Global Toluene Market is Anticipated to Witness High Growth Owing to Growing Demand from Major End-Use Industries

Global Toluene Market

Toluene, also known as methylbenzene, is an aromatic hydrocarbon obtained from various hydrocarbon sources including coal tar, petroleum, and natural gas. It is mainly used as a solvent in paints, coatings, adhesives, pharmaceuticals, and chemicals manufacturing industries. The increasing demand from major end-use industries such as building & construction, automotive, and consumer products is a major factor driving the growth of the global toluene market.

The global toluene market is estimated to be valued at US$ 28.12 billion in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in the global toluene market are BASF SE, Braskem SA, Chevron Phillips Chemical Company LLC, China Petroleum & Chemical Corporation (Sinopec), China National Petroleum Corporation, Covestro AG, CPC Corporation, Exxon Mobil Corporation, Formosa Chemicals & Fibre Corporation, INEOS, Lyondellbasell Industries NV, Mitsui Chemicals Inc., Mitsubishi Chemical Corporation, Royal Dutch Shell PLC, SABIC, SK Innovation Co. Ltd, Total SA, Shiv Chemicals, Pure Chemicals Co, Akshar international. The major players are focusing on capacity expansions and new plant establishments across APAC and North America to cater to the increasing demand from developing economies.

The rising demand for Global Toluene Market Size from various end-use industries such as building & construction, automotive, and consumer products is creating numerous lucrative opportunities for market growth over the forecast period. Asia Pacific is expected to witness high expansion in the toluene market owing to the rapid infrastructural development and increasing automotive production in economies such as China, India, and Japan.

Market Drivers:
- Growing demand from major end-use industries such as building & construction, automotive, and consumer products
- Increasing usage of toluene in manufacturing of adhesives, resins, paints, and coatings

Market Restraints:
- Volatility in crude oil prices affects toluene production costs
- Growing environmental and health hazards due to benzene content in toluene

Segment Analysis
The global toluene market is dominated by the solvent segment. Toluene is primarily used as a solvent in chemical processes like the production of paints, coatings, adhesives, synthetic rubber and resins. As a chemical intermediate, toluene is used to produce benzene, methylbenzene, and other derivatives. The solvent segment accounts for over 50% of the global demand as toluene effectively dissolves both non-polar and moderately polar organic compounds. It has good solvency power and low viscosity which has increased its use as industrial solvent over other organic compounds.

Global Analysis
Regionally, Asia Pacific accounts for the largest share in the global toluene market owing to high demand from China, India and other developing Asian countries. This is attributed to robust industrial activities, increasing auto production, and flourishing construction sector. The rising population coupled with improving economic conditions has augmented the demand for toluene utilized products like coatings, paints and consumer products. North America and Europe are other major regions driven by established end use industries and renovation & remodeling activities. However, Asia Pacific is expected to witness fastest growth during forecast years with China and India prominencing as major consumers across industries.

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