Cumene Market Statistics – 2030
The global Cumene market size was valued at $18.6 billion in 2020, and is projected to reach $28.0 billion by 2030, growing at a CAGR of 4.3% from 2021 to 2030.
Cumene in chemical form is known as isopropyl benzene, an organic compound based on aromatic hydrocarbons with aliphatic substitution. It is a flammable and colorless liquid with high boiling points of around 152°C, and is a constituent of crude oil and refined fuels. Industrially, cumene is manufactured by Friedel Crafts alkylation method. It is converted into an intermediate known as cumene hydroperoxide for further applications.
Report Key Highlighters:
- The Cumene market study covers 20 countries. The research includes a segment analysis of each country in terms of both value ($million) and volume (tons) for the projected period 2021-2030.
- The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
- Over 3,700 product literatures, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
- The Cumene market is highly fragmented, with several players including Royal Dutch Shell Plc., Exxon Mobil Corporation, Total S.A., BP Plc., Sumitomo Chemical Co., Axiall Corporation, SABIC, BASF SE, The Dow Chemical Company, and JX Nippon Oil. The other players in the value chain (profiles not included in the report) include CPCC, KMG Chemicals, CNPC, Chang Chun Plastics Co. LTD., KenolKobil, Formosa Plastics Group, Taiwan Cement Corporation, China Petrochemical Development Corporation. Also tracked key strategies such as acquisitions, product launches, mergers, expansion etc. of the players operating in the Cumene market.
Introduction
Cumene, also known as isopropylbenzene, is an organic compound with the chemical formula C₆H₅CH(CH₃)₂. It is a colorless, flammable liquid with a distinct aromatic odor and is primarily used as an intermediate in the production of phenol and acetone through the cumene hydroperoxide process. Cumene is derived from the alkylation of benzene with propylene and is commonly found in petroleum and coal tar. Due to its high volatility and low solubility in water, it is mainly utilized in the chemical industry rather than for direct consumer applications. In addition, cumene is an important component in the manufacturing of resins, plastics, and various industrial solvents. However, it poses environmental and health risks if inhaled or exposed in large quantities, necessitating proper handling and storage.
Market Dynamics
Cumene, also known as isopropylbenzene, is an organic compound with the chemical formula C₆H₅CH(CH₃)₂. It is a colorless, flammable liquid with a distinct aromatic odor and is primarily used as an intermediate in the production of phenol and acetone through the cumene hydroperoxide process. Cumene is derived from the alkylation of benzene with propylene and is commonly found in petroleum and coal tar. Due to its high volatility and low solubility in water, it is mainly utilized in the chemical industry rather than for direct consumer applications. In addition, cumene is an important component in the manufacturing of resins, plastics, and various industrial solvents. However, it poses environmental and health risks if inhaled or exposed in large quantities, necessitating proper handling and storage.
The global cumene market has witnessed significant growth opportunities globally, owing to growth in demand for phenol and acetone and their derivatives. Furthermore, economic growth, rise in per capita disposable income, and upsurge in the use of phenolic resins & bisphenol-A are anticipated to boost the market growth during the forecast period. Moreover, increasing demand for phenol in various industries such as plastics, composites, and laminates are anticipated to fuel the global market. However, fluctuation in crude oil price and hazardous health effects of cumene are expected to hamper this growth.
Growth in Construction and Infrastructure Development, and Chemical Industry
Cumene is primarily used as a raw material in the production of phenol and acetone, which are widely utilized in various industries such as automotive, construction, electronics, and pharmaceuticals. The growing demand for these end-use products directly drives the demand for cumene. The construction sector plays a significant role in the demand for cumene-based products. As economies develop and urbanization increases, there is a rising need for construction materials, coatings, adhesives, and sealants, which rely on cumene-derived products. The chemical industry is a major consumer of cumene. Cumene is used as a solvent in the manufacture of various chemicals, including resins, polycarbonates, and synthetic fibers. The expansion of the chemical industry, particularly in emerging markets, contributes to the overall growth of the cumene market.
Technological Advancements, and Shift Towards Bio-based and Sustainable Solutions
Advances in technology and process optimization have led to improved production efficiency and cost-effectiveness in cumene manufacturing. Enhanced catalysts, process modifications, and integration of renewable feedstocks have positively influenced the cumene market, making it more competitive and sustainable. With increasing environmental concerns and sustainability goals, there is a growing interest in bio-based alternatives and sustainable manufacturing practices. Some companies are exploring bio-based routes to produce cumene, utilizing renewable feedstocks instead of traditional fossil fuel sources. This trend is likely to impact the cumene market and create opportunities for bio-based cumene production.
