NEW YORK, Jan. 09, 2023 (GLOBE NEWSWIRE) -- Here are some of the most interesting takeaways from a recent report by IndexBox on the global toluene market.
Toluene Market Outlook
The global toluene market is forecast to reach USD 16.6 billion by 2030, from USD 12.4 billion in 2022, at a CAGR of 3.7% during the forecast period. The market is driven by the growing demand for toluene from the paints & coatings, adhesives & sealants, and printing inks industries.
Toluene is an essential industrial chemical used in the production of a wide range of products, from solvents and fuels to plasticizers and coatings. It is also a key ingredient in the manufacture of pharmaceuticals, adhesives, dyes, agricultural chemicals, and other materials used in industry. Toluene is an organic compound with the chemical formula C6H5CH3. It is a clear, colorless liquid with a characteristic smell. Toluene is derived from petroleum and is used as a solvent in a variety of industries.
The global rubber & tires industry is forecast to grow at a healthy rate over the next five years, while the adhesives & sealants industry is expected to grow at a moderate rate. This will lead to an increase in demand for toluene from these industries as well.
The increase in construction activities globally is one of the major factors driving the growth of the market. The rise in construction expenditure is anticipated to lead to an increased demand for paints & coatings, which will subsequently boost the demand for toluene. Furthermore, the growing automotive industry is another major factor propelling the growth of the market. The rising demand for automobiles owing to rapid urbanization and economic development is resulting in an increased demand for automotive coatings, which is anticipated to drive the growth of the market.
Toluene demand in developed countries such as the United States, Germany, and France is mature and is expected to grow at a slower pace than in developing countries such as China and India. The paints & coatings industry is the largest end-use sector for toluene, followed by the adhesives & sealants industry. The Asia-Pacific region is expected to be the fastest-growing market for toluene during the forecast period due to rapid economic growth in countries such as China, India, and South Korea.
Toluene Market Challenges and Opportunities
The toluene market is expected to grow at a moderate pace in the coming years. The main drivers for this growth are the rising demand from the paints & coatings and adhesives & sealants industries, and the growing automotive sector in emerging economies. However, the market faces some challenges that could hamper its growth.
The volatility in raw material prices is one of the major challenges faced by toluene manufacturers. The prices of benzene, which is one of the key feedstock for toluene production, have been highly volatile in recent years. This has led to cost uncertainties for toluene producers, and has put pressure on margins.
Another challenge for the toluene market is environmental regulations. Toluene production emits harmful pollutants such as VOCs (volatile organic compounds) into the atmosphere. Some regions have imposed strict emissions rules on industries that use toluene as a raw material or product. This has led to higher compliance costs for manufacturers, and has also resulted in the closure of some facilities.
Stiff competition from other solvents is another challenge for the toluene market. There is stiff competition from other solvents such as xylene and methanol in the market for toluene derivatives. This is because these solvents can be used in place of toluene in many applications without compromising on quality.
Despite these challenges, there are also several opportunities present in the market that could drive its growth in the coming years. One such opportunity is the growing demand from Asia-Pacific countries such as China and India. These countries are expected to be key markets for toluene due to their rapidly growing economies and expanding manufacturing sectors. Additionally, new applications for toluene are being developed that could create new growth opportunities for manufacturers. For instance, toluene is increasingly being used as a feedstock for the production of biofuels. This could open up new avenues of growth for toluene producers.
Toluene Market Segmentation
The global toluene market can be segmented based on application, end-use industry, and region. Based on application, the market can be divided into solvents, adhesives, paints & coatings, and others. The demand for toluene from the solvents application is expected to remain high during the forecast period due to its ability to dissolve other substances and its low cost. The adhesives application segment includes tape & label adhesives, construction adhesives, and sealants among others. The paints & coatings application segment includes automotive coatings, architectural coatings, and industrial coatings among others.
On the basis of the end-use industry, the global toluene market can be classified into chemicals & plastics, construction, automotive & transportation, textile & leathers among others. The chemicals & plastics industry is anticipated to be the largest consumer of toluene during the forecast period due to its wide range of applications in this sector. The automotive & transportation industry is projected to be the second-largest consumer of toluene during the forecast period due to increased use in the manufacture of fuel, lubricants, and paints.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Exxon Mobil Corporation, Royal Dutch Shell plc, Chevron Corporation, Total SA, BASF SE, Eastman Chemical Company, Huntsman Corporation, INEOS Group Limited, Petróleos Mexicanos (PEMEX), Saudi Aramco, Total SA, Sinopec Limited, China Petroleum
Sources
World - Toluene - Market Analysis, Forecast, Size, Trends and Insights
EU - Toluene - Market Analysis, Forecast, Size, Trends and Insights
Asia - Toluene - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Toluene - Market Analysis, Forecast, Size, Trends and Insights
