Toluene Market – Global Industry Analysis and Forecast (2024-2030)

The Global Toluene Market was valued at USD 23.56 Bn in 2023 and is projected to reach USD 41.10 Bn by 2030, growing at a CAGR of 6.6 % from 2024 to 2030.
Toluene Market Overview:
Toluene is in clear liquid phase with a distinct odour like benzene. It is highly volatile and it irritates the nose, lungs, eyes, and skin. This molecule is found in trace amounts in crude oil and is separated during the catalytic reforming, ethylene cracking, or coal-based coke manufacturing processes that produce gasoline. Solvent extraction or distillation are steps in the separation process.

One of the main uses of the toluene is that it is used in the production of heavy chemicals like benzene and xylenes. It holds vital industrial importance as a starting raw material in the manufacturing of toluene di-isocyanate (TDI). It is used in flexible polyurethane foam production. TDI is used in coatings and elastomers manufacturing.

As the automotive vehicle sector endures its transition towards renewable green mobility, toluene's significance as a gasoline additive evolves to meet emerging environmental regulations. Furthermore, the traditional toluene market product faces threats from the growing use of environmentally friendly and renewable solvents.

The increasing use of toluene as a solvent is one of the primary factors influencing the market study. Tight government laws regarding the toxicity of toluene impede the market's expansion during the forecast period. The growing demand for diesel, as opposed to gasoline, is limiting the market's expansion. The market was defeated by the benzene and xylene category, which is predicted to have the greatest CAGR throughout the projection period. Increasing application in the manufacturing of toluene di-isocyanate (TDI) is probably a chance. The Asia-Pacific region commanded the biggest share of the worldwide market, primarily from China and India.

The objective of the report is to present a comprehensive analysis of the Global Toluene Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

To know about the Research Methodology:- Request Free Sample Report
Toluene Market Dynamics:
Increasing Demand in Industrial Applications Drives Toluene Market:

In paints, thinners, nail polish removers, adhesives and correction fluids, toluene is generally used as a solvent. Product demand for this kind of material has been on the rise due to the increase in construction and automotive vehicle sector; hence raising the demand in the toluene market. In petroleum refining and coal-coking where coke fuel production is derived from, petrochemical industry has risen consequently leading to availability of toluene at different prices. This is backed by global changes in petrochemical complexes which are reinforcing its market. Toluene market perspectives are increased through researches directed towards creation of newer compounds based on it for application in pharmaceuticals, colorants and agro-chemicals. Changes in applications of products containing toluene are driving its use into non-traditional areas thus boosting the market.

According to The Observatory of Economic Complexity, June 2024:

(Toluene Price was found to be fluctuating)



North America
USD 1.1/KG
 Unchanged


Europe
USD 1/KG
-1% down


Northwest Asia
USD 1.03/KG
Unchanged


Southeast Asia
USD 0.92/KG
Unchanged


South America
USD 0.78/KG
1.3% Down





Toluene Market is Shifting Towards Sustainable Alternatives with Regional Growth:

Rising environmental concerns and regulatory demands are driving the quest for more sustainable, less harmful alternatives to toluene. This shift is bartering toluene market dynamics, as both makers and users prefer environmentally friendly solutions. The toluene market is experiencing considerable growth in Asia-Pacific and other developing regions, owing to rising industrial and manufacturing sectors. Urbanization and economic expansion are driving these regions to become large toluene consumers.

Government Restraining the toluene use by law leads to Market loss to SME’s:

The prices of toluene have been increasing over the past few years, as the supplies are tightened due to production issues. The discovery and use of alternative solvents and materials that are more environmentally friendly or have superior performance qualities present a considerable challenge. This rivalry reduces toluene’s market share in traditional applications.

Long-term exposure to toluene has been linked to neurological impairment and respiratory difficulties. Increased knowledge and tougher workplace safety guidelines are resulting in reduced utilization of industrial and consumer applications, thereby impacting the toluene market growth.

Volatile organic compounds (VOCs), especially toluene, face stringent environmental laws, limiting their use in a variety of industries. The need and development for greener options is forcing businesses to investigate less damaging substitutes, influencing toluene demand.

As a downstream product, toluene’s market price is closely related to crude oil prices. Fluctuations in crude oil prices primarily impact toluene production costs and accessibility, making it an important toluene market driver.

