BISPHENOL A MARKET ANALYSIS

The global Bisphenol A market size was valued at US$ 7.03 Bn in 2022 and is anticipated to witness a Compound Annual Growth Rate (CAGR) of 8.3% from 2023 to 2030. The global bisphenol A market is expected to grow at a steady pace during the forecast period. This growth is expected to be driven by the increasing demand for the product from the marine industry and its expanding use in photocurable coatings in automotive Industry. Moreover, the growing demand for polycarbonate plastics from wide range of end user industries are electronics, construction, and medical are again propelling the market growth. Furthermore, the increasing demand for epoxy resins from the electrical and electronics industries is further anticipated to foster the market growth.

Global Bisphenol A Market Drivers:

• Growing demand for polycarbonate plastics from various industries: The automotive industry, in particular, has been a major driver of the demand for polycarbonate plastics in recent years. With the increasing demand for lightweight and fuel-efficient vehicles, automakers are increasingly turning to polycarbonate plastics as a replacement for traditional materials such as glass and metal. For instance, in 2021, German automaker BMW announced that it will be using polycarbonate plastics for the first time in the rear lights of its new M4 GT3 race car, which is expected to debut in 2022.

• Increasing demand for epoxy resins from the electronics industry: The electronic industry has indeed been a major contributor to the increasing demand for epoxy resins. Epoxy resins are widely used in the electronics industry due to their excellent electrical insulation properties, high mechanical strength, and resistance to heat and chemicals. Epoxy resins are used in a range of electronic applications, including printed circuit boards (PCBs), semiconductor packaging, and electronic encapsulation in 2021, the global demand for epoxy resins witnessed a significant increase, driven by the growing demand from the electronic industry. Epoxy resins are widely used in the production of electronic components such as printed circuit boards (PCBs), semiconductors, and encapsulation materials due to their excellent electrical insulation, mechanical strength, and chemical resistance properties.

Global Bisphenol A Market Opportunities:

• Increasing investment in Bisphenol A (BPA): Increasing investments in bisphenol A (BPA) are projected to offer significant growth opportunities over the forecast period. For instance, in December 2021, Luxi Chemical plans to invest in constructing a 1.2Mn tons/year on bisphenol A project. Thus, the ongoing and upcoming projects of capacity expansions and investments in the field of Bisphenol A are projected to act as a market opportunity over the forecast period. Luxi Chemical China-based Company principally engaged in the manufacture and distribution of chemicals, chemical materials

Increasing automobile manufacturing

• Global Bisphenol A Market Trends: Bisphenol A (BPA) is a key building block in the production of polycarbonate plastics, which are widely used in the automotive industry for applications such as headlamp lenses, instrument panels, and exterior body parts.The global automobile production has been increasing steadily over the years, driven by the growing demand for lightweight and fuel-efficient vehicles. According to a report by the International Organization of Motor Vehicle Manufacturers (OICA), global automobile production increased from 92.2 million units in 2019 to 94.4 million units in 2020, despite the COVID-19 pandemic. This growth is expected to continue in the coming years, which presents an opportunity for the bisphenol A market.
• Increasing spending in research and development: The growing investments in the research and development (R&D) for developing advanced composite materials by various aerospace companies such as The Boeing Company, General Electric Company, and Airbus SE, is uplifting the demand for thermoplastics, which, in turn, is augmenting the growth of Bisphenol A market.

• Bisphenol A (BPA) as a color developer: Yes, the increasing use of bisphenol A (BPA) as a color developer in thermal paper is a trend that has been observed in recent years. Thermal paper is a type of paper that is coated with a layer of chemicals that react to heat, producing an image or text. BPA is used as a color developer in thermal paper, which helps to produce high-quality, long-lasting images. According to a report by Grand View Research, the global thermal paper market size was valued at USD 3.3 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2021 to 2028. The report also highlights that the increasing demand for thermal paper from the retail, healthcare, and transportation industries is driving the growth of the market.

Global Bisphenol A Market Restraints:

• Increasing regulations on usage of BPA: Increasing regulations on the usage of BPA is projected to act as restraint for the market of bisphenol A (BPA). For instance, under the Commission Implementing Regulation (EU) No. 321/2011, the European government announced the prohibition of the use of BPA in the manufacture of plastic for newborn feeding bottles.

