Gum Rosin Market Size, Share, Growth & Opportunities 2031

Report Description

The Global Gum Rosin Market size was valued at USD 1.56 Billion in 2022 and is expected to surpass USD 2.34 Billion by 2031, expanding at a CAGR of 4.6% during the forecast period, 2023–2031.  The growth of the market is attributed to the rising acceptance of gum rosin for various industrial purposes.

Gum rosin is a bio-based material, composed of various rosin acids. It is the solid form of pine oleoresin mainly derived from pine trees, through the process of pine tapping. It is produced chemically through the distillation of liquid resin and collects the residue after the evaporation of volatile liquid components. Gum rosin is derived from conifers plants.

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It is one of the derivatives of rosin resin besides tall oil rosin and wood rosin and pursues the same purposes as rosin resin. Gum rosin is semi-transparent and compact in nature and possesses a pine-like odor.

Gum rosin is delicate and becomes sticky with high temperatures. Gum rosin has a color range from yellow to black. Gum rosin has magnificent properties such as high flexibility, heat resistance, plasticity, tear strength, and anti-abrasion potential. Globally, China has been the leading country in the production of gum rosins. Gum rosin compound exhibits corrosion protection, and improves elasticity, young’s modulus, transition temperatures, and flame retardancy features.

Additionally, the presence of the bio-material compound in gum rosin provides more advantages in comparison with synthetic petrochemicals including petroleum-based compounds. They are widely adopted as essential raw materials in multipurpose industrial production processes. Gum rosins are used as crude raw material in paper making, soaps, and as a lubrication oil for stringed instruments. It is also applied in adhesives as a binder.

The demand for gum rosin is rising, due to the increasing need for high-quality intermediates in automotive and construction activities, in the form of adhesives, rubber, and coatings. Adhesives made using gum rosin resins offer superior features such as superior hot tack, thermal stability, excellent durability, and greater polarity. Additionally, gum rosins act as a softening agent in the production of rubber and improve elasticity, cohesion, and surface finish.

COVID-19 Impact on Gum Rosin Market

The recent outbreak of COVID-19 has a negative impact on the global gum rosin industry. The World Health Organization declared a global health emergency, due to the rising confirmed cases of COVID-19 around the world. The governments imposed several restrictions and took up many precautionary measures that forced the people to stay indoors.

The pandemic scenario has made temporarily shut down almost all business activities and resulting in the disruption of operations of various global demand-supply chains. COVID-19 emergence has crashed many economic activities.

Stringent restrictions such as the ban on travel, the import-export movement, and shortage of labor as well as raw materials, thus impact many manufacturing firms worldwide. In fact, the World Trade Organization (WTO) stated that global trade volumes are estimated to decline between 13% and 32% in 2020, owing to the economic impact of the COVID-19 pandemic.

Moreover, the gum rosin market has been seriously affected by the COVID-19 pandemic. The shutdown of various manufacturing industries which uses gum rosins as their raw material has led to declining demand for gum rosins.

This poses stagnant growth in the global gum rosin market. For instance, major industries including the automobile and construction industries significantly declined their growth during the COVID-19 phases. In March 2020, according to the Society of India Automobile Manufacturers (SIAM), sales of passenger vehicles declined 51% to 143,014 units while commercial vehicles witnessed to decline of 88% to 13,027 units, and two-wheelers, it falls 40% to 866,849 units in India.

In the U.S., automobile sales decreases by 27% in 2020. Additionally, gum resins are used in different industries such as adhesive, paint and coatings, and synthetic rubber industries as an important ingredients. These industries decreased their commercial sale of the product which in turn affected the global gum rosin industry. However, the market come back to its normal growth rate after the upliftment of the lockdowns in the post-pandemic phases and began resuming production in various manufacturing industries.

Gum Rosin Market Dynamics

The gum rosin market report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.

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Major Trends

Rising Focus on Product Innovation and Advancements

The global gum rosin market is a highly competitive space. The global gum rosin market is effortlessly contributing to product developments to cater to the demand of various end-users for their products. This emerging trend in the industry enabled the development of high-efficiency analytical techniques that will improve the quality and purity of pine chemical products.

Key Drivers

Increasing Demand from Diverse End-users

Gum rosin finds its prime applications in various end-user industries such as adhesives, sealants, paper sizing, rubber softener, printing inks, paints, thermoplastic coatings, and food & beverage. The increasing adoption of gum rosin across these industries raises its intense demand and hence drives the overall market growth. Gum rosins are applied in the manufacturing of coatings and paints as they can easily dissolve in organic solvents including gasoline, turpentine, alcohol, and others.

The increasing demand for paints and coating across the construction and automobile industries offers a strong opportunity for the gum rosins market. It is expected that the paint and coating segment will account for a 5.3% CAGR, by value in the years to come. Gum rosins are also used as the main ingredient in adhesives as it offers strength, softness, and adhesion to adhesives. The rising demand for adhesives from construction, automobile, rubber industry, furniture, bookbinding as well as packaging industries influence the sales of gum rosins and hence is propelling the growth of the global gum rosin industry.

