Turpentine Market - By Grade (Pharmaceutical, Technical, Chemical, & Other), By Purity (Below 95%, 95%, & Above 95%), By Type (Sulfate Turpentine, Wood Turpentine, Crude Turpentine, Carbonization Turpentine, & Others), By Composition (Limonene, Alpha-Pinene, Monoterpenes, Delta-3-Carene, Camphene, & Others), By Application (Paint Solvent, Fragrance Agent, Flavoring Agent, Soaps, Resin Synthesis, Medicinal Elixir, Rubber Solvent, & Others), By End Use Industry, By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Turpentine Market Overview

The Turpentine Market size is estimated to reach US$1.2 billion by 2027 after growing at a CAGR of around 5.4% from 2022 to 2027. The turpentine is a solvent fluid which is obtained from distillation of resin and filtration processes. It is a solvent and popular material source for organic syntheses. The turpentine oil is constituted of limonene, alpha pinene, 3-carene, and others which are used in personal care, cosmetic active ingredients, paints, and others. The high demand of the turpentine for the chemical products with fragrance agents, flavoring, and solvents is creating a drive in the Turpentine Market. Moreover, increasing applications of turpentine oil in cosmetics, paint & coatings, construction, pharmaceutical, and other end-use industries will offer major growth opportunities during the forecast period.

COVID-19 Impact

The global production shutdown and restrictions during covid-19 outbreak affected the growth of the Turpentine Market. The pandemic led to major disruption in manufacturing projects, labor shortages, logistics restrictions, and fall in the demand. The turpentine has growing application in the construction sector for various paints and coating purposes. The construction industry was majorly hit by the pandemic. The commercial, residential, and industrial building and infrastructure projects were halted owing to implementation of social distancing measures, irregular supply of construction raw material, and workforce shortages. According to the World Bank data, the global construction industry experienced a major contraction of around 3.1% in 2020. The restricted growth in construction sector led to decline in the application of turpentine for paints and coating, lubrication, and others for residential or commercial sector. Thus, the global turpentine industry saw major slowdown and fall in growth during the covid-19 pandemic.

Report Coverage

The report: “Turpentine Market Report– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the turpentine industry.

Key Takeaways

Figure: Asia Pacific Turpentine Market Revenue, 2021-2027 (US$ Billions)

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Turpentine Market Segment Analysis – By Application

By application, the fragrance agent segment accounted for the largest share in the Turpentine Market and is expected to grow by around 5.7% during the forecast period. The increasing application of turpentine in fragrance agent and perfume is influencing the growth in the market. The distilled turpentine oil is composed of aromatic compounds such a beta-pinene and alpha-pinene, which offers a resinous smell, thereby making turpentine an ideal choice for fragrances synthesis. Furthermore, the increasing demand of fragrance agents such as turpentine oil in the personal care sector is offering major growth in the market. For instance, Firmenich, a renowned taste and fragrance company and MG International company launched the development of regional perfumery production hub in the Turkey in 2021. The rising preference of natural sourced fragrance ingredients and cosmetic active ingredient is boosting the demand in the Turpentine Market. Thus, with growing application of turpentine oil for fragrance agent and aromatic compounds, the turpentine industry will grow during the forecast period. 

Turpentine Market Segment Analysis – By End-Use Industry

By end-use industry, the cosmetic & personal care segment held the largest Turpentine Market share and will grow at a CAGR of over 4.9% during the forecast period. The increasing application of turpentine in personal care products and cosmetics such as soaps, detergents, fragrances, and others is boosting the demand of turpentine in the market. The demand for bio-based products in the cosmetic active ingredients and home care sector is influencing the growth of turpentine industry. The limonene, terpineol, alpha pinene and other raw materials are used in manufacturing wide range of home and personal care items, liquid cleaners, soaps, phenyls, and others. According to the International Trade Administration, the U.S Department of Commerce stated the exported value of around USD 838 million in cosmetic & personal care products to China in 2020. Furthermore, the growing personal care and cosmetic industry is boosting the demand and applications of naturally sourced turpentine. Thus, with high demand in cosmetic & personal care sector, the Turpentine Market will grow during the forecast period. 

