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The phenol market size is forecast to increase by USD 4.3 billion at a CAGR of 3.3% between 2023 and 2028. The market exhibits significant growth due to the expanding utilization of phenol in various industries, including machinery parts, everyday products, and drug manufacturing. The market is experiencing significant growth due to the increasing application of phenol in various industries, including construction activities, where it is used in the production of phenolic resins for plywood, laminated beams, and flooring panels. Phenol is a versatile chemical used in the production of mouthwash, disinfectants, liquid detergents, floor cleaners, antioxidants, colored dyes, plastics, and explosives. However, the market faces challenges such as regulatory restrictions, particularly in the EU regarding phenol-based toys, and price volatility of phenol. In, phenol's demand continues to rise, driven by its essential role in manufacturing essential products, ensuring a steady market trajectory.
The chemical compound phenol, with the molecular formula C6H5OH, is a vital industrial chemical with a benzene ring structure and a hydroxyl group. Its unique properties make it a versatile feedstock in various industries, including construction, pharmaceuticals, and plastics. Phenol is used extensively in construction activities as a primary component in phenolic resins. These resins are essential in manufacturing plywood, laminated beams, and flooring panels, providing strength and durability to these materials. In the pharmaceutical sector, phenol is used as a feedstock for producing carbolic acid, an antiseptic and disinfectant.
Moreover, the chemical's antiseptic properties make it an essential ingredient in disinfectants and antiseptics. In the electronic devices industry, phenol is used in the production of machinery parts due to its excellent solubility in organic solvents and resistance to heat. In the chemical industry, phenol is used as a building block in producing plastics and resins, such as polycarbonate plastics and epoxy resins. These materials are widely used in various applications, including paints and coatings, adhesives, and electrical and electronics. Bisphenol-A (BPA), a derivative of phenol, has been a topic of debate in recent years due to concerns regarding its potential health effects.
However, phenol itself is not subject to any current bans or restrictions. The market is driven by the increasing demand for phenolic resins in the construction industry and the growing usage of phenol in the production of bio-based phenol. Bio-based phenol is gaining popularity due to its eco-friendly nature and potential to reduce the dependence on petrochemical feedstocks. In conclusion, phenol is a versatile chemical compound with a wide range of applications across various industries. Its unique properties make it an essential feedstock in the production of phenolic resins, plastics, and resins, among others. The growing demand for eco-friendly alternatives and the increasing usage of phenol in the construction industry are expected to drive the growth of the market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The BPA segment is estimated to witness significant growth during the forecast period. Phenol, a colorless solid compound, plays a significant role in various industries due to its versatility. In the manufacturing sector, it is used as a raw material for producing machinery parts and everyday products. For instance, it is an essential component in the production of mouthwash, disinfectants, liquid detergents, and floor cleaners. In the pharmaceutical industry, phenol is used in drug manufacturing as an antioxidant and in the production of colored dyes. Moreover, phenol is a vital ingredient in the production of plastics, including BPA-based plastics. These plastics are known for their clarity and durability, making them suitable for use in various applications, such as sports equipment, water bottles, compact discs, and digital versatile discs.
Furthermore, in the automotive industry, phenol-based epoxy resins are used as coatings for water pipes and in the form of polycarbonate to reduce greenhouse gas emissions and improve fuel efficiency. Overall, phenol's applications span across multiple industries, making it an indispensable compound in the modern world.
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The BPA segment accounted for USD 10.42 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 57% 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.
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The market witnessed significant growth in APAC in 2023, with this region being the largest consumer of phenol. The primary reason for the market's expansion in APAC is the escalating demand for phenol in countries like China, India, South Korea, and Japan. This demand rise is primarily due to factors such as population growth and urbanization. The increasing need for electronics and automobiles, residential construction, pharmaceuticals, and cosmetics in these countries is driving the demand for phenol. China, a major contributor to The market, is currently experiencing rapid economic growth. Urbanization in China is expected to boost phenol demand during the forecast period.
Furthermore, phenol is a vital organic compound with a benzene ring structure. Its antiseptic properties and versatility make it an essential component in various industries. In construction, phenolic resins are used as adhesives and coatings. In healthcare, it is used as an antiseptic and disinfectant. In the manufacturing of bio-based phenol, recycled materials are increasingly being used to reduce environmental impact. The market's growth is influenced by its wide application spectrum and increasing demand in various end-use industries.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing application of phenol across various sectors is the key driver of the market. The market in the United States is poised for significant growth due to its extensive usage in various industries. This organic compound is a crucial component in the production of a multitude of products, including household items, medical equipment, paints and coatings, and electrical devices. In industrial applications, phenol is employed as an intermediate in cool refineries, resin paints, textile production, and dyes, as well as in the manufacturing of abrasives, adhesives, sealant chemicals, flame retardants, and fuel additives. Additionally, phenol finds application in consumer goods such as automotive care products, floor coverings, foam seating and bedding, and fuels. Bisphenol-A (BPA), a significant type of phenol, has faced regulatory challenges due to health concerns.
