Phenol and Acetone Market

Phenol and Acetone Market Analysis, By End Use (Coating Formulations, Fiber Production, Pharmaceutical Formulations, Disinfectants Production, Adhesives Production, Constructional Materials Production, and Others) and Region - Market Insights 2023 to 2033

Analysis of Phenol and Acetone Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Phenol and Acetone Market Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global phenol and acetone market is estimated to be valued at US$ 22.9 Billion in 2023 and it is expected to grow at a CAGR of 5.3% to reach US$ 38.3 Billion by the end of 2033.

Phenol and acetone are amongst key raw materials used in the construction industry. The growing demand for construction materials is driving the demand for phenol acetone. The properties of phenol acetone make it an essential component in the production of various construction materials.

Phenol is primarily used in the production of phenolic resins, which find applications in the production of laminates, coatings, and adhesives. It is also used in the production of bisphenol-A (BPA), which is a key component in polycarbonate plastics and epoxy resins. Acetone is primarily used as a solvent and in the production of methyl methacrylate (MMA), which is used in the production of polymethyl methacrylate (PMMA) or acrylic plastics.

Report Attributes Details

Phenol and Acetone Market Size (2022A)

US$ 21.8 Billion

Estimated Market Value (2023E)

US$ 22.9 Billion

Forecasted Market Value (2033F)

US$ 38.3 Billion

Global Market Growth Rate (2023-2033)

5.3% CAGR

East Asia Market Share (2023)


China Market Growth Rate (2023-2033)

6.5% CAGR

Key Companies Profiled

  • Borealis AG
  • Domo Chemicals
  • LG Chem
  • PTT Phenol Company Limited (PPCL)
  • Shell
  • Taiwan Prosperity Chemical Corp (TPCC)
  • Others

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Historic and Future Pathway Analysis for the Phenol and Acetone Market

The demand for phenol and acetone has experienced steady growth over the years, driven by their wide range of applications. The Asia-Pacific region, particularly China, has been a dominant player in the phenol and acetone market. China's expanding manufacturing sector and demand for phenolic resins have contributed to the region's high consumption. North America and Europe are also significant consumers, driven by industries such as automotive, construction, and electronics.

The production costs of phenol and acetone are influenced by the prices and availability of feedstocks like cumene, propylene, and benzene. Fluctuations in feedstock prices, as well as supply-demand dynamics, can impact the overall production costs and, subsequently, the market prices of phenol and acetone. Additionally, geopolitical factors and raw material availability have historically influenced market dynamics.

In terms of consumption, construction materials is the largest end-use of phenol and acetone, accounting for over half of the market share and it is expected that by the end of 2033, construction materials production will hold 23.3% of the market share.

  • Short Term (2023-2026): Burgeoning demand from paint and coatings industry will drive the market in short term
  • Medium Term (2026-2029): The growing demand for construction materials and products will drive the demand in medium term.
  • Long Term (2029-2033): Rapid industrialization, expanding manufacturing sector, and growing demand for downstream products in Asia pacific countries like China, India will drive the demand in long term.

Based on of the aforementioned facts, the phenol and acetone market is anticipated to grow at a CAGR of 5.3% during the forecast period from 2023-2033, According to the Fact.MR, a market research and competitive intelligence provider.

Phenol and Acetone Market Size, Share, Trends, Growth, Demand and Sales Forecast Report by Fact.MR

Market share analysis of phenol and acetone based on End Use and region is provided in a nutshell in the above image. Under the End Use segment, the constructional materials production sub-segment dominates with 23.0% market share in 2023.

Market Dynamics Outlook

“Growing Construction Industry to Bolster Demand”

The primary reason for the increasing production capacities of phenol acetone is the growing demand for phenolic resins, which are widely used in the construction industry as adhesives, coatings, and binders. Phenolic resins are produced by reacting phenol acetone with formaldehyde, and the growing construction industry is driving the demand for phenolic resins. Manufacturers are investing in increasing their phenol acetone production capacities to meet this growing demand.

Another important use of phenol acetone in the construction industry is in the production of laminates. Laminates are widely used in the construction of furniture, cabinets, countertops, and wall paneling. Phenol acetone is used as a cross-linking agent in the production of laminates, which improves their strength and durability. The growing demand for laminates in the construction industry is driving the demand for phenol and acetone.

It is estimated that the global construction market is expected to surpass US$ 8.7 Trillion by 2033 with a CAGR of 3.9%.

“Rising Consumption of Phenol and Acetone in the Production of Various Products”

Phenol acetone is an important industrial chemical used in a wide range of applications, including the production of plastics, adhesives, coatings, and pharmaceuticals. Due to the increasing demand for phenol acetone, manufacturers are investing in increasing their production capacities to meet the growing market demand.

One of the primary drivers for the increasing production capacities of phenol acetone is the growing demand for Bisphenol A (BPA), which is a key intermediate in the production of polycarbonate plastics. BPA is produced by reacting phenol acetone with each other, and the demand for polycarbonate plastics is rapidly growing in various end-use industries. To keep up with this demand, manufacturers are expanding their phenol acetone production capacities.

