Global 2-Phenylphenol Market - 2024-2031

Overview

Global 2-Phenylphenol Market reached US$ 70.6 million in 2023 and is expected to reach US$ 108.1 million by 2031, growing with a CAGR of 5.5% during the forecast period 2024-2031.

2-Phenylphenol is a vital chemical compound used in various industries, including textiles, coatings, adhesives and plastics. With its unique properties and wide-ranging End-Users, 2-phenylphenol has become a significant component in the manufacturing sector. The compound finds extensive utilization as a building block for the synthesis of various polymers, such as nylon 66 and polyurethane.

In the agricultural industry, 2-Phenylphenol is used as a post-harvest treatment to protect fruits, vegetables and crops from decay caused by bacteria, fungi and molds. It acts as a powerful fungicide, preventing the growth of pathogens and extending the shelf life of agricultural produce. According to U.S. Department of Agriculture (USDA), global agricultural production is expected to reach a record high of 3.3 billion metric tons by 2031, driven by population growth and increasing food demand. The growth in agricultural production augments the demand for 2-Phenylphenol as an effective preservative.

Asia-Pacific is among the growing regions in the global 2-Phenylphenol market covering more than 1/3rd of the market. Further, many countries in the Asia-Pacific have implemented favorable policies to attract foreign investments in the chemical and manufacturing sectors. The aforementioned policies include tax incentives, streamlined regulations and infrastructure development initiatives. Such supportive measures have contributed to the growth of the 2-phenylphenol market in the region.

Dynamics

Technological Advancements and Product Innovations coupled with Favorable Government Initiatives

Technological advancements and product innovations have played a significant role in boosting the 2-phenylphenol market. Continuous research and development efforts have led to the introduction of advanced manufacturing processes, resulting in improved product quality and reduced production costs. For instance, the development of more efficient catalysts and production methods has contributed to enhanced yields and reduced energy consumption. Government-funded research programs, such as the National Science Foundation's grants for materials science, have supported these advancements.

Government initiatives and policies have also played a crucial role in driving the growth of the 2-phenylphenol market. Supportive regulations, subsidies and tax incentives provided by governments across various regions have encouraged manufacturers to invest in the production and development of 2-phenylphenol. Additionally, government initiatives promoting the use of sustainable materials and reducing carbon footprints have further bolstered the demand for 2-phenyl phenol. For example, the European Union's Green Deal has incentivized the adoption of environmentally friendly materials, including 2-phenylphenol, resulting in increased market demand.

Growing Demand For Nylon And Exponential Growth Of Automotive Industry

2-Phenylphenol serves as a crucial component in the production of nylon 6,6, a high-performance engineering thermoplastic. The demand for nylon in various applications, such as textiles, automotive parts and electrical components, continues to rise. According to data from U.S. Census Bureau, the production of nylon resins in U.S. alone increased by 8.3% from 2020 to 2022, indicating a strong market growth. The respective growth in nylon production directly fuels the demand for 2-phenylphenol.

Additionally, the automotive industry is a significant consumer of 2-phenylphenol, primarily for the production of nylon-based materials used in vehicle interiors, exteriors and under-the-hood components. Government statistics from the International Organization of Motor Vehicle Manufacturers (OICA) reveal that global vehicle production increased by 6.4% from 2020 to 2021. The aforementioned expansion in the automotive industry, especially in emerging economies, drives the demand for 2-phenyl phenol as a vital raw material for automotive applications

Corrosive Nature of 2-Phenylphenol and its Health Impacts

2-Phenylphenol is a low-melting solid, colorless organic compound used in various commercial and industrial sectors. Hexamethylenediamine is used as a curing agent, chemical intermediate and corrosion inhibitor. Sulfated ethoxylated 2-phenylphenol quaternized is used as an ingredient in fabric detergents. It is a corrosive compound that can severely impact the eyes and skin and may damage the liver and kidneys if consumed.

