In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Pine derived chemical is a pioneer in utilizing biomass resources because of increasing trend towards sustainable development and production of value added products. Pine is a bio-renewable and sustainable source that makes these chemicals bio degradable and eco-friendly source of raw material. Crude tall oil and crude sulfate turpentine are the raw materials that are derived during the pulping process of evergreen pine trees. The cellulose of pine trees are used for paper making, two sap co-products are applied as inks, paints, coatings, adhesives and much more. These chemicals basically consist of rosin, terpenes, tall oil, and gums and can be derived by the process of tapping or krafting. Growing environmental awareness regarding depleting non-renewable resources is driving people and industrialists towards renewable resources, which is further anticipated to propel the growth of pine derived chemicals market over the forecast period i.e. 2018-2027.
The global pine derived chemicals market is expected to observe a vibrant growth on account of increasing demand for environmentally sustainable products in the market. Advancements in biochemical industry in the past few years and growing sustainable living objectives along with increasing applications of these chemicals in the production of large number of products such as perfumes, food additives and household cleaners among others are projected to drive the growth of the market during the forecast period.
The pine derived chemicals market is anticipated to record a significant CAGR of 4.8% over the forecast period. Many multi-national companies are concentrating towards new product advances in pine derived chemical products and derivatives by numerous on-going research and development activities. Moreover, many advantageous properties of these chemicals are exploited in the paints and coatings, adhesives and sealant industries for eco-friendly products which are expected to boost the market growth rapidly.On the basis of regional platform, the global pine derived chemicals market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
With the present population across the region with high environmental condition awareness, North America market is panned to observe substantial growth with a revenue earning of USD 25,973.72 million in the year 2017. North America is expected to be followed by Asia Pacific in terms of consumption on the back of rising environmental awareness with highest consumption across China.
Europe is expected to drive demand and positively impact the market growth over the forecast period on the back of increasing applications of these chemicals in industries that follow eco-friendly standards across the region.
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Applications in Manufacturing of Various End-User Products
These chemicals can be used for the production of various end-user products such as vitamin intermediates, solvents, disinfectants, modified resins, ink resins, perfumes, flavors in soft drinks and food, fragrances in soaps and household cleaners, food additives and much more which is expected to drive the market strongly during the forecast period. Increasing adoption of bio based raw materials for environmental sustainability is predicted to impact the market subsequently in upcoming years. Various research and development activities involved in efficient developmental processes and innovative products are expected to propel the market growth substantially across the globe. Further, rising carbon dioxide emissions are bringing in the requirement for more eco-friendly and efficient raw materials such as pines in various end-user industries which is estimated to considerably impact the market over the forecast period.
Rising Demand on the back of Trending Sustainable Development
The pine derived chemical industry has been at the forefront of sustainable development to maximize the long term value of the unique pine tree resources on the back of efficient forestry management. According to Pine Chemicals Association, 10 billion pine chemicals industry exist around the world. Moreover, applications of these chemicals in vitamins, automobile tires, dimer or trimer acids, sterols and others is expected to push the market over the forecast period. Additionally, applications of pine trees for tapping in the forests to recover “oleoresin” that is separated into Gum Rosin (GR) and Gum Turpentine (GT) for various other derivatives is anticipated to aid the market growth.
Lack of Abundant Production Sources
However, pine tree tapping being highly labor intensive and lack of abundant production sources across the globe are estimated to serve as the restraining factors behind the growth of the pine derived chemicals market over the forecast period.
Our-in depth analysis of the global pine derived chemicals market includes the following segments:
By Chemical Type
The global pine derived chemicals market is further classified on the basis of region as follows: