Phenolic resins are essentially synthetic polymers formed by the reaction of phenol and formaldehyde under the influence of heat. Phenolic resins have several desirable physical properties such as high heat resistance, high tensile strength, good moldability, light weight and low toxicity of smoke. Phenolic resins are employed in a variety of applications such as wood-adhesives, laminates, molding compounds, rubber, and insulation among others. Owing to the favorable physical and chemical properties, phenolic resins have found application in niche segments such as mass-transit, and off-shore oil drilling, which requires materials with high heat resistance.
On the basis of product type, phenolic resins can be segmented into resol resins, novolac resins and others. Resol resins are manufactured under basic conditions with excess formaldehyde, while novolac resins are manufactured under acidic conditions with excess phenol. North America, Asia Pacific and Europe are the main markets for phenolic resins and account for over 90% of the total demand for phenolic resins.
Resol resin was the largest product segment for phenolic resins in 2012 with a global market share of over 48%. A Novolac resin also accounted for a significant proportion of the global demand and is the fastest growing product segment, deriving demand from the growing molded composites market as well as the laminates market. The applications of phenolic resins have become specialized over the years due to the emergence of other color stable thermostats such as PVS and melamine, and are often custom manufactured to suit the end application.
Wood-adhesive was the largest application segment for phenolic resins and is expected continue in that position in the foreseeable future. The remarkable growth in the building and construction industry in the Asia Pacific and improving scenario in North America has propelled the demand for wood adhesive. Laminates, however, is expected to be the fastest growing application for phenolic resins, owing to the demand for decorative laminates and industrial laminates world-wide. Molding compounds is another application which is expected to register high growth with the increase in application scope. Use of phenolic molding compounds in automotive, marine and off-shore applications has contributed to the growth in this segment. The incremental usage of phenolic molding compounds in automotives in order to reduce fuel consumption and vehicle mass is a driver for phenolic molding compounds.
In 2012, Asia Pacific had the highest demand for phenolic resins followed by North America. These two geographies cumulatively accounted for more than 65% of the global demand. Asia Pacific is host to several manufacturing countries such as China and India. Moreover the rising dispensable income of the region has attributed to the consumption of phenolic resins through various end-industries. Rest of the World regions are expected to grow at the swiftest pace, primarily owing to the high growth opportunity of the applications in this region.
The phenolic resins industry is highly fragmented and dominated by regional players. Some of the major global players include BASF SE, Mitsui Chemicals Inc., Sumitomo Bakelite Co., Ltd., and Georgia Pacific Chemicals LLC among many others. There are several medium sized players in the regional markets.
Growth and expansion initiatives have been undertaken by various companies to thrive in the market. BASF SE expanded its production capacity by 50% at the Ludwigshafen manufacturing facility in order to cater to the high growth tire market. Georgia Pacific Chemicals LLC and Kolon Industries Inc, expressed their intent to invest in new production facilities of phenolic resins, while Hitachi Chemicals invested in a new plant in Thailand in anticipation of demand growth from the automotive sector.
The report analyses the phenolic resins market. For an insightful understanding, analysis and forecast have been provided for the time period ranging from 2013 to 2019. The forecasts are on the basis of volume (kilo tons) and revenue (USD million) for both global and regional level. In-depth analysis of the various factors driving and restraining growth of the phenolic resins industry has been included. A thorough analysis of the prevailing and expected growth opportunities in the industry has been included for decision-making.
The value chain analysis comprises of a detailed evaluation of the roles of various entities involved in the phenolic resins industry from raw material suppliers to the end users. In addition, Porter’s five forces model has been used to determine the degree of competition in the industry during the forecast period. Furthermore, market attractiveness analysis has been done to analyze which application segments are expected to be lucrative during the forecast period on the basis of their market size and growth rate.
The phenolic resins market has been segmented on the basis of product and application. The segments have been analyzed and forecast for a time period ranging from 2013 to 2019. The forecast is on the basis of volume (kilo tons) and revenue (USD million) for both regional and global level based on current and expected trends of the industry. Geographically, the market has been segmented into North America, Europe, Asia Pacific and Rest of the World (RoW), and the demand has been analyzed and forecast based on current trends for a period of six years, ranging from 2013 to 2019.
Market estimates for this study have been based on volumes, with revenues being derived through regional pricing trends. The price for commonly available grade of phenolic resins has been considered and customized product pricing has not been included. The market has been analyzed based on expected demand and the market data for each segment is based on demand volumes and corresponding revenues. The prices considered for calculation of revenue are average regional prices obtained through primary quotes from numerous regional suppliers, distributors and direct selling regional producers. We have considered prices of phenolic resins as per industry standard based on manufacturer feedback and application requirement. Market data is based on current information. Presence of large number of domestic manufacturers in Asia-Pacific may cause variation in forecast by a small margin. Forecasts have been based on expected demand from applications segments, primarily wood-adhesives, molding compound, and laminates. We have used the bottom up approach to arrive at the global market considering individual application segments and integrating them to arrive at the global market. The applications have been further bifurcated using top down approach to derive the regional product market consumption. The study covers the phenolic resins market taking into account the sales of registered companies in the market. We have not included the unorganized sectors of the market due to lack of secondary or primary data on this segment. We have not considered inflation to estimate forecast for our market.
Several primary and secondary sources were consulted during the course of the study. Some of the secondary sources which were consulted were ICIS, IHS, World Bank, Global Chemicals Outlook, The European Chemical Industry Council, The European UP/VE Resin Association, EPRA – European Phenolic Resin Association, EPA - US Environmental Protection Agency, OSHA–Occupational Safety and Health Administration, REACH - Registration, Evaluation, Authorization and Restriction of Chemicals among several others.
The report also covers profiles of the leading companies in the phenolic resins industry. A detailed analysis of the market shares of the major players has been included. Company profiles of companies such as BASF SE, Georgia Pacific Chemicals LLC, Chang Chun Plastics Co. Ltd., Sumitomo Baketile, Mitsui Chemicals Inc., and certain other companies has been included. The company profile encompasses various attributes of the companies including company overview, financial overview, SWOT analysis, business strategies and recent developments. The market has been segmented as below:
Phenolic Resins Market: Product Segment Analysis
- Resol resins
- Novolac resins
Phenolic Resins Market: Application Analysis
- Molding compounds
The report provides a cross-sectional analysis of the above product and applications segments with respect to the following regions:
- North America
- Asia Pacific
- Rest of the World