by Gary Dandreaux, Polaris Chemical Consulting LLC

In the 1990s, I worked in the resin synthesis group at Arizona Chemical Company, then a subsidiary of International Paper and a major supplier of pine-based chemicals for markets such as adhesives and inks. (Arizona Chemical was later acquired by Kraton Corporation in 2016.) During the conversion of wood into paper pulp, natural products like rosins and terpenes are separated from the fiber stream. Arizona Chemical refined these pine-based by‑products and upgraded them into higher-value derivatives, including rosin and terpene resins. A major outlet for these materials was adhesives, where they served as tackifying resins.

Arizona competed not only with other producers of natural, pine-based products but also with manufacturers of petroleum‑derived hydrocarbon tackifiers. When oil prices were low, rosin‑ and terpene‑based tackifiers were the more expensive option. But when oil prices rose, the economics shifted and suddenly our bio‑based tackifiers became the attractive choice. High oil prices meant a good year.

Today, bio‑based tackifiers such as rosin and terpene resins are seeing strong projected growth.[1] Sustainability commitments are part of that momentum. But equally important, especially in a period of surging oil prices and geopolitical instability, is the fact that bio‑based tackifiers offer greater price and supply stability than their petroleum‑based counterparts. Procurement teams are increasingly looking to diversify feedstocks. The bio‑based trend isn’t just environmental; it’s strategic, and at some point it may become existential.

The need to evaluate bio‑based options extends far beyond tackifiers. The war in Iran has pushed oil above $100 per barrel and strained global supply chains.[2] Expanding the use of bio‑based materials reduces dependence on fragile fossil‑based supply chains and mitigates exposure to oil‑driven economic shocks. Nations should at a minimum have bio‑based strategies in place. One of the core drivers of the EU Bioeconomy Strategy is precisely this: reducing dependence on fossil resources.[3]

But the need for a bio‑based strategy isn’t limited to countries. Corporations should be doing the same. This doesn’t mean a full, immediate switch to bio‑based materials. It means having a plan, a mitigation strategy for price volatility and supply chain disruption, with bio‑based materials as a deliberate component.

And companies can start now.
Which bio‑based raw materials are already price‑competitive with petroleum‑based options?
At what oil price does it make economic sense to switch?
What investments are needed to strengthen their bio‑based ecosystem?
What partnerships should be pursued as part of a bio‑based strategic roadmap?

Bio‑based materials are more than a sustainability story. They are a strategic imperative. A company’s future resilience, and perhaps its future existence, may depend on the strength of its bio‑based strategy.

Polaris Chemical Consulting LLC provides consulting services to those seeking expertise in the coatings and chemicals areas.  With our extensive knowledge and experience in chemistry, coatings, research, and product development, we provide insights and solutions to help our clients succeed.   www.polarischemical.com

[1] Bio-Based Tackifier Resins Market Outlook: Price Trends, Production Capacity and Demand Forecast (2026-2036) | FMI Analysis | Morningstar

[2]The bioeconomy in a world at war – World Bio Market Insights

[3] European Commission Adopts New EU Bioeconomy Strategy to Boost Green Growth, Competitiveness and resilience in Europe – The European Bioeconomy Network

#biobased #plantbased #sustainable #renewable #chemicals #coatings #consulting #strategy