Phenolic Antioxidant Market

Market Overview

The global phenolic antioxidant market size was valued at USD 2.2 billion in 2022 and is projected to reach a value of USD 3.5 billion by 2031, registering a CAGR of 5.6% during the forecast period (2023-2031). The increasing manufacture of plastic impacts the growth of the phenolic antioxidant market.

Phenolic antioxidants are chemical substances that prevent or slow the oxidation process in various materials. Oxidation is a chemical reaction that involves the loss of electrons and can cause material degradation, resulting in color, taste, and texture changes. Phenolic antioxidants slow or stop oxidation reactions, protecting the quality and integrity of the materials they protect. Critical factors such as the increasing use of plastics in the automotive industry and phenolic antioxidants in producing rubber and plastic composites will drive the phenolic antioxidants market during the projected period.

Furthermore, rising disposable income and fast industrialization are expected to drive the growth of the phenolic antioxidants market in the approaching years. However, issues such as the negative environmental impact of plastics and severe government regulations are projected to limit the expansion of the phenolic antioxidants market share.

Highlights

• Mono-functional accounts for the largest share of the market by type.
• Liquid form holds a significant market share by form.
• Plastic and rubber are significant contributors to the market by application.
• Synthetic sources command the largest share of the market by source.
• North America dominates the global market.

Market Dynamics

Phenolic Antioxidant Market Drivers

Growing Demand in Polymer and Plastic Industries

Polymers and plastics are in high demand in various industries due to their versatility, lightweight qualities, and low cost. Phenolic antioxidants are critical in preserving the integrity and performance of plastic materials, particularly in applications where oxidation and degradation may occur due to exposure to environmental conditions. According to M. Holland Company, the plastics industry may expect continuously growing demand in 2023 as businesses work through excess stockpiles. The plastics industry is anticipated to grow by 2040 and triple by 2050. The automobile industry, a significant user of plastic materials, is seeing an increase in demand for lightweight components, pushing the usage of plastics and, as a result, phenolic antioxidants.

Furthermore, the overall weight reduction benefit drives demand for lightweight automotive materials for passenger vehicles, particularly electric vehicles (EVS). The global annual output of electric cars (EVs) will top 10 million for the first time in 2022, up from 6.7 million in 2021. As the need for plastics in packaging, construction, and automotive areas increases, so will the demand for phenolic antioxidants. Along with the rising usage of plastics in various applications, the market for these antioxidants is expected to develop, preserving the polymer industry's growth momentum. Technological developments in plastic formulations and an emphasis on sustainable and eco-friendly additives are projected to impact the polymer industry's future terrain. Phenolic antioxidant market trends that offer improved performance will almost certainly see higher usage in the expanding polymer market.

Phenolic Antioxidant Market Restraints

Environmental and Regulatory Challenges

Environmental regulations and concerns about the environmental impact of chemical additions present hurdles to the phenolic antioxidant market. Compliance with changing regulatory criteria can be complex and may limit the use of particular formulations. The Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) law in the European Union establishes rigorous limits on using chemicals to safeguard human health and the environment. Substances used in manufacturing phenolic antioxidants may require authorization or be restricted in their use, limiting the market's capacity to develop new formulations. REACH and other related rules have increased scrutiny of chemical additives, particularly phenolic antioxidants, necessitating ongoing monitoring and adaption by manufacturers.

As a result, companies may need to engage in R&D to develop phenolic antioxidant compositions that meet regulatory standards. This can raise expenses and necessitate continual innovation to meet changing environmental standards. Manufacturers may need to adapt their product portfolios to comply with regulatory requirements, such as phasing out some formulations and offering environmentally friendly alternatives. The regulatory landscape influences market dynamics by determining which phenolic antioxidant formulations are permitted in various locations. This complication can impact the global supply chain and market accessibility.

Phenolic Antioxidant Market Opportunity

Technological Advancements and Customized Solutions

Continuous technical breakthroughs enable the development of bespoke phenolic antioxidant solutions that solve specific industry concerns. Manufacturers can use these improvements to develop novel formulations with increased stability and efficiency. By incorporating nanotechnology into the formulation of phenolic antioxidants, nanoparticles with better dispersion within polymer matrices can be created. They interact better with polymer matrices Because nanoparticles have a larger surface area. Nanotechnology can improve the stability of phenolic antioxidants, making them less susceptible to aggregation or degradation. Enhanced dispersion ensures that phenolic antioxidants are uniformly distributed, improving oxidation prevention efficiency.

