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Shellac Market Segmented By type such as Waxed Shellac, Dewaxed shellac, Bleached shellac with grade such as Orange, Lemon, Garnet, Black, Others
Shellac is a resin obtained from the lac secreted by the female lac bug as a protective cocoon for their larvae. This lac is present on the trees growing in South East Asia in countries such as India, Myanmar, Indonesia, and Thailand. It is used as a surface glazing agent in a plethora of applications. Shellac is an edible resin and is used in both food and non-food end-use industries.
It is usually processed further to obtain different grades which suit the end use industry. It is the shiniest coating ingredient available for industrial applications and hence faces unbeatable competition in the market. A record of substitutes of vegetable origin have been launched on the market but shellac outstrips the beneficial functions of these substitutes.
The use of shellac as a glazing and coating ingredient for fruits and pharmaceuticals industry is expected to drive the demand for in the market. Besides making fruit coats shinier and more attractive, shellac also lends an enhanced shelf life to the fruits. Lately, there has been a tremendous rise in the demand for shelf-life stable fruits and vegetables and retail outlets have also contributing to cater to this demand, which acts as a significant driver for the growth of the shellac market.
On the other hand, shellac has been met with sustainability and clean-label issues in the developed economies. It has especially become unpopular amongst the vegan demo graph, who are condemning products coated with shellac. Marketers have even taken to promote shellac-free products, which is a major setback hindering the growth of the market.
Most noteworthy are the socio-political issues arising in the Middle-Eastern regions which have obstructed India’s shellac exports. The Middle East was the major location through which Indian shellac reached the North American and European continents, but due to political instability, it has severed off export channels of Indian non-woof forest products, globally.
The demand for shellac for the industrial purpose such as automobiles and electrical is particularly high in developed regions and more applications are being explored through research.
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In October 2018, the company Pace International, which develops fruit preservatives and protectants, launched a new fruit coating- PrimaFresh® 606 GL which has a shellac base. This product was specifically launched to enhance the freshness and nutritional quality of fruits.
The international trade ties between the shellac producing regions and consuming regions are considerably weak. Collecting, processing, and selling of non-wood forest product is a major source of livelihood for some locals in the small developing countries. Hence, their efforts to expand markets is quite limited. With adequate support and guidance from government bodies and organizations, the market potential can be strategically untapped, fuelling the growth of the market.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from shellac industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments of the shellac. The report also maps the qualitative impact of various market factors on market segments and geographies.