“Volatility in raw material prices: Restrain”

Phenol and acetone production relies on feedstocks such as cumene, propylene, and benzene. Any disruptions in the availability or price volatility of these feedstocks can impact the production costs and subsequently hinder market growth. Fluctuations in the prices of crude oil, which influences feedstock prices, can be a significant factor affecting the market dynamics.

Apart from above, developing and implementing new technologies for phenol and acetone production can be a barrier to market growth. The industry continually seeks innovative and sustainable processes that improve efficiency, reduce energy consumption, and minimize environmental impact. However, the research and development required to commercialize new technologies can be time-consuming and costly.

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Country-wise Insights

What are the Factors Driving Phenol and Acetone Demand Across China?

The East Asia region, particularly China has witnessed a significant shift in the demand and production of phenol acetone in recent years. As economies in the region continue to grow, and industrialization and urbanization rates increase, the demand for phenol acetone has also risen.

China has established substantial production capacities for phenol and acetone. Several major chemical companies in China, such as Sinopec, PetroChina, and CNOOC, have invested in phenol and acetone production facilities. These companies utilize different production technologies, including the cumene peroxidation process, to produce phenol and acetone as co-products.

Another factor contributing to the shift towards the China market is the availability of abundant and low-cost raw materials.

It is estimated that the phenol and acetone market in China will grow at a CAGR of 6.5% during the forecast period and will reach a valuation of US$ 8.6 Bn by the end of 2033.

Why U.S. Phenol and Acetone Market is Flourishing?

Phenol and acetone are chemicals used in the production of various pharmaceutical products. The U.S. is a major exporter of pharmaceutical products due to the presence of prominent pharmaceutical players in the country.

Acetone is an organic solvent that is most commonly used in pharmaceuticals. It is used in producing pills and liquid medicines to have proper density. It is mandatory for the efficacy of the medicine. It is also used as an antiseptic. The pharmaceutical industry can stimulate the demand curve for these chemicals by developing new drugs and treatments, increasing production, and improving manufacturing processes.

Phenol and Acetone are used as an intermediate in a wide range of industries ranging from chemical to pharmaceuticals. For instance, Acetone and hydrogen cyanide are reacted together to obtain MMA. MMA is extensively used to produce PMMA, which finds its use in medical, automotive, and houseware appliances.

Over the course of the assessment period, it is predicted that the phenol and acetone market in the U.S. will experience high growth due to the growing chemical demand in a number of sectors, including paints & coatings, construction, and other end-use industries. The size of the U.S. construction market amounted to around 6.7 trillion U.S. dollars in 2021, and it is expected to reach 15.9 trillion in 2033.

North America market is estimated to create an absolute $ opportunity of about US$ 2,618.4 Mn during forecast period

Category-wise Insights

Why Do Phenol and Acetone Have a Major Share in Pharmaceutical Formulations?

Phenol and acetones are consumed in pharmaceutical drugs and Pharmaceutical Industry is growing at a fast pace with a projected CAGR of around 7.5% over the next decade. The growth is mainly attributed to the rise in demand for drugs for various ailments along with the development of new medicines. Moreover, phenol and acetone find their use in the development of artificial fibers and act as intermediate chemicals in the pharmaceutical industry thus propelling the phenol & acetone market in the long run

The total revenue of the global pharmaceuticals market is expected to triple over the next decade. Thus growth in the pharmaceutical industry leads to an increase in consumption and sales of phenol and acetone during the forecast period.

Pharmaceutical Formulations will create an incremental $ opportunity of US$ 1,434.2 Mn between 2023 and 2033

Know thy Competitors

Competitive landscape highlights only certain players
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Eminent Player’s Key Stratagems

Eminent phenol and acetone manufacturers are Borealis AG, Domo Chemicals, LG Chem, PTT Phenol Company Limited (PPCL), Shell, and Taiwan Prosperity Chemical Corp (TPCC)

The key market player operating in the manufacture of phenol and acetone is committed to strengthening its technology to produce specific and customized products. For instance, PTT Global Chemical Public Company Limited, or (GC), is PTT Group’s petrochemical flagship. The company is committed to strengthening its leading position in the chemical business by combining environmentally-friendly innovations with advanced technologies to develop products to improve people’s lives.

Fact.MR has provided detailed information about the price points of key manufacturers of phenol and acetone positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Phenol and Acetone Industry Research

  • By End Use :

    • Coating Formulations
    • Fiber Production
    • Pharmaceutical Formulations
    • Disinfectants Production
    • Adhesives Production
    • Constructional Materials Production
    • Others (Carpets Manufacturing, etc.)
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

The global phenol and acetone market was valued at US$ 21.8 Billion in 2022.

The regions included in the phenol and acetone market study include North America, Latin America, Middle East & Africa, South Asia & Oceania, East Asia, and Europe.

Prominent players in the market are Borealis AG, Domo Chemicals, LG Chem, PTT Phenol Company Limited (PPCL), Shell, and Taiwan Prosperity Chemical Corp (TPCC).

The market is expected to reach a valuation of US$ 38.2 Billion in 2033.

The historic growth rate of the phenol and acetone market was 4.0% from 2018-2022.

Phenol and Acetone Market

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