Toluene Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 5.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Toluene Market Analysis
The toluene market is expected to register a CAGR of over 5.5% during the forecast period.
The COVID-19 pandemic hindered the market badly. The impact can be seen in almost all the major sectors, including automotive, chemicals, paint and coatings, and other end-user industries. However, the market is anticipated to retain its growth trajectory in 2022.
- One of the major factors driving the market study is the growing usage of toluene as a solvent. Stringent governmental regulations are expected to hinder the growth of the market studied.
- Compared to gasoline, increasing demand for diesel is a restraint for the market's growth.
- The benzene and xylene segment dominated the market and is expected to record the highest CAGR during the forecast period.
- Growing usage in toluene diisocyanate (TDI) production is likely an opportunity.
- Asia-Pacific dominated the global market, with the largest consumption from countries such as China and India.
Toluene Market Trends
This section covers the major market trends shaping the Toluene Market according to our research experts:
Chemical Industry Application to Dominate the Market
- Toluene is used as a solvent in industrial applications. These solvents are used in applications in the chemical industry to produce paints, glues, printing, leather tanning processes, and others.
- Toluene, used by most chemical industries as a solvent, produces other types of chemicals, such as phenol, benzoic acid, nitrobenzene, and benzyl chloride.
- According to BASF, global chemical production (excluding pharmaceuticals) is expected to grow by 4.4% in 2021. Thus, the chemical industry application segment is expected to dominate the market during the forecast period.
- According to The European Chemical Industry Council, AISBL, the worldwide sales of chemicals increased by 15.2% from USD 3759.89 billion in 2020 to USD 4332.38 billion in 2021. In 2022, worldwide chemical production grew by 2.7% compared to a 7% growth in 2021. China is the largest chemicals producer in the world, contributing 43% of global chemical sales.
- Toluene chemical can also be used as an octane booster in gasoline fuels for its application in internal combustion engines. Absolute toluene is used as a fuel for both engine types, i.e., two-stroke and four-stroke engines.
- According to the Furnishing Report in the UK, toluene di-isocyanate is one of the main ingredients used to manufacture flexible polyurethane foams. PU foam is one of the key components used in the UK furniture manufacturing industry. Increasing usage of toluene di-isocyanate contributes to the growth of the toluene market. According to Polyurethane Foam Association, more than 1.5 billion pounds of flexible polyurethane foam are produced annually in North America.
- TDI (Toluene Di-isocyanate) is extensively used in furniture, bedding, and mattresses and as an intermediate raw material in producing flexible polyurethane foam. According to statistics, in 2021, the global demand for TDI was 2.49 million tons, up from 2.37 million tons in 2020.
- Toluene is produced in the manufacturing of gasoline, and it is also a gasoline additive that can be used to improve octane ratings for fuel used in race cars and other automobiles. In 2021, about 3.21 billion barrels of finished motor gasoline were consumed in the United States, an average of about 369 million gallons per day.
- Owing to the abovementioned factors, the demand for toluene from the chemical industry is expected to grow rapidly over the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominates the global market. China accounted for the largest market for toluene in the region.
- China is Asia-Pacific's largest producer of chemicals, paints, coatings, and adhesives. Growing production in the country is expected to drive the market studied in China during the forecast period.
- In May 2021, PPG announced the completion of its USD 13 million investment in its paint and coatings facility in Jiading, China. It includes eight new powder coating production lines and an expanded powder coatings technology center expected to enhance PPG's R&D capabilities. The expansion will likely increase the plant's capacity by more than 8,000 tons annually.
- Under the Union Budget 2021-22, the Indian government allocated USD 32.2 million to the Department of Chemicals and Petrochemicals. The Indian government is considering launching a production-linked incentive (PLI) scheme in the chemical sector to boost domestic manufacturing and exports. Thus, it is expected to boost the country's toluene market.
- TDI is extensively used to make foam, which is used for manufacturing furniture. According to the United Nations Comtrade, in 2021, China was the leading country for furniture export, with an export value of approximately USD 87 billion.
- All the factors above are expected to drive the market studied in the region over the forecast period.
Toluene Industry Overview
The toluene market is fragmented, with no major player holding more than 10% of the market share. Some major players include Exxon Mobil Corporation, INEOS, Lyondellbasell Industries NV, SABIC, and BASF SE.
