Phenol Market Size, Share, Growth, and Industry Analysis, By Type (Reagent Grade, Pharmaceutical Grade, Industrial Grade and Others), By Downstream Industry (Industrial Use, Medical Use and Others) and Regional Forecast to 2032

Updated On: 16 September 2024

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PHENOL MARKET REPORT OVERVIEW

The Phenol Market Size is Projected to be worth US$ 21116 Million in 2023. The market is likely to surpass US$ 46136 Million by 2032 at a CAGR of 8.13% During the Forecast period [2024-2032].

Phenol is the chemical element which has an aromatic organic compound whose chemical formula is C₆H₅OH, which is used in many areas of life. It is obtained from the phenol group which is a result of the bonding of the phenyl group and the hydroxyl (-OH) group. It takes the form of a white crystalline solid, slightly acidic, volatile and water-soluble about 84.2 g in 1000 ml. It is formed as a result of hydrogen bond formation by the OH group which is highly polar and the electron donor phenyl group which is less polar thus giving preference to the phenol as a solvent and raising its boiling point compared to that of the alcohol. Despite being corrosive, phenol has some associated advantageous properties. It can seriously damage skin and mucous membranes as the fumes are detrimental to health since they are inhaled. It is considered a dangerous chemical that requires special care during handling.

In industry, phenol has a variety of significant applications. Its first recorded application was in surgery when Joseph Lister used it as an antiseptic to decrease the incidence of surgical infection at that time. Though this chemical is still part of many disinfectants available in the market for home use, it has been prohibited in cosmetics in both the EU and Canada due to the dangers it poses. Instead, the production of plastic-based materials, more specifically polycarbonates, through the use of phenol is the most common application, followed by the production of phenolic ones. The same compound found in biological pharmaceuticals, such as aspirin, is also utilized in molecular biology, particularly for purifying nucleic acids. Additionally, phenol contributes to certain flavours and aromas in plants where it naturally occurs, such as vanillin in vanilla beans and eugenol in cloves.

COVID-19 Impact: Due to restrictions that were placed during the pandemic the disruptions in the supply chains impacted the market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic significantly impacted the Phenol Market and its production due to problems with the supply chain. The restrictions such as lockdowns affected industries and manufacturing resulting in scarcity of raw materials and slow production processes. Moreover, transportation limits and logistical issues posed challenges to the delivery of phenol making it scarce and expensive. The pandemic also affected the demand in sectors such as automotive, construction and consumer goods, which are the principal ones affecting the Phenol Market. These changes led to shifting dynamics in the market, supply and demand, making it clear how much the pandemic affects the chemical industries worldwide.

LATEST TRENDS

"Increased consumer consciousness regarding sustainability to fuel market expansion"

The increased concern towards environmental consciousness and the regulations imposed by the authorities are the key factors that are impacting the Phenol Market. With the rise of sustainability as a trend, there are movements towards biomethox phenol renewable methox phenol and recycled methox phenol. Bio-based phenol is produced from renewable feedstocks and has the potential to replace petrochemical-based phenol as a more environmentally friendly product for sustainable manufacture. Also, recycled phenol is derived from the regeneration of phenol from the waste product, which provides lesser environmental damage and depletes fewer natural resources. This trend is also further reinforced by laws that encourage the active use of equally environmentally friendly materials and manufacturing processes. Therefore, many manufacturers feel the pressures of adapting and investing in these solutions to align with the consumer’s demands and upcoming regulatory requirements.

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PHENOL MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Reagent Grade, Pharmaceutical Grade, Industrial Grade and Others.

• Reagent Grade: Reagent grade is used in the laboratory mainly for chemical analysis and synthesis. Characteristically, it has high purity levels and hence works well in sensitive experiments and reactions. This grade forms the basis of research and development in various fields of study, such as chemistry and biochemical analyses. Several research institutions and laboratories around the world are growing, which increases the demand for reagent-grade phenol. Besides, strict quality norms of scientific research also require high-purity chemicals, which boost the market further.

• Pharmaceutic Grade: The phenol used in the production of drugs and pharmaceutical products has very stringent stipulations on the purity and safety content, hence, it proves quite vital in the formulation of drugs. This segment is driven by the growing demand for quality drugs and growth in pharmaceutical industries. It includes applications such as antiseptic manufacturing, pain relievers and other pharmaceutical products. Although there are several regulations within healthcare, quality assurance and compliance attention is drawn to underline the pharmaceutical grade phenol.

• Industrial Grade: Phenol is applied industrially in the production of plastics, resins and adhesives. This grade is an all-purpose grade, relatively inexpensive and thus finds very broad application in industry. The growing sectors of automotive, construction and electronics significantly contribute to industrial-grade phenol demand. Besides, the growing trend towards sustainable materials and processes in manufacturing is probably to strengthen the market for this grade.

• Others: This includes several special uses of phenol which do not come within the main groupings. Among these are applications in personal care products, agricultural chemicals and speciality chemicals. This segment's diversity of applications epitomizes just the versatility of phenol across a wide swath of industries. New trends in green products and new applications in niche markets will most probably provide the growth impetus in this category. Further, continuous research into new uses for phenol compounds might increase the market potential for the category.

By Downstream Industry

Based on downstream industry the global market can be categorized into Industrial Use, Medical Use and Others.

• Industrial Use: Industrial phenol plays a key role in manufacturing phenolic and epoxy resins, plastics and adhesives. This tie in with the automobile and construction industries. It functions as a bonding agent in wood products such as plywood and MDF. Apart from this, phenol finds an application in the manufacture of chemicals and solvents. Rising demand for green and sustainable processes is also fueling growth and innovation in the industrial Phenol Market.

