June 16, 2024
Global Toluene Market

Global Toluene Market is trending towards sustainable production and consumption by 2031

The Global Toluene Market is focused on producing aromatic hydrocarbons that serve as raw materials in various industries. Toluene is commonly used as a building block in production of chemical compounds and as a solvent in paints, coatings, and adhesives. It possesses excellent solvency properties that allow it to dissolve gums, resins, oils, and many organic materials. Toluene applications range from fuel additives and oil additives to pharmaceuticals and dyes.

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: 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.

Growing demand: The demand for Global Toluene Market Growth is rising in various end use industries such as construction, automotive and paints & coatings. Large scale infrastructure development projects undertaken by developing nations is propelling the consumption of toluene based commodities.

Global expansion: Key players in the toluene market are strategizing mergers and acquisitions to expand their global footprint. Manufacturers are also investing in research & development of bio-based toluene production technologies to meet sustainability targets.

Market key trends

One of the key trends in the toluene market is the shift towards sustainable production. Major producers are adopting green production routes and reducing their dependency on petroleum based sources. This is being driven by stringent environmental regulations as well as growing preference of end users for eco-friendly products. Manufacturers are exploring the potential of biomass and waste based feedstocks to minimize emissions and carbon footprint associated with toluene manufacturing.

Porter’s Analysis

Threat of new entrants: Low economies of scale and product differentiation make entry difficult in the toluene market.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like benzene.

Bargaining power of suppliers: Major suppliers have significant bargaining power due to limited availability of raw materials and economies of scale.

Threat of new substitutes: There exists a moderate threat from substitutes like benzene and xylene used for similar applications.

Competitive rivalry: The toluene market is highly competitive due to presence of major players globally.

Geographical Regions

In terms of value, North America accounted for the largest share of the global toluene market in 2024 owing to widespread use in paints, adhesives and solvents industries.

The Asia Pacific region is expected to be the fastest growing market for toluene during the forecast period due to rapid industrialization and infrastructure growth in countries such as China, India and Southeast Asian nations.

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