Global Para Cresol Market: Overview
Para cresol is an organic compound and a derivative of phenol that is widely used in the production of other chemicals. It is produced through two process: sulfonation of toluene and chlorination of toluene. Para cresol is widely used in the production of antioxidants such as butylated hydroxy toluene (BHT), anisaldehyde, and other intermediates. In addition, it is used in various other applications such as odor agents, paints & coatings, aroma ingredients, sunscreen, resins, and cleaning & degreasing agents. It also finds application in production of plant protection agents, animal feed additives, pharmaceuticals, binding agents, adhesives, fillers, preservatives, and dyestuffs.
Global Para Cresol Market: Key Segments
The global para cresol market can be segmented based on application and region. In terms of application, the market can be classified into chemical intermediates, antioxidants, solvents, and preservatives. Antioxidants is a leading segment of the para cresol market. Increase in demand for vitamin E in dietary supplements due to a rise in health concerns across the globe, change in food habits, and depletion of nutrition in food due to adulteration are driving demand for dietary supplements. This, in turn, is expected to boost the para cresol market in the coming years. Furthermore, rise in demand for nutraceuticals, typically in the U.S. and Europe, owing to a rise in consumer awareness regarding nutrient consumption is projected to fuel the market during the forecast period.
Global Para Cresol Market: Drivers & Restraints
Rise in demand for antioxidants such as BHT for various applications such as pharmaceutical, cosmetics, and transformer oil is anticipated to augment the global para cresol market during the forecast period. Toluene is a major raw material used in the production of para cresol. Therefore, fluctuations in the prices of toluene are likely to restrain the market during the forecast period. Moreover, the para cresol separation process entails additional costs as boiling point temperature of cresol is close to boiling point temperate of toluene which ultimately needs high processing techniques for separation. The manufacturing process also produces waste that is toxic to the aquatic environment. These factors are estimated to further restrain the market. In order to treat toxic waste, many companies are focusing on waste management. For instance in 2015, Atul Ltd., a leading manufacturer of para cresol, in collaboration with Degussa, established an automated waste recovery plant that enhances waste recovery efficiency and minimizes waste disposal. Increase in demand for toluene for other applications such as toluene di isocyanate (TDI) and rise in demand for xylene are pushing manufacturers to form partnerships with suppliers, which is projected to boost the market in the near future.
Global Para Cresol Market: Regional Outlook
In terms of region, the global para cresol market can be segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. In terms of consumption, Asia Pacific is a leading region of the para cresol market, followed by Europe and North America. In Asia Pacific, developing economies and sub-regions such as China, India, and ASEAN are expected to record positive sales during the forecast period, primarily due to an increase in demand for vitamin E, agrochemicals, and coatings in the region. In addition, rising disposable incomes, changing consumer lifestyles, and increase in demand for antioxidants due to rise in awareness about health care are likely to fuel the para cresol market in the region. The market in Europe is expected to expand at a moderate rate, primarily due to expansion in the pharmaceutical and agrochemical industry in the region. In North America, the U.S. is a key consumer of para cresol. Rise in demand for packed food is driving demand for preservatives and, in turn, for para cresol in the country. The market in Middle East & Africa and Latin America is projected to expand at a sluggish pace. Rise in production and consumption of perfumes in GCC and rapid industrialization in Mexico and Brazil are expected to boost demand for para cresol in Middle East & Africa and Latin America in the near future.
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Global Para Cresol Market: Key Players
Key players operating in the global para cresol market are Tokyo Chemical Industry Co., Ltd., Atul Ltd, Sasol Phenolics, and Lanxess.