The global industrial phenols market was valued at USD 16.83 billion in 2023. It is estimated to reach USD 26.30 billion by 2033, growing at a CAGR of 5.2% during the forecast period (2025–2033).
The global industrial phenol market is primarily boosted by the growth of these chemicals in the automotive industry. In addition, phenol-based compounds like polycarbonates are lightweight and are extensively used in applications where lightweight materials are vital, like the aerospace industry, thereby boosting market expansion. Moreover, there is an increase in demand for industrial phenols from the healthcare and pharmaceutical industry due to their antiseptics, disinfectants, and analgesic properties, thereby creating opportunities for market growth.
Industrial phenols refer to a group of chemical compounds derived from benzene, characterized by a hydroxyl (OH) group connected to a carbon atom in a benzene ring. These compounds find widespread use in various industrial applications due to their versatile properties. Phenols are crucial intermediates in producing plastics, pharmaceuticals, disinfectants, and herbicides. For instance, Bisphenol A (BPA) is a widely used industrial phenol in producing polycarbonate plastics and epoxy resins.
Additionally, phenolic resins, formed by the reaction of phenol with formaldehyde, are extensively employed in adhesives, coatings, and molded products due to their excellent heat resistance and mechanical properties. However, some phenols, such as BPA, have raised concerns regarding their possible adverse effects on human health and the environment, leading to increased scrutiny and efforts to develop safer alternatives.
The growing automotive sector fuels demand for phenol-based products like polycarbonates and epoxy resins, essential for manufacturing lightweight, durable components. Phenolic-based materials are used in parts like bumpers, dashboards, and coatings because they provide the right balance of strength, are lightweight, and have design freedom. With increasing consumer demand for high-performance vehicles and stringent regulations driving automotive innovation, the industrial phenols market experiences sustained growth as automakers prioritize materials that enhance performance and sustainability.
Furthermore, the automotive manufacturing sector is among the most extensive industries on a global scale. In 2021, the global market for automotive manufacturing was valued at approximately 2.86 trillion U.S. dollars. In 2022, the market is expected to reach approximately USD 2.95 trillion U.S. dollars. The automotive industry contributes approximately 3% of the global GDP, which is much higher in emerging markets such as China and India; this proportion is even higher at 7%. Thus, all these factors contribute to market growth.
The shift towards lightweight materials, such as polycarbonates derived from phenol, is driven by industries like aerospace striving for enhanced fuel efficiency, reduced emissions, and improved performance. With the rising demand for lightweight materials to meet sustainability goals and consumer preferences, the industrial phenols market experiences heightened demand, particularly in sectors where lightweight is a priority, thus driving innovation and adoption of phenol-based solutions.
As per Air Transport Action Group, in 2020, the aerospace industry contributed 2.0% of the global CO2 emissions. Likewise, as per the International Air Transport Association (IATA), industry players have sought to decarbonize the aviation industry due to a significant reduction in air traffic due to COVID-19. Countries like Germany, the U.K., the U.S., and France have formulated their National hydrogen Strategies focusing on decarbonizing transportation and aviation sectors. Thus, to decarbonize the aviation industry, there is an increase in the demand for lightweight materials, thereby driving the global industrial phenol market.
The industrial phenols market faces significant restraint due to the price volatility of raw materials. Phenol, a key precursor in the production of industrial phenols, is primarily derived from benzene, a petrochemical. Fluctuations in crude oil prices directly affect the cost of benzene, consequently influencing phenol prices. Moreover, benzene availability is influenced by various factors such as supply-demand dynamics, geopolitical tensions, and regulatory changes.
These uncertainties in the raw material market create challenges for manufacturers in forecasting production costs and setting competitive prices. Price volatility also affects profit margins and investment decisions, leading to hesitancy in capacity expansions or new market entries. Moreover, industries reliant on industrial phenols, like automotive, electronics, and construction, may face supply chain disruptions and cost pressures, impacting their competitiveness in the market.
The healthcare and pharmaceutical sectors drive demand for phenol-derived products due to their wide-ranging applications in antiseptics, disinfectants, and analgesics. With a growing emphasis on hygiene and infection control due to the spread of hospital-acquired infections, the demand for phenol-based healthcare products remains robust. For instance, as per the World Health Organization (WHO), the prevalence of healthcare-associated infections during hospitalization is 7% in high-income nations and 15% in low- and middle-income countries.
On average, one out of every ten affected patients experience mortality as a result of HAIs. Consequently, the growth in these infections is expected to lead to a higher demand for advanced disinfection services in healthcare institutions to manage the spread of infection. Moreover, increasing healthcare spending globally further boosts market growth. As the pharmaceutical sector persists in innovating and developing new therapies, the industrial phenols market experiences sustained growth, supported by the essential role of phenol-derived compounds in healthcare and medical applications. Consequently, all these factors create opportunities for market expansion.
