The effects of the novel COVID-19 pandemic are evident across every sector of the economy. Apart from labor and supply chain disruptions, a decline in household incomes for rural households and smallholder farmers during the pandemic may pose challenges to the deployment of compounds like xylenol as pesticides in the agricultural industry.

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However, with the increasing delivery of immediate relief and the introduction of schemes to support the vulnerable population such as farmers, the xylenols market could witness a steady revival over the forthcoming years. For example, the Indian government announced a $25 billion COVID-19 social assistance package under the PM-GKY (Pradhan Mantri Garib Kalyan Yojana) to offer relief and additional benefits to rural households and farmers.

In addition, different types of xylenol compounds are widely deployed in the production of other chemicals and pharmaceuticals as well. It has also emerged as an effective intermediate in manufacturing industrial products such as pressure-sensitive inks. Apart from their immense industrial importance, several other factors are responsible for the escalating use of this chemical compound in industry verticals.

Given below are the top 4 reasons contributing to xylenols business development:

Thriving pharma industry during COVID-19

Developing countries like India have emerged to be a leader in pharmaceuticals production, even to a greater extent following the coronavirus pandemic. According to data from EY, the pharma industry in the country has grown by 10 times in the country in the past two decades. This factor could stimulate the requirement of 2,6-xylenols for use as an intermediate in pharmaceuticals. Also, medicinal uses of xylenol are expected to be further influenced by the robust demand for generic drugs, with the pharma industry registering an 18.7% increase in exports from 2020 to 2021.

Extensive use of disinfectants to improve hygiene

In response to the growing popularity of hygiene products and focus on regular cleaning habits post-COVID-19, several cleaning supplies brands are indulging in product launch activities. Citing an instance, in October 2021, Dettol unveiled its foaming hand wash range in India. Soaps, surface disinfectants, antiseptics, and other product lines of Dettol, which are formed by the combination of terpineol and chloroxylenol, also gained massive ground during the pandemic due to the high focus on cleaning and hygiene. These factors could encourage xylenols industry players to extend the use of the compound in disinfectants products and meet the burgeoning consumer demand.

Spending on in-house resin manufacturing

To secure sustainable business growth and support innovation pipeline, several paints and coatings manufacturers are placing greater emphasis on scale-up plans of resin business. In line with this, AkzoNobel announced its target to make investments in its in-house resin manufacturing in February 2022 as a part of the Grow & Deliver strategy. This new program was aimed at building resilience against supply chain disruptions. Since 2,6-xylenol is used as a monomer for engineering resins, the increasing focus on its production expansion for adhesion and coating applications will generate growth opportunities for the xylenols industry over the years ahead.

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Rise of organic farming

Over the past years, an exponential increase in land used for organic farming was observed. According to the Research Institute of Organic Agriculture, there has been a hike of 555% in organic farming from 1999-2019, with 16 countries worldwide holding a share of up to 10% of the agricultural land for organic farming. Agrochemical companies play a crucial role in supporting the organic farming industry through their efficient products to boost production yields. As a result of the expanding organic farmlands, the xylenols market is slated to witness a commendable growth trajectory, given the use of 2,6-xylenol as a chemical intermediate in the manufacture of agrochemicals.

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