Phenol and acetone: Overview
From plywood glue to polycarbonate, and where acetone goes
What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.Phenol and acetone are made together: benzene and propylene give cumene, which is oxidised and split into about 1 t of phenol and 0.62 t of acetone. Phenol goes mainly into bisphenol A for polycarbonate and epoxy, and into phenolic resins for plywood and brake pads. Acetone is a solvent and feeds MMA and bisphenol A. China's phenol capacity reached 7.19 Mt/yr in late 2025 (OPIS), and Europe is closing plants, including INEOS Gladbeck (650 kt/yr). India is building capacity: Deepak and Haldia Petrochemicals are adding plants to replace imports.
Volume about 12.5 Mt of phenol and 7.5 Mt of acetone a year (2024, indicative, industry estimates) Market value about $19 billion combined (2024, indicative, basis: phenol 12.5 Mt x about $1,000/t plus acetone 7.5 Mt x about $800/t) Growth about 2-3% a year to 2030 (indicative); European phenol demand down nearly 30% since 2019 and expected to fall about 1% a year to 2030 (S&P Global) OPIS, Dec 2025; S&P Global, H1 2026; volume and value indicativeKey uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Bisphenol A (for polycarbonate and epoxy) | 45% | about 5.6 Mt phenolbasis | Two phenol molecules joined by one acetone give BPA, so phenol and acetone are both consumed. BPA plants are usually integrated with phenol units, which balances the co-product. indicative share, industry estimates | BPA-free polymers for food contact bio-based epoxies |
| Phenolic resins | 25% | about 3.1 Mtbasis | Phenol-formaldehyde resins bind plywood, laminates, insulation and friction materials. They are heat resistant and cheap. India's plywood and laminates industry is a large user. indicative | urea-formaldehyde and MDI binders lignin-based resins |
| Caprolactam and adipic acid (via cyclohexanone) | 10% | about 1.3 Mtbasis | Hydrogenating phenol gives clean cyclohexanone for nylon 6. Fibrant's Geleen plant used about 120 kt/yr of phenol (S&P Global). indicative; S&P Global H1 2026 | cyclohexane oxidation route from benzene |
| Alkylphenols | 5% | about 0.6 Mtbasis | Nonyl and octyl phenols for lubricant additives, antioxidants and resins. Nonylphenol ethoxylates are restricted in the EU. indicative | alcohol ethoxylates |
| Other (xylenols, salicylic acid, aniline, pharma) | 15% | about 1.9 Mtbasis | 2,6-xylenol for PPO resins, salicylic acid for aspirin, and pharma and agrochemical intermediates. indicative | varies |
From raw material to user
- Benzene and propylene About 0.87 t benzene and 0.47 t propylene per t phenol, via 1.33 t cumene (indicative).
- Cumene Zeolite alkylation of benzene with propylene.
- Cumene hydroperoxide Air oxidation of cumene.
- Cleavage Acid cleavage gives phenol and acetone in a fixed ratio of about 1 to 0.62.
- Derivatives BPA, phenolic resins, cyclohexanone; acetone to solvents, MMA and BPA.
Made from (commodity table)
Oil Crude oilThree things to know
- Every tonne of phenol brings about 0.62 t of acetone, so the product is really a pair priced together.
- China had 7.19 Mt/yr of phenol capacity in late 2025, up 9.4% in a year (OPIS); Europe's demand is down nearly 30% since 2019 (S&P Global).
- India is building: Haldia Petrochemicals 350 kt/yr (due end-2026, S&P Global) and Deepak's new 300 kt/yr phenol plant (Deepak annual report 2024-25).