Industry: Chemicals and Materials
Published Date: February-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 185
Report ID: PMRREP19117
The global phenol market is estimated to reach US$ 13.3 Bn in 2025 and is anticipated to witness a CAGR of 4.3% from 2025 to 2032. It is projected to reach a value of US$ 17.9 Bn by 2032.
The global market is undergoing significant transformation as key players are focusing on extending production capacities and strengthening their presence in high-demand regions, such as Asia Pacific, through strategic acquisitions. These initiatives demonstrate the industry's commitment to addressing the rising global demand for phenol, attributed to its increasing use in diverse applications, such as automotive, construction, pharmaceutical, and chemical industries.
In November 2024, Haldia Petrochemicals Ltd. (HPL), a prominent petrochemical company in India, signed a license agreement with Lummus Technology to increase its phenol production capacity. This is a part of HPL’s phenol and acetone plant project located in Haldia, West Bengal. It aims to extend production from 300 KTPA to 345 KTPA. This development supports HPL's commitment to meeting the rising demand for phenol in India.
Similarly, in April 2023, INEOS Phenol completed the acquisition of Mitsui Phenols Singapore Ltd. from Mitsui Chemicals to enter the booming Asian market. The facility acquired in Singapore has an annual production capacity of over 1 million tons, which includes phenol (310 KTPA), acetone (185 KTPA), cumene (410 KTPA), alpha-methylstyrene (20 KTPA), and bisphenol A (150 KTPA).
The acquisition makes INEOS Phenol a key player in Asia, enabling the company to serve high-demand markets in the region more efficiently. These developments support a strong supply chain and enable leading companies to take advantage of new opportunities in both established and emerging markets.
Key Highlights of the Market
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Global Market Attributes |
Key Insights |
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Phenol Market Size (2025E) |
US$ 13.3 Bn |
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Market Value Forecast (2032F) |
US$ 17.9 Bn |
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Projected Growth (CAGR 2025 to 2032) |
4.3% |
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Historical Market Growth (CAGR 2019 to 2024) |
1.7% |
Historical Period Witnessed High Demand for Phenol-derived Epoxy Resins in Electronics Sector
The market for phenol witnessed a CAGR of 1.7% in from 2019 to 2024. The market experienced ups and downs during the historical period due to declining demand from 2019 to 2020 backed by the COVID-19 pandemic. From 2021, the market started recovering slowly owing to rising infrastructure development and high consumption in downstream applications.
The electronics sector was a significant driver, mainly due to increasing use of epoxy resins derived from phenol in semiconductor coatings and printed circuit boards (PCBs). Rising adoption of smart devices, consumer electronics, and 5G technology propelled the need for epoxy resins in the sector, thereby bolstering the market.
Demand to Surge from Coatings and Adhesives Industry in Forecast Period
The global market is anticipated to showcase a CAGR of 4.3% through 2032. It is set to be pushed by rising demand from the coatings and adhesives industry. Phenolic resins are considered essential in specialty adhesives, industrial paints, and protective coatings as they have superior heat tolerance and chemical resistance.
Industries like heavy machinery manufacturing, marine, and aerospace are further likely to boost demand for high-performance coatings, which require phenol-based epoxy resins. The global adhesives market, on the other hand, is anticipated to see high demand as it heavily relies on phenol-derived resins.
Growth Drivers
Increasing Demand for Phenol as a Raw Material for Caprolactam and Adipic Acid
Growing demand for phenol for caprolactam and adipic acid production is one of the key drivers of the global market. Caprolactam is a monomer intermediate used to manufacture nylon 6 fibers, which are further utilized in the production of textile and industrial fibers, as well as carpets. Rapid growth of nylon fiber and polymer markets is anticipated to boost global caprolactam consumption by around 6 million tons in 2025.
Adipic acid, derived from phenol through a series of chemical processes involving cyclohexanol and cyclohexanone, is used as a feedstock for producing nylon 6,6. Nylon is a versatile and widely used synthetic polymer with several applications in industries such as automotive, textile, electronics, and packaging.
Rapid growth in the aforementioned segments has led to a significant increase in the demand for adipic acid, which is likely to reach around 3 million tons by 2025.
Strict Environmental Norms and Changing Business Strategies to Hamper Growth
The global phenol industry is currently challenged by stringent regulations and evolving business strategies focused on sustainability, which may result in structural changes and lower production capacity in developed regions. For example,
With an emphasis on green chemicals, the strategy aligns with the Mitsui Chemicals Group's goal to transition its Basic & Green Materials Business Sector into competitive and sustainable derivatives. Although this decision indicates more commitment to sustainability, it also suggests that the supply of phenol may be reduced, which could cause supply-demand imbalances in the market, especially in Asia Pacific.
Regulatory changes are prompting shifts in downstream demand for phenol derivatives. In May 2023, AkzoNobel introduced a bisphenol-free internal coating for beverage cans, driven by increasing restrictions on bisphenol A (BPA). The European Food Safety Authority (EFSA) recently tightened its stance on BPA usage in metal packaging for food and beverages, creating a ripple effect across the phenol value chain. Phenol is a key raw material for BPA production, and these regulations are likely to reduce the demand for phenol in this application.
Circular Economy Principles and Energy-efficient Technologies to Unlock New Opportunities
The global industrial chemical sector is undergoing a major transformation as manufacturers integrate sustainability, circular economy principles, and innovative technologies into their operations. This shift reflects the industry's rising commitment to reducing environmental impact and embracing eco-friendly solutions.
