Phenolic Resin Market Expected to Reach $12.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Phenolic Resin Market," The phenolic resin market size was valued at $8.1 billion in 2021, and is estimated to reach $12.8 billion by 2031, growing at a CAGR of 4.8% from 2022 to 2031.

Phenolic resin has emerged as a major additive in applications such as building materials, paints, coatings, circuit boards, adhesives, and insulation panels. This trend is projected to continue during the forecast period as high-end mechanical and thermal properties make resin an inevitable choice for many industrial applications.

The largest end use of phenolic resin is in lumber markets, where it is used as an adhesive in the production of particle boards 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. The increasing demand for furniture is beneficial for the phenolic resin market growth. Phenolic resin is used widely in the automotive, electrical and electronics, and construction industries. These phenolic resin market trends are expected to boost the market over the forecast period

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

The global phenolic resin market analysis is segmented on the basis of type, application, end-use industry, and region. By type, the market is divided into resol and novolac. On the basis of type, the Novolac resin segment accounted for the largest market share in 2021, owing to its wide range of end-use applications in electronics, construction, automotive, and paints.

By application, it is divided into friction, adhesives & binding, coatings, felt bonding, foam, abrasives, substrate saturation, foundry, and others. The adhesives & binding segment accounted for the largest revenue share in the global phenolic resin market in 2021. Phenolic resin-based adhesives and binders have a wide spectrum of applications such as in automotive, rubber, furniture, aerospace, and machine tools.

By end-use industry, the electrical & electronics segment accounted for the largest share in 2021, owing to the use of phenolic resins for photoresists and circuit board applications.

Region-wise,  Asia-Pacific accounted for the largest market share in the market and is projected to grow at a CAGR of 4.9% during the forecast period. An increase in construction and automotive markets in countries such as China and Japan has benefited the Global phenolic resin market.

Key players in the phenolic resin industry include Akrochem Corporation, Allnex GMBH, Ashland Global Holdings Inc, ASK Chemicals GmbH, Bakelite Synthetics, BASF SE, Georgia-Pacific Chemicals, Hexcel Corporation, Kraton Corporation, Prefere Resins Holding GmbH. These players have been adopting various strategies to gain a higher share or to retain leading positions in the market.

IMPACT OF COVID-19 ON THE GLOBAL PHENOLIC RESIN MARKET

Europe is a key supplier of phenolic resins, thus restrictions put on European countries to contain and minimize the spread of the virus reduced demand for adhesives, coated abrasives, laminates, coatings, and other phenolic resin-based products during the COVID-19 pandemic. From 2021, the operations of various end-use industries have started normally which helped to increase demand for phenolic resin from end-use industries such as automotive, construction, and others. 

KEY FINDINGS OF THE STUDY

• On the basis of type, the novolac segment emerged as the global leader by acquiring more than 55.0% of the phenolic resin market share in 2021 and is anticipated to continue this trend during the forecast period.
• On the basis of application, the adhesives and binding segment accounted for 29.1% of the global phenolic resin market share in FY2021.
• On the basis of end-use industry, the electrical and electronics segment accounted for 28.7% of the global market share in FY2021.
• On the basis of region, Asia-Pacific is the major consumer of Phenolic resin among other regions. It accounted for around 36.5% of the global market share in 2021.