Phenolic Resin Market: Global Emerging Opportunities, Trends and Forecast Analysis (2022-2029)

Phenolic Resin market is expected to reach US$ 22.57 Bn. in 2029, with a CAGR of 5.5% for the period 2021-2029, because of the high demand for phenolic from the various end-use industries.
Phenolic Resin Market Overview:
The interaction between formaldehyde and phenol produces phenolic resins, which are polymers and oligomers. These resins were the first to be employed commercially in the production of moulded items like laboratory countertops and billiard balls. They're small and light, with a wide range of uses in the automobile, construction, and electronics industries. They have remarkable features such as good flame retardancy, chemical resistance, and temperature resistance, making them suitable for a wide range of end-user applications.To know about the Research Methodology :- Request Free Sample Report.
Phenolic Resin Market Dynamics:
High demand for phenolic from the various end-use industries such as automotive industry and thus substantial growth in the automotive industry is primarily driving the growth of the market. Because of its heat resistance, lightweight, fire retardancy, and impact resistance property, it is commonly used in the single-vehicle. Increasing production of automobiles across the emerging region is a main factor boosting the market growth. Hence, the growing demand for phenolic resins from the automotive industry is enhancing the market growth.

The usage of phenolic resin in impregnated materials is increasing because of more stringent rules and regulations aimed at boosting energy efficiency. In addition, the growing need for low-density materials that provide thermal insulation and long-term durability is moving the phenolic resin market forward. The growing use of this material in green building spaces for the commercial and residential sectors is expected to boost market growth during the estimated period (2022-2029).

The market is expected to be hampered by the fluctuating price of raw materials used in the production of phenolic resins. Phenolic resins are petroleum-based compounds made from the reaction of benzene with propylene. Petroleum-based products are particularly vulnerable to price fluctuations, which could raise the entire cost of the products. Furthermore, Unfavorable conditions resulting from the COVID-19 pandemic are expected to pose significant hurdles to the growth of the phenolic resins market.

Phenolic Resin Market Opportunities:

Healthy growth in the construction industry in the United States is expected to provide enormous potential prospects during the forecast period. The US government budget, for example, allocates $200 billion in 2021 for infrastructure goals across a variety of industries, including water infrastructure. In addition, rising rehabilitation and construction of new residential and commercial infrastructure is expected to boost the phenolic resins market growth throughout the forecast period.

Over the forecast period, the growing demand for phenolic resins from wood adhesives is expected to generate huge potential possibilities for the market. It is frequently employed in the manufacture of wood adhesive due to its remarkable water resistance, water diluting ability, excellent moisture resistance, and weather resistance properties. Thus, rising demand for wood adhesive from a variety of end-user sectors is expected to drive phenolic resins market growth in the future.

Phenolic Resin Market Trends:

Environmentally friendly phenolic resins are gaining popularity in the marketplace. For example, Allnex, a specialty chemical supplier that offers a wide range of coating resins, additives, and crosslinkers for use on wood, metal, plastic, and other surfaces, announced the launch of PHENODUR® PR 616/65B, a new, eco-friendly phenolic resin primarily for interior and exterior coatings, in September 2021. The free formaldehyde content of this product is stated to be as low as 0.1 percent.

Repair and remodeling operations are becoming increasingly popular in Asia Pacific, as the construction sector is using more resole resins. The rising population, together with rising consumer disposable income, is likely to increase demand for phenolic resins, resulting in market growth throughout the forecast period.
Phenolic Resin Market Price Trend and Forecast:
During the 2021, Q3, Phenolic Resin prices in North America remained stable, because of the stability of feedstock phenol values. Also, abundant product supply to meet the demands of downstream industries such as automobiles, construction, and electronics kept market sentiments strong throughout the quarter. On the other hand, the advent of Hurricane Ida in the Gulf Coast of the United States in late August affected production and supply systems in North America, resulting in a minor price increase in September. However, with the restoration of industrial operations in the result of Hurricane Harvey, phenolic resin prices regained their stability after several weeks.

In the third quarter of 2021, the Asia Pacific Phenolic Resins market outlook improved. The significant surge in demand in the post-pandemic period supported a constant rising trajectory in the prices of phenolic resins during this quarter. But, after a three-month period of continuous increases, Phenolic Resins prices stabilized in the second half of the quarter. The market forecast for phenolic resins in India remained bright, with strong demand from downstream sectors and tight fundamentals keeping prices on the rise this quarter. Also, rising raw material prices remained a major issue for resins producers, forcing them to alter their prices to retain their profit margins. Thus, in September, CFR-Chennai Phenolic Resin (Novolac resin) prices hovered at USD 6770.68 per MT.

The European phenolic resins market displayed mixed outlooks in Q3, 2021. Due to abundant availability of the product and a decline in the values of upstream, the prices of Phenolic resin fell at the start of the quarter. Conversely, on accounts of strong demand from the regional and international markets, and a quick jump in the costs of upstream Phenol and Formaldehyde during this quarter, there was a small increase in the cost of Phenolic Resin in the second half. Furthermore, rising freight costs and limited supply of shipping containers wreaked havoc on the prices of phenolic resins in the Europe during this time period (Q3, 2021).
Phenolic Resin Market Segment Analysis:
Based on Application: The phenolic resin market is sub-segmented into Wood adhesives, Foundry, Molding, Laminates, Insulation, Paper Impregnation, Coatings, and Others. Among these, Wood adhesives application is dominates the market and is expected to hold the continuous growth during the forecast period (2022-2029). This growth is mainly because of wood adhesive having a special properties such as water resistance, water diluting ability, excellent moisture resistance, and weather resistance. The Asia Pacific is the major market for the Phenolic Resin.

