toluene Global Market Report 2024

The toluene market size has grown steadily in recent years. It will grow from $29.7 billion in 2023 to $30.96 billion in 2024 at a compound annual growth rate (CAGR) of 4.2%. The expansion observed in the historical period can be linked to the growth of the petroleum industry, the production of polyurethane, the increased activity in chemical manufacturing, as well as the growth of the printing and rubber industries, and the adhesive and sealant sector.

The toluene market size is expected to see steady growth in the next few years. It will grow to $36.89 billion in 2028 at a compound annual growth rate (CAGR) of 4.5%. The anticipated growth in the forecast period can be attributed to the adoption of renewable and sustainable alternatives, changes in regulations, shifts in the automotive industry, fluctuations in crude oil prices, and increasing concerns about health and the environment. Notable trends expected in the forecast period encompass technological innovations, heightened demand in the chemical industry, an emphasis on bio-based toluene production, fluctuations in crude oil prices, and the dynamics of regional markets.

The toluene market has experienced growth due to the rising demand for aromatics in the petrochemical industry. Aromatics, which are hydrocarbons derived from petroleum and primarily composed of carbon and hydrogen elements, include toluene, a commonly used aromatic in the chemical industry as a chemical feedstock, solvent, and fuel additive. To meet the increasing demand, companies are investing in expanding their production capacities. For example, as of July 2023, the U.S. Energy Information Administration reported that total world petroleum consumption was approximately 97.26 million b/d, underscoring the growing demand in the petrochemical industry and driving the toluene market.

The toluene market is expected to see growth driven by the increasing demand in the automotive industry. Toluene serves as a common solvent in automotive paints and coatings, found in paints, primers, and clear coats, aiding in the dissolution of paint resins and ensuring smooth application. In May 2023, the European Automobile Manufacturers' Association reported a global production of around 85.4 million motor vehicles in 2022, signifying a 5.7% increase over the previous year. Additionally, the International Organization of Motor Vehicle Manufacturers reported a total production of cars and commercial vehicles, which rose from 80,145,988 in 2021 to 85,016,728 in 2022. Hence, the increasing demand for toluene in the automotive industry is a driving force in the toluene market.

The toluene market faces challenges due to fluctuations in crude oil prices, as certain fractions of petroleum serve as raw materials for toluene production. Toluene prices are subject to constant changes influenced by factors such as crude oil price instability and variations in demand and supply. For instance, according to the annual Energy Outlook 2021 report by the U.S. Energy Information Administration, the average Brent crude prices are projected to be $61/bbl. in 2025 and $73/bbl. in 2030. These fluctuations impact operating expenses and consequently affect the growth of the toluene market.

The use of toluene di-isocyanides as a raw material in the production of flexible foam applications is on the rise. Toluene di-isocyanides (TDI) is a chemical employed in polyurethane manufacturing, particularly in flexible foam applications such as furniture, bedding, and packaging. In the UK furniture manufacturing industry, toluene di-isocyanides is identified as a key ingredient in the production of flexible polyurethane foams, as highlighted by 'The Furnishing Report.' The increased adoption of toluene di-isocyanides is anticipated to contribute significantly to market growth.

Major companies are engaging in collaborations to enhance their revenue. For example, in May 2021, Braskem, a Texas-based company specializing in sustainable solvents, including toluene, entered into a partnership with NXTLEVVEL Biochem for an undisclosed amount. This collaboration aims to explore markets for derivatives of levulinic acid¹, leveraging technology and Braskem's leading position in solvents. NXTLEVVEL Biochem, based in the Netherlands, focuses on high-performance solutions for sustainable chemistry. Furthermore, in August 2021, BASF, a German-based company involved in Toluene Diisocyanate, partnered with SINOPEC to expand their Verbund site. The collaboration involves expanding production capacities for various chemicals and building a new tert-butyl acrylate plant. SINOPEC, a China-based company, is involved in the production of mixed xylenes and benzene in an aromatics complex through the disproportionation of toluene.

In August 2021, LANXESS, a German specialty chemicals company, acquired Emerald Kalama Chemical for $1.04 billion. This strategic acquisition is expected to enhance LANXESS's growth and strengthen its market position. Emerald Kalama Chemical, a US-based company, processes toluene into chemicals used in the food, flavor, fragrance, and pharmaceutical industries.

Major companies operating in the toluene market report are China National Petroleum Corp., Exxon Mobil Corporation, Royal Dutch Shell PLC, TotalEnergies SE, BP Chemicals PLC, Valero Energy Corp., Reliance Industries Ltd., BASF SE, INEOS Group Holdings S.A., CNOOC Ltd., SK Innovation Co. Ltd., Saudi Basic Industries Corporation., LyondellBasell Industries N.V., Mitsubishi Chemical Corporation, China Petroleum & Chemical Corporation, Sherwin-Williams Company, Covestro AG, Braskem SA, Mitsui Chemicals Inc., DuPont de Nemours Inc., S.K. Global Chemical Co. Ltd., Formosa Plastics Corp., Nova Chemicals Corp., Stepan Company, Koch Industries Inc., GS Caltex Inc., JX Nippon Oil and Energy Corp., Chevron Phillips Chemical Company LLC. Asia-Pacific was the largest region in the toluene market in 2023. Middle East was the second-largest region in the toluene market report. The regions covered in the toluene market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

In the toluene market, the primary types include benzene, xylene, solvents, gasoline additives, TDI (toluene diisocyanate), trinitrotoluene, benzoic acid, and benzaldehyde. Benzoic acid, a white crystalline acid denoted as C6H5COOH, can be sourced naturally or synthesized. It is primarily utilized as a food preservative, an antifungal agent in pharmaceuticals, and in organic synthesis. The production processes involve the reformation process, pig’s process, coke/coal process, and styrene process. Toluene has diverse applications, including in drugs, dyes, blending, cosmetic nail products, and other areas such as TNT, pesticides, and fertilizers. End-users of toluene include hospitals, ambulatory surgery centers, and various other sectors.

The toluene market research report is one of a series of new reports that provides toluene market statistics, including toluene industry global market size, regional shares, competitors with a toluene market share, detailed toluene market segments, market trends, and opportunities, and any further data you may need to thrive in the toluene industry. This toluene market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the toluene market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The toluene market consists of the sales of toluene used for glues, paints, paint thinners, printing ink, rubber, leather tanners, and silicone sealants. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.