India’s Phenol Market Set to Grow 8–9% Annually Through FY2030: Crisil

New Delhi – India’s phenol market is projected to grow at a robust compound annual growth rate (CAGR) of 8–9% from the current fiscal year through FY2030, surpassing global market growth, according to a report released Wednesday by Crisil Intelligence.

Domestic phenol consumption is estimated to reach 650 kilotonnes this fiscal. The growth is expected to be fuelled by rising demand from key end-use industries such as automotive and construction, both of which utilize phenolic resins extensively.

India meets its phenol demand through both domestic production and imports. Over the past five years, local production has steadily increased and now accounts for about 60% of the country’s annual consumption.

"Phenol manufacturers are expanding production capacity and integrating downstream products, which is likely to support further domestic consumption,” said Sehul Bhatt, Director-Research at Crisil Intelligence. “However, a dip in global demand and the risk of phenol dumping in India remain concerns. That said, prices are expected to stay stable.”

Imports have dropped significantly—from fulfilling 60% of domestic demand in FY2019 to just 40% in FY2024. The report forecasts that with the entry of new domestic players, reliance on imports could decline further to around 28–30% by FY2030.

Currently, India sources phenol mainly from Thailand, with additional imports from Singapore and South Korea. In FY2022, China dominated the import market, supplying 48% of India's phenol due to limited local output and aggressive pricing. However, by FY2025, China’s share had plunged to just 4%, thanks to a boost in Indian production and efforts to diversify import sources to countries like Belgium and Brazil.

India’s phenol exports now stand at 17,230 tonnes annually, representing 5% of total domestic production. The country mainly exports to other Asian nations, with the United Arab Emirates being a key destination.

With inputs from IANS