COVID-19 Impact on Bio-based Phenol Market

  • On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency of international concern. Originating in China, the virus has spread to at least 214 countries and territories around the world.
  • Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic
  • Manufacture of various consumer goods and other products across the globe came to a halt due to the unavailability of raw materials, shortage of labor, etc. This is expected to hamper the bio-based phenol market.

Key Drivers and Restraints of Bio-based Phenol Market

  • Bio-based phenol is primarily used in adhesives and paints & coatings. Emerging applications in automotive and construction are one of the major factors driving the market. Rising focus on bio-based phenol is expected to offer lucrative opportunities to the market. Bio-oils derived from biomass, including storm debris, scrap wood, and corn stover, are utilized for the development of phenol alternatives. This plays an important role in epoxy and wood adhesive markets.
  • Rise in demand for bio-based phenol as an additive to paints & coatings is expected to create significant opportunities for the bio-based phenol market in the near future
  • Its versatile properties such as thermal stability, chemical resistance, fire resistance, and dimensional stability make it a suitable material for a wide range of applications

Bio-based Phenol: Raw Material Segment

  • In terms of raw material, the global bio-based phenol market can be divided into polycarbonate, lignocellulosic biomass, polyurethane, and others
  • The polycarbonate segment is projected to hold major share of the globalbio-based phenol market during the forecast period. Polycarbonates are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonate is used in car headlights, automotive glazing, LED lights, electronic devices, as well as other applications.
  • The lignocellulosic biomass segment is projected to follow the polycarbonate during the forecast period. Lignocellulosic biomass is an abundant and renewable resource from plants. It is mainly composed of polysaccharides (cellulose and hemicelluloses) and an aromatic polymer (lignin).

Bio-based Phenol: End-use Segment

  • Based on end-use, the global bio-based phenol market can be segmented into adhesives, paints & coatings, aerospace, building & construction, automobile, and others
  • The adhesives segment is projected to gain higher share of the global market during the forecast period. Bio-based phenol is primarily used as adhesive for plywood and oriented strand board (OSB), circuit boards, molded products, and fire proof/retarding materials.
  • The paints & coatings segment is also projected to hold key share of the global bio-based phenol market in the near future. A large amount of bio-based phenol is used in various end-use industries, including automobiles and building & construction. Rise in construction activities, combined with an increase in construction materials, is expected to drive the market.

Asia Pacific to Hold Leading Share of Bio-based Phenol Market

  • In terms of region, the bio-based phenol market can be segregated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
  • Asia Pacific is expected to hold major share of the global bio-based phenol market, followed by North America and Europe, during the forecast period. This can be attributed to easy availability of raw materials at competitive prices in the region, as well as the rapid growth of the building and construction and automotive industries in China, India, Japan, and South Korea.
  • The bio-based phenol market in North America and Europe is projected to expand at a rapid pace in the near future