• Increasing environmental issues about environment: Growing environmental concerns over BPA is again projected to hamper the market growth. BPA can leak and damage the environment as plastic products break down. This pollution is highly dangerous, as BPA is a xenoestrogen chemical that acts as an endocrine disruptor and can lead to a variety of health problems in humans.     

Global Bisphenol A Market Segmentation:

Figure 1. Global Bisphenol Market, By Application, 2022

To learn more about this report, Request sample copy

• The global bisphenol A market is segmented into application and region.
• Based on application, the market is segmented into polycarbonate resins, epoxy resins, unsaturated polyester resins, flame retardants, and other applications. Out of which, polycarbonate resins is expected to dominate the global market over the forecast period, and this is attributed to the growing demand from the construction industry. It is used to construct barrel vaults, opaque cladding panels, canopies, facades and signage, sports stadium roofs, translucent walls, louvers, and roof domes. Additionally, key players are focusing on introducing novel polycarbonate resins due to growing R&D activities. For instance, in August 2021, SABIC (Saudi Arabia's Basic Industries Corporation) launched certified circular polycarbonate (PC) resin and blends made from the upcycling of post-consumer mixed plastic. Moreover, the certified circular polycarbonate can reduce carbon footprint up to 23%, compared to its incumbent.
• The epoxy resins segment is also expected to witness significant growth in the near future, and this is owing to the growing demand from electronics products and metal products such as bottle tops, food cans, and water supply lines.

Figure 2. Global Bisphenol A Market, By Region, 2022

To learn more about this report, Request sample copy

• In terms of region, Asia Pacific is expected to maintain its leading position over the forecast period, primarily driven by India, Japan, and China. Asia Pacific is the largest consumer of bisphenol A globally, and has significant potential for growth in the building and construction, automotive, and electrical & electronics industries. According to the International Monetary Fund, the number of high-rise buildings in the ASEAN region has been growing steadily, with the countries, such as Indonesia, Malaysia, and the Philippines, already witnessing a significant number of buildings and new buildings being built in the recent past as well from a negative growth rate.
• North America is also expected to experience significant growth over the forecast period. The U.S. is one of the world’s largest and most powerful economies. The economy’s growth rate was 2.3% in 2017, which increased to 3% in 2018. Furthermore, in 2019, the GDP growth was recorded to be about 2.2%, i.e., 0.8% lower than in 2018.

Global Bisphenol A Market: Key Developments

• In March 2021, Chang Chun Plastics acquired Taiwan Prosperity Chemical Corp. (TPCC) from Taiwan Cement Group for US$85 million
• In June 2021, LG Chem announced that it would begin producing sustainable products at its Yosu and Iksan cracker and polymerization plants after achieving ISCC-Plus accreditation on nine products including bisphenol A
• In November 2021, LG Chem began its bisphenol A (BPA) facility in According to a polymerupdate source in South Korea, the Company began operations at the factory in mid-November 2021. On October 7, 2021, the unit was shut down for maintenance. The BPA plant, located in Daesan, South Korea, has a manufacturing capacity of 165,000 Mn tons/year.
• Bisphenol A (BPA) has been under scrutiny due to its potential health effects, leading to regulatory changes in several countries. For instance, the European Union banned the use of BPA in baby bottles in 2011, and in thermal paper in 2020. Similarly, the United States Food and Drug Administration (FDA) banned the use of BPA in baby bottles and sippy cups in 2012.

Global Bisphenol A Market: Key Companies Insights

The global bisphenol A market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on the regional as well as global bases. Some of the key players in the global bisphenol A market are Chang Chun Group, Covestro AG, Dow, Hexion, Kumho P&B Chemicals Inc., LG Chem, Lihuayi Weiyuan Chemical Co. Ltd, Merck KGaA, Mitsubishi Chemical Corporation, Mitsui Chemicals Corporation., Nan Ya Plastics Industry Co. Ltd, Nantong Stars Synthetic Material Ltd, Nippon Steel Chemical & Material Co. Ltd, PTT Phenol Company Limited, SABIC, Samyang Holdings Corporation, Shanghai Sinopec Mitsui Chemicals Co. Ltd, and Sinopec Mitsubishi Chemical Polycarbonate (Beijing) Co. Ltd

*Definition: Bisphenol A is an organic chemical that is used in the production of polycarbonate plastics, epoxy resins, and other polymeric materials. Polycarbonate plastics are used in a variety of products including plastic containers for food and beverages, microwave ovens, and cookware. Bisphenolic resins are also used as protective linings for food cans.