Pine-Derived Chemicals Market Report 2025

The pine-derived chemicals market size has grown strongly in recent years. It will grow from $5.76 billion in 2024 to $6.1 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to renewable and sustainable raw material, expanding industrial applications, rising environmental regulations, shift towards green chemistry, innovations in extraction and processing, development of biomass-based economy, widespread use in cleaning and surfactants.

The pine-derived chemicals market size is expected to see strong growth in the next few years. It will grow to $7.84 billion in 2029 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to expansion of pine-derived biochemicals market, increased utilization in agriculture, growing demand for pine oil, innovation in pine resin applications, global adoption of pine-derived terpenes. Major trends in the forecast period include bio-based resins and polymers, expanding applications in adhesives and sealants, antioxidants and health products, pine-derived terpenes in pharmaceuticals.

Rising environmental concerns are anticipated to drive the growth of the pine-derived chemicals market in the coming years. Environmental concerns involve efforts to protect the natural world, including land, sea, air, plants, and animals. The growing awareness of environmental issues has led to an increased preference for plant-based pine chemicals over traditional synthetic methods, as synthetic chemicals contribute to environmental pollution. For example, in August 2022, the United Nations Environment Programme, an intergovernmental organization based in Kenya, reported that around 3.2 billion people, or 40% of the global population, were adversely affected by land degradation. Additionally, the loss of pollinators threatens up to $577 billion in annual global crop production. Land clearing, crop production, and fertilization also account for 25% of global greenhouse gas emissions. Therefore, rising environmental concerns are boosting the pine-derived chemicals market.

The expanding construction industry is expected to contribute to the growth of the pine-derived chemicals market. The construction industry involves the commercial manufacturing and trade sector responsible for building, maintaining, and repairing infrastructure. The increasing demand for adhesives and sealants, which are essential in construction projects, is boosting the demand for pine-derived chemicals, a key ingredient that offers strong bonding and weatherproofing properties. For instance, in February 2022, the Office for National Statistics, an administrative body of the UK Statistics Authority, reported that the construction sector grew by a record 12.7% in 2021 compared to the previous year. In December 2021, monthly construction output increased by 2%, driven by a 3.5% rise in new work. Additionally, the sector's quarterly output rose by 1% in Q4 2021 compared to Q3, with increases in both new work (1.1%) and repair and maintenance (0.8%). Consequently, the expanding construction industry is fueling the growth of the pine-derived chemicals market.

Facility expansion has emerged as a key trend gaining traction in the pine-derived chemicals market. Manufacturers in this sector are focusing on expanding their facilities to produce superior products and meet growing market demand. For example, in August 2023, Pine Chemical Group, a Finland-based provider of pine-derived chemicals, announced plans to expand its production facility in Kotka. This site will be used to produce a variety of specialty fats for applications such as chocolates, coatings, fillings and compounds, spreads, and bakery fats. The company offers a range of products, including crude oil, tall oil pitch, and pitch fuel, all of which are fully certified under regulations like REACH and ISCC.

Leading companies in the pine-derived chemicals market are focused on developing innovative products, such as pharmaceuticals using pine-derived chemicals, to produce superior products and meet market demand. Pharmaceuticals with pine-derived chemicals refer to medications and drug compounds created using chemical components extracted from pine trees. For instance, in July 2023, the University of Bath's Department of Chemistry and Institute for Sustainability, a UK-based research institution, discovered a method for producing two widely used pain relievers, paracetamol and ibuprofen, utilizing a compound derived from pine trees. This compound is a byproduct of the paper industry and provides an alternative to crude oil for the synthesis of common drugs like paracetamol and ibuprofen. Operating on a turpentine-based biorefinery model, the process uses waste chemical by-products from the paper industry to produce a range of sustainable chemicals that are valuable across industries, including perfumes and pharmaceuticals such as paracetamol. By employing continuous flow reactors instead of traditional large reactors, the method allows for uninterrupted production and scalability. While the current process may be more costly compared to oil-based feedstocks, consumer willingness to pay a premium for pharmaceuticals derived entirely from plant sources could support the market acceptance of these sustainable alternatives.

In March 2022, DL Chemical Co. Ltd., a South Korean company specializing in the production of adhesives and sealants, acquired Kraton Corporation for $2.5 billion. This acquisition enables DL Chemical to enhance its manufacturing capacity, expand its product portfolio of pine-derived chemicals and other related products, and extend its market presence in the Asia-Pacific region. Kraton Corporation, a US-based manufacturing company, specializes in the production of polymers and various bio-based products and chemicals derived from pine.

Major companies operating in the pine-derived chemicals market are Ingevity Corporation, Florachem Corporation, Harima Chemicals Group Inc., L'entreprise française DRT, Georgia-Pacific Chemicals LLC, Swati Menthol & Allied Chemicals Ltd., Privi Speciality Chemicals Limited, Arboris LLC, PineChemical Group Oy, SunPine AB, Lawter Inc., Safeguard Chemical Corporation, Arakawa Chemical Industries Ltd., Kraton Corporation, WestRock Company, Forchem Oy, International Flavors & Fragrances Inc., Foreverest Resources Ltd., Takasgo International Corporation, Wuzhou Sun Shine Forestry and Chemicals Co., Mercer International Inc., OOO Torgoviy Dom Lesokhimik, Respol Resinas SA.

North America was the largest region in the pine-derived chemicals market in 2024. Europe was second-largest region in the pine-derived chemicals market report during the forecast period. The regions covered in the pine-derived chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pine-derived chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Pine-derived chemicals are co-products obtained through the distillation of pine trees during the papermaking process. These are transformed into crucial components utilized across various applications like paints, adhesives, and more.

The primary varieties of pine-derived chemicals encompass tall oil fatty acid, tall oil rosin, gum turpentine, gum rosin, sterols, pitch, and others. Tall oil fatty acid, for instance, is a cost-effective, viscous substance with a yellow-black hue and distinct odor. It is derived through the vacuum distillation of crude tall oil, utilizing processes like kraft, tapping, and pulpmills, drawing from living trees, dead pine stumps, and logs as sources. This chemical finds applications in adhesives and sealants, paints and coatings, surfactants, printing inks, fragrances, cosmetics, food additives, and various other industries.

The pine-derived chemicals market research report is one of a series of new reports that provides pine-derived chemicals market statistics, including pine-derived chemicals industry global market size, regional shares, competitors with pine-derived chemicals market share, detailed pine-derived chemicals market segments, market trends, and opportunities, and any further data you may need to thrive in the pine-derived chemicals industry. This pine-derived chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The pine-derived chemicals market consists of sales of crude sulfate turpentine sterols and stumps. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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