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.
Product type – Segment Analysis
X Type segment held the largest share in the Gum Rosin market in 2019. The Gum Rosin X is extensively used as a raw material in fabricating coatings and inks as it is extremely chemically active and can be soluble in a number of organic solvents. Gum Rosin X grade has a softening point of ≥78 °C and volatile oil content of ≤2%. The Gum Rosin X can be further processed as modified gum rosin such as hydrogenated rosin, disproportionated rosin, polymerized rosin, and others. Therefore, owning to these properties of gum rosin X, its demand is high as compared to other types.
Application – Segment Analysis
Adhesives application held the largest share in the Gum Rosin market in 2019 and is anticipated to grow at a CAGR of 4.03% through the forecast period. Gum Rosin is used as a binder in adhesives to enhance the strength, plasticity, and viscosity of adhesives. The growth in construction activities and motor vehicle production is driving adhesive usage, which in turn is supporting gum rosin market growth. According to OICA, in 2018 the production of light commercial vehicles and heavy trucks increased by 5.9% and 3.5% from 2017. In addition, according to the International Energy Agency, in 2018, 3.29 million electric vehicles deployed globally, and the number will increase up to 125 million by 2030. In addition, adhesives dominance in several adhesives-intensive industries including electronics, footwear, furniture, and machinery is further expected to boost the market growth in the coming years.
Geography – Segment Analysis
Asia Pacific held the largest share in the Gum Rosin market in 2019, up to 57%, owning to growth in construction projects and rising automotive production in the region. In 2019, China government invested 1.9 billion on 13 public housing projects. In addition, in February 2020, the Asian Development Bank approved a loan of $631 million to develop the Vishakhapatnam-Chennai industrial corridor. Furthermore, construction projects such as ‘100 smart cities’ and ‘Housing for All by 2022’ in India are influencing Gum Rosin market growth. In addition, according to OICA, automotive production in countries such as India, Indonesia, and Malaysia have increased by 8%, 10.3% and 12.2% up to 5,174,645, 1,343,714 and 402,085 from 2017. Gum rosin is extensively used as softeners in the synthetic rubber industry and as a key raw material in the paint & coating industry owing to its dissolving property with solvents. As construction and automotive industry is the key application area of synthetic rubber and paints and coatings, the growth in these is indirectly supporting 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 emergence of COVID-19, which is declared a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. According to the International Monetary Fund, the global GDP is expected to decline by 4.9% in 2020. According to the World Trade Organization (WTO), global trade volumes are projected to decline between 13% and 32% in 2020 as a result of the economic impact of COVID-19. According to the World Health Organization, as of 15 July 2020, the total number of global confirmed cases has reached 13,285,640. Therefore, most of the countries have issued “stay at home guidance” i.e., lockdown due to which operations of various industries have disruptively stopped. 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, and Manish Minerals & Chemicals, among others.
- In 2017, Yunnan Jinggu Forestry Co., Ltd. and Southwest Forestry University has signed a “Strategic Cooperation Agreement” in Kunming. According to the agreement, Jinggu Forestry and Southwest Forestry General will jointly established the “Southwest Forestry University-Yunnan Jinggu Forestry Co., Ltd. Joint R&D Center”.