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 have emerged as an important part of the manufacturing process for products using vitamin E and electronic encapsulation. It is anticipated that during the course of the forecast period, the surge in demand for computing devices, tablet computers, mobile phones, and display devices would drive the electronics industry. The electronics and food industries are both projected to offer enormous growth potential for the market across the Asia Pacific and Europe.
The Effect That Covid-19 Has Had on The International Market for Cresols
The pharmaceutical industry accounts for a significant portion of the total cresols consumed around the world. Sanitizers are in great use as a larger population has started using sanitizers as a result of awareness spread during the spread of covid 19. This had a positive impact on the cresol market in the healthcare domain. However, cresols use in other industries suffered due to the pandemic. The paint and coating industries, which are key end-user industries of cresols, are anticipated to be adversely impacted by the unavailability or reduced availability of labor. This hampered the growth of the Cresol market in 2020. However, as the construction market has significantly improved, the market for cresol is also expected to be on the track during the forecast period.
Increasing Demand for Cresol Motivating Companies to Increase Production Capacities
Cresol was used in a wide variety of applications; therefore, its popularity drove manufacturers to increase the amount of cresol they could produce. For example, in February 2023, Atul Ltd., a leading cresol producer based in India, announced that it will increase its manufacturing capacity of para cresol from 28,000 to 36,000 tonnes per year. In the past few years, the German business Lanxess, which specializes in the production of specialty chemicals, has finished the development of its cresol production factory in Leverkusen, Germany, and has begun operating a newly designed reaction system. Cresol is used in the production of a wide variety of chemicals, including fragrance compounds, agrochemicals, vitamin E, resins, and flame retardants. As a result of the increasing demand for cresol, the company increased its production capacity. The development of the cresol factory is part of a longer-term goal to strengthen the company's position in the international market.
Cresols Being Source of Vitamin E is the Most Impactful Driver
The ever-increasing need for vitamin E is the sole factor responsible for the expansion of the cresols market around the world. The most common applications for vitamin E are fortification of foods and beverages, as well as use in dietary supplements. Alterations in people's ways of living, in conjunction with the growing prevalence of food adulteration, are driving an increase in the demand for nutritional supplements. In the next years, it is projected that demand for the product will be driven in part by an increase in the demand for vitamin E in food and dietary supplements, which is a direct result of increased consumer attention to maintaining a healthy diet.
Price and Environment Regulations to Hamper the Market Growth Significantly
In order to accelerate its rate of expansion, the market must, however, find a way to deflect the mounting criticism that is being leveled at the pricing and usage of butylated hydroxytoluene (BHT). In addition, the growth of the market is being hampered by severe environmental regulations that govern the manufacturing, packaging, transportation, usage, and disposal of cresols. These regulations are preventing the industry from expanding. Cresols have been designated as a harmful air pollutant by the Environmental Protection Agency (EPA), and as a result, they are subject to stringent regulatory restrictions. On the other hand, a major factor that is projected to influence the development of the worldwide cresols market is the expanding use of cresols in a larger variety of automotive applications.
Synthetic Cresols Remains as the Most Dominant Source of Material
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. The key element that is driving the market right now is the increasing demand for synthetic cresols in the pharmaceutical business, which is a direct result of the rapid pace of technological improvements in the medical field. In addition to this, it finds application in the polymerization of resins. Since the use of polymers has been on the rise, the need for synthetic cresols has followed suit, which has opened up numerous doors for the expansion of the market.
It is anticipated that the expanding expansion of the pharmaceutical sector around the globe would lead to an increase in demand for synthetic cresol, which is also helpful in the polymerization of the resin. Synthetic cresol is in great demand as a result of the increasing need for polymers across a variety of applications. In addition to this, it can be utilized in the production of chemical reagents, herbicides, insecticides, and antioxidants.
Para Cresol to Dominate the Application Segment
In 2021, para-cresol accounted for the highest proportion of total revenue. This was due to the growing demand for the usage of para-cresol as an intermediary in the production of other chemicals. It is an isomer of both ortho-cresol and meta-cresol, as well as a derivative of the phenol. In addition to this, it is the primary ingredient in the manufacturing of an antioxidant known as butylated hydroxytoluene (BHT), which is utilized in the pharmaceutical, food, and cosmetics sectors. It is also anticipated that the increased need for active stabilizers in the production of chemical intermediates will enhance drive the expansion of this segment.
As a result of the growing use of meta-cresol in food and pharmaceutical goods, it is anticipated that the segment's revenue will increase at a pace that is much faster than the industry average during the forecast period. The production of meta-cresol results in the formation of an important chemical known as thymol, which is a component that is frequently found in pharmaceutical and culinary goods. Due to the fact that meta-cresol is effective against bacteria, its use as an antiseptic and disinfectant has increased significantly in recent years. It is anticipated that expanding development for the food and pharmaceutical sectors around the world will promote an increase in revenue for this area. The manufacturing of BHT, an antioxidant that is utilized in the food, cosmetics, and pharmaceutical industries, is the primary consumer of this substance.
As a chemical intermediate, Meta-cresol is necessary for the production of resoles, which are essential components of brake and clutch linings. The flavoring ingredient thymol, which may be produced from this isomer, is another significant product that has a variety of applications in the pharmaceutical and food industries. Because of the anti-microbial property that it possesses, the use of meta isomers in antiseptic and disinfectant applications has seen significant growth in recent years. Demand for the product is anticipated to be driven during the forecast period by increasing demand for effective stabilizers in the production of chemical intermediates and pesticides.
