Market Research Report
Global Phenol Derivatives Market - 2022-2029
|Global Phenol Derivatives Market - 2022-2029|
Published: May 7, 2022
Content info: 208 Pages
Delivery time: 2 business days
The global phenol derivatives market has reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.
Phenol is a natural as well as a synthetic chemical. When pure, it's a colorless to white solid, but the commercial product is a liquid. Phenol is a widely used chemical intermediate in industry. Bisphenol-A (BPA), its major chemical derivative, is utilized to produce polymers such as polycarbonates and epoxy resins. Furthermore, phenol-formaldehyde resins, adipic acid, alkylphenols and antioxidants are some of its derivatives. Caprolactam is another chemical derivative that is used to make nylon. Detergents, herbicides and medicinal medications all contain phenol derivatives.
Increasing demand for polycarbonate resins that extensively use Bisphenol-A (BPA), a phenol derivative, is likely to drive the market. However, stringent regulation over phenol derivatives such as Bisphenol-A (BPA) in food packaging is expected to impede the phenol derivatives market.
Increasing demand for polycarbonate resins that extensively use Bisphenol-A (BPA), a phenol derivative
Bisphenol A (BPA) is an intermediary producing epoxy and polycarbonate resins. It is manufactured from acetone and phenol. Between epoxy and polycarbonate resins, the ratio of BPA use is roughly 40:60. Polycarbonate resins, among other things, constitute the most important market for BPA, accounting for more than 70% of global demand.
Although a newer, greener process uses dimethyl carbonate and BPA, phosgene and bisphenol A (BPA) make polycarbonate resins. Its primary application is in the electronics industry for components and housings, where strong electrical insulation, heat resistance and flame retardant qualities are critical. Extruded sheets are also used in construction, automotive glazing and medicinal applications. The use of optical media such as CDs, DVDs and Blu-ray discs has decreased.
The rapid expansion of polycarbonate resins has increased BPA manufacturing facilities worldwide. For instance, in July 2019, Lotte Chemical, a large South Korean chemical business, partnered with GS Energy, an energy services company, to establish a joint-venture petrochemical factory for Bisphenol A (BPA) products. Lotte Chemical and GS Energy have agreed to form a joint venture in H2-2019, with Lotte Chemical owning 51% and GS Energy owning 49%. By 2023, the new joint venture would have invested US$ 679 million in a plant that would produce 200,000 tons of BPA goods per year.
Stringent regulation over the use of phenol derivatives such as Bisphenol-A (BPA) in food packaging
According to the former director of the National Institute of Environmental Health Sciences and the National Toxicology Program, the scientific evidence is now adequate to enforce tight limits on the use of BPA in packaging & plastics that come into contact with our food. The European Food Safety Authority reevaluated the hazards of BPA in food and limited a 0.04 ng BPA/kg body weight per day limit in December 2021. Further, the Food and Drug Administration (FDA) U.S. is being pushed by a coalition of environmental and public health organizations to tighten bisphenol-A (BPA) limitations in plastics that come into contact with food.
COVID-19 Impact Analysis
Massive disruptions in the chemicals and materials sector supply chain substantially impacted the global phenol derivatives market. Further, phenol is a petrochemical heavily dependent on the oil and gas sectors. In the first quarter of 2020, the oil and gas industries encountered an unexpected turning point. The industry was hit by the COVID-19 related economic downturn and the drop in oil prices.
In both domestic and international markets, the economic downturn reduced demand. Furthermore, because they relied on the domestic market, the feedstock cost advantage of petrochemical companies has been lost, potentially making their products less competitive in an ever-difficult market.
The global phenol derivatives market is segmented into detergents, herbicides, pharmaceutical drugs, plastics, and others based on application.
Phenol is an aromatic chemical that is a significant raw ingredient in various chemical industrial processes. Phenol derivatives have antimicrobial, analgesic, anti-inflammatory, antioxidant, anti-convulsant, anti-cancer, anesthetic, antiseptic and disinfectant properties. Therefore, phenol derivates are widely utilized in pharmaceutical drugs.
Several new compounds have been found and many more are still being investigated. For instance, novel phenol derivatives were created to address the structural drawbacks of benzbromarone (BBR) to develop new uricosuric agents.
The global phenol derivatives market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.
Asia-Pacific is anticipated to dominate the market due to the highly developed plastic and pharmaceutical sectors and ongoing investments in the automobile industry. China is working on several polycarbonate industrialization projects to boost polycarbonate, boosting the demand for phenol derivatives. For instance, between 2021 and 2030, China's Bisphenol-A (BPA) industry has 5.52 million tons/year of projects under construction, which is 2.73 times the output capacity of 2.025 million tons/year by the end of 2020.
Moreover, composite materials and epoxy resin for capital construction are predicted to become the primary fields sustaining the growth rate of epoxy resin production in the next five years, among the various downstream application fields of epoxy resin. The development of epoxy resins will be aided by the construction and maintenance of high-speed rails, motorways, subways and airports in urbanization development and construction in the region.
The global phenol derivatives market is competitive and moderately consolidated with multinational and local brands. Major companies include LG Chem, Cepsa, Honeywell, INEOS, Mitsui Chemicals, Inc., Shell, PTT Phenol, Kumho P & B Chemicals, Covestro AG and Formosa Chemicals and Fibers, among others. Further, the companies have implemented different growth strategies such as expansion, technological advancement, product development, collaboration, and merger. The companies use the growth methods to improve their geographical presence to address the growing demand for phenol derivatives.
Overview: LG Chem Korea-based chemical company in Korea, with headquarters in Seoul. The company is a petrochemicals supplier that offers everything from basic distillates to specialized polymers. In addition, the company has eight facilities in South Korea and has a global network of 29 commercial locations in 15 countries.
Product Portfolio: LG Chem offers BPA, a white-colored crystal produced through the condensation of acetone and phenol. The product is used as a raw material for epoxy and polycarbonate resins.
In July 2021, LG Chem planned to spend US$ 8,700 million through 2025 to drive "sustainable growth" in its battery materials operations and other business lines, following other South Korean industrial behemoths in making the switch to more environmentally friendly practices.
To visualize the global phenol derivatives market segmentation by raw materials, technology, derivatives, application and region and understand key commercial assets and players.
Identify commercial opportunities in the global phenol derivatives market by analyzing trends and co-development.
Excel data sheet with numerous data points of phenol derivatives market-level with four segments.
PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
Product mapping available in excel consists of key products of all the major market players
The global phenol derivatives market report would provide approximately 69 tables, 68 figures and almost 208 pages.
Target Audience 2022
Service Providers/ Buyers
Industry Investors/Investment Bankers
Raw Material Suppliers
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