Construction, automobile sectors to spur demand, help India buck global trend

India’s phenol market is expected to clock a healthy 8-9% compound annual growth rate from this fiscalthrough 2030, outpacing the global market.

Annual phenol demand worldwide is ~12.2 million metric tonne and forecast to grow slow at 2-3% per annum from calender year 2024 to 2030.

Domestic consumption this fiscal is envisaged at ~650 kilo tonne. The growth is likely to be driven by increasing demand from end-user industries, such as automotive and construction, which use phenolic resins.

Demand growth should also be supported by phenol usage in the production of caprolactam, a key ingredient in nylon manufacturing, and slimicide, a disinfectant.

Furthermore, a significant catalyst for demand growth will be the upcoming commencement of polycarbonate resin and bisphenol A production by a leading chemical intermediates company, since phenol serves as a critical compound in the manufacture of these compounds.