Toluene Market Leaders
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Exxon Mobil Corporation
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LyondellBasell Industries NV
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BASF SE
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SABIC
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INEOS
*Disclaimer: Major Players sorted in no particular order
Toluene Market News
- In September 2022, Covestro has introduced polyether polyols using biobased feedstock. Company is now offering renewable1 toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI) for the production of polyurethane foams.
- In March 2022, Covestro has expanded the range of renewable toluene diisocyanate (TDI) and provides it to customers from different regions. This TDI can be used as a raw material for flexible polyurethane foam.
Toluene Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Growing Use of Toluene as a Solvent
4.1.2 Escalating Demand from the Paints & Coatings Sector
4.2 Restraints
4.2.1 Increasing Demand for Diesel as compared to Gasoline
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Feedstock Analysis
4.6 Technological Snapshot
4.7 Trade Analysis
4.8 Price Index
4.9 Regulatory Policy Analysis
5. MARKET SEGMENTATION (Market Size in Value)
5.1 Derivative
5.1.1 Benzene and Xylene
5.1.2 Gasoline Additives
5.1.3 Toluene Diisocyanates
5.1.4 Other Derivatives (Benzoic Acid, Trinitrotoluene, and Benzaldehyde)
5.2 Application
5.2.1 Paints and Coatings
5.2.2 Adhesives and Inks
5.2.3 Explosives
5.2.4 Chemical Industry
5.2.5 Other Applications (Pharmaceuticals, Solvents, Dyes, etc.)
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 Italy
5.3.3.4 France
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share(%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Braskem SA
6.4.3 Chevron Phillips Chemical Company LLC
6.4.4 China Petroleum & Chemical Corporation (Sinopec)
6.4.5 China National Petroleum Corporation
6.4.6 Covestro AG
6.4.7 CPC Corporation
6.4.8 Exxon Mobil Corporation
6.4.9 Formosa Chemicals & Fibre Corporation
6.4.10 INEOS
6.4.11 Lyondellbasell Industries NV
6.4.12 Mitsui Chemicals Inc.
6.4.13 Mitsubishi Chemical Corporation
6.4.14 Royal Dutch Shell PLC
6.4.15 SABIC
6.4.16 SK Innovation Co. Ltd
6.4.17 Total SA
6.4.18 Valero
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Toluene Industry Segmentation
Toluene, known as methylbenzene, is a colorless, flammable liquid with a sweet, pungent odor. It is produced from petroleum as an aromatic mixture with benzene and xylene primarily by catalytic reforming and pyrolytic cracking. Toluene is also produced while making gasoline and other fuels from crude oil, coke from coal, and as a by-product in styrene manufacturing. The toluene market is segmented by derivative, application, and geography. By derivative, the market is segmented into benzene and xylene, gasoline additives, toluene diisocyanates, and other derivatives (benzoic acid, trinitrotoluene, and benzaldehyde). By application, the market is segmented into paints and coatings, adhesives and inks, explosives, the chemical industry, and other applications (pharmaceuticals, solvents, dyes). The report also covers the size and forecasts for the toluene market in 15 countries across major regions. For each segment, the market sizing and forecast have been done based on revenue (USD million).
| Derivative | |
| Benzene and Xylene | |
| Gasoline Additives | |
| Toluene Diisocyanates | |
| Other Derivatives (Benzoic Acid, Trinitrotoluene, and Benzaldehyde) |
| Application | |
| Paints and Coatings | |
| Adhesives and Inks | |
| Explosives | |
| Chemical Industry | |
| Other Applications (Pharmaceuticals, Solvents, Dyes, etc.) |
| Geography | |||||||
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Toluene Market Research FAQs
What is the current Toluene Market size?
The Toluene Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Toluene Market?
Exxon Mobil Corporation, LyondellBasell Industries NV, BASF SE, SABIC and INEOS are the major companies operating in the Toluene Market.
Which is the fastest growing region in Toluene Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Toluene Market?
In 2024, the Asia-Pacific accounts for the largest market share in Toluene Market.
What years does this Toluene Market cover?
The report covers the Toluene Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Toluene Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Toluene Industry Report
Statistics for the 2024 Toluene market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Toluene analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
