable and sustainable materials because of environmental concerns. The demand for Crude tall oil will probably escalate with growing developments and the need to decrease carbon emissions. Subsequently, these reasons have led to the expanding interest in pine chemicals and derivatives in the global markets.

Recent Developments

• November 2023- Ingevity extended its partnership with TRiiSO, LLC, expanding its Capa® distribution footprint for customers in the United States and Canada.
• August 2023- Pine Chemical Group opened a new production facility in Kotka.
• November 2023- Ostium Group will partner with Eastman to integrate a sustainable packaging solution for medical devices.