Phenolic Resin Market is Expected to Reach $12.6 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled," Phenolic Resin Market by Type, Application, And End-Use Industry: Global Opportunity Analysis and Industry Forecast, 2021-2030," the global phenolic market was valued at $8.2 billion in 2020, and is projected to reach $12.6 billion by 2030, growing at a CAGR of 4.4% from 2021 to 2030.

The global phenolic resins market was valued at $8.2 billion in 2020, and is projected to reach $12.6 billion by 2030, growing at a CAGR of 4.4% from 2021 to 2030.

Phenolic resin has emerged as a major additive in applications such as building material, paints, coatings, circuit board, adhesives, and insulation panels among others. This trend is projected to continue during the forecast period, as the high-end mechanical and thermal properties make it a resin an inevitable choice for many industrial applications. The largest end use of phenolic resin is in the lumber markets, where it is used as an adhesive in the production of particle board and plywood. The furniture industry is ever evolving with new aesthetic designs and patterns being launched. This increases the demand for furniture raw materials, of which wood constitutes the majority contribution. Moreover, wood panels made from modified phenolics superior properties compared to those developed from conventional phenolic resins. 

However, the present price fluctuation in fuel prices and increasing focus on minimizing health issues caused due to phenolic resin products raises a concern among consumers. This could hamper the use of phenolic resins during the forecast period. Although, this concern could be sorted by the development of bio-based feedstock that use sustainable materials such as Lignin for phenolic resin production. Phenolic resins have been produced from bioresources and used as adhesives in the wood industry. Natural chemicals can significantly reduce the harmful impacts on the environment and human health. 

The global phenolic resin market is segmented on the basis of type, application, and end-use industry. Based on the type, the global phenolic resin is divided into Resol and Novolac.

Based on the type, the Novolac resin segment accounted for the largest market share in 2020, owing to its wide range of end use applications in electronics, construction, automotive, and paints.

Applications of phenolic resins include adhesives & binding, foundry, molding, laminates, coatings, foam, and others.

Adhesives & binding segment accounted for the largest revenue share in the global phenolic resins market in 2020. Phenolic resin-based adhesives and binders have a wide spectrum of applications such as in automotive, rubber, furniture, aerospace, and machine tools. 

End-use industry of phenolic resins includes electrical & electronics, automotive, lumber, building & construction, and others. Electrical & Electronics segment accounted for the largest share in 2020, owing to use of phenolic resins for photoresists and circuit board applications.

Based on the region, the global phenolic resin market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the largest market share in the global phenolic resin market, and is projected to grow at a CAGR of 5.0%. Increasing construction and automotive markets in countries such as India and China have benefited the global phenolic resin market.

Key players engaged in the development and production of phenolic resins are Allnex GMBH, Asahi Yukizai Corporation, ASK Chemicals, Bakelite Synthetics, Gunei Chemical Industry Co. Ltd., Kolon Industries Inc., Kraton, Prefere Resins Holding GmbH, Seiko PMC Corporation, and Sumitomo Bakelite Co. Ltd.

Key findings of the study

• Based on type, Novolac accounted for the largest market share in 2020, and is expected to grow at a CAGR of 4.5%
• Based on application, adhesives & binding segment accounted for the largest market share in 2020, and is expected to grow at CAGR of 4.7%
• Based on end-use industry, electrical & electronics segment accounted for the largest market share in 2020, and is expected to grow at CAGR of 4.5%
• On the basis of region, Asia-Pacific accounted for the largest market share in 2020, closely followed by Europe

Impact Of Covid-19 On The Global Phenolic Resin Market

• The COVID-19 pandemic led to temporary long term halting of manufacturing and construction activities in major economies such as China, India, the U.S., and Germany. A similar economic decline was witnessed in other countries as well.
• This decline in manufacturing output and postponing of construction projects deeply hampered the global phenolic resins market.
• Asia is a key supplier of phenolic resins, thus the restrictions put on Asian countries to contain and minimize the spread of the virus reduced the demand for adhesives, coated abrasives, laminates, coatings, and other phenolic resin-based products.
• The automotive industry was one of the worst hit sectors globally, with production rates plummeting coupled with a drastic reduction in consumer demand for new vehicles. This also hit the phenolic resins market.
• However, with people spending more time at home, there was a jump in remodeling and demand for DIY wood products, thereby increasing the use of phenolic resin coatings and adhesives.