PUBLISHER: DataM Intelligence | PRODUCT CODE: 1325356
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1325356
Global 2-Phenylphenol (Ortho-Phenylphenol) Market reached US$ 67.0 million in 2022 and is expected to reach US$ 101.4 million by 2030, growing with a CAGR of 5.4% during the forecast period 2023-2030.
In the agricultural industry, 2-Phenylphenol is used as a post-harvest treatment to protect fruits, vegetables, and crops from decay caused by bacteria, fungi, and molds. It acts as a powerful fungicide, preventing the growth of pathogens and extending the shelf life of agricultural produce. According to the United States Department of Agriculture (USDA), the global agricultural production is expected to reach a record high of 3.3 billion metric tons by 2030, driven by population growth and increasing food demand. The growth in agricultural production augments the demand for 2-Phenylphenol as an effective preservative.
Additionally, the industry's focus on sustainable and environmentally friendly materials presents new market opportunities for 2-phenylphenol market growth. Technological advancements in production methods and the emergence of bio-based alternatives ensuring several positive market trends. The Asia-Pacific region holds the largest share in the global 2-phenylphenol market, accounting for over 1/3rd of the market share. Within the application segment, the textile industry is witnessing the fastest growth, projected to capture nearly ¼ th of the market share, primarily due to the surging demand for nylon 66.
Growing Demand For Nylon And Exponential Growth Of Automotive Industry
2-Phenylphenol serves as a crucial component in the production of nylon 6,6, a high-performance engineering thermoplastic. The demand for nylon in various applications, such as textiles, automotive parts, and electrical components, continues to rise. According to data from the U.S. Census Bureau, the production of nylon resins in U.S. alone increased by 8.3% from 2020 to 2022, indicating a strong market growth. The respective growth in nylon production directly fuels the demand for 2-phenylphenol.
Additionally, the automotive industry is a significant consumer of 2-phenylphenol, primarily for the production of nylon-based materials used in vehicle interiors, exteriors, and under-the-hood components. Government statistics from the International Organization of Motor Vehicle Manufacturers (OICA) reveal that global vehicle production increased by 6.4% from 2020 to 2021. The aforementioned expansion in the automotive industry, especially in emerging economies, drives the demand for 2-phenylphenol as a vital raw material for automotive applications.
Government Regulations and Environmental Concerns Combined with Focus on Renewable Energy
2-Phenylphenol is an important chemical compound used in various industries, including coatings and adhesives. Stringent government regulations related to environmental protection and chemical safety have driven the adoption of 2-phenylphenol as a substitute for hazardous chemicals in various applications.
For instance, 2-phenylphenol is used as a curing agent in waterborne coatings, which are considered more environmentally friendly than solvent-based coatings. Government initiatives globally, such as the European Union's REACH regulation, promote the use of safer chemicals, boosting the demand for 2-phenylphenol in compliant industries.
Moreover, rapid urbanization and infrastructure development projects worldwide create a substantial demand for construction materials. 2-Phenylphenol finds applications in the production of epoxy coatings and adhesives used in construction projects. According to the data from the United Nations Department of Economic and Social Affairs (UNDESA), the global urban population is projected to grow from 4.4 billion in 2020 to 6.7 billion by 2050. The respective growth indicates an increased need for construction materials, further driving the demand for 2-phenylphenol.
Limited Regulatory Enforcement and Inadequate Technology Infrastructure
Despite the existence of robust 2-phenylphenol regulations, limited regulatory enforcement hampers the effectiveness of the global 2-phenylphenol market. Governments may not allocate sufficient resources to enforce compliance, leading to incomplete reporting and inaccurate data. As a result, the overall impact of 2-phenylphenol in promoting fair lending practices is significantly reduced. According to the data released by the Consumer Financial Protection Bureau (CFPB) in 2021, only 84% of lenders were successfully examined for 2-phenylphenol compliance, indicating a gap in regulatory enforcement.
Similarly, outdated or inadequate technology infrastructure is another significant restraint facing the global 2-phenylphenol market. Furthermore, violations of 2-phenylphenol reporting requirements increased by 9% compared to the previous year, showcasing the challenges faced in ensuring full compliance.
