Will India’s Phenol Market Achieve 8-9% Growth by FY2030?
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Synopsis
India's phenol market is on track for impressive growth, projected at 8-9% CAGR through 2030. Factors such as rising demand from the automotive and construction sectors, alongside increasing domestic production, are driving this expansion. As India diversifies its import sources and reduces reliance on external markets, the future looks promising for the country's phenol industry.
Key Takeaways
- Projected 8-9% CAGR for India's phenol market through FY2030.
- Domestic consumption estimated at 650 kilo tonnes this fiscal.
- 60% of demand met by local production.
- Increased reliance on domestic production could reduce imports to 28-30% by FY2030.
- Diversification of import sources is underway to enhance supply stability.
New Delhi, June 11 (NationPress) India’s phenol market is projected to experience a robust 8-9 percent compound annual growth rate from this fiscal year through 2030, surpassing the growth of the global market, as reported on Wednesday.
For the current fiscal year, domestic consumption is estimated at 650 kilo tonnes. This growth trajectory is anticipated to be fueled by rising demand from key end-user industries, including automotive and construction, which utilize phenolic resins, according to the report by Crisil Intelligence.
The domestic demand for phenol is satisfied through both local production and imports. Over the past five years, domestic production has steadily increased, now constituting 60 percent of the annual domestic consumption.
“In addition to enhancing production capacity, phenol manufacturers are integrating downstream products with phenol production, which is expected to bolster consumption. A downturn in global demand, leading to an influx of dumped phenol in India, poses a risk. Nonetheless, price stability is anticipated,” stated Sehul Bhatt, Director-Research at Crisil Intelligence.
Imports have significantly dropped from fulfilling 60 percent of domestic demand in fiscal 2019 to 40 percent in fiscal 2024.
Looking ahead, the infiltration of new players is likely to further decrease dependence on imports to between 28-30 percent of domestic demand by fiscal 2030, as highlighted in the report.
India primarily sources phenol from Thailand, followed by Singapore and Korea. In fiscal 2022, China accounted for 48 percent of India's total phenol imports due to limited domestic supply and dumping practices by Chinese exporters.
However, China's share in Indian phenol imports plummeted to 4 percent in fiscal 2025, thanks to an upsurge in domestic production. Furthermore, India is actively diversifying its phenol import sources, looking into countries like Belgium and Brazil to mitigate dependency on a single market.
As of fiscal 2025, India’s phenol exports are recorded at 17,230 tonnes annually, representing 5 percent of the nation’s total domestic production. Most exports are directed towards Asian markets, with the United Arab Emirates being a key destination.
Point of View
I believe that India's phenol market is poised for significant growth. With domestic production increasing and a strong demand from key industries, this trend indicates a positive shift towards self-sufficiency and reduced import reliance. It’s crucial that stakeholders stay informed and adapt to market dynamics to harness this potential.
NationPress
16/06/2025
Frequently Asked Questions
What is the expected growth rate of India's phenol market?
India's phenol market is expected to grow at a compound annual growth rate of 8-9% through FY2030.
What industries are driving phenol demand in India?
The growth in phenol demand is primarily driven by the automotive and construction industries.
How much of India's phenol demand is met by domestic production?
Currently, domestic production accounts for 60% of India's annual phenol consumption.
What are the main countries from which India imports phenol?
India mainly imports phenol from Thailand, Singapore, and Korea, with a significant share previously coming from China.
What is the future outlook for India's phenol exports?
India's phenol exports are projected to reach 17,230 tonnes annually, primarily directed to Asian markets.
