Crude Sulfate Turpentine Market

Crude Sulfate Turpentine Market Outlook

The global market for crude sulfate turpentine is estimated to witness a moderate CAGR of ~4% during the forecast period (2019-2027). The crude sulfate turpentine market is expected to witness significant growth owing to increased demand for bio-friendly products.

Moreover, crude sulfate turpentine is seeing high demand due to its immense value in myriad applications, especially in solvents, adhesives and thinners in the chemicals industry.

Crude sulfate turpentine, a by-product of pulp manufacturing, is purchased by end-use industries at a fixed price based on annual or six-month contracts, shielding them from fluctuating raw material costs. On the backdrop of the aforementioned factors, demand for crude sulfate turpentine will soar, with the market surpassing US$ 600 million by 2027.

Therapeutic and Medical Use of Alpha-Penine to Boost its Growth by 1.3X through 2027

Alpha-pinene, widely used in aromatic chemicals, adhesives, paints and inks for printing, is the most preferred type of crude sulfate turpentine, accounting for 60% of the market share. It is also a key ingredient in drugs to treat diseases such as Crohn's disease, arthritis, and multiple sclerosis. Demand for alpha-pinene is also high from the personal care products industry.

Alpha pinene is used in perfumes and fragrances as a building block of artificial odorants. In 2019, DRT, a French manufacturer of Turpentine derivatives, signed an agreement with Quimidroga for increased marketing and distribution of chemical alpha-pinene in Europe and Africa.

With the global economy on a path to recovery, industries are paying attention to the utilization of alpha-pinene, particularly in underdeveloped regions with large populations and rapid economic growth.

North America to be in the Forefront, as Exports Soar

Due to the presence of prominent exporters, North America emerged as the largest regional provider in the global crude sulfate turpentine market with a market share of over 50% in 2018, a position it is expected to maintain through the forecast period. The development of bio-refineries in the region will further provide impetus to market growth in the region.

Europe emerged as the second largest market, attributable mainly to the prevalent 'all natural' trend for cosmetics and personal care products in the region. Besides, the presence of a strong manufacturing base for personal care in countries such as the UK, France, and Germany will be a favorable growth factor for the market.

Asia Pacific is expected to be the fastest growing regional market, with a CAGR of over 6% due to rising demand from developing countries such as China and Japan in the cosmetics and personal care industries.

Competitors Leveraging Biotechnology to Increase Profit Margins

The crude sulfate turpentine market is consolidated with the presence of key players such as DRT, Pine Chemical Corporation, Kraon Corporation, Arizona Chemicals and Stora Enso OYJ.

Competitors are utilizing renewable feedstock and renewable byproducts from other industries as a starting raw material, significantly reducing production costs, while ensuring sustainability. Development of efficient rectification process for crude sulfate turpentine is the primary strategy for emerging competitors.

Producers are focusing on acquiring sustainable raw materials and implementing biotechnology to produce hybrid trees and enhanced forest management techniques to manufacture crude sulfate turpentine. For instance, University of Florida has developed new methods to increase the pine oleoresin flow within trees through advanced genetics related to high resin production.

Several countries including Brazil are heavily investing in planting nursery seedlings that are selectively produced from high performing clone trees.

Moreover, developing robust associations with several flavor and FMCG companies to ensure capital flow has been the prime factor for the growth of the crude sulfate turpentine market.

The market is currently witnessing an acute shortage in supply of pine-derived chemicals. This major demand and supply gap is influencing end-use industries to opt for synthetic alternatives to meet their requirements, inadvertently impeding market growth.

Global Crude Sulfate Turpentine Market: In-Depth Assessment on Key Segments

The global crude sulfate turpentine market is segmented on the basis of derivatives, application, and region.

Derivatives	Alpha-Pinene Beta-Pinene Delta-3-Carene Camphene Limonene
Application	Fragrances Camphor Resins Others
Region	North America Latin America Europe APAC MEA

Country-specific assessment on demand for crude sulfate turpentine has been provided for each regional market, along with the market size valuation and forecast price point assessment, price index and impact analysis of key regional and country-wise dynamics, which were obtained through quotes from numerous crude sulfate turpentine manufacturers, experts, and suppliers. Y-o-Y growth projections have also been offered on all regional markets incorporated in the report. Moreover, future trends, growth prospects, and other possibilities related to the market have been answered in the report.