Copal Market - Forecast(2024 - 2030)

Copal Market Overview

Copal Market COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing and production activities as a result of the country-wide shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, a slow recovery in new cosmetics and skincare production has been witnessed across many countries around the world since the end of 2020. Copal resins obtained from Burseraceae are primarily used in cosmetics and skin care products as it helps in stimulating blood circulation, which results in an improved skin complexion. It also acts as an astringent, which plays a significant role in tightening the skin, making it ideal for use in cosmetics and skincare products. According to recent insights published on The Business Line, India reported a growth of around 20% in annual retail sales of cosmetics and other skincare products during the fourth quarter of 2020 and is expected to grow in the upcoming years. In this way, a steady increase in production activities from the cosmetics & skincare industry is expected to increase the demand for copal required for the production of these cosmetics and skincare products. This indicates a steady recovery of the market in the upcoming years.

Report Coverage

The report: “Copal Market Report– Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Global Copal Industry.

By Grade: PWS Grade, DBB Grade, WS Grade, DUST Grade and Others.
By Form: Solid, Powder and Others.
By Application: Lacquers & Varnishes, Oilcloth, Linoleum, Plastics, Waterproofing Compounds, Printing Inks, Food Additive & Preservative, Adhesives and Others.
By End-use Industry: Paints & Coatings, Incense, Food, Building & Construction, Cosmetics & Personal Care, Automotive, Pharmaceutical, Printing & Packaging, Textile and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East and Africa).

Key Takeaways

• Adhesives application held a significant share in the Copal Market in 2021, owing to its increasing demand from packaging, construction and other sectors across the world. According to the European Adhesive and Sealant Industry, the adhesives & sealants sector in North America witnessed an increase in its production activities by 23.1% in 2020.
• Paints & coatings industry held the largest share in the Copal Market in 2021, owing to the increasing demand for copal from the coating sectors across multiple regions. According to Japan Paint Manufacturers Association (JPMA), the total paints and coatings production in Japan reached 1,645,960 tons during the year 2019.
• Asia-Pacific dominated the Copal Market in 2021, owing to the increasing demand for copal from the coating sectors of the region. For instance, in July 2019, Asian Paints commenced the commercial production of coatings and intermediaries in the Mysore plant in India. The coatings manufacturing plant in Mysore has a total capacity of 211,888 tons per annum.

Figure: Asia-Pacific Copal Market Revenue, 2021-2027 (US$ Million)

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Copal Market Segment Analysis – By Application

The adhesives application held a significant share in the Copal Market in 2021, owing to the increasing demand for adhesives from multiple regions across the world. According to a recent study published by the European Adhesive and Sealant Industry in 2020, the adhesives & sealants sector saw an increase in its production activities across multiple regions. For instance, Asia-Pacific saw an increase of 36.8%, Europe by 34.5%, North America by 23.1%, the Middle East by 1.3% and Africa by 1.1% in 2020. In this way, such an increase in the production of adhesives across the globe is expected to increase the demand for copal resins obtained from Burseraceae, since they are primarily used as an ingredient in such adhesives, owing to their high melting point. This is expected to drive the growth of the market during the forecast period.

Copal Market Segment Analysis – By End-use Industry

The paints & coatings industry held the largest share in the Copal Market in 2021 and is expected to grow at a CAGR of 4.5% between 2022 and 2027, owing to the increase in demand for paints and coatings across the globe. For instance, according to the British Coatings Federation (BCF), the first 5 months of 2021 achieved significant sales results in both industrial and decorative coatings in the United Kingdom, owing to strong consumer demand for DIY commodities such as paints and coatings in the country. Furthermore, Nippon Paints Group made medium to long-term investments in 2021 for upgrading and streamlining industrial facilities in Japan 2021 to 2023 to boost the production of paints and coatings to secure its position in the market.

In this way, an increase in demand and production of coatings is expected to increase the demand for copal as it is used in the production of coatings, owing to its combination of properties such as solubility in alcohol and solvents which include ethyl alcohol, acetone, chloroform and benzene along with its glossy, elastic finish and good weather-resistance properties. This is expected to accelerate the growth of the market during the forecast period.

