Dublin, Oct. 22, 2024 (GLOBE NEWSWIRE) -- The "India Phenol Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" report has been added to ResearchAndMarkets.com's offering.
India Phenol Market achieved a total market volume of 58.94 thousand Metric Tonnes in 2024 and is expected to reach 70.70 thousand Metric Tonnes by 2030 with a CAGR of 3.25% during the forecast period
The demand surge is primarily driven by the growth in phenol formaldehyde (PF) resin manufacture, which has consistently recorded double-digit growth rates in recent years. The manufacturing of agrochemicals, alkyl phenols, and its applications in the pharmaceutical industry are significant contributors to phenol demand in the domestic market. 
Despite the increasing demand, there have been no capacity additions for phenol in recent years, with major manufacturers such as Hindustan Organic Chemicals Limited, Arihant Solvents and Chemicals, and SI Group India Pvt Ltd currently operating in the market. However, Deepak Phenolics Limited's initiative to establish an integrated Phenol-Cumene plant is expected to reduce dependency on imports and improve foreign exchange reserves. The Asia-Pacific region is a key driver of this demand, compensating for slower growth in the American and European markets. Countries like China, India, Japan, South Korea, and Taiwan are witnessing heightened usage of phenol derivatives in electronic goods and automotive production, with China leading as the largest and fastest-growing market for phenol derivatives, a trend anticipated to continue until 2026.
Whereas global phenol consumption is expected to grow by a moderate CAGR over the forecasted periods. This is attributed to the declining usage of optical media for polycarbonate and the slowdown in the economies of BRIC nations (Brazil, Russia, India, and China). The India Phenol Market is experiencing robust growth, driven by diverse industrial applications and increasing demand from various sectors. Phenol, a versatile chemical compound, finds extensive usage in the production of key derivatives such as bisphenol-A, phenolic resins, and caprolactam, which are integral to industries like automotive, construction, electronics, and healthcare.
The automotive sector, in particular, utilizes phenol-derived products in manufacturing lightweight and high-performance components, contributing to fuel efficiency and sustainability goals. In the Indian phenol market, prices experienced an upward trend from approximately 1014 USD/MT in January 2024 to around 1055 USD/MT by March 2024. This resulted in a 4% increase in the Indian phenol market, supported by corresponding growth in consumption. Stable demands from downstream industries such as construction and chemicals further bolstered this positive growth in the regional phenol market.
The phenolic resins are widely employed in the construction industry for manufacturing adhesives, coatings, and insulation materials due to their excellent heat and chemical resistance properties. The healthcare sector relies on phenol for producing disinfectants, antiseptics, and pharmaceuticals. The growing emphasis on infrastructure development, coupled with rising investments in healthcare and manufacturing sectors, is propelling the demand for phenol in India. Favorable government initiatives promoting industrial growth and innovation are further catalyzing market expansion. As a result, the India Phenol Market is poised for continuous growth in the foreseeable future.
Growing Demand for Bio-based Phenol
The India Phenol market is witnessing a significant trend towards the increasing demand for bio-based phenol. Traditionally sourced from petrochemicals, phenol now sees a shift towards bio-based production methods, driven by environmental concerns and sustainability efforts. Bio-based phenol is derived from renewable sources like lignin or through biomass conversion processes, offering a greener alternative to conventional petrochemical sources.
This shift aligns with India's commitment to sustainable manufacturing practices, aiming to reduce reliance on fossil fuels and lower carbon emissions. The adoption of bio-based phenol caters to eco-conscious industries and consumers, finding applications in resin, plastic, and adhesive production. This trend reflects the India Phenol market's adaptability to evolving environmental standards and consumer preferences, contributing to the nation's sustainability objectives while meeting diverse industry demands.
Increasing Investments in the Research and Development
Increasing investments in the research and development of new phenol-based products are a key trend driving the growth of the India Phenol market. Phenol, a versatile chemical compound used in various industries, including pharmaceuticals, plastics, and chemicals, is experiencing a surge in innovation and product development. This trend is fueled by investments in research and development, which aim to explore novel applications and formulations of phenol for various industrial and consumer needs.
