RESORCINOL MARKET ANALYSIS

The global resorcinol market size is estimated to reach US$ 570 million by 2027, and register a CAGR of 3.1% over the forecast period (2019 - 2027).

Market Overview

Resorcinol is an organic compound that is one of the three isomers of benzenediol. Resorcinol is a water soluble, white, crystalline compound, that when exposed to light turns pink if it contains impurities. It has a faint odor and a slightly bittersweet taste. It is primarily used as an antiseptic and disinfectant in pharmaceuticals for treatment of skin infections, ranging from acne to eczema. The chemical has major application in manufacture of (topical) pharmaceuticals, creams with dermatological properties, in agricultural chemicals, and in flame retardants. Resorcinol is used in certain personal care products such as hair dyes and acne treatment. However, higher concentration of resorcinol can result in respiratory problems as the toxicity disturbs the central nervous system.

Market Dynamics

Resorcinol is primarily indicated for topical application, but it is also majorly used for producing resins. When combined with phenol, it contracts with formaldehyde to produce adhesives in the rubber manufacturing industry. It is used in the manufacture of tires, conveyor belts, light passenger vehicles, and other similar equipment. It is also used as an adhesive in wood binding in order to elevate performance and resistance to heat and dampness. It is also used for producing plasticisers, in organic compounds for treating textiles, and in some specialty chemicals as a UV absorbent.

Demand for the resorcinol market is majorly driven by the automotive industry where resorcinol is used for manufacturing tires and for wood binding adhesion. Furthermore, the rapidly expanding end use industries such as chemicals, automotive, pharmaceuticals, rubber, personal care, and construction among others is projected to propel demand for resorcinol on a global scale. However, growing health concerns and strict regulations in countries such as Japan, the EU, and the U.S. are likely to restrain growth of the global resorcinol market. In vitro research has demonstrated that resorcinol can cause a range of health defects ranging from skin irritation to possible endocrine disruption. Japan has restricted the use of resorcinol in all cosmetics, the EU has placed limits on the concentration of the chemicals, and exposure of workers to resorcinol is regulated in the U.S.

Market Outlook

Asia Pacific, North America, and Europe regions are expected to contribute a significant market share, with Asia Pacific emerging as the largest and fastest growing market. Presence of emerging economies such as China and India has resulted in a large consumer demand for resorcinol. Also, rapid industrialization in countries such as Taiwan, Singapore, South Korea, and Thailand has led to significant demand from end use industries such as automotive, construction, and chemicals. Also, presence of key players and relatively lax regulations around resorcinol usage in the region are likely to be favour growth of the market in Asia Pacific. North America is estimated to be the second highest contributor in terms of market share, owing to increasing demand for resorcinol in the automotive, pharmaceuticals, and construction industries. Owing to stringent regulations placed by environmental agencies, Europe is expected to witness a gradual growth.

Key Players

Prominent players operating in the global resorcinol market are Mitsui Chemicals Inc., Indspec Chemical Corporation, and Sumitomo Chemicals.

Key Developments

• In July 2019, a research study published on Springer Nature Journal, studied the use of resorcinol formaldehyde resins as a semiconductor in solar energy applications. As resorcinol is a main raw material for manufacturing resorcinol formaldehyde, new application development will drive the growth of resorcinol market during the forecast period.
• In April 2017, Indspec Chemical announced closure of its resorcinol plant in Petrolia, Pennsylvania (U.S.) due to low plant efficiency and viability as compared to the competition. This provided Amino-Chem and Sumitomo Chemicals export opportunities in the North American market as Indspec Chemical is the sole producer of resorcinol in the U.S.
• In November 2017, Sumitomo Chemicals announced the expansion of its resorcinol facility at Oita, Japan. The Oita facility will have a total production capacity of 12 kilo tons after expansion. The expansion was intended to meet the demand as Indspec chemical announced its plans to cease the production facility in the U.S.