Cresol is also known as hydroxytoluene, is a naturally occurring group of aromatic organic compounds. It is extracted from coal or can be manufactured synthetically also. The availability of this chemical in various forms further makes it suitable for a vast number of end-user industries. The figure below represents the market size of the global cresol markett, which shows the market is evaluated at US$643.780 million in the year 2019.
Global Cresol Market, Forecasts From 2019 to 2025, in US$Million
Source: Knowledge Sourcing Estimates
The market is poised to witness a steady growth throughout the course of the next five years due to the growing importance of cresol products across the different industry verticals. These chemicals are vastly used as intermediates to several other compounds such as pesticides, plastics, and disinfectants among others. The market is also projected to witness a decent growth on account of the inclined focus of many countries towards sustainable farming practices as the use of agrochemicals is expected to increase in the coming years. Cresols are also used as preservatives and stabilizers in various formulations of vaccines and insulins. Thus, the growing prevalence of diabetes and significant growth in the prevalence of various diseases is further expected to augment the use of insulin formulations and different vaccines, hence playing a significant role in shaping up the global cresol market growth throughout the course of the next five years. The booming chemical industry around the globe is a prime factor that is supplementing the market growth throughout the forecast period. Cresol is widely used as raw materials for chemical products that are used for manufacturing disinfectants, solvents, electronics, and others. Thus, the advent of COVID is also projected to augment the demand for disinfectants globally as the disease is highly communicable. Furthermore, the growing risk of hospital-acquired infections is also a major factor supplementing the growth of the global disinfectants market globally throughout the course of the next five years. Also, several industry regulations laid down by the various government bodies regarding the use of chemical substances is also a key factor playing a significant role in driving the use of cresol across various industries. For instance, there are several regulations by the United States Environmental Protection Agency, that regulate the use and offer proper information about this substance.
Rising Prevalence of Diabetes
The constantly growing prevalence of diabetes is playing a key role in driving the demand for cresol as m-cresol is and methyl p-hydroxybenzoate are used as preservatives in the preparation of insulins. These compounds offer stability to the formulations of insulins. The demand for insulin formulations have shown a significant increase as the number of people suffering from diabetes is constantly increasing. For instance, As per the data provided by the American Diabetes Association, 30.3 million Americans, that are 9.4% of the population, had diabetes. According to the recent report released by the Centers for Disease Control and Prevention (CDC), more than 100 million U.S. adults are suffering from diabetes or prediabetes. There has been a rise in the prevalence of diabetes among kids as well. Similarly, the constant growth in the burden of diabetes globally has also significantly increased the use of insulin for the treatment of diabetes. This can be backed up by the fact that there has been an increased usage of insulin delivery devices over the past years, which can be clearly seen from the estimates that the global market for insulin delivery devices has increased from US$11.231 billion in the year 2018 to US$16.874 billion by the year 2024 (Source: Knowledge Sourcing Intelligence Estimates).
Insulin Delivery Devices Market, Forecasts From 2018 to 2024, US$Billion
Source: Knowledge Sourcing Intelligence Estimates
The Globally Rising Consumer Electronic Industry
The global cresol market is poised to witness a growth throughout the forecast period on account of the constantly growing consumer electronic industry worldwide as these are being widely used in the encapsulation of electronic products. Thus, an increase in the demand for smartphones, laptops, wearables, and other devices play a significant role in driving the cresol market growth over the course of the next five years. The demand for cresol is projected to be directly impacted by a significant increase in the demand for various consumer electronics products as the improvements in the standards of living, urbanization and growing disposable income are some of the major factors bolstering the demand, especially in the developing economies such as India, Brazil, and China among others. Also, increasing household consumption expenditure is also expected to be a major factor that is poised to supplement the demand for electronic devices. For instance, as per the World Bank Group, the household’s and NPISHs Final consumption expenditure has grown remarkably from US$37.838 trillion in 2010 to US$48.611 trillion in 2018.
The global cresol market has been segmented on the basis of source, product type, application, and geography. On the basis of source, the market has been classified into natural and synthetic. On the basis of product type, the segmentation of the market has been done on the basis of o-cresol, m-cresol, and p-cresol. By application, the classification of the market has been done into herbicides, antiseptics and disinfectants, cleaning compounds, and others. Geographically, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
By application, the herbicides segment is expected to hold a decent amount of share in the market throughout the forecast period on account of the growing emphasis of various developed countries towards sustainable agriculture. The antiseptic and disinfectants segment is anticipated to show a healthy growth throughout the course of the next five years.
Geographically, the Asia Pacific region is expected to hold a considerable share in the market over the next five years due to the growing demand for agrochemicals in various countries coupled with the presence of a well-established electronic manufacturing sector in countries like India, China, Korea, and Vietnam among others. Furthermore, the presence of a well-established chemicals and materials industry in the region further supplement the cresol market growth in the APAC region during the next five years.