Study Period | 2021-2033 | CAGR | 5.2% |
Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
Base Year | 2024 | Base Year Market Size | USD 17.14 billion |
Forecast Year | 2033 | Forecast Year Market Size | USD 26.30 billion |
Largest Market | Asia-Pacific | Fastest Growing Market |
Based on region, the global industrial phenols market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant global industrial phenols market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region dominates the industrial phenols market due to the fast-paced industrial investment in countries like India, China, Malaysia, and Thailand. Many multinational and local corporations are setting up their research and development offices and manufacturing facilities in these economies due to the presence of a skilled workforce at a low cost, affordable land rates, and government policies that promote foreign investments. For instance, in October 2023, Haldia Petrochemicals Ltd (HPL) intends to allocate Rs 3,000 crore to establish new plants in West Bengal. The company plans to build a propylene plant and a phenol unit at its facilities in Haldia. The phenol plant will be capable of producing 300 kilotons per annum of phenol and 185 KTPA of acetone.
Furthermore, the regional market expansion is driven by the increased spending power and growing middle-class population, leading to heavy consumer expenditure on automobiles, car maintenance, consumer products, and electronics. Moreover, several countries, such as China, Japan, India, Vietnam, and Indonesia, have implemented diverse methods to regulate emissions. In 2016, the Indian government abandoned the Bharat Stage V emission regulations and adopted the Bharat Stage VI emission requirements by 2020. In 2020, the Supreme Court ruled to ban the sale and registration of vehicles that comply with BS-IV norms in the country starting from April 1, 2020. Consequently, the lightweight materials market in automobile production in India is anticipated to have significant expansion, thereby positively impacting the industrial phenol market.
North America is anticipated to witness significant industrial phenol market growth during the forecast period. The North American Free Trade Agreement (NAFTA) is likely to be an important factor driving this market's growth. The growing prevalence of Hospital-acquired Infections (HAIs) and the increasing number of surgeries are also expected to boost the demand for phenol-derived products due to their strong disinfection properties. The Massachusetts Health & Hospital Association, Inc. reported that in U.S. hospitals, the CDC estimated around 1.7 million healthcare-associated illnesses and 99,000 associated fatalities occur annually. Thus, the rise in in-patient hospital admissions caused by HAIs helps boost regional market expansion.
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The global industrial phenols market is segmented by manufacturing process, phenol derivatives, and platform.
Based on the manufacturing process, the global industrial phenols market is bifurcated into Cumene, Raschig, and Dow processes.
The Cumene process is widely used for producing industrial phenols, particularly phenol and acetone. It is the reaction of benzene with propylene to form cumene (isopropylbenzene) as the primary intermediate compound. An acid catalyst, typically phosphoric acid supported on an alumina carrier, catalyzes this reaction. The cumene is then oxidized using air to form cumene hydroperoxide, which is cleaved into phenol and acetone.
The phenol is separated from acetone through fractional distillation. This process is favored for its efficiency and high yield of both phenol and acetone. Moreover, the cumene produced can be used as a feedstock for other processes, adding versatility to the production system. The industrial significance of phenol and acetone in various applications such as plastics, resins, pharmaceuticals, and solvents makes the Cumene process crucial in modern chemical manufacturing.
Based on phenol derivatives, the global industrial phenols market is segmented into bisphenol a (BPA), alkylphenols, chlorophenols, caprolactam, and salicylic acid.
Chlorophenols are a group of chemical compounds consisting of phenol molecules with one or more chlorine atoms attached to the benzene ring. They are commonly used in industrial processes as disinfectants, pesticides, and herbicides. However, chlorophenols are also known environmental pollutants and can be found in contaminated water and soil due to their persistence and toxicity. Exposure to chlorophenols, either through ingestion, inhalation, or dermal contact, can pose significant health risks to humans and animals. These risks include skin, eyes, and respiratory tract irritation, as well as potential carcinogenic effects with long-term exposure. Chlorophenols are used in industrial applications, but their use is limited because of their negative effects on human health and the environment. Proper disposal techniques are also used to prevent widespread pollution.
Based on application, the global industrial phenols market is divided into plastic manufacturing, electronics, automobiles, cosmetics, disinfectants, and others.
Industrial phenols, like cresols and xylenols, are potent disinfectants widely used in various industrial and healthcare settings. Their disinfectant properties stem from their ability to disrupt the cell membranes of microorganisms, directing to their destruction. Phenols exhibit broad-spectrum antimicrobial activity against bacteria, viruses, fungi, and protozoa, effectively controlling infections. These compounds are commonly used in disinfecting surfaces, medical equipment, and water treatment. Their stability and persistence make them suitable for long-lasting disinfection in environments where continuous protection against pathogens is crucial. Moreover, industrial phenols can withstand the presence of organic matter, ensuring effective disinfection even in challenging conditions.
Gathering more than a handful of people in a certain area has disrupted events, from the Tokyo Olympics to small daily activities, such as grocery shopping. Malls, parks, auditoriums, and other public places, leading to the cancellation of significant events for months. Technology has emerged as a lifesaver, allowing people to connect with others in virtual worlds.
A survey from 6Connex, Inc. revealed that Virtual events rose by 1,000% since the beginning of 2020, with virtual events platform witnessing more than 52,000 events and sub-events over the last few months. Many webinar platforms such as the Virtual Show, Adobe Connect, Accelevents, and On24, are witnessing never anticipated increment in businesses. Emerging virtual event platforms are still facing tough competition from giants such as YouTube and Zoom.