Pine-Derived Chemicals — Versatile Bio-Based Renewables

pine-derived chemical market

The Pine-Derived Chemical market was valued at US$10.539 billion in 2022 and will increase to US$15.278 billion by 2029. Over the forecast period, this market is estimated to grow at a compound yearly growth rate of 4.65%.

Pine-derived chemicals are the co-products extracted during the papermaking process. These co-products are then upgraded into multiple key ingredients that are used in a wide range of products, crucial to everyday lives. Pine chemistry is a long-standing example of bio-based chemistry that uses natural, renewable products from pine trees as raw materials. The key co-product extracted from the papermaking process is Crude Tall Oil (CTO). CTO, a primary pine chemical, is used to produce many products and can be further distilled into other pine chemicals, including Tall Oil Fatty Acid, Tall Oil Rodin, Distilled Tall Oil, heads, and pitch. Pine-Derived Chemicals are segmented on type, source, process, and geography. 

During the projected period, the wide array of Pine derived chemicals’ applications is expected to drive the growth of the market.

Pine Chemicals are extensively being used in vitamins, food additives, paints, inks, perfumes, adhesives, fragrances in soaps, automobile tries, and many more. Pine-derived chemicals are renewable materials and have been serving as intermediate chemicals for over a hundred years for everyday consumer goods. Thus, the impact of the pine chemical industries extends to a wide range of society globally. The key co-products of the papermaking process are Tall Oil, Rosin, and Turpentine. Tail Oils are further upgraded to make Crude Tall Oils, Tall Oil Fatty Acids, Distilled Tail Oil, Sterols, Pitch, Dimers, and many others. Owing to their resilience and durability to withstand climate changes, abrasion, and compression, these materials are extensively used as binders in pavement making, cement, and other applications. Among them, Crude Tall Oil is the crucial pine-derived chemical. CTO, further, is also a consumer as feedstock for biodiesel production. As per American Chemistry Council estimates, the productivity of CTO will lead to 2.26 million tonnes by 2030 from 2.26 million tonnes in 2019 globally. This growth is an aid to be attributed to expansion in pulp capacity of future softwood. At the same time, the demand for CTO-based biofuels is expected to increase to 0.88 million tonnes per year by 2030. While, Rosins are further used to make wood rosin, rubber emulsifiers, paper size, ink resins, and many more. And Turpentine is used to produce Gum/Wood Turpentine, Vitamin intermediaries, Solvents, Disinfectants, flavors, and fragrances. The pines, a tree species under the genus Pinus, are commonly found in coniferous trees and are the source of several of the materials mentioned above.

Furthermore, with the increasing levels of greenhouse gas emissions, many are consumers focusing on eco-friendly, sustainable governments, and this is further powered by the increasing investments and initiatives deployed by multiple governments and enterprises on sustainable projects. The growing urbanization and investment in the construction of new buildings such as retail centers, offices, and hotels are expected to add impetus to the paints and coatings market growth. Additionally, the increasing applications of paints and coatings to prevent the corrosion of machine and equipment surfaces are expected to fuel the industrial coating segment. For instance, as per the statistics derived by the World Paints and Coatings Industry Association, the demand for architectural coatings surged by 5.2 percent in the second half of 2021. Furthermore, the demand for the products related to the healthcare segment saw a further boost during the pandemic. The demand for antimicrobial coatings was propelled by four to five times. Additionally, as per the statistical inferences by the Italian construction association, Associazione Nazionale Costruttori EdilI (ANCE), the investments in buildings and construction segments are expected to increase in upcoming years. Thus, the surging demand for the aforementioned products is expected to boost the pine-derived chemical market size.

During the forecast period, Europe and the Asia Pacific are likely to account for a significant proportion of the global Pine-derived Chemical market.   

By geography, the Pine-derived Chemical Market is segmented into five regions: Europe, Asia Pacific, North America, South America, and the Middle East and Africa. Europe and the Asia Pacific are expected to hold the dominant position in the pine-derived chemicals. The growth in the regions could be attributed to an increase in paints, coatings, adhesives, and lubricants. For instance, according to the German Adhesives Association 2020, the German tapes and adhesives industry contributed to about annual turnover of over €4 billion. Furthermore, the increasing advancing adhesive bonding technology and its increasing applications are expected to generate over €400 billion. The growing production of pine-derived chemicals, like gum rosins, is further expected to propel market growth in the Asia Pacific region. 

According to Analysts, stringent government regulations and rising labor costs are expected to serve as a restraint for the market growth. 

The stringent rules imposed by the government and fluctuating prices are expected to constrain market growth. Organizations like The Pine Chemicals Association and Environment Protection Agency predominantly monitor the safety and useability of the pine chemicals. The growing concerns over environmental protection, limited supply of pine trees, and stringent restrictions associated with are expected to availability of the raw materials and prices of the products. The lack of research and development in forestry management is also expected to hinder the market owing to less productivity. Additionally, there’s been a lack of labor as well. For instance, according to the Pine Chemicals International Association International, there were many incidences of gum resin farmers leaving for cities seeking jobs with better wages. 

Covid-19 Insights                       

The global pandemic had a negative influence on the pine-derived chemical market. The mandated lockdown and quarantine measures had created multiple challenges for the key players in the procurement of raw materials, and they had to look for other alternatives during the course. The closure of international borders has led to trade restrictions. The growing number of infected patients has resulted in a shortage of personnel, affecting productivity. For instance, according to WPCIA, due to the pandemic, 2020 saw a decrease in 3% sales due to Covid compared to the former year. Furthermore, due to the closures of several production facilities, the demand volume for the industrial coatings dropped by 6.8% when compared with the former year. Nevertheless, the improvised standard of living and growing population is expected to affect the market positively.

Pine-Derived Chemical Market Scope:

Report Metric Details
Market Size Value in 2022 US$10.539 billion
Market Size Value in 2029 US$15.278 billion
Growth Rate CAGR of 4.65% from 2022 to 2029
Study Period 2019 to 2029
Historical Data 2019 to 2022
Base Year 2023
Forecast Period 2024 – 2029
Forecast Unit (Value) USD Billion
Segments Covered
  • Type
  • Source
  • Process
  • Application
  • Geography
Companies Covered
  • Harima Chemicals Group, Inc.
  • Arakawa Chemical Industries, Ltd.
  • Ingevity Corporation
  • DRT (Dérivés Résiniques ET Terpéniques) (Firmenich)
  • Foreverest Resources Ltd.
  • And more
Regions Covered North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope Free report customization with purchase