• Medical Use: The medical sector demands phenol due to its antiseptic properties, which are incorporated into disinfectants and antiseptic solutions for the destruction of bacteria and viruses. Hence, it is of key importance as an additive for surgical antiseptics and topical disinfectants. Further, phenol is utilized in the synthesis of various drugs in the pharmaceutical sector. As healthcare is increasingly being taken care of, the demand for finer-quality medical-grade phenol is on the increase and research may further expand its therapeutic uses.

• Others: The ""Others"" segment embodies the sitemap of phenolic applications beyond the industrial and medical sectors. This includes personal care products, agricultural chemicals and speciality chemicals. The application of phenol in cleaners as a solvent and disinfectant and in dyes, detergents and herbicides is found in household cleaners. Trends leaning toward green phenol formulations are imposing themselves and fueling innovation and growth in this versatile sector.

DRIVING FACTORS

"Growing demand for phenol-based resins to boost the market"

The phenol for phenol-based resins especially for phenolic and epoxy resins is a rising demand for the global Phenol Market growth. Timber and construction industries and the automotive sector particularly use these resins because of their qualities such as high thermal stability, mechanical strength and flammability. Laminates, coatings and adhesives contain phenolic resins whereas epoxy resins are popular due to their excellent bonding quality and resistance to decay. Increased construction activities all around the world with the increase in population and infrastructural development also positively affect the demand for these products. Also, growing automotive production along with advancements in the lightweight and durability of auto parts continue to drive higher demand for phenol-based resins. This growth in both sectors is driving the Phenol Market owing to the increasing demand for high-performance materials for various applications.

"Rising consumer demand for electronic devices is fueling the demand in the market"

Technological improvement in the electronics industry has been on the rise hence fueling the consumption of electronic products and this single factor is one of the biggest drivers for the Phenol Market. Phenol has a significant role in manufacturing PCBs, which are found in almost all consumer electronics such as mobile phones, PCs and TVs. In making the PCBs, it is essential to utilize phenolic resins since they act as insulators and help give the circuits their shape. Since electronics continuously transform from one level to another in terms of design, functionality and size, manufacturers realize that high-quality PCBs are required to sustain growth, hence the essential for phenol. Furthermore, the trend toward electronics for diverse purposes, which include small home appliances, communication devices, industrial equipment and others, further fuels the Phenol Market demonstrating its significance in the electronics industry development.

RESTRAINING FACTORS

"Instability in the prices of raw materials affects the profitability of the market"

The instability of prices of key raw materials used in the production of phenol, mainly benzene and propylene is hindering the market. These raw materials are basic for the phenol manufacturing process and a change in their prices falls directly at the manufacturing cost and profitability of phenol manufacturers. For example, frequent fluctuations in the price of benzene or propylene can cause additional production costs leading to pressure on the profit-making ability and thereby affecting the pricing factors. On the other hand, declining in raw material costs might prove advantageous to manufacturers, but destabilize the market. The changes in prices also contribute to volatility in the Phenol Market, which does not allow many companies to maintain stable profit margins and keep the costs of production in check. This volatility also resonates with market growth because manufacturers cannot accurately predict and plan their raw material expenditures.

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PHENOL MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Asia Pacific is dominating the market due to significant consumption and production"

The Asia Pacific region is expected to dominate the global Phenol Market share owing to the significant consumption and production potential of this region. Phenol is an industrial chemical and the countries involved in the industry are experienced producers with strong industrial infrastructures. The region has the largest contribution because it is one of the largest producers of chemicals and the growth in the specific demand for phenol across the automotive, construction and electronics industries. The high growth and development of the industrial sector, urbanization and the growing end-consumer industries such as automotive and electronics are the primary drivers of product demand in the region. Furthermore, Asia Pacific boasts not only the biggest production capacities of phenol but also increased investments in the further growth of production capacities. This trend is probably to persist in the coming years, thus placing the region at the heart of the Phenol Market in the years to come.

KEY INDUSTRY PLAYERS

"Key industry players are investments in research and development to propel the market"

The key industry players in the Phenol Market are now focusing on research and development to create new products and solutions with an emphasis on environmental conservation. Companies are now willing and are investing heavily in research and development to bring about new and more environmentally friendly phenol products and processes. These investments are made to produce sustainable solutions such as bio-based phenol and enhanced recycling solutions which are well-suited to some current environmental consciousness and regulations. Moreover, constant improvement of the properties and characteristics of phenol in its use sectors, such as automotive, construction and electronics, is another research and development area in the industry. Through increasing and diversifying the variety of products, these companies try to sustain their positions and address customer’s needs in a constantly changing environment by developing new technologies. Besides enhancing the competitive advantage of organisations in the phenol industry through innovation, this strategic emphasis on research and development also has the benefit of centring on organisational development for the long term.

LIST OF MARKET PLAYERS PROFILED

• Aditya Birla Chemicals (India)
• PTT Phenol (Thailand)
• Shandong Sheng Quan Chemicals (China)
• Mitsubishi Corporation (Japan)
• Bayer Material Science (Germany)
• Shell Global (U.K.)

INDUSTRIAL DEVELOPMENT

April 2024: KBR announced that SABIC Fujian Petrochemicals Company had awarded the company a contract for its leading phenol technology to be implemented on an upcoming 250 KTA plant in the Fujian Petrochemical Complex of China. According to our study, this project will be completed by 2026. The final investment decision was just last January 2024. KBR's technology is oriented toward improving efficiency and sustainability in phenol production.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.