Also, the molding components are used widely in several end-user industries application such as household applications, automotive commutators, and electrical & electronics. Thanks to the excellent dimensional stability, the compounds find applications in manufacturing electrical equipment and kitchen-ware, which is further increase the demand for molding resins in the upcoming years.

Molding application is expected to hold the highest CAGR of overall market during the estimated period. This is because of quickly increasing petrochemical industry in China, which is accelerating demand for moulding in Asia Pacific. Moreover, due to low crude prices, the industry is looking for bulk trade and the manufacturing of petrochemical derivatives, which is help the market growth in the future.

Also, several important phenolic resins firms have begun to implement various strategies to maintain annual growth and mitigate the impact of decreasing oil prices on profit margins.
Phenolic Resin Market Regional Insights:
Thanks to the fast growth of end-use sectors such as consumer goods, automotive, construction, and aerospace, Asia Pacific is expected to grow at the highest CAGR of over 4.4% during the forecast period. Also, APAC expected to see the development of bio-based feedstock for the production of phenolic resins, which is increase the industry's drive in the future.

Automobile production is expected to recover in developed economies such as Europe and North America, boosting demand for phenolic resins in a variety of applications such as abrasives, adhesives, coatings, and insulation. Along with this, the leading players are boosting their R&D spending, which is expected to boost the market forward in the future.Inorganic strategic alliances, including as partnerships and acquisitions, as well as R&D activity, new product development, and capacity expansions, are among the most common strategies used by phenolic resins market players to strengthen and expand their global footprint.

• In 2021, Sumitomo Bakelite developed a solid novolac phenolic resin by using nonedible lignin to produce it on a commercial basis. The novel resin has varied utility in auto applications, mainly in electric vehicles.

• In 2021, Hexion has declared the selling of its phenolic resin, hexamine businesses to two equity firms namely Black Diamond and Invest industrial. This helps in their business investments and debt clearance.

The objective of the report is to present a comprehensive analysis of the global Phenolic Resin market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Phenolic Resin dynamics, structure by analyzing the market segments and projecting the Phenolic Resin size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Phenolic Resin market make the report investor’s guide.
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Phenolic Resin Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2021-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 14.70Bn.


Forecast Period 2021 to 2029 CAGR:
5.5%
Market Size in 2029:
US $ 22.57Bn.


 Segments Covered:
by Product Type
• Resol resin
• Liquid Resol resin
• Solid Resol resin
• Novolac resin
• Others (Bio-phenolic resin, cresol resin, free-formaldehyde • phenolic resin)


by Application
• Wood adhesives
• Foundry
• Molding
• Laminates
• Insulation
• Paper Impregnation
• Coatings
• Others


by End-use Industry
• Automotive
• Building & construction
• Furniture
• Electrical & electronics
• Others



Phenolic Resin Market, by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America
Phenolic Resin Market Key Players are:
•Hexion Inc.
• Hitachi Chemical Co. Ltd.
• Sumitomo Bakelite Co. Ltd.
• BASF SE
• SI Group Inc.
• DIC Corporation Inc.
• Kolon Industries Inc.
• Shandong Laiwu new material Co. Ltd.
• Changshu South-East Plastic Co., Ltd.
• Mitsui Chemicals Inc.
• Georgia Pacific Chemicals LLC
• Prefere Resins
• Plastics Engineering Company
• RPM International Inc.
• KCC Corporation
• Altex Coatings Inc.
• Nippon Paint Marine Coatings Co., Ltd.
• Others

Frequently Asked Questions:

1. Which region has the largest share in Phenolic Resin Market?
Ans: The Asia Pacific held the largest share in 2021.

2. What is the growth rate of the Phenolic Resin Market?
Ans: The Phenolic Resin Market is growing at a CAGR of 5.5% during the forecasting period 2022-2029.

3. What segments are covered in the Phenolic Resin market?
Ans: Phenolic Resin Market is segmented into Product Type, Application, End-use Industry, and Region.

4. Who are the key players in the Phenolic Resin market?
Ans: The important key players in the Phenolic Resin Market are – Hexion Inc., Hitachi Chemical Co. Ltd., Sumitomo Bakelite Co. Ltd., BASF SE, SI Group Inc., DIC Corporation Inc., Kolon Industries Inc., Shandong Laiwu new material Co. Ltd, Changshu South-East Plastic Co., Ltd., Mitsui Chemicals Inc., Georgia Pacific Chemicals LLC, Prefere Resins, Plastics Engineering Company, RPM International Inc., KCC Corporation, Altex Coatings Inc., Nippon Paint Marine Coatings Co., Ltd., and others.

5. What is the study period of this market?
Ans: The Phenolic Resin Market is studied from 2021 to 2029.