Increasing demand for bio-based materials and rapidly evolving building & construction industry has raised the demand for gum rosin. 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.
The gum rosin market is growing at a significant rate during the forecast period, owning to the growing requirement for superior quality intermediates from various industries, increasing building and construction activities and stringent regulations supporting bio-based materials usage. Gum rosin is an essential raw material for the production of paints and coatings, rosin ester resins, rubbers, inks, and so on. In addition, 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.
Gum rosin is extensively used in the paint & coating industry owing to its dissolving property with solvents. It also plays a major role in road coating production and is used to make thermoplastic coatings for road sign injunction. The building and construction activities are increasing across the globe due to economic reforms and rising per capita income of the individuals. The construction work of four-lane Bridge including approaches over River Brahmaputra between Dhubri on North Bank in Assam and Phulbari on South Bank in Meghalaya is being taken up by India with a loan assistance from Japan International Cooperation Agency (JICA). The construction period is 7 years and 9 months and the projected date of completion is in the year 2026-27. Bangladesh through India-Japan Development Cooperation is planning to enhance the connectivity by way of four-laning of road, reconstruction of bridges on the Ramgarh to Baraiyarhat stretch, and by constructing the Jamuna Railway Bridge over the Januma River. In addition, China started an initiative One Belt, One Road for forging infrastructure and facilities networks by building efficient transport routes connecting major seaports along the belt and road. In 2019, China approved to invest $142 billion in 26 infrastructure projects. In addition, According to the India Brand Equity Foundation (IBEF), India plans to spend US$ 1.4 trillion on infrastructure in the next five years. Moreover, in India, the government has initiated projects, such as ‘100 smart cities’ and ‘Housing for All by 2022,’ which are expected to drive the Indian residential construction market over the forecast period. According to the US Census Bureau, in February 2020 total construction of United State was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above the February 2019 rate of 1,288,951. Mexico is also witnessing high housing demand, therefore attracting noticeable investment into construction. For instance, In January 2019, Inter-American Development Bank (IDB) granted local currency financing program to the Mexican company Procsa up to 150 million Mexican pesos ($7.8 million), in order to finance for land acquisition, development and commercialization of housing for low and middle income families in the country.
APAC holds a major share of gum rosin market, owning to the presence of large consumer base, pine chemicals, developing construction sector, growing consumption of food grade and adhesive resin, rise in disposable income, growing middle class sector, and increasing consumptions of paper and printing inks in the region. In 2019, in China, the import value of chewing gum was $12.41 million, up by 10.08% Y-o-Y. According to the Trademap data, in 2019, Japan exported rosin derivatives worth around $31.65 million. In 2019, Indian total export value of chewing gum accounted for $11.08 million. According to the Korea Adhesive Industry Association (KAIA) report, the total production of adhesives in Korea reached to 679,198 MT in 2017 from 648,552 MT in 2018, with a Y-o-Y growth of 4.7%. In addition, according to OICA, automotive production in countries such as India, Indonesia, and Malaysia has increased by 8%, 10.3% and 12.2% up to 5,174,645, 1,343,714 and 402,085 from 2017. This growth is driving the need for superior quality intermediates in the automotive industry, in the form of adhesives, coatings, and rubber, which in turn is driving gum rosin market growth.
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Gum Rosin Market Growth Drivers:
- Increasing demand for bio-based materials from various Industries:
Bio-based materials, such as Gum Rosin, are derived from renewable energy sources, i.e., derived from pine trees using the pine tapping process. There are various advantages of using bio-based materials instead of synthetic or petrochemical-based materials. For instance, due to stable supply of bio-based sources, and low price fluctuations when compared to petrochemical-based materials. According to the "3rd Annual Conference and Expo on Biomaterials," the market for bio-based materials is anticipated to expand dramatically due to the easy availability of funds and grants from government agencies globally, technological advancements and growing demand for environment-friendly products around the globe. Rubber based adhesive, synthetic resin based adhesive, and vegetable adhesive all have gum rosin as one of their ingredients. Gum rosin is extensively used in hot-melt adhesive, pressure-sensitive adhesive, and rubber-based adhesive. The main purpose of the gum rosin ingredients is to enhance the strength, softness, and adhesion of the adhesive. Stringent regulations such as the U.S. Sec 175.105 of Federal Regulations, D4499-07(2015), ASTM D 4498 – 07 (2015), and D3236, are driving the adoption of hot melt adhesives and bio-based adhesives in food packaging applications, which in turn is supporting gum rosin market growth. Hence, the stringent environmental regulations and the increasing use of bio-based adhesives in multifarious end-use industries such as packaging, healthcare, and building & construction are driving gum rosin market growth.
Research & Development:
According to the Pine Chemicals Association, new processing methods for gum rosin are having a major impact on the market, and these changes are much more sustainable. In the past years, there has been a lot of work being done on changing the way gum rosin is collected. There is a more modern approach being created, mechanizing production, and planting plantation forests for producing gum rosins. More importantly, there is work being done primarily in Brazil with faster-growing hybrid trees that yield more gum resin. According to the Pine Chemicals Association, harvesting a naturally grown pine tree throughout the year will gather two kilograms of gum rosin. The new hybrid trees range from six kilograms to eight kilograms annually, which makes for increased production and less labor. In addition, researchers at the University of Florida are also working on genetic changes that can increase the flow of the sap in the tree. All of this allows the worker and the company to make more money and is changing the face of the industry. Thus, industry participants are also engaged in extensive research and development for efficient tapping methods and development of genetic changes that would increase the glow of resins in the trees. Such technological advancements and innovations are expected to increase the production of high-quality gum rosin products in the coming years, thereby projecting high growth for the overall market in the coming years.
The Major Players in this Market Include
The major companies in the Gum Rosin market include 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. The main focus of the companies are centered towards research and developments, for enhancing their product portfolios for various end-use industry. For instance, 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". The continuous developments in the Gum Rosin is the major factors set to buoy the Gum Rosin market during 2020-2025.
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