Phenol Market Outlook - Supply and Demand Analysis 2024-2032

Phenol Market

Phenol, a white, crystalline material at room temperature, is an aromatic organic compound consisting of a phenyl group linked to a hydroxy group. It is highly soluble in water and its melting point is 41°C. Major end uses of phenol include automotive, fibres, sheets and films, detergents, Aspirin™, textile, plywood, OSB, coatings, and glazing. The leading manufacturers offer purified phenol in excess of 99.99% without water for the most demanding applications.

Global Supply/Demand Outlook

The global phenol market stood at a volume of around 12,150 KT in the year 2023. The market is assessed to grow at a CAGR of 3.10% between 2024 and 2032 to reach a volume of about 15,697 KT by 2032. Some of the main derivatives of phenol are bisphenol A (polycarbonate/epoxy resins), phenolic resins (moulding, binders, insulation wool), cyclohexanone (caprolactam), alkyphenols (surfactants), and salicylic acid (pharmaceutical). BPA production remains the leading application of phenol, accounting for nearly 48% of the market share. Moreover, with the growing interest in bio-based phenol, research activities to enhance its production are expected to provide manufacturers with lucrative growth opportunities.

The global capacity of phenol was about 16,700 KT in the year 2023. It is estimated to reach 18,000 KT by 2032. The Asia Pacific holds the major share of phenol capacities, representing around 59% of the global production capacity. The plant capacity utilisation of phenol stood at 74% in 2023.

Regional Market Analysis

Asia is expected to witness capacity additions of 2,480 KT by 2027, from seven new-build planned projects. In total, ten planned and announced projects for phenol are likely to come online by 2027, primarily in Asia, followed by North America.

In terms of demand, the Asia Pacific occupies 56% of the total market value and is expected to continue to dominate the market in the forecast period. While demand growth has been flat in European and North American markets, the Asia Pacific has emerged as the fastest growing market for phenol.

Key Market Players

INEOS Group Ltd. is the world's leading producer of phenol. The company holds approximately 20.5% of overall global phenol capacity, followed by Solvay SA, Shell PLC, Sasol Ltd., and Ceps Quimica, respectively. In April 2023, Ineos announced its purchase of Mitsui Chemicals’ phenol production plants in Singapore in an investment of USD 330 million, marking its entry into the Asian market.

Other major manufacturers of phenol are Royal Dutch Shell plc, AdvanSix Inc., Domo Chemicals, Altivia Chemicals, and Prasol Chemicals Pvt. Ltd.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for phenol by application and region?

• What are the types of phenol available by region?

• Which segments and regions are projected to grow at a faster pace and why in the phenol market?

• What is the nameplate capacity of phenol by region from 2018 to 2032?

• How does the plant capacity utilisation of phenol vary by region between 2018 and 2032?

• Who are the major players in the phenol market by capacity and region?

• What major plant shutdowns and expansions have occurred in the phenol market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the phenol market over the next year and quarters?

• How did export and import dynamics of phenol vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of phenol vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of phenol?

• What are the environmental considerations and regulatory impacts affecting the phenol market?

• What technological innovations are having an impact on the production and application of phenol?

• What are the key trends and innovations in the phenol market?

• What are the challenges and opportunities faced by phenol manufacturers?

• What are the potential risks and barriers to entry for new players in the phenol market?

• What strategic investments and expansions have major players made in the phenol market?

• How are geopolitical factors and international trade policies affecting the global phenol market?

• What are the price trends for phenol, and how are they expected to change?

• How does the supply chain of phenol operate, and what are its key components?