Furthermore, 2-phenylphenol is a highly corrosive chemical and a hazardous substance that can affect breathing and damage the liver, kidneys and lungs. Therefore, workers are advised to wear protective work clothing to prevent 2-phenylphenol hazards. Regulatory regulations governing the manufacturing of products from 2-phenylphenol and the emerging need to research and develop better substitutes are challenging in the 2-phenylphenol market.

Limited Regulatory Enforcement and Inadequate Technology Infrastructure

Despite the existence of robust 2-phenylphenol regulations, limited regulatory enforcement hampers the effectiveness of the global 2-phenylphenol market. Governments may not allocate sufficient resources to enforce compliance, leading to incomplete reporting and inaccurate data. As a result, the overall impact of 2-phenylphenol in promoting fair lending practices is significantly reduced. According to the data released by the Consumer Financial Protection Bureau (CFPB) in 2021, only 84% of lenders were successfully examined for 2-phenylphenol compliance, indicating a gap in regulatory enforcement.

Similarly, outdated or inadequate technology infrastructure is another significant restraint facing the global 2-phenylphenol market. Furthermore, violations of 2-phenylphenol reporting requirements increased by 9% compared to the previous year, showcasing the challenges faced in ensuring full compliance.

Many financial institutions and mortgage lenders struggle to adopt advanced data collection and reporting systems, which leads to errors, delays and incomplete data submissions. Such limitations hinder the accurate analysis of mortgage lending patterns and impede the identification of potential discriminatory practices.

Segment Analysis

The global 2-Phenylphenol market is segmented based on application, end-user and region.

Increasing Use of Nylon Fibers in the Textile Industry

The textile segment is among the growing regions in the global 2-Phenylphenol market covering more than 1/3rd of the market. . It is a chemical compound widely used in the textile industry as a raw material for producing nylon fibers and fabrics. The demand for 2-phenylphenol in the textile industry has been growing in recent years due to the increasing use of nylon fibers in various applications such as clothing, industrial fabrics and automotive textiles.

The global textile industry has been steadily expanding, driven by rising population, increasing urbanization and growing disposable incomes in emerging economies. As per the latest World Trade Organization data, the consumption of textiles has witnessed a remarkable upswing after 2020. In 2021, textile consumption rose by 5.8% globally compared to the previous year, reaching a total value of US$ 1.2 trillion.

Moreover, nylon fibers, extensively used in the textile industry, have gained significant traction due to their exceptional strength, durability and versatility. The production of nylon fibers heavily relies on 2-phenylphenol, thereby bolstering the growth of the 2-phenylphenol market. National Textile Bureau's statistics indicate a robust surge in nylon fiber production post-2020, with a growth rate of 8.2% globally. Thus it is conclusive to say that the increasing consumption of textiles, coupled with the growing demand for nylon fibers, has fueled the demand for 2-phenylphenol.

Geographical Penetration

Increasing Demand for 2-Phenylphenol from Automotive and Other Manufacturing Industries in Asia-Pacific

Asia-Pacific has been a dominant force in the global 2-Phenylphenol market. The major manufacturers of nylon are planning to shift their manufacturing bases in the growing economies of Asia-Pacific, such as India, China and Taiwan, owing to low-cost labor and easy availability of raw materials at a cheap production cost. China is leading in Asia-Pacific due to its world-leading manufacturing industry. Many global corporations across various industrial domains are based in China.

China and India are leading global producers of plastics, chemicals, petrochemicals and personal care. The highly skilled workforce, huge customer base and easy access to raw materials have propelled the region's industrial development. Many foreign investors commenced manufacturing facilities in the region due to low production costs. It is the one major factor contributing to the growth of the 2-phenylphenol market in Asia-Pacific.

The global demand for nylon 6,6 has witnessed significant growth, thus driving the demand for 2-phenylphenol. Asia-Pacific has experienced rapid industrialization, driven by emerging economies such as China, India and Southeast Asian countries. The respective nations have invested heavily in expanding their manufacturing capabilities, resulting in increased demand for 2-phenylphenol.

