The C5 Resins Market is estimated to be valued at US$ 861.82 Mn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
C5 resins are hydrocarbon resins derived from cracked petroleum feeds such as aromatic or aliphatic hydrocarbon streams. They impart tack, hardness, and adhesion properties to various industrial and commercial products. C5 resins find wide usage in construction sector for waterproofing membranes, sealing compounds, and tiles adhesives owing to their excellent adhesive properties.
Market key trends:
One of the key trends driving growth of Global C5 Resins Market is growing demand from construction industry. C5 resins enhance bonding strength, flexibility and durability of various construction material. They are primarily used in waterproofing membranes, tile adhesives, roofing and weathering materials owing to their moisture resistance. According to U.S. Census Bureau, the total construction spending in United States is expected to grow at a rate of 7.7% during 2022-2023, indicating rapid urbanization worldwide which will boost demand for C5 resins in construction applications over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the C5 Resins market due to the requirement of high capital investment and the presence of well-established players.
Bargaining power of buyers: The bargaining power of buyers is high in the C5 Resins market as the product is a commodity and buyers can easily switch between suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the fragmented nature of raw material suppliers for C5 Resins.
Threat of new substitutes: The threat of new substitutes is moderate as other petroleum-based products can substitute C5 Resins.
Competitive rivalry: Competitive rivalry is high among existing players due to the commodity nature of the product.
SWOT Analysis
Strength: C5 Resins have good compatibility with different substrates. They provide high gloss, durability and resistance to heat, chemical solvents and water.
Weakness: Volatility in crude oil prices affects the production cost of C5 Resins. Their usage is restricted in some food packaging applications due to health concerns regarding impurities.
Opportunity: Growing demand from construction and pressure sensitive adhesives industries provide growth opportunities. Development of bio-based C5 Resins can reduce dependency on petroleum resources.
Threats: Stringent regulations especially in Europe regarding VOC emissions limit the usage of solvent-based C5 Resins. Substitution threat from functionalized polymers.
Key Takeaways
The global C5 Resins market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing demand from construction and automotive industries. The market size for C5 Resins is estimated to reach US$ 1,088.03 Mn by 2030.
Regional analysis North America dominates the global C5 Resins market currently and is expected to continue its dominance over the forecast period. This is attributed to rising infrastructure spending and construction activities in the US. Asia Pacific exhibits the fastest growth rate owing to rapid urbanization and industrial development in China and India.
Key players operating in the C5 Resins market are Arakawa Chemical Industries Ltd, Cray Valley, DuPont, Eastman Chemical Company, ENEOS Holdings Inc., Exxon Mobil Corporation, Henan Anglxxon Chemical Co. Ltd, Kolon Industries Inc., Lesco Chemical Limited, Neville Chemical Company, Puyang Ruisen Petroleum Resins Co. Ltd, Seacon Corporation, Shanghai Jinsen, Hydrocarbon Resins Co., Limited, Zibo Luhua Hongjin New Material Co. Ltd, and ZEON CORPORATION.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.