India’s phenol market to clock healthy 8-9 pc growth through FY2030: Crisil
India’s phenol market is projected to witness a robust compound annual growth rate (CAGR) of 8-9% from this fiscal year through FY2030, according to a report released by Crisil Intelligence on Wednesday.
New Delhi: India’s phenol market is projected to witness a robust compound annual growth rate (CAGR) of 8-9% from this fiscal year through FY2030, according to a report released by Crisil Intelligence on Wednesday. This growth rate is expected to outpace the global market.
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Domestic Consumption to Reach 650 Kilo Tonnes in FY2025
The report estimates that India’s domestic phenol consumption for this fiscal will touch 650 kilo tonnes, driven largely by rising demand from end-user sectors like automotive and construction, which extensively use phenolic resins.
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Domestic Production Continues to Rise
India’s phenol demand is currently met through a combination of domestic production and imports. Over the last five years, domestic production has grown steadily, now contributing 60% of total annual consumption. This steady rise is helping to reduce the country’s dependence on imports.
Integration of Downstream Products to Boost Consumption
According to Sehul Bhatt, Director-Research at Crisil Intelligence, many phenol manufacturers are integrating downstream products with phenol production, further driving consumption. However, he noted that global demand slowdown and potential dumping of phenol into India remain key concerns. Despite these challenges, prices are expected to stay stable.
Significant Drop in Imports Over the Years
India’s reliance on phenol imports has seen a sharp decline, dropping from 60% in fiscal 2019 to 40% in fiscal 2024. The report predicts that the entry of new domestic players will likely bring down imports to 28-30% by FY2030.
China’s Share in Imports Plunges
In fiscal 2022, China accounted for nearly 48% of India’s phenol imports due to limited domestic supply. However, by fiscal 2025, China’s share dropped significantly to 4%, as India boosted its local production. Additionally, India is now diversifying import sources, tapping into countries like Belgium and Brazil to reduce over-reliance on any single nation.
Exports Stand at 5% of Domestic Production
As of fiscal 2025, India’s phenol exports amount to 17,230 tonnes per annum, making up 5% of domestic production. Most of these exports are directed to Asian markets, with the United Arab Emirates emerging as a major export destination.