Opportunities For Growth and Development in Toluene Market by various sectors:

In the automotive and construction sectors power demand for paints, coatings, and fuels, boosting the toluene market. The sturdy performance of the chemical industry, where toluene is a crucial raw material which provides to toluene market growth. Opportunities available for developing eco-friendly alternatives to toluene to address environmental concerns factors. The toluene market is driven by its diverse applications and growth in key sectors like automotive, construction, and the chemical industry. However, environmental regulations, price volatility, and health and environmental risks pose challenges. Opportunities arise from developing eco-friendly options and surrounding sustainability and innovation. Innovations in toluene production techniques, such as catalytic processes and improved separation methods, offer cost-efficient opportunities.

There is a rising emphasis on creating novel toluene derivatives with improved qualities for use in medicines, agriculture, and sophisticated materials. These improvements are creating new chances for growth and increasing the toluene market’s potential.

The toluene market is gradually implementing circular economy strategies to reduce waste and improve resource efficiency. This involves recycling and re-claiming toluene from waste pipelines, which reflects a larger movement toward chemical sustainability
Toluene Market Segment Analysis:
By Derivative Type, the toluene market is divided into four derivative types: Benzene & Xylene, Toluene Di-isocyanates, Gasoline Additives, and Others. The benzene & Xylene segment is expected to be the largest due to the multiple applications and critical roles that both benzene and xylene play in various industries. They are both essential raw materials for the synthesis of many chemicals and materials, including solvents, polymers, fibers, and resins, which are used in the manufacturing, construction, and consumer goods industries. Their extensive use in the petrochemical industry, coupled with the continuing need for these derivatives in the development of technologies and sustainable solutions, highlights their crucial role in the toluene market.



By Production Process, the toluene market is divided into the Reformate Process, Pygas Process, Coke/Coal Process, and Styrene Process. The reformate segment is estimated to dominate the toluene market over the forecast period due to the widespread availability and economic efficiency of producing toluene by reforming naphtha, a technique required for the creation of high-octane gasoline. The Reformate Process produces not only toluene but also other valuable aromatics such as benzene and xylene, making it an important process in the petrochemical industry. Its efficiency, along with the high demand for gasoline and aromatic chemicals, makes the Reformate Process the world’s largest contributor to toluene production.

By Application, the toluene market is divided into Drugs, Blending, Cosmetic Nail Products, and Others. The drugs segment is estimated to grow at the highest CAGR in the toluene market over the forecast period. Toluene’s solvent characteristics make it indispensable in the synthesis of active pharmaceutical ingredients (APIs) and other medication components. The growing pharmaceutical sector, driven by rising healthcare requirements, greater expenditure in drug research and development, and the continual introduction of new drugs, supports the demand for toluene in this market. Furthermore, the pharmaceutical industry’s demanding quality and purity standards require the use of high-grade solvents such as toluene, underscoring its relevance.

By examining the market segments and projecting the size of the global toluene market, the studies also aid in understanding the industry's dynamics and structure. The study serves as an investor's guide thanks to its clear portrayal of the competitive analysis of leading companies in the global industrial coatings market by product, price, financial condition, product portfolio, growth plans, and geographical presence.
Toluene Market Regional Analysis:
The Asia-Pacific region dominated the global toluene market in 2023. The region has extensive petrochemical infrastructure assures a consistent supply of toluene, bolstering its market supremacy. The growing middle class in the Asia-Pacific is increasing demand for consumer goods such as paints, varnishes, and adhesives, which all contain toluene as a solvent. This spike in consumer demand has a direct impact on the toluene market’s growth. China is the largest producer of chemicals, paints, coatings, and adhesive materials. Rising production value in the country is expected to drive the market.

In India, 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.

In North America, it is a well-established chemical industry, is a major user of toluene for a variety of chemical synthesis and uses. The industry’s continual expansion and innovation fuel consistent demand for toluene. Advancements in toluene extraction and processing have increased efficiency and reduced prices. These innovations not only increase production capacity but also improve North American toluene’s competitiveness in the global market. Furthermore, North America’s automotive, construction, and paints and coatings industries are all expanding, leading to rising toluene consumption. These sectors use toluene for its solvent qualities, which drives market growth.

In Europe, the toluene market reflects a dynamic landscape, influenced by several key factors. The region's commitment to environmental sustainability and stringent regulations has led to increased efforts to develop and implement bio-based toluene production processes. European manufacturers have been investing in research and development to align with these sustainable goals. Additionally, the region's robust automotive and construction industries contribute to a steady demand for toluene, primarily used in the production of paints, coatings, and adhesives for various applications, from automotive refinishing to architectural projects. These factors together shape a competitive and evolving toluene market in Europe.