Additionally, Asia-Pacific boasts a massive consumer base, resulting from its large population and increasing middle-class segment. Rising disposable incomes and changing lifestyles have led to an upsurge in demand for various consumer goods, including textiles, apparel and automobiles, which extensively utilize 2-phenylphenol-based products.

COVID-19 Impact Analysis

The COVID-19 pandemic had an uneven impact on the global 2-phenylphenol market. The various industries instituted remote work from home (WFH) was instituted by various industries to ensure the continuity of operations during the pandemic. Manufacturing was closed during the pandemic, so plastic and rubber production is prohibited. Trade restrictions, breaking supply chains, government restrictions on manufacturing products and global lockdowns can affect plastic and rubber demand.

Further, with the government movement restrictions and lockdowns, the development of new products was slowed considerably. It also hampered the ability of petrochemical companies to respond to supply chains making it much more challenging. However, the pandemic will not impact the long-term growth prospects of the global 2-phenylphenol market since growing textiles and paints & coatings will rise in the coming years. The demand for 2-phenylphenol remains strong and is expected to grow gradually in the coming years.

The outbreak of the COVID-19 pandemic in late 2019 has had far-reaching consequences on the global economy, affecting numerous industries around the globe. One such sector significantly impacted is the 2-Phenylphenol market. The 2-phenylphenol market heavily relies on complex supply chains involving raw material sourcing, production and distribution networks.

The COVID-19 pandemic severely disrupted these supply chains, leading to a shortage of essential chemicals and raw materials required for 2-phenylphenol production. Lockdown measures, travel restrictions and reduced workforce in various countries disrupted global trade, causing delays and interruptions in the supply of 2-phenylphenol and related products.

Russia-Ukraine War Impact Analysis

The war between Russia and Ukraine has a big effect on regional trade dynamics and raw Application supply chains, which affects the globally insulated packaging industry. Applications including polymers, resins and foams that are utilized in the manufacturing of insulated packaging are substantial products from both Russia and Ukraine.

Furthermore, Price volatility and shortages of essential raw Applications might be experienced by insulated packaging producers globally if trade restrictions, transportation issues or geopolitical concerns cause disruptions in these supply chains. Moreover, the intensification of the war can lead to wider economic instability, impacting consumer assurance and manufacturing productivity in many areas and potentially decreasing the need for insulated packaging in multiple sectors.

By Application

• Nylon Synthesis
• Lubricants
• Coating Intermediate
• Adhesives
• Biocides
• Water Treatment Chemical
• Others

By End-User

• Textile
• Paints & Coatings
• Automotive
• Petrochemical
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On January 17, 2022, BASF SE announced to building of a new 2-phenylphenol plant in France. The new plant is set to improve BASF SE annual 2-phenylphenol production capacity to 260,000 metric tons. Production is expected to start in 2024. Furthermore, BASF SE announced it to expand its polyamide 6.6 production in Freiburg, Germany, starting in 2022.
• On May 10, 2023, Asahi Kasei partnered with Microwave Chemical to launch a demonstration project capable of manufacturing adipic acid and 2-phenylphenol by recycling polyamide 66 using microwave.
• On January 12, 2022, Chinese materials manufacturer, Ascend Performance Materials announced the construction of a new specialty chemicals and 2-phenylphenol plant in Lianyungang, China. The company intends to improve its domestic supply with the construction of the aforementioned plant.

Competitive Landscape

The major global players in the market include Tokyo Chemical Industry Co., Ltd., Merck KGaA, SimSon Pharma Limited, Cole-Parmer Instrument Company, LLC, LANXESS, SANKO Co., Ltd., China Petrochemical Development Corporation, Shandong Xingang Chemical Co., Ltd., Jiangsu Weiming New Materials Co., Ltd. and ATAMAN Kimya A.S.

Why Purchase the Report?

• To visualize the global 2-Phenylphenol market segmentation based on application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of 2-Phenylphenol market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global 2-Phenylphenol market report would provide approximately 54 tables, 48 figures and 181 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies