The growing demand for Pine Chemicals

The growing demand for Pine Chemicals

The pine chemical market is predicted to grow at least 5% percent annual growth CAGR[1] until 2027. The current market worth globally is AUD$15bn (US$10bn).

This forecasted growth can largely be attributed to the growing environmental awareness around the world, according to the Managing Director of Leaf Resources, Ray Mountfort.

“With more governments introducing restrictions on using hazardous substances, and increased mandatory purchasing requirements for biobased materials, has led to the boosted dominance of bio-based materials in the world markets,” he said.

The market is also demand-driven, as more corporations have mounting pressure from investors and consumers to be transparent on their supply chains’ environmental footprint, amplified through the expectations of ESG reporting. Pine chemicals are filling the role as a viable alternative to petroleum based chemicals.

Pine chemicals have a unique advantage to H2 Hydrocarbon resins, not only from a sustainability perspective but from a functional perspective, they exhibit compatibility with a wider range of polymers and provide better performance.

“The result is an upward shift to renewable alternatives. Leaf Resources has also seen a growth in products with pine chemicals as the key ingredients,” said Mr Mountfort.

For example, adhesives alone are roughly a $1 billion market because of emerging new adhesive types and e-commerce online retailers demanding biobased packaging. In addition, burgeoning infrastructure development is growing the demand for rosin for safety road striping.

“The future of the organic solvent extraction market is only growing.”

[1] Compound annual growth rate (CAGR)