Market Trends of Phenol Industry
This section covers the major market trends shaping the Phenol Market according to our research experts:
Bisphenol-A Product Type to Drive the Market
- Bisphenol-A (BPA), a colorless crystalline solid organic compound, is used primarily as a strengthener in polycarbonate plastics and epoxy resins. Additionally, it is used for unsaturated polyester, polysulfone, and polyetherimide.
- Increasing demand for polycarbonate and epoxy resins in various end-user industries, such as paints and coatings, adhesives, electrical and electronics, packaging, and other end-user industries, is one of the major factors responsible for the growth of Bisphenol-A (BPA) market, thereby, for the growth of phenol market.
- Epoxy resins are created by mixing BPA and epichlorohydrin (ECH). Owing to their versatility, high resistance to chemicals, durability, adhesion, toughness, high electrical resistance, strong durability at both low and high temperatures, and ease they offer while pouring on cast without forming any bubbles, epoxy resins are becoming an integral part of various commercial and industrial sectors.
- One of the major applications of epoxy resins is in the paints and coatings industry. Epoxy paints and coatings include anti-corrosive primers, primer tie coats, fire-resistant coatings, and heat-resistant coatings. They are commonly used for construction (including flooring), shipbuilding, water and sewage treatments, and home appliances.
- According to American Coatings Association, the United States' paint and coatings industry are USD 26 billion. The United States exported USD 2.5 billion in paint and coatings products in 2021.
- According to Paintindia, the Indian paint industry is worth over INR 62,000 crores (USD 8 billion) and is one of the fastest-growing major paint economies worldwide. The country has over 3,000 paint manufacturers, with nearly all global majors present in the country.
- By the year 2023, it is forecasted that the volume of the polycarbonate market will reach 6,141.32 kilometric tons while that of the epoxy resin market will reach 4,639.94 kilometric tons.
- South Korea exported a total of USD 774,852.25 thousand of polyphenols (bisphenol A, diphenylolpropane) and its salts in 2021 and was the world's top exporter. Singapore exports summed up to 415,085,57 dollars. Japan's export tallied around 144,046,000 Kg, amounting to USD 361,091.70 thousand.
- Thus, the growing application of epoxy resins is likely to increase the demand for Bisphenol-A, and that is, in turn, driving the market for phenols.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region represents the largest market for phenol due to its extensive use of BPA which finds its application in manufacturing polycarbonates and epoxy resins. The BPA market is anticipated to be driven by automobiles and the construction industry during the period.
- According to the Ministry of Commerce and Industry, the real estate sector in India is expected to reach USD 1 trillion in market size by 2030, up from USD 200 billion in 2021, and contribute 13% to the country's GDP by 2025.
- Urbanization, increasing consumer spending on comfort, aesthetic appearance, and functionality coupled with the rising disposable income has resulted in an increased demand for furniture, automotive, household & industrial appliances, and agricultural equipment, which is expected to boost the regional market share growth.
- Phenol's largest producer and consumer in the world has been China from the Asia-Pacific region. Furthermore, advantages like low operating costs, cheap labor, etc. are expected to further boost China's phenol market.
- The construction sector is a key player in China's continued economic development. The value of construction output accounted for 25.7% of China's GDP in 2021, up from 11.0% in 2020, according to the National Bureau of Statistics.
- One of the major applications of epoxy resins is in the paints and coatings industry. By 2023, American Coatings Association forecasted paint demand in Asia-Pacific to be at 29.5 billion liters valued at USD 100 billion.
- According to OICA, the total number of vehicles produced in 2021 was 80,145,988 and witnessed a growth rate of 3% compared to 2020. The Asia-Pacific region holds the highest production share in the global automotive market with 46,732,785 units in 2021.
- Hence, the rising demand from various industries in the region is expected to drive the growth of the phenol market during the forecast period.
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