Regional factors such as population growth, urbanization, and industrialization impact the demand for cumene. Emerging economies, especially in Asia-Pacific, are witnessing rapid industrialization and infrastructure development, which drives the demand for cumene and its derivatives. Government regulations and policies related to chemical manufacturing, environmental standards, and health and safety regulations can significantly impact the cumene market. Changes in regulations, such as restrictions on certain chemicals or emission control measures, can influence the production and use of cumene.
Environmental & Health Concern Can Impact Growth of Cumene Market
Cumene production and use are associated with environmental and health concerns. Cumene is classified as a hazardous substance, and its production involves the release of volatile organic compounds (VOCs) and emissions. Stringent environmental regulations and concerns about worker safety can impose additional costs and operational challenges on cumene manufacturers. Cumene is primarily produced from benzene and propylene, which are petrochemical derivatives. Fluctuations in the prices of these raw materials can impact on the cost of cumene production. Volatile raw material prices can make it challenging for cumene manufacturers to maintain stable profit margins and can hinder market growth. However, fluctuation in crude oil price and hazardous health effects of cumene are expected to hamper this growth.
Evolving industry needs, technological advancements, and sustainable practices boost Cumene Market
Phenol-derived polymers, such as epoxy resins and polycarbonates, are witnessing increasing demand across various industries, including automotive, aerospace, electronics, and construction. The rising adoption of lightweight materials, high-performance coatings, and advanced composites in these sectors creates opportunities for cumene as a key raw material in phenol production. The cumene market can benefit from the growing emphasis on sustainability and the demand for bio-based alternatives. Researchers and companies are exploring bio-based routes for cumene production using renewable feedstocks. The development of sustainable manufacturing processes and bio-based cumene can open new avenues and attract environmentally conscious customers.
Ongoing advancements in catalyst technology, process optimization, and energy efficiency can enhance the competitiveness of the cumene market. Innovations that improve yield, reduce production costs, and minimize environmental impact can provide opportunities for companies to gain a competitive edge and expand their market share. Cumene derivatives, such as phenolic resins, are being extensively researched and developed for various applications. For example, phenolic resins are finding use in adhesives, coatings, and thermal insulation materials. Exploring new applications and value-added derivatives of cumene can unlock additional market opportunities and drive growth. These opportunities highlight the potential for growth and diversification within the cumene market, driven by evolving industry needs, technological advancements, and sustainable practices.
For the purpose of analysis, the global cumene market is segmented into production technology, application, and region. Depending on production technology, the market is categorized into zeolite, Solid Phosphoric Acid and Aluminum Chloride. On the basis of application, it is segmented into phenol, acetone and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players have economically made high capital investments in R&D activities to develop advanced products to cater to the requirements of the market. These players operating in the industry include Royal Dutch Shell Plc., Exxon Mobil Corporation, Total S.A., BP Plc., Sumitomo Chemical Co., Axiall Corporation, SABIC, BASF SE, The Dow Chemical Company, and JX Nippon Oil.
The other players in the value chain (profiles not included in the report) include CPCC, KMG Chemicals, CNPC, Chang Chun Plastics Co. LTD., KenolKobil, Formosa Plastics Group, Taiwan Cement Corporation, China Petrochemical Development Corporation, Georgia Gulf Corporation, Ineos Group Limited, Koch Industries, Petroleos de Venezuela S.A. Mitsui & Co. LTd., CEPSA, Eni Spa, Sunoco, Aramco Services Company, Domo Investment Group, Flint Hills Resources LP, and Guangzhou VA-SO Plastics Co., Ltd.
The Cumene market is analyzed in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the cumene market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Recent Key Strategies and Developments
In August 2022, INEOS announced its agreement to acquire Mitsui Phenols Singapore Ltd. from Mitsui Chemicals for $330 million. This acquisition includes a production capacity of 410 ktpa of cumene, enhancing the business's competitiveness.
In September 2021, Formosa announced the expansion of its cumene and phenol plant in Ningbo, China, utilizing a Lummus technology license and engineering design. The expansion added 600 kMTA of cumene and 400 kMTA of phenol capacity to the existing facility, which previously had a capacity of 450 kMTA for cumene and 300 kMTA for phenol.
The cumene market is analyzed in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the cumene market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Cumene market, by production technology
By technology, the Zeloite segment held the largest market share in 2020. There are several disadvantages of using aluminum chloride and solid phosphoric acid as catalysts for the production process of cumene such as high corrosion, environmental hazard and catalyst non-renewability. This has resulted growth in the use of Zeolite as catalysts for production
By Production Technology
Zeolite segment is projected as the most lucrative segment.
Cumene market, by application
By application, the phenol segment garnered the highest market share in 2020. This is attributed to increasing use phenol in various industries such as electrical & electronics, automotive, paints & coatings, cosmetics, and others. Furthermore, it is used as a solvent for paints, lacquers, and enamels, which find their uses in automotive and furniture.
By Application
Phenol is projected as the most lucrative segment.
