New Delhi, June 11 India’s phenol market is expected to clock a healthy 8-9 per cent compound annual growth rate from this fiscal through 2030, outpacing the global market, according to a report on Wednesday.
Domestic consumption this fiscal is envisaged at 650 kilo tonnes. The growth is likely to be driven by increasing demand from end-user industries, such as automotive and construction, which use phenolic resins, said the report by Crisil Intelligence.
India’s phenol demand is met through domestic production and imports. Over the past five years, domestic production has increased consistently, accounting for 60 per cent of annual domestic consumption.
“Alongside ramping up production capacity, phenol manufacturers are integrating downstream products with phenol production, which is likely to support consumption. A decline in global demand and, consequently, dumping of phenol in India, is a concern. Nevertheless, prices are expected to remain stable,” said Sehul Bhatt, Director-Research, Crisil Intelligence.
Imports have decreased substantially, from meeting 60 per cent of domestic demand in fiscal 2019 to 40 per cent in fiscal 2024.
Looking ahead, the entry of new players is expected to further reduce reliance on imports to 28-30 per cent of domestic demand by fiscal 2030, the report mentioned.
India imports phenol mainly from Thailand, followed by Singapore and Korea. In fiscal 2022, China accounted for 48 per cent of India’s total phenol imports due to limited domestic supply and dumping by Chinese exporters.
However, China’s share of Indian phenol imports declined to 4 per cent in fiscal 2025 as domestic production increased. Moreover, India is diversifying its phenol imports, exploring alternative sources such as Belgium and Brazil to reduce dependence on a single market.
As of fiscal 2025, India’s phenol exports stand at 17,230 tonnes per annum, which represents 5 per cent of the country’s total domestic production. India exports mostly to Asian markets. The United Arab Emirates is a major export destination.
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