The adhesives industry growth in Europe and China has prompted increase in the demand for ingredients used for manufacturing hot-melt and structural adhesives. The paper industry growth has decreased primarily in the developed economies such as the U.S., the UK and Russia with the growth being driven by the increasing development of the paper sizing industry in China. In addition, the ink industry is expected to grow with the growth of the printing industry, globally. The product forms an inherent part of the aforementioned industries and as a result is expected to grow over the next eight years.
Thegum rosin market is expected to witness sluggish growth owing to growing substitution of gum rosin by tall oil rosin and petroleum-based rosin. The substitution of the product by tall oil rosin in the U.S. is expected to be driven by high production levels of the latter in the country leading to low switching cost. The demand is likely to be impacted by the weather disturbances in China leading to a stunted production in the region. As a result, the price is expected to rise leading to a sluggish market growth.
The demand for WW, WG and X grade gum rosin is expected to be driven by the increasing use of high-grade products by consumers present in Europe. In addition, the demand for lower-grade product such as N, M and K is expected to be driven by developing and under-developed countries such as India, Pakistan, Bangladesh, and Vietnam. Furthermore, the demand for other gum rosinssuch as B and H is expected to decline over the forecast period, owing to the lower quality offered by these products.
Adhesives and rubber industry growth is expected to drive the demand for the product over the next eight years. High population growth, primarily in Asia Pacific, coupled with growing disposable incomes in the region is expected to drive the demand for automobiles, which in turn is expected to bolster the demand for tires,and consequently the demand for gum rosin. Increasing demand for paints and coatings driven by rise of building & construction industry is also expected to drive the demand for gum rosin over the coming years.
In-depth report on global gum rosin market by Grand View Research: