The global phenol derivatives market is expected to grow at a CAGR of 7.22%, reaching a market size of US$38.959 billion in 2030 from US$27.497 billion in 2025.
Phenol derivatives are chemicals generated from phenol used for several reasons, including mouthwash, skin disinfection, and treatment of perianal infections. They should be used with caution during pregnancy, at concentrations of no more than 2%, and only on undamaged skin to minimize possible absorption and side effects.
Factors driving the phenol derivatives market include increased demand for plastics, medicines, coatings, and industrial uses. Economic development, technical improvements, and government policies all play important roles in market expansion.
In addition, it has been found that the electronics sector uses these derivatives to manufacture accessories such as circuit boards. Research has shown that, due to the increase in the world’s population and urbanization, the use of plastics has increased since, with infrastructure development comes an increased need for more plastics.
Epoxy resins are used to make wind turbine blades that are lightweight and robust, whereas phenol derivatives enclose solar cells, increasing their durability. SR Greenpoxy 33, offered by Sicomin Epoxy Systems, is an excellent example of product innovation in the market. This epoxy resin uses 35% biobased carbons in its formulations, which helps reduce the carbon footprint of the products without compromising their performance. It is suitable for contact lamination, infusion processes, hot production of composite resins, and vacuum bag applications. Apart from this, in May 2024, Panacol formulated a new epoxy resin adhesive that is solely for use in bonding oil and gas filters. Structalit 5826 VT is a product that is not sensitive to fluids and media and is ideal for bonding filters in engine construction and shipbuilding.
In addition, the progress in the use of bio-based phenols derived from renewable raw materials, including lignin, is increasing as the use of coal tar declines and manufacturers seek to accelerate the pace of decarbonization.
The pharmaceutical industry is expected to be one of the fastest-growing areas in the phenol derivatives market. This is owing to the importance of these chemicals in medication formulation and manufacturing processes. Phenol derivatives, such as acetaminophen (paracetamol), are crucial chemicals in many over-the-counter and prescription drugs, underscoring their significance in the healthcare industry. This market is predicted to expand dramatically as global health awareness and demand for pharmaceutical goods rise, owing to aging populations, chronic illness prevalence, and improved healthcare access.
In addition, the expansion in regulatory approval of pharmaceuticals, along with increased efficiency and manufacturing practices, are likely to increase the demand for these derivatives in the pharmaceutical industry. Pharmaceuticals, therefore, hold prominent growth opportunities in the phenol derivatives market.
The Asia Pacific phenol derivatives market is expected to increase significantly, driven by growing demand from key end-user sectors such as automotive, construction, and electronics. As of 2024, the electronics market in India is valued at US$155 Billion, of which domestic production accounts for 65%, as stated by Invest India.
Phenol derivatives find application in the manufacture of adhesives, coatings, and plastics, all of which are products that are on the rise owing to increased industrialization. This tendency is further supported by the development of chemical manufacturing capacities in different countries, including China and India, where production capacity is being expanded to meet domestic as well as export markets. At the corporate level, private businesses are investing in climate projects, especially BASF, Germany’s largest chemical company, which plans to spend up to one billion Euros by 2025 to attain its 2021 climate goal. The company is further planning to increase this by 2-3 billion euros by 2030. The growth in the chemical industry, coupled with sustainability initiatives, is fuelling the phenol derivatives market.
Furthermore, rising urbanization and population expansion are causing an increase in demand for consumer products, which frequently use phenol derivatives in their manufacturing processes. For instance, China is the largest market globally for automobiles by car sales, with local production expected to hit 35 million units by 2025. According to the Ministry of Industry and Information Technology, automobile sales totaled more than 26 million, including 21.48 million passenger vehicles in 2021, rising by 7.1% from 2020. Meanwhile, the sale of commercial vehicles stood at 4.79 million units in 2021, down by 6.6% against 2020. Nonetheless, demand for building materials and other consumer goods increases with the growth of cities, leading to even higher industry growth.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Phenol Derivatives Market Size in 2025 | US$27.497 billion |
| Phenol Derivatives Market Size in 2030 | US$38.959 billion |
| Growth Rate | CAGR of 7.22% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Phenol Derivatives Market |
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| Customization Scope | Free report customization with purchase |