Soaring Demand from Automotive Sector to Propel Resorcinol Formaldehyde Latex Market Growth

The global automotive sector has evolved at a consistent pace over the past decade. While stringent regulations and guidelines have predominantly influenced innovations in the automotive space, the automotive sector provides abundant opportunities for market players operating in the resorcinol formaldehyde latex market. As the demand for automotive vehicles is set to grow at a steady rate over the next few years, the demand for automotive tires is also expected to witness considerable growth. The rise in the demand for automotive tires is likely to influence the expansion of the global resorcinol formaldehyde latex market during the forecast period.

Environmental concerns and push for sustainable mobility are anticipated to have an impact on the production processes within the resorcinol formaldehyde latex market. The push from governments for hybrid and electric vehicles is expected to boost the demand for electric vehicles in the coming years– another factor that could offer lucrative opportunities for companies operating in the current market for resorcinol formaldehyde latex. Although the COVID-19 pandemic is expected to hurt sales over the next few months, market players should focus on expanding their market position by diversifying their product range, introspecting their pricing strategies, and tapping into opportunities in other industries, including healthcare. At the back of these factors coupled with widening applications of resorcinol formaldehyde latex, the global resorcinol formaldehyde latex market is set to surpass the ~US$ 730 Mn mark by the end of 2030.

resorcinol formaldehyde latex market infographic

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High Demand for Resorcinol Formaldehyde Latex to Enhance Adhesion

Over the past few years, the demand for resorcinol formaldehyde latex to improve adhesion in organic and inorganic rubber compositions has spurred. As the demand for rubber to manufacture automotive tires continues to grow, the adoption of resorcinol formaldehyde latex is expected to move in the upward trajectory. One of the major factors that is projected to drive the demand for resorcinol formaldehyde latex is its critical role in enhancing adhesion of the rubber to reinforced materials. Over the past couple of decades, as tire manufacturing techniques and tire performances have evolved at a rapid pace, research and development activities have revealed that resorcinol formaldehyde latex dip systems improve adhesion properties of different types of rubber adhesions. The soaring adoption of resorcinol formaldehyde latex as a dipping bonding agent is expected to boost the growth of the resorcinol formaldehyde latex market in the coming years.

Amidst COVID-19 Pandemic, Market Players Aim to Streamline Raw Material Sourcing

The unforeseen COVID-19 pandemic has negatively affected the operations in all major industrials sectors. Different facets of the chemical industry are projected to feel the impact of the novel coronavirus in the coming months. Right from the disruption of supply chains across key regions of the world, the demand for chemical products, including resorcinol formaldehyde latex is expected to decline due to the uncertain course of the capital market and the global economy in the coming months. Moreover, as companies continue to stall operations in key regions amidst workforce safety and unpredictable nature of the looming health crisis, the growth of the global resorcinol formaldehyde latex market is likely to slump in 2020. The entire value chain within the resorcinol formaldehyde latex market, including consumers, manufacturers, distributors, and raw material suppliers are likely to be on the receiving end. Market players in the current resorcinol formaldehyde latex market should focus on formulating effective and business continuity plans. Manufacturers operating in the current market landscape are expected to assess market dynamics and improvise, expand their product range, diversify, and also focus on value addition.

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The month-long lockdown in China is expected to affect the global chemical industry. The global economic slowdown coupled with major challenges pertaining to the manufacturing of raw materials and transportation is a major area that require immediate attention from players in the resorcinol formaldehyde latex market. In addition, environment protection rules in different countries and declining consumer demand for resorcinol formaldehyde latex is likely to retard the growth of the market in 2020.

While the global pandemic is expected to stall market growth, companies should focus on fulfilling the expected surge in demand post the pandemic.resorcinol formaldehyde latex market segmentation

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Analysts’ Viewpoint

The global resorcinol formaldehyde latex market is expected to grow at a moderate CAGR of ~3% during the forecast period. The market growth can be primarily attributed to a range of factors, including surge in demand from the automotive sector, widening applications of resorcinol formaldehyde latex, technological advancements, research activities, and dwindling prices of raw materials. Manufacturers in the current market landscape should focus on mitigating losses due to the COVID-19 pandemic and seek new growth avenues to gain an edge. Product diversification, value addition, and streamlining the supply chain will remain the primary area of focus for market players operating in the resorcinol formaldehyde latex market.  

Resorcinol Formaldehyde Latex Market: Overview

  • In terms of value, the global resorcinol formaldehyde latex market is expected to reach ~US$ 730 Mn by 2030
  • Rapid increase in demand for resorcinol formaldehyde latex, owing to its functional effects is anticipated to fuel the resorcinol formaldehyde latex market during the forecast period
  • Rise in consumption of ecofriendly vehicles has led to the revival of the automotive sector. This has also boosted the tire industry. Rise in demand for tires due to the increase in consumption of automobiles across the globe is anticipated to drive the resorcinol formaldehyde latex market in the near future. Demand for rubber is projected to be driven by the increase in tire output. This, in turn, is estimated to augment the global resorcinol formaldehyde latex market.