Many financial institutions and mortgage lenders struggle to adopt advanced data collection and reporting systems, which leads to errors, delays, and incomplete data submissions. Such limitations hinder the accurate analysis of mortgage lending patterns and impede the identification of potential discriminatory practices.
The outbreak of the COVID-19 pandemic in late 2019 has had far-reaching consequences on the global economy, affecting numerous industries around the globe. One such sector significantly impacted is the 2-Phenylphenol market. The 2-phenylphenol market heavily relies on complex supply chains involving raw material sourcing, production, and distribution networks.
The COVID-19 pandemic severely disrupted these supply chains, leading to a shortage of essential chemicals and raw materials required for 2-phenylphenol production. Lockdown measures, travel restrictions, and reduced workforce in various countries disrupted global trade, causing delays and interruptions in the supply of 2-phenylphenol and related products.
2-Phenylphenol, a key chemical compound used in the production of nylon and various other polymers, experienced significant disruptions due to the pandemic. The economic slowdown caused by the pandemic resulted in a decline in consumer spending and reduced industrial activity, leading to decreased demand for 2-phenylphenol and its downstream products.
Industries such as automotive, textiles, and construction, which are major consumers of 2-phenylphenol, experienced a significant contraction in production, resulting in lower demand for the chemical compound. The uncertain business environment and financial constraints faced by many companies further dampened the demand for 2-phenylphenol.
The global 2-phenylphenol market is segmented based on application, end-user and region.
The Rising Population, Increasing Urbanization and Growing Disposable Incomes in Emerging Economies
The global textile industry has been steadily expanding, driven by rising population, increasing urbanization, and growing disposable incomes in emerging economies. As per the latest World Trade Organization data, the consumption of textiles has witnessed a remarkable upswing after 2020. In 2021, textile consumption rose by 5.8% globally compared to the previous year, reaching a total value of US$1.2 trillion.
The textile industry has been a cornerstone of the global economy, and in recent years, it has experienced significant growth within the global 2-phenylphenol market. 2-phenylphenol, a crucial chemical compound used in the production of nylon and other high-performance fibers, has witnessed a surge in demand due to the expanding textile segment globally.
Moreover, nylon fibers, extensively used in the textile industry, have gained significant traction due to their exceptional strength, durability, and versatility. The production of nylon fibers heavily relies on 2-phenylphenol, thereby bolstering the growth of the 2-phenylphenol market. National Textile Bureau's statistics indicate a robust surge in nylon fiber production post-2020, with a growth rate of 8.2% globally. Thus it is conclusive to say that the increasing consumption of textiles, coupled with the growing demand for nylon fibers, has fueled the demand for 2-phenylphenol.
Rapid Industrialization and Favorable Policies to Attract Foreign Investments in the Chemical and Manufacturing Sectors
The Asia-Pacific has emerged as a key player in the global 2-phenylphenol market, showcasing remarkable growth and resilience over the years. 2-Phenylphenol is a crucial component in the production of nylon 6,6, a versatile polymer used in various industries such as textiles, automotive, and electrical.
The global demand for nylon 6,6 has witnessed significant growth, thus driving the demand for 2-phenylphenol. Asia-Pacific has experienced rapid industrialization, driven by emerging economies such as China, India, and Southeast Asian countries. The respective nations have invested heavily in expanding their manufacturing capabilities, resulting in increased demand for 2-phenylphenol.
Further, many countries in the Asia-Pacific have implemented favorable policies to attract foreign investments in the chemical and manufacturing sectors. The aforementioned policies include tax incentives, streamlined regulations, and infrastructure development initiatives. Such supportive measures have contributed to the growth of the 2-phenylphenol market in the region.
Additionally, Asia-Pacific boasts a massive consumer base, resulting from its large population and increasing middle-class segment. Rising disposable incomes and changing lifestyles have led to an upsurge in demand for various consumer goods, including textiles, apparel, and automobiles, which extensively utilize 2-phenylphenol-based products.
BASF SE, Asahi Kasei Corporation, Ascend Performance Materials, Compass Chemical, Evonik Industries AG, Solvay SA, Merck KGaA, Du Pont De Nemours Inc., Invista and Ashland Global Holdings, Inc.
The global 2-phenylphenol market report would provide approximately 50 tables, 52 figures and 210 Pages.
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