Phenol And Acetone Market Size, Share, Growth and Industry Analysis by Type (Phenol, And, Acetone), By Application (Bisphenol A, Phenolic Resin, Caprolactam, Methyl Methacrylate, And, Others), Regional Insights, and Forecast To 2031

Updated On: 22 April 2024

Phenol and Acetone Market REPORT OVERVIEW

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The global phenol and acetone market size is expected to be USD 23880 million in 2021 and the market is projected to touch USD 38898 million by 2031, exhibiting a Compound annual growth rate (CAGR) of 5.0% during the forecast (2024-2031). In the market study, our analysts have considered phenol and acetone players such as Ineos, CEPSA, Sinopec & Mitsui and Chang Chun Group.

Phenol and acetone are two important chemicals in the chemical industry. Phenol is a versatile compound used in the production of several products that include plastics, detergents, and pharmaceuticals. Acetone is a common solvent which is mostly used in various applications. It is used in the production of paints, coatings, as well as adhesives. Both of these chemicals have a lot of demand in the market.

Growing awareness regarding nature has persuaded most of the manufacturers to adopt sustainable methods of sustainable methods of production. As a result, the demand for bio-based acetone and phenol has increased. This is considered as the latest trend in the market.

Some of the important industries where both these chemicals are used include healthcare, pharmaceutical, food, beverages, and automotive. They are also used in the production of certain electric components.  All of these factors help in driving the phenol and acetone market growth.

COVID-19 Impact: Decrease in Demand for Chemicals During Pandemic Decreased Market Growth

The COVID-19 pandemic hit all the sectors globally. All the industries had to face severe challenges because of some of the unfavorable factors that were created due to the outbreak of coronavirus. Lockdowns and social distancing norms created disruptions in the smooth functioning of almost all of the industries.

Phenol and acetone are both important chemicals and they are themselves made up of chemicals. Without the help of chemicals and other substances it is not possible to manufacture both of these substances. The chemical industry suffered from low demand during the period of pandemic due to disruption in supply chain and logistics. Therefore, acetone and phenol market also experienced a decline in their demand during the pandemic.

LATEST TRENDS

"Production of Bio-based Phenol and Acetone to Increase the Market Growth"

Manufacturers have shifted their focus towards producing chemicals that are less harmful to the nature. Eco-friendliness and sustainability are two important factors that the key industry players are focusing on during the production of both these chemicals.  A lot of companies have started adopting green manufacturing processes that reduce carbon emissions and waste generation.

Additionally, bio-based phenol and acetone have been introduced into the market. These are derived from renewable sources such as biomass and agricultural waste. Increase in consumer awareness towards environmental issues has increased. Adopting sustainable practices will likely provide a competitive edge to those companies in the market. This is considered as the latest trend in the market.

Phenol and Acetone Market SEGMENTATION

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• By Type:

The market can be divided on the basis of type into the following segments:

Phenol, and, acetone. The phenol segment is projected to hold the dominant market share through 2031 the forecasting period.

• By Application:

The market can be divided on the basis of application into the following segments:

Bisphenol A, phenolic resin, caprolactam, methyl methacrylate, and, others. The Bisphenol A segment is predicted to dominate the market through 2031.

DRIVING FACTORS

"High Demand for Both Acetone and Phenol in End Use Industries to Amplify Market Growth"

Several factors have an impact on the growth and development of the market. One such factor that is having a positive impact on the market is rise in demand for these chemicals in end use industries.  Phenol is extensively used in the production of bisphenol A. This is a key ingredient that is used in the manufacturing of polycarbonate plastics. Acetone, on the other hand, is popularly adopted as a solvent in the production of various coatings and adhesives.

Recently there has been a lot of demand for phenolic resins. These resins are used in the production of various industrial as well as consumer goods. Phenol and acetone are two of the primary chemicals that are used in the healthcare and pharmaceutical industries. This is expected to boost market growth. The market is also influenced by factors such as technological advancements, government regulations, and economic growth in developing countries. All the above-mentioned factors have contributed in boosting the market growth.

"Increasing Need for Chemicals in Electric Components to Drive Market Development"

Apart from being used as important chemicals in pharmaceutical, and healthcare industries both phenol and acetone are used in electronic industry. Electric components require certain chemicals for their proper functioning. Also, certain chemicals are used in the production of various electronic components. The automotive industry is another major consumer of phenol and acetone.

These two chemicals are employed in the production of a wide range of substances like plastics, coatings, and adhesives. Rapid urbanization and development have fueled the growth of the construction industry, especially in developing economies. This is expected to drive market growth as both of these chemicals are used in various construction materials. Another sector where these chemicals are increasingly used is in the food and beverage industry. The versatility of these chemicals is expected to create many opportunities for the growth of phenol and acetone market share.

RESTRAINING FACTOR

"Volatility in Prices of Feedstocks to Deteriorate Market Growth"

There are certain factors that can have a negative impact on the market growth in spite of the several benefits provided by both phenol and acetone. One such factor is the volatility in prices of feedstocks such as benzene and propylene. Fluctuations in the price of feedstocks have in turn have a negative impact the production costs of phenol and acetone. As a result, the overall price of the product will increase.

Increasing presence of bio-based alternatives, in the market can challenge the market share of traditional phenol and acetone. Also, there are several environmental concerns that are related to the production and use of these chemicals. Hence this can result in the imposition of stricter regulations. High competition from ideal substitutes such as ethylene and propylene-based chemicals can also hinder market growth. Al of these factors have restrained the market growth.

Phenol and Acetone Market Regional Insights

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"Asia Pacific to Dominate Market in Upcoming Years"

Asia Pacific is predicted to dominate the shares of market during the forecast period. The factors that have helped in the rapid development of the market include the presence of some of the fastest-growing economies, including China and India. Both of these countries are major consumers of phenol and acetone. Various end-use industries such as automotive, electronics, and construction use both these chemicals in abundant quantities.

Along with all of this, the availability of low-cost feedstocks and labor in the region has resulted in the establishment of several phenol and acetone production facilities. The adoption of sustainable production methods will further fuel the development of the market in Asia Pacific.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• Ineos (U.K.)
• CEPSA (Spain)
• Shell (Netherlands)
• Mitsui Chemicals (Japan)
• Sinopec & Mitsui (China)
• Chang Chun Group (Taiwan)
• Kumho P&B (South Korea)
• PTT Phenol (Thailand)
• Formosa (Taiwan)
• Taiwan Prosperity (Taiwan)
• LG Chem (South Korea)
• Mitsubishi Chemical (Japan)
• Borealis Polymers (Austria)
• Versalis (Italy)
• AdvanSix (U.S.)
• Sabic (Saudi Arabia)
• ALTIVIA (U.S.)
• DuPont (U.S.)

Report Coverage

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. A list of key industry players is also provided to get a better understanding of the market dynamics and competition.