Naphthalene market size is estimated to reach US$ 1.2 billion by 2027 and it is projected to grow at a CAGR of 3.5% during 2022-2027. Naphthalene is mainly found in petroleum and coal tar and it is volatile, white, crystalline solid type of aromatic hydrocarbon containing two fused benzene rings. It is also known as camphor tar, white tar, naphthene, and naftalen. It owns strong odor of coal tar and is insoluble in water. It is extensively used in several applications such as synthetic resins, plasticizer, phthalic anhydride, dyes, lubricants, and plastic inducing others. It is widely used in mothballs and toilet deodorant cakes which is remarkably used in several applications. These are also utilized as fuel additive and wood preservative. However, it acts as a human carcinogen which may hamper its market growth during the forecast period.
Report Coverage
The report : “Naphthalene Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the naphthalene industry .
By Source: Coal Tar and Petroleum
By Form : Flakes, Cake, Powder, and Crystals
By Purity : Less than 99% and 99% and Above
By Grade : Technical Grade, Special Grade, Reagent Grade, and Scintillation Grade
By Application : Plasticizer, Pesticides, Synthetic Resin, Dye Intermediate, Phthalic Anhydride, Wood Preservative, Fuel Additive, Lubricants, Mothball, and Others
By End Use Industry: Textile, Agriculture, Building and Construction, Chemical, Plastic, Pharmaceutical, and Others
By Geography : North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), and South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East and Africa)
Key Takeaways :
Asia Pacific is the leading region in the global naphthalene market. This growth is mainly attributed to the increased demand for naphthalene in plastic and agriculture industry.
Phthalic anhydride is expected to be the significant segment owing to the surge in demand for naphthalene in its production.
Naphthalene plays an important role in several industries especially in the plastic, pharmaceutical, and textile which is expected to provide significant growth opportunity for the global market.
Naphthalene Market Segment Analysis – By Form :
The cake segment held the largest share in the naphthalene market share in 2021 and it is expected to grow with a CAGR of around 3.9% during the forecast period. Naphthalene is also known as camphor tar or white tar which is widely used in range of applications. It has a distinctive odor and it is a white solid material. The cake form of naphthalene is remarkably used in mothballs and toilet deodorant cakes. This form is used to store clothes, toilets, and wash basins. It is also utilized as animal repellent and kill insects. However, such use of naphthalene can cause health issues such as damaging of blood cells and it is recommended to restrict the use of mothballs around the children.
Naphthalene Market Segment Analysis – By Application :
The phthalic anhydride segment is expected to grow at the fastest CAGR of 4.2% during the forecast period in the global naphthalene market. Naphthalene is widely produced from coal tar or petroleum and owns a distinctive odor. It is significantly used in several applications such as synthetic resin, lubricants, fuel additive, and plasticizers including many others. Phthalic anhydride is the major application of naphthalene where it is widely used in its production. The world demand for phthalic anhydride is in millions of tons every year. It is further used in the production of dyes, resins, insect repellents, and plasticizers as an intermediate. It is considered as one of the most vital industrial chemicals used in the extensive production of plasticizers for plastics. It also has increase in demand for the production of polyester resin. Thus, high demand of phthalic anhydride is boosting the demand for naphthalene. However, currently o-xylene is acting as a substitute material for the production of phthalic anhydride which may hamper the market demand for naphthalene.
Naphthalene Market Segment Analysis – By Geography :
The Asia Pacific is the leading region accounts for the largest share in the naphthalene market in 2021 and held nearly 35% of market share. This growth is mainly attributed to the increase in demand for naphthalene in several end use industries in this region such as building and construction, textile, agriculture, and plastic including others. Naphthalene is widely utilized in the production of plasticizers, dyestuff, phthalic anhydride, and pesticide. Phthalic anhydride is the major application of naphthalene and it is further used in the production of plastic. Plastic is one of the most significant industries in Asia Pacific which is increasing the demand for naphthalene in it. According to research by Plastics Europe, world market for plastic valued at USD 568.9 billion in 2019 and Asia Pacific accounted for nearly half market share in terms of production and 38% share in terms on consumption. Thus, the increase in production of plastic in this region, in turn, increases the demand for naphthalene.
Naphthalene Market Drivers :
Wide Range of Applications of Naphthalene :
Naphthalene is considered as one of simplest form of aromatic hydrocarbons containing two benzene rings and mainly produced using petroleum or coal tar. It is commonly used as traditional mothball in household and as deodorizing cake in toilets. It is recommended to use for both indoor and outdoor residential use. It further utilized as carbamate insecticides, lubricants, and fuel additive. Synthetic resin, plastics, textile dyes, and fuel additive are few of the major applications of naphthalene. It is also employed as beta blocking agent in the manufacturing of nadoxolol drug. Sulphonated naphthalene is utilized as a surfactant. Thus, aforementioned wide range of applications of naphthalene is driving the growth of global market.
Surge in Demand as an Intermediate in Several Industries :
Naphthalene is used in numerous industries such as textile, agriculture, building and construction, chemical, and plastic including many others in different applications. Phthalic anhydride is one of the most significant applications of naphthalene where large quantity of naphthalene is consumed. Further, phthalic anhydride is used to produce plasticizers to produce plastic. Phthalic anhydride is further used as an intermediate in the production of resins, insect repellent, and pharmaceuticals including many others. According to research by Plastics Europe, world produces around 359 million tons of plastic annually. The global plastic market in 2019 was valued at USD 568.9 billion and by 2035, it is estimated to reach to the value of USD 1 trillion. Further, naphthalene is also utilized as an intermediate in the dye manufacturing, as a synthetic tanning agent, surface active agent, and used in numerous miscellaneous organic chemicals. Thus, increase in demand for naphthalene as an intermediate is fueling the global market growth.
Naphthalene Market Challenges :
Health Hazards Associated with the Use of Naphthalene :
Over the years, naphthalene is commonly been used in household as mothballs to store clothes and a toilet deodorizing cake. However, it is recommended that naphthalene should be used under controlled condition as swallowing or inhalation of naphthalene can damage red blood cells which further causes paleness, fatigue, nausea, and vomiting. Dermal contact and ingestion of naphthalene can damage liver, neurological system, and cause anemia. It has also been reported that human acutely exposed by ingestion or inhalation of naphthalene can cause cataracts. Further, skin exposure to naphthalene can cause redness, weeping, itching, and scaling of the skin. Thus, the threats related to health associated with the use of naphthalene may hamper the market during the forecast period.
Naphthalene Industry Outlook :
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the naphthalene market. Naphthalene market top 10 companies include –
1. Bengal Chemicals & Pharmaceuticals Ltd.
2. DEZA a.s
3. Epsilon Carbon Private Limited
4. Exxon Mobil Corporation
5. Gautam Zen International
6. Industrial Quimica del Nalon SA
7. JFE Chemical Corporation
8. Koppers Inc.
9. PCC Rokita SA
10. Rain Carbon Inc.
Recent Developments :
In December 2021, Exxon Mobil Corporation announced the acquisition of Materia Inc., a California based company. The company has previously collaborated to produce novel hydrocarbon-based materials.
In July 2019, Bengal Chemicals & Pharmaceuticals Ltd., India’s first pharmaceutical company has announced its strategic sale. However, company’s products such as naphthalene balls, aqua ptychotis, and cantharidine hair oil would be distributed through company’s own retail outlets and e-commerce sites.
In June 2019, Koppers Inc., a subsidiary of Koppers Holdings Inc. has announced its plan to cease the production activities of its facility in Follansbee, West Virginia. The company stated that it has ceased its naphthalene refining activities at the Follansbee facility in 2018.