Several isoprene molecules constitute terpenes, an array of aromatic compounds, which are a key constituent of essential oils. The synthesis of this class of compounds has thrived on the back of growing body of studies in plant toxicology and advances in basic oil chemistries. The terpene market has made strides from the use of the hydrocarbon in making range of materials with vast commercial significance. They have been modified to make rubber and gutta-percha used in several other manufacturing industries and dentistry respectively. Their use in consumer products is rising, imparting manufacturers and distributors in the terpene market lucrative avenues. The marketing spectrum has been broadened strikingly due to the fact they are a constituent of cannabis, and are responsible for the characteristic aroma and flavor. The factor has led to terpene gathering steam among industry players who are putting bets on health benefits of terpenes.

Thus, terpene is being utilized in making vaping oils, lotions for therapies, foods, and beverages of therapeutic importance. The terpene market has gained momentum from some intense studies on potential health impacts of some of the individual formulations of terpenes. A case in point is exploring use in making anti-anxiety materials. However, the science behind its action with cannabinoids is still in preliminary stages, leaving much scope for innovation in the terpene market.

The term ‘terpenes’ originates from turpentine, which is produced from the resin of pine trees and contains resin acid and hydrocarbons. Terpene is a class of hydrocarbons produced by plants and animals. It is also a natural compound built up from isoprene subunits. Isoprene is a hydrocarbon consisting of five carbon atoms attached to eight hydrogen atoms. Based on isoprene unit, terpene can be classified into various types such as hemiterpenes, monoterpenes, diterpenes, tetraterpenes, and others.

Terpene often gives a strong odor and has high resistance capabilities. Thus, it is widely used in various applications. For instance, it plays an important role as an essential oil, and fragrance and flavoring agent in industrial uses. Increase in demand for terpene in end-use industries such as cosmetics, food & beverages, paints & coatings, rubber, and pharmaceuticals is driving the market. However, fluctuation in supply of terpene and high cost related to the extraction process are hampering market growth.

Based on resin type, the terpene market can be bifurcated into liquid terpene resin and solid terpene resin. The liquid terpene resin segment is expected to dominate the terpene market owing to its effective properties vis-à-vis solid terpene resin. Liquid terpene resin offers the following properties: good aging resistance, strong cohesive force, radiation proof, acid and heat resistance, and alkali resistance. It is also nontoxic and offers excellent dielectric properties. Thus, demand for liquid terpene resin is high in pressure sensitive tapes, paints and printing inks, chewing gums, and rubber adhesives applications.

In terms of end-use industry, the terpene market can be divided into food & beverages, cosmetics, pharmaceutical, and rubber. Terpene deliver a wide array of medical benefits including antimicrobial, antiseptic, and even anti-carcinogen effects. Thus, the pharmaceutical segment is expanding at a rapid pace. Rise in usage of flavors in dietary supplements, and pharmaceutical and nutraceutical applications is also projected to augment market growth. The food & beverages segment accounts for key share of the global terpene market, as terpene is used as aromatic and flavoring agents in food and beverage applications. Additionally, the rubber segment also constitutes significant share of the global terpene market.

In terms of region, the terpene market can be segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Rise in demand for aromatic chemicals in economies such as China, Japan, and India is significantly boosting the terpene market in Asia Pacific. Latin America and Middle East & Africa also hold significant market share. This can be ascribed to the increase in demand for terpene in key industries such as rubber, and food & beverages in these regions. Rise in demand for new exotic flavors and changing consumer preferences are projected to augment the demand for terpene in the near future. Presence of prominent companies catering to end-use applications of terpene is further driving the terpene market in North America and Europe.

The terpene market is highly competitive owing to the presence of major local players. Competition is also influenced by shift in demand and changes in availability of various supply factors and costs. Global players are adopting research and development strategies and engaging in technological advancements in order to produce unique products. Prominent companies operating in the terpene market include Yasuhara Chemical Co. Ltd., P.T. Naval Overseas, Himachal Terpene Products Pvt. Ltd., Interstate Commodities Corp., Foreverest Resources Ltd., BASF SE, Baolin Chemical Industry, Neostar United Industrial Co., Ltd., and Skyrun Industrial Co., Ltd. 

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Terpene Market