The global cresols market is expected to cross $500 million in 2030 growing at a CAGR of 3.8% during the forecast period 2023 to 2030. Cresol derivatives are used in vitamin E and electronic encapsulation manufacture. Demand for laptops, tablets, mobile phones, and display devices is expected to boost the electronics industry during the forecast period. Sanitizers are widely used because of covid 19's awareness campaign. This boosted cresol's application in the healthcare segment. The growing demand for vitamin E drives the global cresols market. Vitamin E is used to fortify foods and drinks and in dietary supplements. Lifestyle changes and food adulteration are fuelling the demand for nutritional supplements. In the coming years, demand for the product will be driven in part by an increase in demand for vitamin E in the food and dietary supplements, a direct outcome of increased consumer emphasis on maintaining a healthy diet.
The pandemic caused by COVID-19 has had a mixed impact on the market for cresols worldwide. During the pandemic, the demand for cresols increased at a rapid pace due to the rapidly increasing pharmaceutical industry. This resulted in the growth of the cresols market, despite the fact that import and export activities were significantly impacted. This, in turn, had a negative impact on the industries that use cresols, which in turn had an impact on the cresols market.
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Atul Ltd., a top cresol producer in India, will raise para cresol production from 28,000 to 36,000 tonnes per year in 2023. Lanxess, a German company that makes specialized chemicals, has finished developing its cresol factory in Leverkusen and started using a new reaction system. Cresol is used to make perfumes, agrochemicals, vitamin E, resins, and flame retardants. The company raised cresol manufacturing to meet demand. The cresol factory is part of a long-term plan to boost the company's international standing. An increase in production capacity indicates the expected rise in demand during the forecast period.
To boost growth, the market must deflect rising criticism of BHT pricing and use (BHT). Cresol manufacturing, packaging, shipping, use, and disposal are governed by strict environmental restrictions, which slow market expansion. These regulations hinder industry growth. Cresols are a dangerous air pollutant; hence the EPA regulates them strictly. Cresols' growing use in automotive applications is expected to influence the global cresols market.
As a result of the increasing use of synthetic cresol in pharmaceutical goods, the synthetic category accounted for the greatest sales share in the year 2021. Increasing demand for synthetic cresols in the pharmaceutical industry is driving the market, which is a result of rapid medical technology advancements. It also polymerizes resins. Since polymer use has increased, so has the necessity for synthetic cresols, therefore expanding the market demand. The global pharmaceutical industry is expected to increase demand for synthetic cresol, which helps polymerize resin. Due to the growing demand for polymers, synthetic cresol is in high demand. It's also used to make chemical reagents, herbicides, insecticides, and antioxidants.
Para-cresol dominated the product segment in 2021. Growing demand for para-cresol as a chemical intermediate caused this. It's an isomer of ortho-cresol, meta-cresol, and phenol. It's also used to make the medicinal, food, and cosmetics antioxidant butylated hydroxytoluene (BHT). Increased demand for active stabilizers in chemical intermediate production should help boost this segment. Meta-cresol's application in food and pharmaceuticals is expected to boost the segment's revenue substantially faster than the industry average during the forecast period. Meta-cresol manufacturing produces thymol, a common ingredient in pharmaceutical and culinary products. Meta-use cresols as an antiseptic and disinfectant have expanded in recent years. Expanding food and pharmaceutical development globally is expected to boost revenue.
Cresol is utilized in chemicals, solvents, preservatives, fragrances, dyes, and antioxidants. Chemical intermediates dominated among other end users in terms of revenues in 2021. Cresols are reactive monomethyl phenolic organic compounds utilized as chemical intermediates or precursors in the synthesis of plasticizers, polymer resins, antioxidants, solvents, vitamin E, perfumes, pharmaceuticals, colors, rubbers, and more. Cresol is in high demand as the need for chemical intermediates grows. BASF, a German chemical company, said in June 2023 that it will supply chemical intermediates with a lower carbon impact. Cresol's increasing use in the pharmaceuticals industry is expected to boost the segment's CAGR during the forecast period. This chemical is used in alcoholic drinks, hand sanitizers, and other pharmaceutical products. Cresol is in high demand after Covid-19, which boosts market sales.
The Asia Pacific held the largest revenue share in 2021. As emerging countries employ new farming techniques, fertilizer consumption has increased. This has boosted cresol demand in the region. This region's cresols market is booming. China supplies high-quality chemical intermediates to global markets. China's fine chemical intermediates market should grow soon. Cresol is in high demand due to the rise in chemical intermediates. China's 14th Five-Year Plan (FYP) for agrochemical expansion began in 2021 and ends in 2025. Completing the 14th FYP's key objectives by 2025 is expected to enhance cresol consumption. Despite China's economic recession, the country's many manufacturing enterprises have helped cresol derivatives penetrate the region's market. Cresol is growing in India. Atul Ltd. is India's largest para-Cresol producer. Over 55% of the company's global capacity is in Gujarat, India.
The increasing use of cresol derivatives as a chemical intermediate in North American countries, especially the U.S., will drive revenue growth throughout the forecast period. This will drive growth. Cresol is in high demand due to the chemical industry's growth. American Chemistry Council predicts chemical production will rise 4.1% by 2023. Chemical commerce reached USD 281 billion in 2021, up 27% from the previous year. The rising demand for vitamin E-containing dietary supplements also helps this region's industry grow. Vitamin E synthesis requires m-cresol.
During the forecast period, Europe's market is expected to perform moderately. Countries in the region, especially the UK and Germany, use cresol to make fragrances, agrochemicals, dyes, vitamin E, and pharmaceuticals. Government attempts to expand the agrochemicals and pharmaceuticals industries are boosting cresol demand in several nations. The UK and Sweden agreed to create life science plans in May 2023. Both countries will benefit from these plans. Cresol is used to make agrochemicals in Germany, home to Bayer AG and BASF SE. German agrochemical production is strong because of increased demand.
The market is fairly consolidated with large players such SABIC, Atul, Sasol, and Lanxess dominating the cresol market. However, other top revenue contributors include Anhui Haihua Chemical Technology Co., Ltd., Konan Chemical Manufacturing Co., Ltd., Mitsui Chemicals, RÜTGERS, and others. Tier 1 players focus on growth strategies such as mergers and acquisitions, strategic agreements, and product launches. The report reveals the strategies followed by market players across tiers to enhance their market shares.
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