28 Oct, 2020, 14:15 ET
DUBLIN, Oct. 28, 2020 /PRNewswire/ -- The "Gum Rosin Market - By Product Type, By Application and By Geography Analysis - Forecast 2020 - 2025" report has been added to ResearchAndMarkets.com's offering.
Gum Rosin Market size is forecast to reach $1,437.43 million by 2025, after growing at a CAGR of 3.50% during 2020-2025.
Major factors driving gum rosin demand include increasing demand from key application industries such as adhesives and rubber, growth in the construction project, and increasing automotive production. Factors such as economic growth, industrial growth, rising consumer disposable incomes, and standards of living have levied high pressure on the automotive and building & construction industries for higher output and better-quality products.
This has led to the increasing procurement of gum rosin by players of these end-use industries over the past few years. In addition, various key players and heavily investing in research and developments for developing efficient tapping methods and development of genetic changes that would increase the flow of resins in the trees, which will help the players to increase the overall product output and cater to the steadily-growing demand. However, fluctuation in raw materials prices is expected hinder market growth.
- Asia-Pacific dominates the global Gum Rosin market, owing to increasing construction activities in the region and growing focus by the government and end-use industries to curb carbon footprints and develop environment friendly products.
- Speedy growth of synthetic rubber and adhesives industries is expected to act as a major factor driving the global gum rosin market during the forecast period.
- However, volatility of gum rosin and fluctuation in prices of raw materials are restricting gum rosin market.
- However, operations in various industries such as paints and coating, automotive, construction and so on is being significantly affected due to the COVID-19 epidemic, as most of countries have issued "stay at home guidance" i.e., lockdown. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021. This is limiting Gum Rosin market growth.
Drivers - Gum Rosin Market
Increasing demand from key application industries
Gum rosin is extensively used as a binder in adhesives, and as softeners in the synthetic rubber industry, as it enhances softness, strength, and adhesion of adhesives, which are used in the manufacturing of rubber boots and furniture, bookbinding, and packing industry. According to Rubber Board, in India synthetic Rubber (SR) production increased to 380,772 tonnes during 2018-19 from 331,221 tonnes during 2017-18, registering a considerable growth of 15.0%.
Whereas, synthetic rubber consumption increased to 686,325 tonnes during 2018-19 registering a growth of 8.3% as against 633,975 tonnes consumed during 2017-18. Therefore, speedy growth in synthetic rubber production is driving the global gum rosin market. Gum rosin, on account of its chemical property, is used in manufacturing soap as a replacement of aliphatic acid. It is also used in the food industry, to make chewing gum and other confectionaries, slowly it is evolving as one of the most emergent ingredients in confectionery.
It is also used in making varnishes, sealing wax, driers, soldering fluxes, and pitch. Furthermore, gum resin is finding growing adoption in printing inks formulation and also preferred over traditional materials due to its better sticky properties, which help in efficient printing. Moreover, new developments are also taking place in end-use industries across the globe in order to increase the application scope for gum rosin which will further support gum resin market growth.
Challenges - Gum Rosin Market
Better performance capabilities of tall oil resin and economic benefits of petroleum resin over gum rosin
Gum rosin-based resin is widely used in the manufacturing of offset printing inks, because of its robust chemical and physical properties. However, the other by-product obtained in the kraft pulping process, by distillation of crude tall oil is tall oil rosin. The rosin acid content in the tall oil rosin makes the resin made from it especially of interest to the ink maker. In addition, tall oil resin offers some economic benefit over gum resin.
Therefore, the use of tall oil is increasing as an effective substitute for gum rosin, particularly in package printing purposes, which requires ink having good gloss and quick-drying properties. Thus, affecting gum resin market growth. In addition, the readily available petroleum resin substitutes such as C5, C9, and Dicyclopentadiene (DCPD) with better performance capabilities and low price is also restricting gum resin market growth.
The emergence of COVID-19 pandemic
The global spread of COVID-19 has disrupted global supply chains and decreased labor availability, thus impacting manufacturing plants globally. This is eventually impacting the gum rosin industry. According to the Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined 51% to 143,014 units in March 2020 in India. Also, sales of commercial vehicles declined 88% to 13,027 units, those of two-wheelers fell 40% to 866,849 units. The COVID outbreak has crashed the automotive industry tremendously.
The U.S. is anticipated to witness a decline of 27% in automobile sales in 2020. This decline has affected the tire and automotive coatings demand. As synthetic rubber and paint and coatings industries are the key application areas of gum resin the decline in these is affecting gum rosin market growth. Moreover, it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Gum Rosin Market.
Major players in the Gum Rosin market are
- Gum Chemical Solutions, S.A.
- Jinggu Forestry Chemical
- Sharda Industries
- Punjab Rosin & Chemicals Works
- Guangdong Komo Co., Ltd
- Resin Chemicals Co., Ltd
- Manish Minerals & Chemicals
For more information about this report visit https://www.researchandmarkets.com/r/p2tezp
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