Companies are increasingly exploring alternative feedstocks, energy-efficient production processes, and waste-to-value strategies to align with global sustainability goals. One of the key opportunities in this evolving landscape lies in the adoption of recycled materials as feedstock, reducing dependence on fossil fuels.
The aforementioned breakthrough demonstrates how waste plastics, such as bags and cutlery, can be converted into valuable raw materials for large-scale production. This trend not only addresses plastic waste concerns but also enhances sustainability credentials across the sector.
Another significant opportunity emerges from developments in energy-efficient production technologies, which can lower operational costs while improving environmental performance.
Growing emphasis on circular economy initiatives and resource recovery strategies presents a promising path for companies to gain a competitive edge while contributing to a more sustainable future.
End Use Insights
Bisphenol-A to Dominate due to Rising Demand from Polycarbonate Plastic and Epoxy Resin Manufacturers
Bisphenol-A (BPA) remains the dominant end-use segment in the global phenol market, accounting for a 39.8% share in 2025. This dominance is primarily attributable to its wide use in polycarbonate plastics and epoxy resins, which have diverse applications in automotive components, construction materials, consumer electronics, and packaging. Rising demand for lightweight, durable plastics in the automotive and aerospace industries continues to fuel BPA consumption.
However, regulatory restrictions on BPA in food and beverage packaging, especially in Europe and North America, are prompting manufacturers to explore BPA-free alternatives and bio-based derivatives. Companies such as AkzoNobel have already introduced bisphenol-free coatings and circular phenol solutions. Despite these regulatory challenges, BPA’s demand will likely remain steady, particularly in Asia Pacific, where industrial expansion and infrastructure projects continue to support growth.
Phenolic resins, on the other hand, are projected to be the fastest-growing end-use segment, with a CAGR of 5.0% from 2025 to 2032, reaching a market value of US$ 5.4 Bn by 2032. These resins are widely utilized in adhesives, coatings, insulation materials, and molded composites across various industries, such as construction, automotive, and electronics. Increasing adoption of phenolic resins for high-performance applications, such as fire-resistant materials and thermal insulation, is also driving the segment.
Rising need for bio-based and formaldehyde-free phenolic resins along with global sustainability trends, is further accelerating market growth. In addition, introduction of eco-friendly resins and developments in composite material technologies are set to boost demand, positioning phenolic resins as a key segment in the global market.
Asia Pacific Phenol Market
Capacity Expansions and Booming Petrochemical Industry to Spur Growth in Asia Pacific
Asia Pacific dominates the global phenol industry, holding a 48.0% share in 2025. It is considered one of the largest consumers and producers of phenol globally. The region is set to maintain its leading position due to the ongoing development of petrochemical industries in China, Japan, South Korea, and India.
In Asia Pacific, East Asia is poised to remain the growth engine of the global market through 2032 due to the rising number of infrastructure projects and a strong manufacturing base.
North America Phenol Market
Companies in the U.S. to Invest in Sustainable Phenol Production to Comply with Environmental Norms
North America holds a significant market share and is projected to rise at a CAGR of 3.8% from 2025 to 2032, reaching a value of US$ 4.3 Bn by 2032. The U.S. remains the leading country, supported by a strong chemical manufacturing infrastructure. However, BPA restrictions and environmental regulations are pushing companies toward sustainable phenol production. Increasing investments in bio-attributed and recycled phenol alternatives indicate a gradual shift toward eco-friendly solutions. For instance,
Similar strategies by leading players across the U.S. are anticipated to forge new growth prospects through 2032.
Europe Phenol Market
Increasing Use of Phenol in Automotive Coatings and Industrial Paints to Create New Opportunities in Europe
The Europe market is projected to rise at a CAGR of 3.1% from 2025 to 2032. Key countries in the region include Germany, France, and the U.K., where phenol is widely used in coatings, automotive, and construction applications. For instance,
Europe’s commitment to green chemistry, along with government incentives for sustainable production, is likely to drive the market forward. Significant investments in bio-based derivatives are also set to play a crucial role in bolstering future regional growth.
The global phenol market is competitive, with key players focusing on sustainability initiatives, capacity expansions, and supply chain modifications. Increasing concerns over waste management, carbon emissions, and BPA regulations are compelling manufacturers to invest in sustainable production methods. They are hence conducting research and development activities to come up with bio-based phenol alternatives to replace raw materials based on fossil fuel.
A few other companies are aiming to adopt vertical integration to control the entire supply chain. They are striving to establish fully integrated production models to ensure a steady supply of significant raw materials like acetone and benzene for phenol production. These models are helping them to optimize cost structures and reduce supply chain disruptions.
A Recent Industry Development
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Report Attributes |
Details |
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Historical Data/Actuals |
2019 to 2024 |
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Forecast Period |
2025 to 2032 |
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Market Analysis Units |
Value: US$ Bn/Mn, Volume: As applicable |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
By End Use
By Region
To know more about delivery timeline for this report Contact Sales
Yes, the market is set to reach US$ 17.9 Bn by 2032.
North America and East Asia are set to create significant growth opportunities by 2032.
India is projected to witness a CAGR of 5.0% during the forecast period from 2025 to 2032.
INEOS and Cepsa are considered two of the leading players.
Bisphenol-A is estimated to lead the global market in 2025.
