Tannin Market Report

Tannin Market Analysis By Sources (Plants, Brown Algae), By Product (Hydrolysable, Non-hydrolysable, Phlorotannins), By Application (Leather Tanning, Wine Production, Wood Adhesives), & Segment Forecasts, 2014 - 2025

Published: April 2017  |  122 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-786-5

Industry Insights

The global tannin market size was estimated at 1,076.3 Kilotons in 2015. Increasing demand from the leather manufacturing and wine making industry is expected to be a key factor driving market growth.

Tannin, an astringent biomolecule is extracted from plants and fruits. It is found in various parts of plants including, barks, seeds, stem tissues, roots, and leaves. Plants have tannin content in abundance, which protects them from predation and also helps for their growth regulation. Fruits with rich tannin content include cranberries, blueberries, strawberries, hazelnuts, pecans, walnuts, grapes, and oranges.

U.S. tannin market volume by product, 2014 - 2025 (Kilotons)

U.S. tannin market

The market by product in the U.S. was 282.4 kilotons in 2015 and is expected to grow significantly over the forecast period. The demand from the leather manufacturing and pharmaceutical industry is increasing, on account of the rising disposable income and the presence of major players in the region. These factors are expected to propel the industry in the region.

The three major forms include hydrolysable, non-hydrolysable, and phlorotannins. These tannins bind well with alkaloids, amino acids, and proteins. Owing to these properties, they find applications in various industries including wine making, leather tanning, and wood adhesives. Tannin extracts obtained from oak, quebracho and mimosa trees are utilized for leather manufacturing and treatment.

Winemaking industry requires extracts in abundance for the purpose of vinification and aging. Aged wines are often characterized as a premium product and as a symbol of status for its consumers. The rising disposable income and the willingness to pay a hefty sum for premium products such as wine is driving wine industry growth thus benefitting the demand for wine applications.

Companies are investing in R&D activities and are striving towards the development of environment-friendly manufacturing process. Development of new technologies coupled with constant improvements is steering industry growth.

Source Insights

Tannins occur in various species in the plant kingdom. The most common occurrence of tannins is found in angiosperms and gymnosperms. Other species which also have tannin in abundance include, dipterocarpaceae, bixaceae, grossulariaceae, aceraceae, combretaceae, myriacaceae, actinidiaceae, burseraceae, najadaceae, ericaceae, and typhaceae. Condensed tannins are the most abundant organic compounds, which are found in almost all families of plants.

Plants containing tannin include wattle, trefoil, sainfoin, quebracho, mangroves, eucalyptus, and canaigre. These plants are easy to procure, and the processes of manufacturing tannins from these plants are also easy. These factors are anticipated to accelerate the growth over the forecast period.

Brown algae are found in various waterbodies including, rock pools, tidal splash zone, intertidal zone, and near shore waters. Brown algae usually consist of fast-growing and large seaweeds. The procurement of these algae is difficult, moreover, the handling and treatment of these brown algae is difficult and costly. These factors have resulted in the low market share of the segment.

Product Insights

Hydrolysable tannins when heated, form gallic acids. These products have beneficial antibacterial effects and thus are also used in the manufacturing of pharmaceuticals. Recent studies have also suggested that hydrolysable are effective against cancer.

Non-hydrolysable are also known as condensed tannins. These products are formulated when the plant extracts are condensed. These are usually found in tropical trees including, quebracho, mimosa, pine, and spruce and are utilized for the manufacturing of dietary supplements and wood adhesives.

Phlorotannins are usually extracted from various brown algae including, rockweeds and kelps. Phlorotannins have oxidizing abilities and can precipitate proteins. These products have various beneficial medical properties including, radio-protective, anti-cancer, antibacterial, anti-oxidation, anti-HIV and anti-diabetic. Owing to these varied beneficial properties, phlorotannins are often utilized in the manufacturing of pharmaceuticals.

Application Insight

The global demand has seen a paradigm shift owing to the rising awareness among consumers regarding the advantages of tannin. Leather tanning emerged as the largest application segment and accounted for over 62.3% of the total market revenue in 2016.

Global tannin market volume by application, 2016 (%)

Global tannin market

Tannins are insoluble proteins and do not decompose. Owing to this property, they are utilized for the manufacturing of leather. In leather tanning processes, the skins of animals are treated. The demand for leather is increasing owing to its varied applications in furniture, automotive seats, and clothing. The increasing disposable income of people and increasing demand for leather products are expected to fuel the growth of the industry.

Tannins have high anti-oxidation properties which are required for the production of wines. It provides color stabilization in wines and gives it the desired structure. These extracts help the wines to age better, ferment properly and gain a distinct aroma. Increasing alcohol production and its simultaneous consumption are factors anticipated to fuel the market over the next nine years.

The growing manufacturing of wooden products has given rise to a high demand for wood adhesives. They are also utilized in the manufacturing of wood adhesives. Non-hydrolysable tannins are preferred for this purpose. Wood adhesives are utilized for various applications including, furniture, construction, and musical instruments.

Tannin is extensively utilized in the manufacturing of anti-corrosive primers, which withstand harsh weather conditions. Primers manufactured with tannins as additives, also help to smoothen rusted steel surfaces. These factors combined are expected to positively drive the growth of the industry over the forecast period.

Regional Insight

Europe was the leading region and accounted for around 38% of the total revenue in 2015. The wine industry is highly developed in Europe, and thus the requirement of tannin in the region is high. Particularly France has a well-established wine industry and thus have a large share in the global market.

Europe was followed by North America which accounted for significant share of the total revenue in 2015. Growing alcohol consumption and rising demand for leather commodities are expected to remain key driving factors for the industry. The region of North America is characterized by the presence of major players; this factor is expected to drive the industry over the forecast period.

The increasing leather and food manufacturing industry in the region of Asia Pacific, specifically in emerging economies such as China and India is projected to positively drive the demand over the forecast period. China, India, and Japan are expected to account for the highest share owing to rising manufacturing cost benefits, living standards, increasing overseas demand, and domestic demand induced by the rising population demand.

The regions of Central and South America and The Middle East & Africa are also anticipated to show a significant growth. Lenient regulations in these markets also contribute towards growing demand and encourage foreign players to invest, making the market more competitive.

Competitive Insights

This industry is highly competitive and fairly concentrated. Key industry participants include Tannin Corporation, S.A. Ajinomoto OmniChem, W. Ulrich GmbH, and Laffort S.A.

Application development and customized products are expected to be the key parameter for being competitive in this industry, with frequent joint ventures, mergers, and acquisitions being undertaken as an attempt to diversify product portfolio and gain market share.

Report Scope 

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2025

Market representation                                                 

Volume in Kilotons, Revenue in USD Million and CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, France, China, India, Japan

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global tannin market on the basis of source, product, and region:

  • Source Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Plants

    • Brown Algae

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Hydrolysable

    • Non-hydrolysable

    • Phlorotannins

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Leather Tanning

    • Wine Production

    • Wood Adhesives

    • Anti-corrosive Primers

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

    • Middle East & Africa 

Key questions answered by the report
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