Copal Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the Copal Market in 2021 up to 30%. The consumption of copal is particularly high in this region due to its increasing demand from the coating sector. For instance, according to Japan Paint Manufacturers Association (JPMA), the total paints and coatings production in Japan reached 1487.7 million tons in 2020. Furthermore, in 2020, the government of Vietnam announced its plan to develop the paint and coating industry with a vision for 2030. The average growth rate in the production value of the paint and coating industry is expected to reach up to 14% during the period from 2021 to 2030.

The properties of copal such as high melting point, good weather resistance, elastic and shiny finish along with its solubility in alcohol and solvents which include ethyl alcohol, acetone, chloroform and benzene, make it ideal for use in the production of coatings. Hence, an increase in the production of coatings in the region is expected to increase the demand for copal, leading to the growth of the market in the upcoming years.

Copal Market Drivers

An increase in demand for cosmetics and personal care products is most likely to increase demand for the product

Copal resins are commonly used in creams and lotions, bar soaps, shampoos and perfumes, owing to their sweet aroma along with their ability to treat spots and improve skin complexion. For instance, according to a study published on Fashion Network, skincare and suncare products produced an average annual growth of 5.6% in 2020. Furthermore, countries like France, Singapore, South Korea and the US sold some of the largest amounts of exported beauty and skincare goods during 2020 with shipments valued at US$ 9 billion, US$ 6.2 billion, US$ 6.1 billion and US$ 5.1 billion respectively. Furthermore, recent insights published in the Economic Times state that the average annual revenue of the Indian perfume industry is around INR 3000 crore (US$ 408 million) and it is expected to grow by approx. 17% by 2024. Likewise, a recent study published in the Vogue Business stated that China’s perfume consumption has been growing rapidly in recent years and reached US$ 1.76 billion during the fourth quarter of 2020. Hence, such surging demand for cosmetics and personal care products is expected to increase the demand for copal required during their production, thus, resulting in the growth of the market in the upcoming years.

An increase in demand from the incense industry is most likely to increase demand for the product

Copal incense is naturally available and is commonly used as a cleansing agent to purify the energy of spaces and objects. Moreover, it is used in the incense industry, owing to its sweet aroma, while burning copal incense is also known to remove all the negative energy and bring positive changes. For instance, according to the All India Agarbathi Manufacturers’ Association (AIAMA), India exports incense sticks to over 150 countries including Malaysia, the United States, the United Kingdom, Nigeria and more. The exports of Indian incense sticks increased by 15% by the end of 2021. It further states that the industry has been conventionally growing at an annual rate of 3.6%. Furthermore, in 2021, Mysore Deep Perfumery House (MDPH) group, a leading manufacturer and exporter of incense sticks in India, expanded its manufacturing facility in Madhya Pradesh by setting up two new factories in order to increase its production capacity by 30%, owing to the surging demand for incense sticks in the country for domestic use as well as export purpose. In this way, an increase in demand for incense sticks across the world is expected to increase the demand for copal required during its production, owing to its above-mentioned benefits. This is anticipated to drive the growth of the market in the upcoming years.

Copal Market Challenge

High cost of copal resins can cause an obstruction to the market growth

High prices of copal resins may restrict the growth of the copal market. For instance, according to Trade India, the price of water-soluble copal resins reached US$ 2500 – US$ 2700 per ton in 2022. Likewise, the price of copal resin manufactured by Pt. Holi Agro Indo, a company based in Indonesia, reached up to U$ 1500 per ton in 2022. Furthermore, the prices of white copal also reached US$ 2200 – US$ 2600 per ton. Thus, such a high cost of copal resins may confine the growth of the market.

Global Copal Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Copal Market. Global Copal industry's top 10 companies are:

1. Holi Agro Indo
2. CV. Pagota Sukses Makmur
3. KANTILAL BROTHERS
4. PT. Naval Overseas
5. PT. ISG International
6. Cv. Celine Tunas Sari
7. Bajaj Chemical Industries
8. Pt. Holi Agro Indo
9. Bima Bhakti Group
10. Opal Impex

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