April 23, 2024
Global Toluene Market

Global Toluene Market is driven by growing demand from Petrochemical Industry

The global toluene market has seen significant growth in recent years owing to increased demand from various end-use industries such as petrochemical, paints and coatings, and pharmaceuticals. Toluene, also known as methylbenzene, is an organic compound derived from oil or coal that possesses several beneficial properties. It is a colorless, water-insoluble liquid with a sweet pungent smell. Toluene is widely used as a solvent in various industrial and chemical processes. Some key applications of toluene include use as a starting agent for organic synthesis, gasoline additive, thinners, paint solvents and diluents, and more. The petrochemical industry utilizes toluene primarily as a raw material in the production of benzene, xylene, and various other petrochemicals.

The Global Toluene Market is estimated to be valued at US$ 28.12 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 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 growing demand from various end-use industries such as petrochemical, paints and coatings, and pharmaceuticals is propelling the Global Toluene Market Size. Toluene is widely used by these industries as a solvent or raw material. Petrochemical companies utilize toluene on a large scale to produce benzene, xylene, and other petrochemical intermediates and products.

Key players in the toluene market are expanding their production capacities and global footprint to leverage the growth opportunities. Manufacturers are setting up new production plants in the Asia Pacific and Middle East regions due to growing demand and availability of raw materials in these regions. This global expansion approach helps companies serve their customers more efficiently.

Market Key Trends

Growing petrochemical industry is one of the major trends driving the demand for toluene. Petrochemical manufacturers heavily rely on toluene as a key raw material and intermediate for producing various petroleum-based products such as benzene, xylene, and gasoline. Rising consumption of end products such as polymers and solvents used in consumer goods and automotive industries has increased the demand for petrochemical intermediates including toluene. With the continued expansion of the petrochemical sector globally, the consumption of toluene is expected to rise significantly over the coming years.

Porter’s Analysis
Threat of new entrants: Entry into toluene market requires high initial investments for setting up of production facilities making threat of new entrants moderate.

Bargaining power of buyers: Toluene has many substitutes and is a commodity chemical. This gives buyers higher bargaining power against producers.

Bargaining power of suppliers: Major suppliers for raw materials are petroleum refineries. Their integrated nature and fewer alternatives reduce suppliers’ bargaining power.

Threat of new substitutes: Alternatives like xylene are substitutable to some extent, however toluene’s diverse applications keep threat of substitutes low to medium.

Competitive rivalry: Toluene market is dominated by large global and regional players. Intense competition on pricing keeps competitive rivalry high.

Asia Pacific region accounts for over 50% of global toluene market value owing to large toluene consumption from petrochemical, benzene and solvent industries in China and India.

Middle East & Africa region is expected to be the fastest growing market during forecast period due to growth of petrochemical facilities producing toluene as a by-product and expansion of end use industries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it