June 18, 2024
Global Toluene Market

Global Toluene Market is Estimated to Witness High Growth Owing to Rising Demand for Adhesives & Sealants

The global toluene market is primarily driven by the rising demand for adhesives and sealants in various end-use industries such as building & construction, automotive, packaging, and others. Toluene acts as a raw material and solvent in the production of adhesives & sealants, chemical intermediates, paints & coatings, and other derivatives. It possesses qualities like non-corrosiveness, non-flammability, and low volatility making it suitable for various industrial applications.

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 key opportunities in the Global Toluene Market Growth include growing demand from the adhesives & sealants industry and new applications in pharmaceuticals and dyes production. Asia Pacific dominates the global toluene market owing to the presence of huge automotive and consumer goods industries in major economies like India and China. Companies are expanding their production facilities in Asia to tap the market potential.

Market Drivers

The major market driver for toluene is the rising demand from adhesives & sealants applications. Adhesives consumption is increasing across industries like building & construction, packaging, footwear, automotive due to their bonding and joint sealing properties. Toluene acts as a solvent and diluent in adhesives formulation. Also, the growth in automotive production paired with increasing penetration of lightweight vehicles using composite materials boosts the adhesive usage, fuelling toluene demand.

PEST Analysis

Political: Toluene production and regulations are influenced by environmental laws. Stringent regulations around emissions and waste disposal impact capacity expansion plans of producers.

Economic: Global economic growth drives the demand from end-use industries like construction and automotive which influences toluene consumption. Major producers are located in Asia and Middle-East to leverage low feedstock costs.

Social: Improving living standards and rising disposable incomes in developing nations fuel the sales of consumer goods requiring toluene in their manufacturing. Environmental and health concerns also affect product adoption.

Technological: New extraction technologies help increase crude oil yields and toluene output. Innovation in refining allows production of cleaner toluene grades for specialty applications. Emerging technologies may provide substitutes over the long term.

Geographical concentration of toluene market value

The toluene market in terms of value is majorly concentrated in Asia Pacific and North America regions. Countries like China, India, Japan, USA and Canada account for over 60% of the global toluene demand established by their large consuming industries. Toluene producers have also set up facilities in these markets to ensure security of supply for customers.

Fastest growing region

The Asia Pacific region, especially China and India, is anticipated to register the fastest growth in toluene market during the forecast period. Presence of promising end-use industries coupled with rising consumption from expanding population in the Asia Pacific economies will drive the extra demand. Increasing investments to develop infrastructure and focus on green technologies offer new avenues for toluene applications and sales across Asia Pacific.

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