 Resorcinol Formaldehyde Latex Market: Key Drivers and Restraints

  • Demand for electric vehicles has been rising across the globe, led by the increase in efforts to curb air pollution and growth in government initiatives in developing countries such as India to encourage foreign investment in the local automotive industry. This is likely to propel the demand for tires. In turn, this is estimated to drive the resorcinol formaldehyde latex market.
  • Several plywood adhesives emit formaldehyde due to hydrolysis of weak chemical bonds during the production of wood-based materials for long-term usage. Resorcinol–formaldehyde resins are known to emit formaldehyde, which was reclassified as a Group 1 human carcinogen by the International Agency for Research on Cancer (IARC) in 2004. Therefore, it is extensively regulated in indoor environments. Furthermore, standards for regulation of formaldehyde emission have been implemented in various regions. For instance, these have been implemented in Europe (EN 13986: 2005), Australia and New Zealand (AS/NZS 1859.1&2: 2004), the U.S. (ANSI A 208.1&2: 2009), and Japan (JIS A 5905&5908: 2003). This is expected to restrain the resorcinol formaldehyde latex market during the forecast period.

 Resorcinol Formaldehyde Latex Market: Key Products

  • Based on product type, the global resorcinol formaldehyde latex market has been segregated into rayon, nylon, aramid, fiberglass, polyester, and others
  • Nylon is expected to remain the high-value product type segment of the global resorcinol formaldehyde latex market in the near future. This trend is expected to continue in the global resorcinol formaldehyde latex market during the forecast period. The aramid segment of the global resorcinol formaldehyde latex market has been expanding at a sluggish pace since the last few years. Its CAGR is anticipated to remain stagnant in the during the forecast period.

 Resorcinol Formaldehyde Latex Market: Key Applications

  • Based on application, the global resorcinol formaldehyde latex market has been divided into tires, power transmission belts, hoses, conveyor belts, diaphragms, and others
  • The tires segment is estimated to dominate the global resorcinol formaldehyde latex market during forecast period. The tire industry plays an important role in the automotive sector in developing and developed countries. Automobile is one of the leading sectors, as several economic activities rely on and are linked to automobile production. Led by changing technologies, production concepts, strategies and products, the automobile industry is often an initiator of innovations in other related industries. Therefore, growth of the automotive industry is projected to boost the demand for resorcinol formaldehyde latex.

Asia Pacific to be Highly Lucrative Region of Resorcinol Formaldehyde Latex Market

  • In terms of demand, China has been a lucrative country of the global resorcinol formaldehyde latex market. The country accounts for more than 50% share of the resorcinol formaldehyde latex market in Asia Pacific.
  • Several countries in Asia have taken strategic initiatives to penetrate into the resorcinol formaldehyde latex market. For instance, in November 2017, Sumitomo Chemical Co., Ltd. increased the production of resorcinol, a raw material used in automotive tires and other applications. The company expanded the annual production capacity by 2,000 tons to 12,000 tons at its Oita Works facility, Japan. This move is expected to help the company meet the rising demand for resorcinol among customers.

Resorcinol Formaldehyde Latex Market: Competition Landscape

  • Major players operating in the global resorcinol formaldehyde latex  market include 
    • Sumitomo Chemical Co., Ltd
    • LANXESS
    • LGC Limited;
    • Atul Ltd.
    • JIANGSU ZHONGDAN GROUP CO., LTD.
    • Akrochem Corporation

Resorcinol Formaldehyde Latex Market – Scope of the Report

A new study on the global resorcinol formaldehyde latex market published by Transparency Market Research (TMR) presents a wealth of information on key market dynamics, including drivers, market trends, and challenges, as well as structure of the global resorcinol formaldehyde latex market. TMR’s study offers valuable information on the global resorcinol formaldehyde latex market to illustrate how growth would discern during the forecast period of 2020–2030.

Key indicators of market growth, which include value chain analysis as well as supply chain analysis and compounded annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret quantitative growth aspects of the global resorcinol formaldehyde latex market during the forecast period.

An extensive analysis of leading market players’ business strategies is also featured in TMR’s study on the global resorcinol formaldehyde latex market. This can help readers understand principal factors to foresee growth of the global resorcinol formaldehyde latex market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global resorcinol formaldehyde latex market, which would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Study on Resorcinol Formaldehyde Latex Market

  • What would be the Y-o-Y growth rate of the global resorcinol formaldehyde latex market between 2020 and 2030?
  • What is the influence of changing trends in technologies on the global resorcinol formaldehyde latex market?
  • Would Asia Pacific continue to remain the most profitable region for manufacturers of resorcinol formaldehyde latex in the near future?
  • Which factors would impede the growth of the global resorcinol formaldehyde latex market during the forecast period?
  • Which are the leading companies of the global resorcinol formaldehyde latex market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global resorcinol formaldehyde latex market and arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary resources referred to by analysts during the production of the report on the global resorcinol formaldehyde latex market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the global resorcinol formaldehyde latex market as a primary resource.

These primary and secondary resources provided exclusive information during interviews, which served as a validation from leading players operating in the global resorcinol formaldehyde latex market. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global resorcinol formaldehyde latex market with accuracy. The study also uses a top-down approach to assess numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects of the global resorcinol formaldehyde latex market more reliable and accurate.

Resorcinol Formaldehyde Latex Market – Segmentation

TMR’s study on the global resorcinol formaldehyde latex market segments the market based on product type, application, and region. Changing market trends and other crucial market dynamics associated with these segments of the global resorcinol formaldehyde latex market are discussed in detail.

Product Type

  • Rayon
  • Nylon
  • Aramid
  • Fiberglass
  • Polyester
  • Others (including Steel)

Application

  • Tires
  • Power Transmission Belts
  • Hoses
  • Conveyor Belts
  • Diaphragms
  • Others

Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • Italy
    • U.K.
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • Germany
    • France
    • Italy
    • U.K.
    • Russia & CIS
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • South Africa
    • GCC
    • Rest of Middle East & Africa

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Resorcinol Formaldehyde Latex Market

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