The global cumene market was valued at 15,066.67 kilotons in 2020 and is expected to grow with a CAGR of 4.88% during the forecast period (2021-2026). The sudden onset of the global COVID-19 pandemic has resulted in lower demand for cumene in the international market, leading to low demand for cumene phenol and acetone derivatives.
New York, June 27, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Cumene Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” – https://www.reportlinker.com/p06195669/?utm_source=GNW
The phenol market industry across the world witnessed a growth rate of only 4% in 2020 due to the suspension of industrial activities. The demand for phenol has declined due to the greater impact of COVID-19 at the industry level, regional level and subsequent supply chain operations. Thus, the demand for cumene has contracted in 2020. Additionally, the COVID-19 pandemic has started to affect major end user industries of cumene, such as cosmetics and personal care, paints and enamels, high octane aviation fuels, polymer industries, the decline in sales due to the pandemic effect weakened the demand for cumene for a long time. However, the demand for cumene is expected to pick up in the coming years as various end-user industries, such as construction and others, that consume cumene and its derivative products pick up the pace.
In the medium term, the growing demand for phenol from the plastics industry and the growing use of acetone as a solvent are expected to drive the market growth.
On the other hand, the adverse effects due to prolonged exposure and adverse conditions resulting from the COVID-19 outbreak are expected to significantly hamper the growth of the market studied.
Asia-Pacific is expected to dominate the global market over the forecast period. Also, it is expected to register the highest CAGR during the forecast period.
Main market trends
Increase in demand from phenol segment
One of the major applications of cumene is in the production of phenol. Liquid-phase oxidation of cumene with molecular oxygen forms cumene hydroperoxide, which is then broken down using a catalyst into phenol and acetone.
The oxidation process requires the use of purified cumene. The catalyst used for the decomposition of cumene hydroperoxide into phenol and acetone is sulfuric acid.
Phenol plays a major role in many industries. Some of the common applications of phenol include plywood, glazing, DVDs and CDs, computers, sports equipment, fiberglass boats, automotive parts and accessories, circuit boards, and flat screen televisions.
The largest single market for phenol is in the production of bisphenol A (BPA), which is made from phenol and acetone. BPA, in turn, is used in the manufacture of polycarbonate and epoxy resins.
Polycarbonate and epoxy resins are used in many different industries, making phenol a major component or application in the cumene market.
Phenol is also a major component of phenolic adhesives used in wood products such as plywood and oriented strand board. It is also used to produce phenolic resins used in the casting of heat-resistant components for appliances, countertop and flooring laminates, and foundry castings.
Moreover, it is a valuable intermediate in the production of detergents, agricultural chemicals, medicines, plasticizers and dyes.
Phenol production statistics have been volatile in the past, now reaching a stable figure in recent years. Phenol production in the United States in 2019 was 1,115,000 metric tons.
Phenol production in India has also seen some decline. According to DCP India, the production of phenol in the financial year 2020 stood at 57.85 thousand metric tons, while in 2019 it stood at 65.39 thousand metric tons.
The majority of cumene is used in the production of phenol, which in turn is used in a variety of applications, thus making phenol an important application of cumene.
Therefore, all the above-mentioned factors of the phenol segment are likely to have a significant impact on the demand of the market studied.
China will dominate the Asia-Pacific market
Small amounts of cumene are also used as thinners for paints, lacquers, and enamels, and as solvents in paints and other types of coatings.
China currently accounts for more than a quarter of the global coatings market. According to the China National Coatings Industry Association, the industry has grown by 7% in recent years. It was estimated that as of 2019, the construction of at least ten major coating investment projects in China had been made public. Nippon took advantage of this market situation by modernizing its coatings production process at its new factories in China. ?
In May 2021, PPG announced the completion of its $13 million investment in its paint and coatings facility in Jiading, China, including eight new powder coating production lines and an expanded powder coating technology center. which should enhance PPG’s research and development capabilities. The expansion is likely to increase the plant’s capacity by more than 8,000 metric tons per year.
Cumene is also used as a gasoline blend to provide high octane aviation fuel, which is used in jet aircraft and commercial aircraft.
The International Energy Agency (IEA) forecast in March that Chinese demand for gasoline, jet fuel and diesel would increase by 6.5% to 8.2 million bpd in 2021.
Moreover, according to the Civil Aviation Administration of China (CAAC), China is one of the largest markets for domestic air passengers. The country’s civilian aircraft fleet has grown steadily over the past five years. ?
According to Boeing Commercial Market Outlook, commercial aircraft deliveries in the country will be around 8,700 by 2040, which is expected to increase jet fuel consumption in the country.
Additionally, Chinese airlines plan to purchase around 7,690 new aircraft over the next 20 years, worth around $1.2 trillion, which is expected to further increase market demand for cumene in the mix. gasoline for aviation fuel in the country. ??
The above-mentioned factors are likely to increase the demand for cumene in China during the forecast period.
The global cumene market is fragmented in nature, with fierce competition among market players to increase their share in the market studied. Major market players include Cepsa, INEOS, KUMHO P&B CHEMICALS., INC., Dow, and KOCH Industries Inc., among others.
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