The manufacturing of herbicides, a sealing substance for electronic devices, and a precursor for dye intermediates are all important applications for Ortho-cresol, which has a role in all three of these processes. The chlorination of ortho-cresol produces several important derivatives that are later employed in the production of plant protection agents. o-Cresol derivatives represent a considerable component in insecticides. It is projected that rising concerns about crop security in important agricultural areas including grains and vegetables will drive demand for products.
Chemical Industry to Remain as the Most Dominant End User
Cresol is used in a variety of applications, including chemical intermediates, solvents, preservatives, perfumes, dyes, and antioxidants, amongst other things. During the forecast period, it is anticipated that the chemical intermediates segment will contribute a significantly large share of the total revenue. Cresols are reactive monomethyl phenolic organic compounds that are widely used as chemical intermediates or precursors in the production of numerous different types of chemicals, including but not limited to: plasticizers, polymer resins, antioxidants, solvents, vitamin E, perfumes, medicines, dyes, rubbers, and many more. Cresol is in great demand as a result of the growing demand for chemical intermediates across a variety of applications. BASF, a German global chemical business, made an announcement in June 2023 that it will offer a variety of chemical intermediates that had a much smaller carbon footprint across the board.
As a result of the growing incorporation of cresol into pharmaceutical products, it is anticipated that the revenue from the pharmaceuticals segment would record a considerably rapid CAGR during the forecast period. This substance is frequently utilized in the manufacturing of alcoholic beverages, hand sanitizers, and several other pharmaceutical items. Cresol is in high demand as a result of the aftermath of Covid-19, which contributes to the overall sales increase in this market.
The Asia Pacific Remains to be the Global Leader
The Asia Pacific market accounted for the greatest revenue share in the global cresol market in 2021. As a result of developing countries beginning a variety of projects to implement new farming techniques, there has been an increase in the demand for fertilizers. This, in turn, has led to an increase in the demand for cresols in this region. The cresols market is growing in demand at a rapid rate in this region. China is a significant producer and supplier of high-quality chemical intermediates for markets all over the world. The market for fine chemical intermediates in China is anticipated to have favorable prospects in the near future. Cresol is in great demand in this country as a result of the increased need for chemical intermediates. China's 14th Five-Year Plan (FYP) for the growth of its agrochemical industry was first implemented in 2021 and will continue through 2025. It is anticipated that there will be an increase in cresol demand as a result of the completion of the 14th FYP's primary objectives by the end of 2025. In spite of the slowdown in China's economy, the presence of a wide variety of manufacturing businesses in the country has been an essential factor in the market penetration of cresol derivatives in the region. Additionally, the cresol market in India is expanding. Atul Ltd., a chemical firm established in India, is the largest producer of para-Cresol in the world. The company's facility in Gujarat, India, accounts for more than 55% of the entire global capacity at a single location.
The increasing use of cresol derivatives as a chemical intermediate in countries across the region, particularly in the United States, is expected to drive steady revenue growth in the North American market over the course of the forecast period. This is one of the factors that will drive this growth. Cresol is in great demand in the area as a result of the increasing expansion of the chemical sector. The American Chemistry Council projects that the production of chemicals will increase by 4.1 percent by the end of 2023. The overall value of global trade in chemicals reached USD 281 billion in 2021, representing a 27% percent rise compared to the previous year. Additionally, the expansion of the market in this region is being supported financially by the rising demand for vitamin E-containing dietary supplements. On the other hand, the production of vitamin E requires the use of m-cresol as an intermediary.
During the forecast period, the Europe market is anticipated to show a moderate level of revenue growth. This is because countries all around the region, particularly the United Kingdom and Germany, are increasingly turning to cresol for use in the production of fragrances, agrochemicals, dyes, vitamin E, and pharmaceutical products. Strong demand for cresol is being created in countries all around the area as a result of government activities geared toward the expansion of the agrochemicals and pharmaceutical industries. For example, in May of 2023, the governments of the United Kingdom and Sweden reached an agreement to build up life science strategies. These plans boost early diagnostics and pharmaceutical manufacturing in both nations. Cresol is in great demand for use in the production of agrochemicals in Germany, which is a significant center for leading agrochemical producers such as Bayer AG and BASF SE. As a result of this high demand, Germany is a major producer of agrochemicals.
Consolidated Market Intensifying Competition
The cresol market is fairly consolidated with dominating presence of large players such as SABIC, Atul, Sasol, and Lanxess. Anhui Haihua Chemical Technology Co., Ltd., Konan Chemical Manufacturing Co., Ltd., Mitsui Chemicals, and RÜTGERS also contribute maximum to the total revenues. Tier 1 players are adopting various growth strategies such as mergers and acquisitions, strategic agreements and contracts, and product launches. These producers have integrated the production of their raw materials with the processes of manufacturing meta, ortho, and para isomers and have done so in order to reduce costs. Cresol manufacture synthesis pathways are a primary priority for many chemical manufacturing companies, including SABIC, Lanxess, and Mitsui Chemicals. The report clearly reveals key strategies that are adopted by tier 1, tier 2, and tier 3 players to increase their market shares.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Cresols market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
