Cumene Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, UK, Germany, Japan - Size and Forecast 2024-2028

Cumene Market Size 2024-2028

The cumene market size is estimated to grow by USD 6.76 billion at a CAGR of 4.96% between 2023 and 2028. The market's growth hinges on several factors, including the increasing demand for phenol and acetone, the rapid industrialization observed in emerging economies, and the ongoing technological advancements. The rising demand for phenol and acetone, key chemicals used in various industries, is a significant driver of market growth. Additionally, the industrialization efforts in emerging economies are fueling the demand for these chemicals, further propelling market expansion. Moreover, continuous technological advancements are enhancing the production processes and efficiency, contributing to the overall growth of the market. These factors collectively underscore the dynamic nature of the market and highlight the diverse factors influencing its growth trajectory. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By Application

The market share growth by the phenol segment will be significant during the forecast period. The market encompasses the utilization of cumene, a key aromatic hydrocarbon, in the production of phenol. Notable producers of phenol include INEOS Phenol and Mitsui Chemicals, with Mitsui Phenols being a significant contributor. This is derived from crude oil through an alkylation reaction using solid phosphoric acid. 

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The phenol segment was valued at USD 12.82 billion in 2018. Phenol, in turn, yields essential derivatives such as acetone, alpha-methylstyrene, and benzene. Bisphenol-A, a significant phenol derivative, is used in the manufacture of polycarbonate and epoxy resins. These resins find applications in various industries, including electronics, automotive, and packaging. Phenolic resins, another application of phenol, are used in the production of composite materials, acrylic films, laminates, and industrial goods. They also serve as a precursor to acetophenone and alkylated benzenes. These compounds are used in the production of caprolactam, methyl methacrylate, methyl isobutyl ketone, and other chemicals. The demand is influenced by the production of these chemicals and the industries that utilize them, such as transportation, healthcare, and food-grade applications. Major consumers include the production of polycarbonate plastic, consumer goods, and phenolic resin. The West Coast, particularly Long Beach, is a significant hub for import and export. The Lunar New Year may impact the supply chain and pricing of these aromatic hydrocarbons. Cumene, with the molecular formula C9H12, consists of a benzene ring and an isopropyl group. It is an essential feedstock in the production of various chemicals and materials, contributing significantly to industries worldwide. Therefore, the phenolic segment of the market has a wide range of applications across different industries and is expected to be manufactured and is a significant part of the market during the forecast period. 

By Region

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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is significant in the Fats, Waxes, Adhesives, Rubber, Polymers, Lacquers, and Coatings industries. This market is driven by the expanding chemical manufacturing sector and increasing demand in APAC countries. This is primarily used as an intermediate in the production of Phenol and Acetone. China, with over 20% of the global coatings market, is a major consumer. Nippon and other companies, including PPG and PTT Phenol, are upgrading coatings production processes in China. This is also used in small quantities as thinners and solvents in paints, lacquers, and enamels. In the Phenol Industry and Acetone industry, this is a flammable organic compound derived from refined crude oil. It undergoes aliphatic substitution to produce Isopropylbenzene, a crucial component in the production of Phenolic resins. The Zeolite subsegment and Phenol subsegment are key areas of growth. Cumene hydroperoxide is used as a fuel additive and in the production of high-octane production fuels. In the Plastic industry, it is used as a solvent and in the production of rubber cement. The high material cost is a challenge for market growth. Other companies, such as Sunoco, Versalis, and ChemAnalyst, also contribute to the market. Zeolite-based catalysts, Aluminum chloride, and Flint Hills Resources are key players in the production process. Thus, rising demand in the aviation sector is expected to boost the growth of the regional market during the forecast period.

Market Dynamics and Customer Landscape

The market is a significant segment in the chemical industry, with key players such as INEOS Phenol and Mitsui Chemicals contributing substantially. Cumene is a crucial feedstock for producing Phenol and Acetone, as well as Bisphenol A and Alpha-methylstyrene. The Lunar New Year traditionally sees increased demand for Phenolic resins, which are derived from Phenol and used in various applications, including flammable organic compounds and fuel additives. Benzene, another essential raw material, is refined from crude oil to produce Cumene through the cumene process. The Zeolite sub segment and Phenol sub segment are key markets, with phenolic resins used in high-octane production fuels, enamels, and sealants. Isopropylbenzene, an aliphatic substitution product of Cumene, is also in demand as a solvent in paints and a raw material for producing Zeolite-based catalysts. Aluminum chloride is used in the production of Cumene hydroperoxide, another important application area for Cumene. Overall, the market is driven by the demand for fuels and chemical intermediates.

Key Market Driver

Growing demand for phenol and acetone is the key factor driving the growth of the market. Cumene, an aromatic hydrocarbon with the molecular formula C9H12 and a benzene ring attached to an isopropyl group, is a significant intermediate in the chemical industry. Approximately 95% of cumene production is utilized in the manufacture of phenol and acetone. Mitsui Chemicals and INEOS Phenol are major producers. Phenol, derived from cumene through an alkylation reaction using solid phosphoric acid, is used extensively in various industries, including paints and coatings, plastics, and resins. Acetone, another byproduct of cumene production, is employed in cosmetics, pharmaceuticals, and as a solvent in various applications.