Cumene market, by region
Asia-Pacific garnered the highest share in the cumene market in 2020, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. Developing countries such as China, India, and Japan are driving the regional market due to the high consumption of electronics in this region. Growth is also supported by growing automotive industry in China, India and South Korea.
By Region
Asia-Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
Gobal impact on the Cumene market
- The pandemic led to disruptions in various industries, including automotive, construction, and electronics, which are major consumers of cumene and its derivatives. Lockdown measures, supply chain disruptions, and reduced consumer spending during the pandemic resulted in volatile demand for cumene-based products. Fluctuating demand patterns created challenges for cumene manufacturers in terms of production planning and inventory management.
- Restrictions on international trade, closure of manufacturing facilities, and logistical challenges posed significant disruptions to global supply chains. This affected the availability of raw materials, such as benzene and propylene, required for cumene production. Cumene manufacturers faced difficulties in sourcing raw materials, leading to production slowdowns and delays.
- The widespread impact of the pandemic led to a decline in industrial activity worldwide. Many manufacturing facilities and construction projects were temporarily shut down or operated at reduced capacity, affecting the demand for cumene and its derivatives. The slowdown in industrial sectors directly impacted the cumene market.
- Changes in consumer behavior and preferences during the pandemic influenced the demand for products that rely on cumene. For example, the automotive sector experienced a decline in demand due to reduced travel and economic uncertainties. Similarly, the construction industry faced challenges due to project delays and decreased investments. These shifts in consumer behavior had indirect effects on the demand for cumene-based products.
- The pandemic accelerated the adoption of digital technologies and remote work practices across various industries. While this shift did not have a direct impact on the cumene market, it influenced the operational practices of companies involved in the production and distribution of cumene. Remote work arrangements and digitalization efforts were implemented to ensure business continuity and minimize disruptions.
- As the global economy gradually recovers from the pandemic, industries are witnessing a rebound in demand. The resumption of construction projects, increased consumer spending, and the revival of automotive production are expected to drive the demand for cumene and its derivatives. However, the pace and extent of the recovery may vary across regions, depending on the local COVID-19 situation and vaccination rates.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current market trends and future estimations of the global cumene market from 2021 to 2030 to determine the prevailing opportunities.
- A comprehensive analysis of the factors that drive and restrict Cumene market growth is provided.
- Estimations and forecast are based on factors impacting the cumene market growth, in terms of value.
- Profiles of leading players operating in the cumene market are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable cumene market growth.
Cumene Market Report Highlights
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Analyst Review
Significant growth in the plastic industry across Asia pacific region is one of the key factors for fueling the growth of cumene market. Increasing demand for phenolic based products used for various applications such as electronics, paints & coatings, automotive, electronics and others are the key drivers for Asia pacific market growth. China is expected to lead the Asia Pacific market in terms of revenue contribution. Other countries such as India, and Japan are driving the regional market due to the high consumption of electronics in this region
Key factors which are driving the growth of cumene market in Asia-pacific increasing use of in cumene a wide range of applications, such as manufacturing methyl methacrylate (MMA) and BPA, and as a solvent in the pharmaceutical and cosmetics industries.? Acetone is used as solvent in cosmetic industry. Growing cosmetic industry is in turn driving the demand for acetone. Rapid industrialization with combination of increasing consumer demand for high octane cumene-derivatives, are anticipated to drive the market further.
Renowned global market leaders such as Royal Dutch Shell Plc., Exxon Mobil Corporation, Total S.A., BP Plc., Sumitomo Chemical Co., SABIC etc. are adopting various key growth strategies to strengthen their market position. Furthermore, these companies are focused on agreement, business expansion, product launch and partnership to cater to the increasing demand for cumene and to maintain the position in the global Cumene market.
Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue in the market throughout the forecast period, followed by Europe, North America and LAMEA.
Rising demand of paints and enamel, rising fashion industry are the major driving factor for the market. In addition, rising aviation industry create lucrative opportunities for the market.
Agreement, business expansion and product launch are the key growth strategy of global cumene market players.
Asia-Pacific will provide more business opportunities for global cumene in future
Royal Dutch Shell Plc., Exxon Mobil Corporation, Total S.A., BP Plc., Sumitomo Chemical Co., Axiall Corporation, SABIC, BASF SE, The Dow Chemical Company, and JX Nippon Oil are the leading market players active in the cumene market.
Phenol segment holds the maximum share of the global cumene market
Aviation industry, cosmetics industry and paint companies are the major customers of global cumene market.
The report provides an extensive qualitative and quantitative analysis of the current trends and future estimations of the global cumene market from 2020 to 2030 to determine the prevailing opportunities.
Rise in urbanization, increase in demand of paints & enamels and continuous increase in dependency on phenols are expected to drive the adoption of cumene.
Technological evolution of cumene, increasing interior decoration and rising cosmetic products are the current trend expected to influence the global cumene market in the next few years.
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