Additionally, the improved stability of nanotechnology-based formulations contributes to the antioxidants in the material having a longer lifespan. Technological breakthroughs, particularly in nanotechnology, provide a solution to address issues connected with phenolic antioxidant dispersion and stability. Manufacturers can use these improvements to develop tailored solutions that fit the changing needs of industries, assuring maximum antioxidant performance in a wide range of applications. Hence, the Incorporation of nanotechnology and other cutting-edge technologies into phenolic antioxidant formulations is expected to increase, providing prospects for creating high-performance antioxidants. Manufacturers can explore creative solutions that solve unique issues in diverse sectors as materials science research advances, contributing to the phenolic antioxidant market's long-term growth.

Regional Analysis

The global phenolic antioxidant market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global phenolic antioxidant market shareholder and is estimated to grow at a CAGR of 5.2% over the forecast period. Demand from essential industries such as plastics, automobiles, and food and beverages heavily influence North America's market share. The plastics sector, driven by the requirement for long-lasting products, is nevertheless a key user of phenolic antioxidants. Recognizing the need to increase the life and performance of rubber components, the automobile industry drives demand for these antioxidants in the region. The demand for phenolic antioxidants, which is expected to account for around 86.4% of the regional market, is predicted to stay strong in the United States.

Additionally, North America produces one-third of all plastic additives produced globally. The rubber and plastic industries are the primary end-use industries for phenolic compound antioxidants. The North American Plastics group, which has 115 facilities across the United States and Canada and has the most significant geographic footprint in the plastics industry today, is a conglomerate of the sector's leading brands. The expanding demand for plastic in various end-use sectors and the rising demand for plastic-based products will likely drive market expansion in the United States.

Asia-Pacific is anticipated to exhibit a CAGR of 5.5% over the forecast period. According to phenolic antioxidant market insights, China will likely dominate the Asia-Pacific phenolic antioxidant markets. China will account for over 25% of the worldwide market in 2022. China's dominance is primarily due to the country's booming automobile and plastic sectors, the rising need for food for an expanding population, and greater consumption of plastic and rubber. Every month, China produces almost seven million metric tons of plastic products, according to the International Trade Administration. The most significant monthly output of plastic products since January 2020 was 7.95 million metric tons in December 2021. China remains the world's largest automobile market in yearly sales and manufacturing output, with domestic output estimated to exceed 35 million vehicles by 2025. As a result of the preceding facts, it is projected that demand for phenolic antioxidants will rise due to China's expanding automotive and plastic industries.

Europe has a moderate market for phenolic antioxidants. Strict restrictions to lower VOC emissions from numerous industries such as paints and coatings, plastics manufacturing, and automotive will increase product demand in the following years.

Segmental Analysis

The global phenolic antioxidant market is segmented based on type, form, application, source, and region.

The market is further segmented by type into Mono-Functional, Bi-Functional, and Multi-Functional.

Mono-Functional accounts for the largest share of the market.

Mono-Functional

Compounds with a single functional group in their molecular structure are known as mono-functional phenolic antioxidants. These antioxidants usually have a single phenolic hydroxyl group. Simple phenolic compounds such as butylated hydroxytoluene (BHT), butylated hydroxyanisole (BHA), and tert-butylhydroquinone (TBHQ) are common examples. Mono-Functional Phenolic Antioxidants had a market share of over 45% in 2022 and are predicted to increase profitably through 2032. Mono-functional antioxidants, designed to target specific oxidative processes, have a considerable market share due to their ease of use and low cost. They are frequently utilized when a single antioxidant activity is adequate to handle degradation concerns, such as polymer compositions and industrial lubricants. 

Bi-Functional

The molecular structure of bi-functional phenolic antioxidants contains two functional groups. Two phenolic hydroxyl groups are present in these antioxidants. Examples include 3,5-di-tert-butyl-4-hydroxyhydrocinnamic acid esters and some hindered phenols with dual functionalities. Bi-functional phenolic antioxidants, such as stabilizing polymers and rubber goods, are used in applications that demand increased antioxidant activity and performance.

The market is sub-segmented based on form into Liquid, granule, and powder.

Liquid form holds a significant market share.

