Pine-Derived Chemicals Market - Forecasts from 2024 to 2029

The pine-derived chemical market is evaluated at US$10.539 billion for the year 2022 and is projected to grow at a CAGR of 4.65% to reach a market size of US$15.278 billion by the year 2029.

Pine-derived chemicals are bio-based renewable chemicals obtained from the pine tree. The carbonization of wood and the distillation of oleoresin provide these compounds. Additionally, the bulk of distilled goods is made from stumps, gum, sulfate pulp byproducts, and logs.

Chemicals derived from pine trees are obtained as byproducts of the pulping process in the form of crude sulfate turpentine and crude tall oil during the papermaking process. The wood carbonization process produces products such as creosote, charcoal, methanol, essential oils, tannin, phenol, and medicament. Furthermore, adhesives, resins, surface coatings, printing inks, soaps and detergents, plasticizers, and aroma compounds all include pine-derived substances.

MARKET TRENDS:

Several important factors drive the growth and development of the pine-derived chemical industry. One important factor is the increased demand from consumers for environmentally friendly and sustainable products, which has sparked interest in bio-based substitutes for chemicals obtained from petroleum. Pine trees are widely distributed around the globe and provide a sustainable and eco-friendly source for the production of terpenes, rosin, and derivatives of tall oil, among other compounds. These compounds made from pine are used in many different sectors, including adhesives, flavors, scents, paints, coatings, and medications.

Furthermore, the creation of superior pine-derived compounds with improved purity and performance characteristics is made possible by technical breakthroughs in extraction, purification, and processing procedures.  Numerous significant factors drive the expansion and advancement of the chemical industry generated from pine. A significant contributing aspect is the growing consumer demand for sustainable and eco-friendly products, which has generated interest in bio-based alternatives to petroleum-based chemicals.

Pine trees are found all over the world and offer a sustainable and environmentally beneficial way to produce terpenes, rosin, and tall oil derivatives, among other chemicals. These pine-derived chemicals find use in a wide range of industries, such as adhesives, flavors, fragrances, paints, coatings, and pharmaceuticals. Furthermore, the creation of superior pine-derived compounds with improved purity and performance characteristics is made possible by technical breakthroughs in extraction, purification, and processing procedures.

MARKET DRIVERS:

An increase in applications of pine chemicals across industries is anticipated to drive the market.

The pine-derived chemicals market is largely driven by rising demand for products in the adhesive, paints and coatings, building, and healthcare industries. The increased emphasis on natural and environmentally friendly products that result in reduced CO2 emissions is fueling the product demand. Tall oil rosins offer a wide range of applications in the building sector. Owing to their durability and resilience to abrasion, compression, and weather, these materials are utilized as binders in cement, pavement marking, and other diverse applications. According to the Italian construction association, Associazione Nazionale Costruttori EdilI (ANCE), investment in the construction industry is anticipated to rise, further fueling the market.

Rising CO2 emitted by natural gas might propel the market growth.

Increasing CO2 emissions from natural gas and crude oil, as well as increasingly strict environmental regulations, are some of the causes that have prompted the firms to make a sustainable decision which in turn fuels the market. “The Crude Tall Oil Value Chain: Global Availability and the Influence of Regional Energy Policies,” research published in 2020 by Pine Chemicals in The Journal of Cleaner Production, projects an 8% shortage of crude tall oil (CTO) global availability for all uses by 2030. This shortfall, according to the study, is attributable to the increased demand for CTOs for transportation-related biofuels. As a result, the manufacturing of pine-derived bio-based compounds will increase.

Furthermore, gum rosin, which is made from tree oleoresin, is used to improve plasticity, adhesive viscosity, and strength. Therefore, these factors are predicted to increase the consumption of pine-derived chemicals and fuel market expansion throughout the projected period.

MARKET RESTRAINTS:

Stringent government regulations might hinder the pine-derived chemical market.

Strict government rules are a major obstacle to the market for chemicals generated from pine, affecting the supply chain, market access, and several industrial processes. Pine feedstock supply and sustainability for chemical extraction can be impacted by laws about forestry management, environmental protection, and chemical safety.

Forestry laws that protect natural ecosystems and encourage sustainable forest management may impose restrictions on pine tree harvesting, which would reduce the availability of raw materials for the manufacturing of chemicals derived from pine. Additionally, producers of chemicals generated from pine may have to pay more to comply with environmental rules that control emissions, waste management, and the quality of the air and water.

North America is predicted to account for a significant share of the pine-derived chemical market.

The pine-derived chemicals market is expected to grow rapidly in the North American region. This increase can be attributed to increased product demand from adhesive and sealant applications. The region's vast pine woods offer a plentiful and sustainable supply of raw materials for the manufacturing of compounds derived from pine, such as terpenes, turpentine, tall oil, and rosin. Owing to the feedstock's accessibility, producers of chemicals generated from pine have a steady supply chain, which is predicted to promote industrial expansion.

Furthermore, the growing use of sterols and gum rosin in printing inks is anticipated to drive the market in the Asia Pacific. The rising usage of chemicals in paint and coatings applications is driving expansion in Europe. Moreover, The Middle East and Africa are expected to see substantial development due to the use of tall oil rosin in surfactant applications.

Market Developments:

• In January 2024, with the completion of a $35 million investment, Kraton Corporation, a prominent global sustainable producer of specialty polymers and high-value biobased products derived from pine wood pulping by-products, upgraded its crude tall oil (CTO) biorefinery towers at its manufacturing facility in Panama City, Florida.
• In March 2023, in Japan, at the Kakogawa Plant, Harima established a myrcene production plant on the grounds of its manufacturing center. Myrcene, a crucial component of scent oils and perfumes, is derived from turpentine's pinene molecule, a naturally occurring material that is taken from pine trees.

Segmentation:

By Type

• Tall Oil Fatty Acid
• Tall Oil Rosin
• Sterols
• Pitch
• Gum Turpentine
• Gum Rosin
• Others

By Source

• Living Trees
• Dead Pine Stumps & Logs
• By-products of Sulphate Pulping

By Process

• Tapping
• Kraft

By Application

• Paints & Coatings
• Adhesives & Sealants
• Printing Inks
• Surfactants
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others 
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others 
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others 
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others