Global Phenol Market Expected to Record a CAGR of 3.9% during the Forecast Period

Monday 20 February 2012, Amsterdam

The report provides the reader with detailed analysis and forecasts of the major economic and market trends affecting global phenol demand in all of the major global regions. It also provides analysis and description of the major drivers and restraints affecting phenol demand in various regions. Global phenol demand is assessed in terms of enduser segments and price, and the competitive landscape, at both the regional and national level, is also provided. Overall, the report presents a comprehensive analysis of the global phenol market, covering all the major parameters. The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

Global Phenol Market Expected to Record a CAGR of 3.9% during the Forecast Period

The global demand for phenol has been steadily increasing over the last 10 years. In 2000, global phenol demand stood at 6,072,774 tons, before increasing to 7,934,218 tons in 2010. A significant portion of the increase in demand for phenol was from the Asia-Pacific region, and this is expected to continue in the forecast period. The Asia-Pacific region is expected to account for 51.2% of global phenol demand in 2020. The global demand for phenol will increase to reach 11,576,620 tons by 2020.

See figure: Phenol, Global Demand by Volume (Tons), 2000 - 2020

China to Drive Demand in the Asia-Pacific Region

China has rapidly emerged as a global petrochemical products manufacturing hub. Production in China enjoys the advantage of lower operating costs than the majority of other countries, but China currently imports a considerable amount of phenol in order to produce phenol derivatives such as Bisphenol A (BPA), phenolic resins, salicylic acid and nonylphenol. As a result there is huge scope for phenol capacity additions in China. Demand from China is currently driving the Asia-Pacific market’s demand for phenol and it is expected to drive the demand in future.

Bisphenol, Phenolic Resins and Caprolactum Led the Demand for Phenol from End-use Segments in 2010
 
Bisphenol A (BPA), phenolic resins and caprolactam were the leading end-use segments for phenol in 2010, with 2,761,915 tons, 2,181,698 tons and 1,001,903 tons of demand, respectively, Together they accounted for more than 70% of global phenol demand. In terms of the end-uses of phenol, a similar trend is expected to continue throughout the forecast period til 2020.

The Growth of Wind Energy Market Expected to Drive the Global Phenol Market

The recent increase in demand for epoxy resins (derived from phenol and acetone via BPA) from wind turbine power generators, where epoxy resins are used extensively in the rotor blade composites, is expected to continue due to the increased focus globally on sustainable alternative energy sources in the current enviroment of high costs with crude oil and energy. With a 20% per annum growth projected for the wind energy market, the phenol and acetone industry is expected to see growth and a wide range of opportunitiesin the next five years.