Competitive Landscape:

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 centre expected to enhance PPG's R&D capabilities. ExxonMobil Chemicals promoted EMTAM process which is a breakthrough technology which allows unlimited benzene co-feeding to produce para-xylene with more stable yield. Sherwin-Williams manufactures aromatic solvents like Toluene having colourless, medium strength solvency and drying features. Mainly qualified for thinning specified coatings.

BP, Virent Inc. and Johnson Matthey (JM) have signed an agreement that further advances the commercialization of Virent’s bio-forming process for production of bio-paraxylene (PX), a key raw material for the production of renewable polyester. Reliance Industries Limited rolls over Toluene prices in the Indian domestic market of India-2023. Aramco and SABIC announce plans to realign marketing and sales, commercial and supply chain activities to drive efficiency and add customer value to it.

Recent Developments:

1. In April 2024, Tecnofilm is acquired by Versalis, which is expanding in the compounding sector.

2. In September 2023, British Petroleum entered a third long-term liquefied natural gas (LNG) off-take contract from Woodfibre’s British Columbia LNG facility.

3. In December 2022, Cepsa invested 3 billion euros in Andalusia to build the largest green hydrogen hub in Europe.

4. In 2022, Covestro expanded its product line by introducing polyether polyols derived from renewable sources, offering toluene di-isocyanate (TDI) and methylene diphenyl di-isocyanate (MDI) for the production of polyurethane foams, contributing to sustainable solutions in the chemical industry.

5. The company increased its offerings with green-renewable toluene di-isocyanate (TDI), making it accessible to customers globally. This green-renewable TDI serves as a key ingredient in the production of flexible polyurethane foam, further emphasizing the company's commitment to sustainability.
Toluene Market Scope: Inquire before buying



Toluene Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 23.56 Bn.


Forecast Period 2024 to 2030 CAGR:
6.6%
Market Size in 2030:
US $ 41.10 Bn.


 Segments Covered:
by Derivative
TDI
Benzene and Xylene
Gasoline Additive
Others


by Production Process
Reformate Processes
Pygas Processes
Styrene Processes
Coke/Coal Processes


by Application
Drugs
Blending
Cosmetic Nail Products
Others



Toluene Market, by Region:
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Toluene Market, Key Players:
1. Valero Energy (USA)
2. Conoco Phillips (USA)
3. Total Petrochemicals (USA)
4. ExxonMobil Chemical (USA)
5. Sherwin- Williams (USA)
6. Koch Industries (USA)
7. Chevron Phillips Chemical Company LLC (USA)
8. Nova Chemicals (Canada)
9. Royal Dutch Shell PLC (UK)
10. Total Energies SE (France)
11. BASF (Germany)
12. Shell (England)
13. Lyondell Basel (Netherlands)
14. BP Chemicals (England)
15. Mitsui Chemicals (Japan)
16. China National Petroleum Corporation (China)
17. Sinopec (China)
18. HELM AG (Germany)
19. Covestro (Germany)
20. Reliance Industries (India)
21. China National Petroleum (China)
22. Formosa Plastics (Taiwan)
23. Indian Oil Corporation Limited (India)
24. Mitsui Chemicals, Inc. (Japan)
25. Dhanlakshi Organics & Chemicals (India)
26. Kakdiya Chemicals (India)
27. Pon Pure Chemicals (India)
28. SABIC (Saudi Arabia)
29. SK Innovation Co. Ltd (South Korea)
30. Total SA (France)
31. Shiv Chemicals (India)
32. Pure Chemicals Co (India)
33. Akshar International (India)
34. Braskem S.A. (Brazil)

Frequently Asked Questions:

1. Which region has the largest share in the Global Toluene Market?
Ans: Asia Pacific region held the highest share in 2023 followed by North America.

2. What is the growth rate of the Global Toluene Market?
Ans: The Global Toluene Market is growing at a CAGR of 6.6 % during the forecasting period 2024-2030.

3. What is the main driver of the Toluene market report?
Ans: Increasing potential applications in several end-use sectors and escalating demand from paints and coatings are the main drivers of the toluene market.

4. Who are the key players in the Global Toluene market?
Ans: The important key players in the Global Toluene Market are – BASF, Shell, HELM AG, Covestro, Sinopec, Formosa Plastics, Lyondell Basel, BP Chemicals, Mitsui Chemicals, Valero Energy, and Conoco Phillips.

5. What is the study period of this market?
Ans: The Global Toluene Market was studied for 2024 to 2030.