C5 Resin Market Trends

Growth Drivers

• Growing Paints and Coatings Industry – C5 resin has an extensive range of applications as a modifier for paints and coatings processes. It also can act as a tackifier for adhesives and pressure-sensitive adhesives, when used in combination with various types of resins. All these factors coupled to extend the utilization rate of C5 resins in the paints and coatings industry expected to contribute positively to market growth during the forecast period. The worldwide paint and coatings market was expected to be worth over USD 160 billion in 2021, rising to nearly USD 240 billion by 2029.
• Rapid Growth of Adhesives and Sealants Industry – In the recent period, the demand for C5 resin in various adhesives and sealants applications as it provides good adhesion and promotes tack in hot-melt and pressure-sensitive adhesives. It has been stated that the global adhesives and sealants industry was valued at almost USD 70 billion in 2022 and is further expected to grow at 6% CAGR.
• Extensive Growth in the Automotive Industry - Recently, it has been calculated that the global automotive industry manufacturing industry amounted to almost USD 3 trillion by the end of 2021.
• Growth in the Chemical Industry - According to recent estimates, the global chemical industry's revenue in 2021 was projected to exceed over USD 5 trillion.

Challenges

• Long Manufacturing Cycles – The manufacturing of C5 resin requires a lot of raw materials which need to be handled carefully. Unfortunately, the constant fluctuation in prices of the raw materials along with the long manufacturing cycles is estimated to lower the adoption rate and subsequently hamper the market growth during the forecast period.
• Requirement of Higher Initial Investment
• Stringent Government Rules