The Global "Resorcinol Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Resorcinol is a white crystalline compound used largely in the rubber industry and in wood bonding applications and is an important source of chemical intermediate in the manufacture of specialty chemicals. Other uses of the chemical include the manufacture of dyestuffs, pharmaceuticals, flame retardants, ultra-violet absorbents, agricultural chemicals, fungicidal creams and lotions, and hair dye formulations.
The growing demand for resorcinol-formaldehyde in the rubber industry is boosting the global resorcinol market.
Further, an increase in demand for rubber products in the tire industry is adding fuel to the growth of the market in the upcoming years.
The companies are focused on the expansion of production capabilities in order to strengthen market position through annual production capacity.
For instance, in November 2017, Sumitomo Chemical Co. Ltd. increases its production capacity of resorcinol, a raw material used in automotive tires and other applications. The company’s annual production capacity by 2,000 tons to 12,000 tons at its Oita Works facility in Japan in 2018. The firm’s automotive and other tires account for half of all resorcinol applications.
However, research and development of resin adhesive systems which can replace resorcinol and formaldehyde is the major restraint of the global resorcinol market.
For instance, in March 2019, Continental and Kordsa jointly developed a new sustainable, RF-free adhesive technology for bonding textile reinforcing materials with rubber compounds have been branded ‘Cocoon’ friendly in order to replace resorcinol and formaldehyde.
In September 2018, Jarocol Royal Blue and Jarocol Rich Black jointly developed and launched resorcinol-free products in order to replace resorcinol allowing formulators.
Based on the application, the global resorcinol market is broadly segmented as rubber products, wood adhesives, UV stabilizers, flame retardants, and others (dyes and dyestuffs). Among all of the applications, Rubber products such as tires and conveyors are leading the charge in terms of developing market.
According to Bryan Garnier & Co. report in 2017, the global demand for car and light commercial vehicles tires is increased from 1,536 million units to 1,634 million units, especially in international markets, with increased unit shipments of 6.38 percent primarily in North America and Asia Pacific.
Further, the wood adhesive is also estimated to offer lucrative opportunities to the resorcinol market in the next few years. It is owing to use in the construction industry.
According to American Wood Industry, Currently, adhesives used in North American wood products fall into two primary groups: adhesives for structural products and adhesives for interior, non-structural products.
The global resorcinol market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific is the leading market for resorcinol with China leading the charge followed by India and Japan.
The demand for resorcinol is increasing in Asia Pacific countries owing to the growing number of manufacturing industries.
For instance, in April 2019, Continental Tire has officially started its tire manufacturing operations at its Greenfield tire plant in Rayong, Thailand.
In November 2016, Apollo Tyres officially started its new manufacturing facility in Andhra Pradesh to manufacture tires for two-wheeler and pick-up vehicles. The company invested around Rs 500 crore in the new facility.
Also, China’s tire production increased by 5.4 percent from 2016 to 926 million units, a third of the global total. Tire makers' production had a 7.1 percent raise to 653 million units, According to the data from China's ministry of industry and IT in 2017.
Further, according to the data from U.S. Tire Manufacturers Association in 2017, the demand for high-performance tires in the U.S. increased for the eighth straight year and now accounts for nearly 56 percent of original equipment and 45 percent of replacement market shipment.
Additionally, aftermarket shipments of H-rated tires rose 11.7 percent to 48.8 million units; V-rated tires rose 8.4 percent to 25.8 million units, and Z-rated were up 3.6 percent to 17.4 million units in 2017.
Some of the key players profiled in resorcinol market research report include Sumitomo Chemicals, Akrochem Corporation, Indspec Chemical Corporation, Atul Limited, Castle Chemicals Ltd., Jay Organics, Sigma-Aldrich, Alfa Aesar, Dynea AS, and Haihang Industry Co., Ltd.
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