Turpentine Market Segment Analysis – By Geography

By geography, the Asia Pacific segment is the fastest-growing region in the Turpentine Market and will grow by over 6.0% during the forecast period. The robust growth in cosmetic & personal care sector, pharmaceuticals, paint & coatings, and chemical sector in this region is offering major demand in the Turpentine Market. The growth in construction activities in the APAC is propelling the demand of turpentine for the coatings, paints, lubrication, and others. According to the World Bank, the value added by the construction sector accounted for 37.8% of GPD of China for 2019. Furthermore, the high production of turpentine in major countries such as Vietnam, China, and others is rising due to increasing number of pine tapping and processing activities. The flourishing personal care & cosmetic sector is also driving the global Turpentine Market for major applications in fragrances, soaps, liquid cleaners, and others.

Turpentine Market Drivers

Growing application in the chemical industry

The application of the turpentine the chemical sector a solvent and raw material for the organic syntheses is growing. It is used as a raw material in the synthesis of various fragrant chemical compounds. It has application in the conversion of chemical compounds into various products. The terpenes like linalool, camphor, menthol, and citral are employed for the elaboration of fragrances. Various chemical and reins are manufactured from the turpentine oil. Furthermore, the growing chemical sector and high demand for various chemical components across industrial verticals is driving the Turpentine Market. According to the India Brand Equity Foundation (IBEF), the small and medium enterprise of the domestic chemical sector in India is estimated to grow at around 18%-23% in the financial year 2022. Thus, the rising demand and growth in chemical sector is providing major growth opportunities in the Turpentine Market.

Increasing demand in pharmaceutical and paint & coatings

The high demand of turpentine for pharmaceutical applications in disinfectants, sanitation, and other healing use is driving the turpentine industry. The turpentine is used in various medications for treating muscle pain, joint pain, and minor aches. The turpentine is also used for reducing the congestion, when inhaled through vapors. Furthermore, the growing use of turpentine oil for treating chest congestions, aches, and joint pain in the medical sector is driving the turpentine industry. According to the European Federation of Pharmaceutical Industries and Association (EFPIA), the North America region accounted for the largest pharmaceutical sales of around 49% in 2020, compared to 23.9% for Europe. Moreover, the turpentine is used as a solvent for oil-thinning in paint, varnish, and others. The high demand of turpentine oil in the paints & coating industry for paint thinner and cleaner for brush is boosting the market. Thus, the increasing application of turpentine in medical, paint & coatings, and other sectors is leading to major demand and growth in the Turpentine Market.

Turpentine Market Challenges

Availability of reliable substitutes

The demand of turpentine in paint & coating sector for thinning paints and cleaning agent for paints is high. However, the availability of substitutes such as gasoline, lacquer, acetone, and others for paints and coating manufacturing is creating a major challenge in the Turpentine Market. The turpentine oil can lead to severe side effects such as headache, kidney damage, lungs issue, and others. The safer alternatives such as gamsol oil owing to its odorless and non-toxic features are preferred in the market. Thus, the availability of safe and economical alternative products and their increasing application in paint & coating sector is hampering the growth opportunities for the Turpentine Market.

Global Turpentine Industry Outlook

The global turpentine top 10 companies include:

1. Forestar Chemical Co. Ltd
2. Wuzhou Pine Chemicals Ltd.
3. Pine Chemical Group
4. Punjab Rosin and Chemical Works
5. Vinhconship Group
6. Resin Chemicals Co. Ltd.
7. CV. Indonesia Pinus
8. EURO-YSER
9. Deqing Yinlong Industrial Co. Ltd.
10. Guilin Songquam Forest Chemical Co. Ltd

Recent Developments

• In April 2021, the SH Kelkar company aimed to acquire the 70% in the Nova Fragranze, a prominent player in turpentine fragrance business. This will boot the fragrance business portfolio of SH Kelkar in the market.
• In June 2020, the Privi Organic India Ltd. announced the merger with Fairchem Specialty Ltd, a leading producer of aroma chemicals through gum turpentine oil. This merger will boost the customer base and expand the production capacity.
• In May 2019, DRT, a leading manufacturer of the turpentine derivatives has signed an agreement with the Quimidroga in order to facilitate increased chemical alpha-pinene distribution and marketing in the African and European nations.
  
  

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