Phenol Market

Phenol Market Outlook (2024 to 2034)

The global phenol market size is expected to reach US$ 26.13 billion in 2024. Fact.MR’s latest industry analysis forecasts the market to expand at 4.8% CAGR and reach US$ 41.77 billion by 2034-end.

Phenol, known for its colorless to light-pink appearance, is a crystalline solid with a sweet acrid odor. It is an organic compound that is soluble in water. This acid is used in various fields such as medicine, manufacturing, and petroleum. Its versatile applications across industries are driving market growth. Major companies have heavily invested in research to explore discoveries, thus contributing to the overall expansion of the phenol market size.

Key Market Growth Drivers

• Increasing demand for phenol in the chemical and pharmaceutical industries is fueling phenol market growth. It serves as a key starting material for various products, including plastics, explosives like picric acid, and pharmaceutical drugs such as aspirin. The most important chemical derived from phenol is bisphenol A, which is further used to make polycarbonate.
• Phenol is used extensively for manufacturing medicines such as slimicides, antiseptics, and disinfectants. Phenol helps relieve itching and disinfects the skin, making it a desired product across all age groups in the market. It can also be used as an oral analgesic to treat diseases such as pharyngitis. Phenol has also been used in surgical ingrown toenail treatment called phenolization.
• Phenol reacts with formaldehyde to produce phenolic resins, which are used in the electronics, ballistics, aerospace, rail transit, and mine ventilation industries.
• Bakelite, which is a by-product of polymerization, is also extensively used in the electrical industry in the manufacturing of electrical switches. Phenol possesses the capacity to withstand extreme heat and exhibits resistance to chemicals, making it a desired choice in the electrical industry in the production of heat-based appliances.

Report Attributes	Details
Phenol Market Size (2024E)	US$ 26.13 Billion
Forecasted Market Value (2034F)	US$ 41.77 Billion
Global Market Growth Rate (2024 to 2034)	4.8% CAGR
Canada Market Growth Rate (2024 to 2034)	5.8% CAGR
China Market Value (2034F)	US$ 9.19 Billion
North America Market Share (2024E)	28.6%
East Asia Market Share (2034F)	38.4%
Key Companies Profiled	Mitsubishi Chemical Corporation Shell INEOS LG Chem Cepsa Mitsui Chemicals Inc. Solvay Royal Dutch Shell

What is Paving the Way for Increased Sales of Phenols Worldwide?

“Rising Need for Protective Skincare in Urban Environments”

Phenol is an effective ingredient used in disinfectants, preventing or inhibiting the growth and reproduction of microorganisms. This quality aids in skin cleansing. People living in urban areas face exposure to harmful elements due to heavy traffic and dusty environments. Consequently, they turn to skin creams containing phenol to protect themselves from these environmental hazards.

The United States Food and Drug Administration (FDA) has approved the use of phenol in various drug products including antiseptics and oral healthcare analgesics. This approval has contributed to the increasing demand for cosmetics and other skincare products containing phenol. Growing awareness of skin health is driving demand for lotions, facial masks, sunscreen, and scrubs, leading to increased use of phenol in cosmetic products.

“Widespread Use of Phenols in Air Fresheners to Mask Odors in Rooms”

Due to its effectiveness as a disinfectant, phenol has been incorporated into floor-cleaning products. Phenol is commonly blended with reagents for use as an effective decontaminating agent for toilets, stables, floors, and drains. Air fresheners also use phenol to eliminate odors in rooms, creating a pleasant aromatic environment.

This has allowed phenol manufacturers to establish their presence in the cleaning product market by collaborating with industry giants and investing in the production of such cleansers. As a slimicide, phenol has also been utilized in mouthwashes and throat lozenges, contributing to a positive impact on the market. This has provided phenol suppliers with new opportunities to expand their business.

What is Unfavorably Impacting Demand Growth for Phenol?

“Perception of Pure Phenol as Toxic to Humans”

Phenol is mixed with other components before use due to its harmful nature in pure form. It can be corrosive to the eyes, skin, and other body parts. Manufacturers must process phenol and add other components before its end use, which increases costs and reduces profit margins for suppliers.

Prolonged exposure to phenol may result in seizures or airway compromise. These drawbacks compel manufacturers to conduct thorough quality checks on their products to prevent accidents and maintain their reputation. Phenol suppliers must exercise caution and invest in quality control. Suppliers are conducting research to better understand the nature of phenol.

Country-wise Insights

What is the Demand Outlook for Phenol in the United States?

“Robust Automotive Industry Generating Need for Durable and Heat-resistant Components”

Attribute	United States
Market Value (2024E)	US$ 5.36 billion
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 8.93 Billion

Phenolic resins and derivatives, such as polycarbonate, are widely used in the automotive industry due to their superior heat resistance and durability. The automobile manufacturing process involves heating iron and steel, which may require the use of phenol to enhance the durability of components.

Phenolic resins are used in various applications such as filters, separators, coatings, and laminates due to their mechanical strength. The United States boasts a robust automotive industry with major players that rigorously focus on enhancing the effectiveness and efficiency of their products.

Why are Phenol Suppliers Thriving in China?

“Government Initiatives Facilitating Easy Access to Raw Materials”

Attribute	China
Market Value (2024E)	US$ 5.43 billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 9.19 Billion

China has established itself as a global manufacturing hub, attracting major players from around the world to establish production facilities in the nation. Its diverse production units provide easy access to raw materials for suppliers, minimizing costs. These factors make China an attractive market for phenol suppliers. The government is supporting key players by relaxing regulations, making the market free for players to engage in business and make profits.

Category-wise Evaluation

What Accounts for Extensive Use of Phenol Derivatives?

“Extensive Use of Phenol Derivatives in PPO/Orthooxylenol Production as Precursor”

Attribute	Phenol for PPO/Orthooxylenol Production
Segment Value (2024E)	US$ 8.1 Billion
Growth Rate (2024 to 2034)	4.6% CAGR
Projected Value (2034F)	US$ 13.2 Billion

Orthooxylenol is a fragrant compound commonly derived from crude oil sources that uses phenol as a precursor. It primarily helps in the production of plasticizers and unsaturated polyester resins used in fiber-reinforced materials. In addition, orthooxylenol is utilized in the production of phthalic anhydride, drugs, and various other chemicals.

Orthooxylenol is known for its ease of oxidation, making it a valuable solvent in industries such as printing, rubber, and leather. This property has increased its popularity, driving demand in the industry. Therefore, this segment occupies a dominant phenol market share.

Business Landscape

Key players in the phenol market such as Mitsubishi Chemical Corporation, Shell, and INEOS are keeping a strong eye on their quality checks considering the toxicity of their products. These quality checks have further enabled them to win the trust of end industries making their legs strong in the market. These key players are further investigating various techniques to further enhance the quality and looking for new areas to develop. New players in the market are collaborating with the key players and mimicking the efforts of industry giants to assert their dominance in the market, thus contributing to phenol market trends.

• In May 2021, Mitsubishi Corporation collaborated with South Pole to generate and sell carbon credits derived from carbon removal technologies.

Key Segments of Phenol Market Research

• By Manufacturing Process :

  • Cumene Phenol Manufacturing Process
  • Dow Phenol Manufacturing Process
  • Raschig-Hooker Phenol Manufacturing Process

• By End User :

  • Bisphenol-A Production
  • Phenol-Formaldehyde Resin Production
  • Nylon-KA Oil Production
  • Alkyl Phenol Production
  • Phenol for PPO/Orthooxylenol Production

• By Region :

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