Liquid

At normal temperatures, liquid phenolic antioxidants are in a fluid condition. Due to their fluid nature, they are often accessible to handle and incorporate into diverse formulas. In 2022, liquid form maintained a dominant market share and is expected to rise at a considerable CAGR during the projected period. Liquid antioxidants are popular in applications such as rubber processing because they are easy to introduce into manufacturing and provide consistent protection against oxidative deterioration. Liquid phenolic antioxidants are often employed in applications requiring easy mixing and uniform distribution, such as liquid formulations or procedures requiring liquid additives to be quickly disseminated.

Granule 

Granule phenolic antioxidants are bigger particle-size solid particles, often granular or pelletized. Granules provide a more controlled and convenient method of handling and dosage. They may have a delayed release compared to powders, resulting in persistent antioxidant action. Granule phenolic antioxidants are helpful in situations requiring controlled release and uniform dispersion, such as the compounding of rubber or plastic products.

The market can be bifurcated by application into Plastic and rubber, food and feed additives, pharmaceuticals and personal care, fuel and lubricants, and industrial lubricants.

Plastic and rubber are significant contributors to the market.

Plastic and Rubber

Phenolic antioxidants are widely utilized in the plastic and rubber industries to prevent the oxidative degradation of polymer materials. They contribute to preserving the physical and mechanical qualities of plastics and rubber, increasing their lifespan and performance. Phenolic antioxidants are commonly utilized as preservatives in manufacturing polymers and rubber. Plastic is being embraced exponentially in numerous industries due to its outstanding characteristics. Plastic additives are used to improve efficacy and workability under challenging conditions, such as high temperature and high pressure, because they slow or limit the degradation of plastic products.

Additionally, phenolic antioxidants are employed in polymer processing as antioxidant additives because they control and limit the oxidation of plastic products in harsh settings. This, in turn, will drive phenolic antioxidant demand over the anticipated timeframe. Plastic-based products and composites are becoming increasingly popular in the automotive, defense, and aerospace industries due to their stiffness, strength, lightweight, high specific damping capacity, enhanced shock mitigation, and energy absorption properties. The growing use of plastic in the automotive, defense, and aerospace industries to minimize obesity is predicted to increase demand for phenolic antioxidants over the forecast period.

Food and Feed Additives

Phenolic antioxidants are used as preservatives in the food and feed industries. They prevent the oxidation of fats and oils in food goods, extending shelf life and maintaining product quality. Phenolic antioxidants may be utilized to retain the nutritional value of animal feed. Butylated hydroxytoluene (BHT) and butylated hydroxyanisole (BHA) are phenolic antioxidants often employed in food products to prevent rancidity and maintain freshness.

Based on source, the market is fragmented into Natural and synthetic.

Synthetic sources command the largest share of the market.

Synthetic

Synthetic phenolic antioxidants are chemically manufactured molecules with antioxidant characteristics similar to those found in natural sources. The synthetic phenolic antioxidant segment will likely provide a significant revenue share to the global market and continue its dominance during the forecast period. Synthetic phenolic antioxidants are expected to dominate in the forecast period due to rising demand as an addition in the plastics and rubber, fuel, and lubricant industries. Synthetic phenolic antioxidants are employed in various sectors, including plastics, rubber, and lubricants, where careful control of antioxidant characteristics is required. They are designed to have specific antioxidant properties such as stability, solubility, and efficacy in various applications.

Natural

Natural phenolic antioxidants are produced from plant-based sources or phenolic-rich natural extracts. They frequently contain antioxidants such as flavonoids, polyphenols, and other naturally occurring chemicals having antioxidant activity. Natural Phenolic Antioxidants account for a minor portion of the global phenolic antioxidant market. Flavonoids, anthocyanins, tannins, and phenolic acids comprise the natural phenolic antioxidant. Phenolic antioxidants are mainly used as additives to help prevent product oxidation. Natural phenolic antioxidants are used in various industries, including food, cosmetics, and medicines, where natural and clean-label chemicals are preferred.

Recent Developments

• December 2023- BASF will introduce Irgastab® PUR 71, an innovative antioxidant that improves regulatory compliance and performance in polyols and polyurethane foams.
• December 2023- Outdoor plastic goods usually contain hindered amine light stabilizers (HALS) to prevent UV deterioration. HALS formulations from ADEKA improve polyolefin weatherability for civil engineering, construction, agricultural film, and artificial turf.