Furthermore, benzene and styrene are other essential raw materials in the production of cumene. Crude oil is the primary feedstock for the production of these aromatic hydrocarbons. This is used in the production of acetophenone, composite materials, acrylic films, laminates, and industrial and transportation applications. In the healthcare sector, cumene is used in the production of Bisphenol A, Alpha-methylstyrene, and various pharmaceuticals. Food-grade cumene is used in the production of polycarbonate plastic, consumer goods, and methyl methacrylate. Methyl Isobutyl Ketone and Methylstyrene are other derivatives used in various industries. Therefore, the growing demand for phenol and acetone is expected to fuel the growth of the market during the forecast period.

Significant Market Trends

Increasing demand for phenol in the plastic industry is the primary trend in the enterprise indoor global market. Cumene, a vital aromatic hydrocarbon with the molecular formula C9H12, is an essential intermediate in the production of phenol and acetone. The market is anticipated to grow due to the rising demand for phenol in various industries. Phenol is extensively used in the manufacture of plastics such as polycarbonates, epoxy resins, and phenolic resins. These materials find applications in the construction, automotive, electronics, and packaging industries. Key producers include INEOS Phenol and Mitsui Chemicals, with Mitsui Phenols being a significant contributor. The alkylation reaction of benzene with propylene in the presence of solid phosphoric acid yields cumene. Phenol, with a benzene ring and an isopropyl group, is derived from cumene through the cumene hydroperoxide (CHP) process.

Furthermore, other derivatives include acetophenone, bisphenol A, alpha-methylstyrene, and various composite materials, acrylic films, laminates, and industrial, transportation, healthcare, food-grade cumene, polycarbonate plastic, consumer goods, methyl methacrylate, methyl isobutyl ketone, bisphenol-A, methylstyrene, and phenolic resin. The demand for these products is expected to remain strong, particularly in the industrial and transportation sectors, leading to increased consumption during the forecast period. The Lunar New Year and seasonal fluctuations in crude oil prices may impact the supply and demand dynamics of the market. The West Coast, specifically Long Beach, is a significant hub for the import and export of aromatic hydrocarbons. Therefore, increasing demand for phenol in the plastic industry is expected to boost the growth of the market during the forecast period.

Major Market Challenge

Rising health hazards with cumene is a major challenge to the growth of the market.  Cumene, a chemical compound with the formula C9H12, is a significant component in the production of phenol and acetone. Major producers include INEOS Phenol and Mitsui Chemicals, also known as Mitsui Phenols. This is derived from crude oil through an alkylation reaction using solid phosphoric acid. Exposure to cumene can lead to health hazards, including skin and eye irritation, respiratory problems, neurological effects, and an increased risk of cancer. Acute inhalation can cause drowsiness, headaches, and dizziness in humans and animals. Regulatory agencies, such as the Environmental Protection Agency (EPA), have set limits on cumene emissions and implemented safety standards for workers. C

Furthermore, cumene is used in various industries, including transportation, healthcare, and consumer goods. It is a crucial ingredient in the production of phenolic resin, composite materials, acrylic films, laminates, and polycarbonate plastic. Other applications include the production of Bisphenol A, Alpha-methylstyrene, and various monomers and polymers. Major consumers of cumene include the production of benzene, styrene, and acetophenone. It is also used in the manufacturing of methyl methacrylate, methyl isobutyl ketone, and methylstyrene. Cumene is a valuable aromatic hydrocarbon and is in high demand during seasons like the Lunar New Year on the West Coast, particularly in Long Beach. The increase is expected to have a negative impact on the market during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Bilcare Ltd.: The company offers raw material cumene through its pipeline connections between INEOS phenol and acetone production in Gladbeck, site in Marl, and Gelsenkirchen.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• BASF SE
• Braskem SA
• Chang Chun Group
• Compania Espanola de Petroleos SA
• Domo Chemicals GmbH
• Dow Inc.
• Eni Spa
• Ennore India Chemical International
• Exxon Mobil Corp.
• Kumho Petrochemical Co. Ltd.
• Merck KGaA
• Mitsui Chemicals Inc.
• Petroleos de Venezuela SA
• Parsol chemicals Ltd.
• Saudi Arabian Oil Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Application Outlook 
  • Phenol
  • Acetone
  • Others

• Technology Outlook 
  • Zeolites
  • Solid phosphoric acid
  • Aluminum chloride

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

Cumene is an important chemical compound used extensively in the production of polystyrene and other petrochemicals. The market has been experiencing significant growth due to the increasing demand for polystyrene in various industries, such as packaging, construction, and electronics. The primary consumers of Cumene are the petrochemical industries, particularly those involved in the production of polystyrene. The market is driven by factors such as the growing demand for polystyrene and the increasing use of Cumene as a feedstock in the production of other chemicals. The production of Cumene is mainly carried out through the cumene process, which involves the alkylation of benzene with propylene. The market is highly competitive, with key players including Shell, ExxonMobil, Sinopec, and LyondellBasell. The market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for polystyrene and other petrochemicals.

Further, the market is also expected to be influenced by factors such as the availability of raw materials, technological advancements, and government regulations. The market is segmented based on application, region, and end-use industry. The major applications of Cumene include the production of polystyrene, alkylate fuel, and other chemicals. The major end-use industries for Cumene are packaging, construction, and electronics. The major regions for the market are North America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is expected to dominate the market due to the increasing demand for polystyrene and other petrochemicals in the region. In conclusion, the market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for polystyrene and other petrochemicals. The market is highly competitive, with key players including Shell, ExxonMobil, Sinopec, and LyondellBasell. The market is segmented based on application, region, and end-use industry.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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