Researchers and manufacturers are continuously seeking ways to harness the potential of phenol in creating new, value-added products. These innovations include the development of advanced resins, specialty chemicals, and pharmaceutical ingredients that offer superior performance and properties. Phenol's versatility as a building block for various chemical products makes it an asset in the creation of these innovative solutions. The trend aligns with India's commitment to technological advancements and product diversification, promoting economic growth and market competitiveness. As the R&D efforts in phenol-based products expand, the India Phenol market is poised for continued growth, supporting the nation's drive for innovation and the evolution of chemical industries toward more advanced and specialized applications.
Segmental Insights
Derivatives Insights
Based on the Derivatives, the Bisphenol A emerged as the dominant segment in the Indian market for Phenol in 2024. This is due to its widespread applications across industries like plastics, automotive, and electronics. BPA is a key component in the production of polycarbonate plastics and epoxy resins, which are extensively used in various consumer and industrial applications. The growing demand for these materials, driven by urbanization, infrastructure development, and technological advancements, has propelled the dominance of the BPA segment. Its versatility, cost-effectiveness, and favorable properties make BPA a preferred choice for manufacturers, further consolidating its position in the market.
End-User Insights
Based on End User, the Chemical emerged as the dominant segment in the Indian market for Phenol in 2024. This is due to its pivotal role in ensuring safe and potable water supplies across the country. The dominance of the chemical segment can be attributed to the wide-ranging uses of Phenol in the chemical industry. Phenol is a key component in the production of various chemicals, including phenolic resins, caprolactam, and Bisphenol A, all of which have significant applications in industries such as plastics, adhesives, and textiles. Its reliability, consistency, and high purity make it an indispensable ingredient in these chemical processes.
The growth of the chemical sector in India, which includes the production of various chemicals using Phenol as a precursor, has driven the demand for this crucial compound. This aligns with the nation's industrial expansion and the emphasis on the quality and performance of chemical products. The chemical industry's focus on eco-friendly and sustainable production processes has made Phenol a pivotal component in the development of environmentally friendly materials, further reinforcing the dominance of the chemical segment.
Regional Insights
Based on region, West India emerged as the dominant region in the Indian market for Phenol in 2024. This is due to its strategic location, robust infrastructure, and proximity to key manufacturing hubs. The region's well-developed port facilities and transportation networks facilitate efficient import and distribution of phenol raw materials and finished products. West India houses several major chemical and pharmaceutical manufacturing clusters, providing a conducive environment for phenol production and consumption. The presence of skilled labor, supportive government policies, and established industrial ecosystems further bolstered West India's position as the primary hub for phenol manufacturing and trade in the country.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 85 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value in 2024 | 58.94 Thousand Metric Tonnes |
| Forecasted Market Value by 2030 | 70.7 Thousand Metric Tonnes |
| Compound Annual Growth Rate | 3.2% |
| Regions Covered | India |
Report Scope:
Key Market Players in India's Phenol Market Include
- Hindustan Organic Chemicals Ltd
- Shiv Shakti India Pvt. Ltd.
- Aarti Industries Ltd.
- ARIHANT SOLVENTS AND CHEMICALS
- Central Drug House (P) Ltd
- NS Chemicals Pvt Ltd.
- Shubham Chemicals and Solvents Limited
- Vizag Chemical International
- Deepak Phenolics Limited
- Haldia Petrochemicals Ltd.
India Phenol Market, By Derivatives:
- Bisphenol A
- Phenolic Resin
- Caprolactam
- Alkyl Phenyls
- Others
India Phenol Market, By End User:
- Chemical
- Construction
- Automotive
- Electronic Communication
- Metallurgy
- Other
India Phenol Market, By Region:
- West India
- North India
- South India
- East India
For more information about this report visit https://www.researchandmarkets.com/r/jqywlf
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