Olibanum Gum Market - Forecast(2023 - 2028)

Olibanum Gum Market Overview

The Olibanum Gum Market size is estimated to grow at a CAGR of around 3.6% from 2022 to 2027. Olibanum gum is a dried, dummy aromatic resin which is obtained from Boswellia trees. The resin contains major ingredients like incensole acetate. Boswellic acid is available in different qualities from dust, siftings, peasize, to tears. Olibanum gum is used as fumigation Agent, fixatives, flavors & fragrance, release agent emulsifying agent in various sectors like food & beverage, pharmaceuticals, cosmetics, paints, paper rubber. Factors like high demand for food & beverage items, increase in production of paper growing production of rubber are driving the growth of olibanum gum market. However, the digestive side effects of olibanum gum such as nausea acid reflux can impact its usage in some sector like pharmaceutical. This can hamper the growth of olibanum gum industry.

Olibanum Gum Market COVID-19 Impact

Olibanum gum is an aromatic resin which is majorly used in sectors like food & beverage, rubber paper. COVID-19 caused disruptions in the activities of these sectors which negatively impacted the usage of olibanum gum in them. For instance, according to Food Drink Europe, in Q4 of 2020, food drink industry production in EU decreased by 1.8% compared to the previous quarter. Also, according to International Rubber Study Group, in 2020, the global rubber production dropped by 5.7%. Further, according to European Confederation of Paper Industries (CEPI), in 2020, the paper board production in CEPI member countries decreased by 5% compared to 2019. Olibanum gum is majorly used as raw material for making paper rubber, while in food & beverage it is used as emulsifying agent. Hence, the decrease in productivity level of food & beverage, paper rubber sectors reduced the usage of olibanum in them which negatively impacted the growth of olibanum gum industry.

Report Coverage

The report: “Olibanum Gum Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments of the global olibanum gum Industry

Key Takeaways

Figure: Asia-Pacific Olibanum Gum Market Revenue, 2021-2027 (US$ Million)

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Olibanum Gum Market Segment Analysis – By Grade

Technical grade accounted for approximately 45% of global olibanum gum market share in 2021. The technical grade of olibanum is used in sectors like rubber, paint paper where it forms a major ingredient. The rapid developments in these sectors have increased their production level which has positively impacted the demand for olibanum gum in them. For instance, according to World Rubber Industry Outlook report published by International Rubber Study Group, in 2021, natural rubber production rose by 5.7 compared to 2020, reaching 13.79 million tones. Also, according to British Coating Federation, in 2019, UK sale of paints & coatings was valued at US$3.94 billion with 703 million liters being sold. Further, according to Confederation of European Paper Industries (CEPI), in 2021, production of printing writing paper increased by 8% in CEPI member countries. Olibanum gum is used as thickener in paints as raw material in making rubber paper. The increase in production level of paints, paper rubber sector will increase demand for aromatic resin like olibanum gum in them. This will positively impact the growth of global olibanum gum industry.

Olibanum Gum Market Segment Analysis – By End Use Industry

Food & Beverage accounted for approximately 27% of global olibanum gum market share in 2021. Olibanum gum consisting of ingredients like boswellic acid incensole acetate is majorly used in food & beverage sector as emulsifying agent flavor fixative for food items like dairy products in beverages. The growing demand for food drinks items on account of growing consumption level has increased the production level. For instance, according to FoodDrink Europe, in Q3 of 2021, the production level of food drink industry in EU increased by 3.6% compared to Q3 of 2020. Such increase in productivity of food drink industry in EU will create more usage of olibanum gum in the sector. This will have a positive impact on the growth of global olibanum gum industry.

Olibanum Gum Market Segment Analysis – By Geography

Asia-Pacific accounted for approximately 36% of global olibanum gum market share in 2021. Countries like China India are amongst the leading producer of paints, paper, rubber food & beverages. The economic developments of these nations on account of their growing investments in sectors like paint, paper food & beverage has positively impacted the usage of olibanum gum in Asia-Pacific region. For instance, according to India’s National Dairy Development Board, in 2019, milk production of India was 198.4 million tones compared to 187.7 million tones produced in 2018, showing a 5.7% increase. Also, according to China’s National Bureau of Statistics, in 2019, China’s paint sales were 24.16 million tones showing a 38.3% increase compared to 2016. Further, according to China’s National Bureau of Statistics, in 2021, China paper paperboard production was 136 million metric tones showing 6.8% growth from previous year. Aromatic resin like olibanum gum is used in dairy products as flavor fixatives, as thickeners in paints as raw material for paper production. The increase in the production level of these sectors will lead to more usage of olibanum gum in them, resulting positive growth for global olibanum gum industry in Asia-Pacific region.

Olibanum Gum Market Drivers

High Demand for Paper

Olibanum gum which consists of ingredients like incensole acetate boswellic acid, forms a major raw material for producing paper. Rising technological advancements for paper-products have allowed paper to be produced with greater strength longevity, thereby increasing its production volume. For instance, according to Confederation of European Paper Industries (CEPI), in 2021, the paper board production in CEPI member countries increased by 5.8% compared to 2020. Further, according to China’s National Bureau of Statistics, in 2021, paper paper product manufacturers in China generated revenue of more than US$201 billion, showing 21.2% increase compared to 2020. Such increase in paper paper products production will create more usage of olibanum gum as raw material in paper industry. This will boost the growth of global olibanum gum industry.

High Demand for Food Drink products

Food & Beverage industry is one of the main users of olibanum gum, as it is used as emulsifying agent in food products while in beverage drinks it is used as flavor fixatives. The growing demand for food drinks items on account rapid increase in consumption level resulting from improvement in living standards, has positively impacted the usage of olibanum gum. For instance, according to FoodDrink Europe, in Q3 2021, food drink industry turnover in EU increased by 2% compared to previous quarter. Such increase in turnover of food drink sector on account of growing consumption will increase the production level of food drinks items resulting in more usage of olibanum gum in food drink sector. This will boost growth of global olibanum gum industry growth.

Olibanum Gum Market Challenge

Side effects of Olibanum Gum

Olibanum gum which is extracted from Boswellia trees has anti-inflammatory properties due to which it is used in pharmaceuticals sector for making medicines related to infectious diseases. However, the side effects of olibanum leads to serious digestive problems like diarrhea, acid flux nausea. Moreover, it interferes with the action of certain drugs, including some anticoagulant medications antiplatelet drugs. Hence, such side effects of olibanum gum can have negative impact on its applicability in pharmaceutical sector which and can impact on the growth of global olibanum gum industry.

Olibanum Gum Industry Outlook

The companies to develop a strong regional presence strengthen their market position, continuously engage in mergers acquisitions. In the global olibanum gum report, the global olibanum gum top 10 companies are:

1. Alfarid Corporation
2. Arid Land Resources Ltd.
3. Gum Arabic Company
4. Sacif Eritrea
5. Vetochem Ltd
6. Sukhetha Exims Pvt.Ltd
7. Kachabo Gums
8. Enkay Indo Nigeria Ind Ltd.
9. Madina Industrial
10.  Penn Herb 

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