However, the market for phenol is not solely reliant on BPA, as alternative raw materials such as recycled feedstock and bio-based phenol are increasingly being adopted. The petrochemical industry continues to be a major supplier of phenol, but shipping delays and raw material shortages may impact production. Phenol is a versatile chemical used in the production of polycarbonate plastics, epoxy resins, and various other products. Its applications span across multiple industries, including automotive, construction, electronics, and healthcare, among others. The increasing demand for these products is expected to fuel the growth of the market in the United States.
Restrictions on specific phenol-based toys by EU is the upcoming trend in the market. The European Union's Directive (EU) 2017/774, effective November 4, 2018, amended the Toy Safety Directive (2009/48/EC) to restrict phenol in toys, particularly those intended for children under 36 months or those that can be placed in their mouths. This regulation sets migration and content limits for phenol in polymeric materials and as a preservative, primarily impacting toys made from PVC and those containing water-based liquids, such as bubble-blowing toys and inks. Manufacturers may face increased compliance costs and seek alternative materials or suppliers, leading to potential innovation in safer phenol alternatives. The construction industry also utilizes phenol in the production of phenolic resins for applications like plywood, laminated beams, flooring panels, and chemical intermediates.
In addition, phenol is used in various industries, including pharmaceuticals, feedstock, industrial cleaners, and electronic devices. The implementation of these regulations may influence the market dynamics for phenol and its derivatives.
Fluctuating prices of phenol is a key challenge affecting the market growth. The market experiences continuous price fluctuations due to the volatility of raw material costs, specifically benzene and propylene. These materials are essential for phenol production. The global benzene market has been witnessing increasing demand, leading to its scarcity and subsequent price instability. This situation significantly impacts the pricing of phenol in major regions, including APAC, Europe, and North America.
These price fluctuations pose a considerable challenge to the expansion of the market, particularly in sectors such as commercial anti-corrosive primers for household appliances, agricultural equipment, construction output, and automotive production. As a professional assistant, it's crucial to recognize these market dynamics and adapt accordingly to ensure business continuity.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
Honeywell International Inc. - The company offers phenol producing technology such as UOP Phenol 3G unit that converts cumene into phenol and acetone with high yields and product quality, and low utility consumption products.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
Phenol, a chemical compound with the molecular formula C6H5OH, is an essential feedstock in various industries. Its production is derived from the cumene process, which involves the oxidation of cumene using a catalyst. Phenol's unique properties, including its hydroxyl group and benzene ring, make it a versatile compound used in numerous applications. In construction, phenolic resins are used to produce plywood, laminated beams, and flooring panels due to their strength and durability. Phenol is also used in the pharmaceutical industry as a raw material in drug manufacturing and as an antiseptic in mouthwash and disinfectants. In the chemical industry, phenol is used as a feedstock for producing phenolic resins, which are further used in coatings, adhesives, and plastics.
Furthermore, phenol is also used in the production of explosives, corrosive compounds, and antioxidants. In the electronics industry, phenol is used in the production of electronic devices, machinery parts, and high-speed bearings. The market experiences significant demand from sectors like construction, where phenolic resins find extensive applications in plywood, glue laminated beams, and flooring panels. Everyday products such as liquid detergents, floor cleaners, and antiseptics also contain phenol. The market is driven by the construction output, paint demand, and automotive production. However, the market faces challenges such as raw material shortage, shipping delays, and the ban on bisphenol-A (BPA) in some regions. The market is also seeing a shift towards the use of recycled feedstock and bio-based phenol to reduce environmental impact. The demand for phenol is expected to continue to grow in industries such as healthcare, commercial, and agriculture.
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Market Scope |
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Report Coverage |
Details |
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Page number |
158 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.3% |
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Market growth 2024-2028 |
USD 4.30 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.1 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 57% |
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Key countries |
China, US, Taiwan, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aditya Birla Management Corp. Pvt. Ltd., AdvanSix Inc., ALTIVIA, Compania Espanola de Petroleos SA, Covestro AG, Deepak Nitrite Ltd., Domo Chemicals GmbH, Dow Inc., Essential Industries Inc, Formosa Chemicals and Fibre Corp., Honeywell International Inc., INEOS Group Holdings S.A., Jinan Shengquan Group Share Holding Co Ltd, Kumho Petrochemical Co. Ltd., LG Chem Ltd., Mitsubishi Chemical Group Corp., Mitsui Chemicals Inc., PTT Global Chemical Public Co. Ltd., Shell plc, and Solvay SA |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Derivative Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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