Phenol Derivative Market Expected to Reach $56.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Phenol Derivative Market," The phenol derivative market was valued at $36.6 billion in 2021, and is estimated to reach $56.5 billion by 2031, growing at a CAGR of 4.6% from 2022 to 2031.

Phenol is both a natural and manufactured chemical. Pure ethanol is a colorless to white solid, whereas the commercial product is a liquid. In industries, phenol is a commonly used chemical intermediate. Bisphenol-A (BPA), its principal chemical derivative, is used to manufacture polymers including polycarbonates and epoxy resins. In addition, its derivatives include phenol-formaldehyde resins, alkylphenols, adipic acid and antioxidants. Another chemical derivative used to create nylon is caprolactam. Herbicides, detergents, and pharmaceutical drugs all include phenol derivatives.

The market will likely be driven by the rising demand for polycarbonate resins that heavily employ Bisphenol-A (BPA), a phenol derivative. However, rigorous regulation over phenol derivatives such as Bisphenol-A (BPA) in food packaging is anticipated to hinder the market for phenol derivatives. Increasing demand for polycarbonate resins that employ Bisphenol-A (BPA), a phenol derivative, in significant quantities. Bisphenol A (BPA) is a component in the synthesis of epoxy and polycarbonate resins. It is composed of acetone and phenol. The ratio of BPA usage between epoxy and polycarbonate resins is approximately 40:60. Among other things, polycarbonate resins are the most important market for BPA, accounting for almost 70% of global demand.

Although a newer, greener technique employs dimethyl carbonate and BPA, phosgene and bisphenol A (BPA) are also used to manufacture polycarbonate resins. Its principal use is in the electronics industry for components and housings, where electrical insulation, heat resistance, and flammability are essential. Construction, automotive glazing, and medical applications also utilize extruded sheets. The utilization of optical media such as CDs, DVDs, and Blu-ray discs has declined. The fast proliferation of polycarbonate resins has resulted in a global surge of BPA manufacturing plants. Manufacturing example, in July 2019, the South Korean chemical company Lotte Chemical teamed with the energy services company GS Energy to create a joint-venture petrochemical factory for Bisphenol-A (BPA) products. Lotte Chemical and GS Energy have agreed to launch a joint venture in the second quarter of 2019, with Lotte Chemical holding a 51% stake and GS Energy a 49% stake. By 2023, the new joint venture would have invested $679  million in a factory producing 200,000 tons of BPA-containing products annually.

The use of phenol derivatives such as Bisphenol-A (BPA) in food packaging is governed by stringent regulations. According to the former head of the National Institute of Environmental Health Sciences and the National Toxicology Program, the scientific evidence is now sufficient to implement strict limits on the use of bisphenol A (BPA) in packaging and plastics that come into contact with our food. The European Food Safety Authority reevaluated the dangers of BPA in food and imposed a 0.04 ng BPA/kg body weight per day restriction by December 2021. In addition, a coalition of environmental and public health organizations is urging the U.S. Food and Drug Administration (FDA) to tighten bisphenol-A (BPA) restrictions on food-contact plastics.

The global Phenol Derivatives market is segmented into derivative, end-use industry, and region. Depending on the derivative, the market is classified into phenolic resin, bisphenol-A (BPA), caprolactam, alkyl phenol and others. On the basis of end-use industry, it is categorized into electrical and electronics, chemicals, coatings, automotive, textile and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major players operating in the global phenol derivatives market are Cepsa, Covestro AG, Dow Inc., Exxon Mobil Corporation, Formosa Chemicals & Fibre Corp, Hexion Inc, Honeywell International Inc., Ineos, Kumho P & B Chemicals., Inc, Mitsubishi Chemical Holdings Corporation, Mitsui Chemicals, Inc, PTT Phenol Company Limited, SABIC, Shell Plc, Solvay SA.

Other players operating in the Phenol Derivatives market are Chang Chun Group., Versalis S.p.A., Taiwan Prosperity Chemical Corporation, Altivia.

Key findings of the study

• On the basis of derivative, the phenolic resin segment is expected to grow at a CAGR of 5.1%, in terms of revenue, during the forecast period.
• Depending on the end-use industry, the electrical and electronics industry segment is expected to grow at a CAGR of 5.3%, in terms of revenue, during the forecast period.
• By region, Asia-Pacific dominated the market with the highest revenue shares of $17.9 billion in 2021.