Developments in the Resin Industry

The rising R&D activities and increasing investments in the resin industry for higher extraction output of the product are expected to drive market growth during the forecast period. Additionally, technological advancements coupled with innovative genetic modifications of pine trees increase the flow of resin in the trees which is projected to enhance the production of high-quality resins. All these aforementioned factors are further contributing to the business expansion of the gum rosin market.

Existing Challenges

Availability of Alternative Solutions

The availability of alternative solutions such as tall oil rosin poses great challenges to market growth. Tall oil rosin is more cost-effective than gum resin. Thereby, manufacturers, particularly in the package printing industry prefer tall oil resins over gum rosins. Gum rosin offers an economically effective substitution, which demands quick drying and requires high gloss inks. Thus, it affects the growth of the gum rosin market.

Additionally, readily available low-cost petroleum-based rosin solutions including Dicyclopentadiene, C9, and C5 provide superior performance, which is anticipated to hamper the market expansion.

Emerging Opportunities

Sustainability of Gum Rosin

Gum rosins are derived from organic materials such as pine chemicals from pine trees through the process of pine tapping. These bio-based materials offer many advantages as compared to synthetic or petrochemical-based materials. They are eco-friendly and sustainable solutions for the environment, as they have renewable sources of energy. They can also break down easily into the environment, hence various industries, such as construction and automotive industries, prefer using these bio-based gum rosin resins.

This offers lucrative opportunities for market expansion during the forecast period. For instance, according to the “3rd Annual Conference and Expo on Biomaterials”, the Bio-product market is anticipated to remain in high growth coupled with favorable government support and increasing funding & grants globally.

Scope of Gum Rosin Market Report

The report on the global gum rosin market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

X segment is leading the market share

Based on the product types, the global gum rosin market is classified as WW, WG, N, M, X, and K. The X segment is leading the market share in the global gum rosin market in 2021 and is expected to expand at a high CAGR during the forecast period. X-grade gum rosin is an organic resin that exists transparent solid, slightly yellow in color. X-grade comprises active chemical compounds and is soluble in organic solvents. Thus, they are widely utilized as the main ingredient in fabricating coatings and inks.

This product has a volatile oil content of ≤2% and softening point of ≥78°C. The derivatives of X-grade gum rosins are Hydrogenated rosin, polymerized rosin, and disproportionated rosin. The X-grade is highly demanded as compared to other grades, as it offers improved performance and provides high-quality products for its prime applications including adhesives and synthetic rubber.

The WW segment is estimated to witness robust growth during the forecast period, owing to its primary usage in rubber inks, adhesives, and paper sizing. The increasing usage of WW-grade gum rosin in printing sectors, paint, and soap industry, are also contributing to the segment growth.

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Adhesive segment holds the major market share

On the basis of the applications, the global gum rosin market is segmented as adhesives, sealants, paper sizing, rubber softener, printing inks, paints, thermoplastic coatings, food & beverage, road marking, cement varnishing, and pharmaceutical. The adhesive segment holds the major market share and is anticipated to grow exponentially with a CAGR of 4.02% during the forecast period. Gum rosins as a binder are extensively used in the adhesive industry, as it offers tear strength, viscosity, and plasticity of adhesives.

Adhesives have prime applications in the construction and automobile industry, thus, adding to the high sales of adhesives in the global market, which in turn, influences the sales of gum rosins. The increasing growth of automobile sales and rise in construction and building activities along with rapid urbanization paved the way for the business expansion of the gum rosin market. Additionally, the usage of adhesive in the footwear industry, machinery, furniture, and electronics is further contributing to the overall growth of the segment.

Asia Pacific remained dominant in the global gum rosin market

In terms of regions, the global gum resin market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in the Asia Pacific remained dominant in the global gum rosin market. It is also projected to lead the global market with a high CAGR during the forecast period, 2022-2030. The booming growth of the gum rosin market in the region is driven by the increasing number of construction and development activities.

The growth in construction activities is indirectly fueling the gum rosin market growth, as gum rosin is majorly used in paintings and coatings of buildings. For instance, in February 2020, the Asian Development Bank granted a loan of $631 million for the construction industrial corridor of Vishakhapatnam-Chennai.

Indian government’s initiatives for developmental projects such as ‘Housing for All by 2022’, ‘100 smart cities, and others, these development projects raise the construction activities in the country and hence resulting in extensive demand for gum rosin.

Extensive automobile vehicle production and sales in the region further propel the gum rosin market growth. Moreover, the rapid development of the paper sizing industry and expansion of the adhesives and printing ink industry also drive market expansion. The rising advancements in economic conditions in countries particularly India and South Korea have increased the regional market growth. Furthermore, synthetic rubber and paint & coating verticals have increased the acceptance of gum rosin.

Economic condition is improving in South Korea and India and this is another important driver for regional market expansion. Furthermore, China has been the largest consumer-producer of gum rosin with the presence of massive gum rosin manufacturing key players. It shares more than 60% of the total world’s gum rosin production. All these aforementioned factors are contributing to the overall growth of the global gum rosin market.

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