Naphthalene Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Chemical Synthesis, Agriculture, Dye stuffs, Pharmaceuticals, Consumer Goods, Others), By Region and Competition, 2020-2030F

Market Overview

Global Naphthalene Market was valued at USD 1856.00 Million in 2024 and is expected to reach USD 2408.00 Million by 2030 with a CAGR of 3.23% during the forecast period. Naphthalene, a volatile organic compound, is primarily derived from coal tar and petroleum and is used in the production of a wide range of products including plastics, dyes, detergents, and insecticides.

One of the principal drivers of market growth is the increasing demand for naphthalene-based superplasticizers in the construction sector. Naphthalene sulfonates are integral in enhancing the workability and durability of concrete, making them indispensable in large-scale construction and infrastructure projects. As urbanization accelerates, particularly in emerging economies, the construction industry's expansion will continue to drive the need for naphthalene products, especially in the production of high-performance concrete.

Naphthalene is classified as a volatile organic compound, and its emissions are increasingly subject to stringent environmental controls in many countries. Compliance with these regulations often requires substantial investment in cleaner technologies and processes, which can increase production costs. Additionally, the fluctuation in the prices of raw materials, particularly coal tar and petroleum, introduces further volatility into the naphthalene production process. These price fluctuations can directly impact profit margins and complicate pricing strategies for manufacturers.

Key Market Drivers

Growth in Pharmaceutical Industry

The pharmaceutical industry's expansion is a significant driver of the global naphthalene market, as naphthalene derivatives are increasingly utilized in the production of a wide range of pharmaceutical products. Over the past two decades, the global pharmaceutical industry has witnessed substantial growth, with revenues reaching approximately USD 1.6 trillion in 2023. This growth has positioned the industry alongside the GDPs of countries such as Spain, Mexico, and Australia in terms of size. Naphthalene, a hydrocarbon compound derived from coal tar and petroleum, plays a crucial role in the synthesis of active pharmaceutical ingredients (APIs) and excipients. As the pharmaceutical sector continues to grow, driven by increased demand for healthcare products, naphthalene's applications in drug manufacturing and the production of vital chemicals have contributed to its market expansion.

One of the primary factors behind naphthalene's growing importance in the pharmaceutical industry is its use in the synthesis of intermediates required for the production of various drugs. Simson Pharma is dedicated to delivering high-quality Naphthalene-D8, ensuring that each batch produced meets the highest standards of excellence. Every compound manufactured by Simson Pharma is rigorously tested and comes with a comprehensive Certificate of Analysis, providing full transparency and confirming the product's compliance with specified quality parameters. Naphthalene derivatives, such as phthalic anhydride, are vital in the manufacturing of substances used in anti-inflammatory, analgesic, and antimicrobial drugs. These derivatives also serve as building blocks in the creation of other essential compounds, including dyes, plastics, and resins, which are frequently used in pharmaceutical packaging and other healthcare products. As demand for pharmaceutical products grows worldwide, so too does the need for naphthalene-based intermediates, driving the overall market for naphthalene.

Growth in Agriculture Industry

The growth of the agriculture industry has emerged as a significant driver of the global Naphthalene market. As of 2021, small farms account for approximately one-third of global food production; however, large farms dominate the agricultural landscape. The largest 1% of farms, which exceed 50 hectares (120 acres), manage more than 70% of the world's farmland. Additionally, nearly 40% of agricultural land is situated on farms larger than 1,000 hectares (2,500 acres). Naphthalene, a polycyclic aromatic hydrocarbon, is widely used in agriculture for its various applications, including as a pesticide, fungicide, and insect repellent. As the demand for agricultural products increases due to a rising global population, the need for effective agricultural chemicals, including those based on Naphthalene, has seen substantial growth.

One of the primary drivers of Naphthalene’s increasing demand in the agriculture sector is its effectiveness as a fumigant. Naphthalene is often used in the preservation of crops and stored grains by protecting them from pests, insects, and fungi. In regions with extensive agricultural operations, particularly in countries with large-scale grain production, the application of Naphthalene-based chemicals ensures that harvested crops are stored safely and remain free from contamination. This has been especially relevant in both developed and emerging markets where agricultural productivity is a priority, and crop preservation methods are essential for meeting food security needs.

Download Free Sample Report

Key Market Challenges

Volatility in Raw Material Prices

Volatility in raw material prices represents a significant challenge for the global naphthalene market. Naphthalene is primarily derived from coal tar and petroleum, both of which are subject to price fluctuations due to a variety of factors, including geopolitical events, changes in global supply and demand, and shifts in energy policies. These fluctuations in raw material prices can have a direct impact on the cost structure of naphthalene production, leading to increased uncertainty for manufacturers and downstream industries.

Coal tar, which is a by-product of coke production in steel manufacturing, is one of the primary sources of naphthalene. As steel production levels fluctuate, so too does the availability and price of coal tar, affecting the cost of naphthalene production. Similarly, petroleum prices, which are influenced by global oil market dynamics, also play a critical role. Price increases in petroleum can raise the costs of petroleum-based products and, by extension, naphthalene, which is derived from this raw material.

Key Market Trends

Expansion in Textile Industry    

The expansion of the textile industry has emerged as a significant trend driving growth in the global naphthalene market. The textiles market is anticipated to experience a significant increase in value, with projections indicating that the total value added will reach approximately USD 295.87 billion by the year 2025. This growth reflects ongoing trends in market demand, innovation, and the expansion of textile-related industries across various regions. Naphthalene, a vital industrial chemical, is used in a variety of applications within the textile sector, particularly in the production of dyes, resins, and textile finishing agents. As the textile industry continues to grow, especially in emerging markets and regions with a high demand for textile products, the demand for naphthalene and its derivatives is projected to rise accordingly.

One of the primary drivers behind the increasing use of naphthalene in the textile industry is its role in the production of synthetic dyes and pigments. Naphthalene is a key raw material in the synthesis of several types of dyes, which are essential in the textile manufacturing process. Synthetic dyes derived from naphthalene are used to color fabrics, giving them desired shades and enhancing their aesthetic appeal. With the expanding global demand for textiles, especially in fast-fashion sectors, the need for high-quality dyes has surged, consequently boosting the demand for naphthalene-based products.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, Direct have emerged as the fastest growing segment in the Global Naphthalene Market in 2024. One of the key drivers behind the growth of the direct segment is the increasing demand for customized and high-quality Naphthalene products. As industries such as agriculture, chemicals, and textiles continue to rely on Naphthalene for its various applications, direct sales provide manufacturers with the opportunity to offer more tailored solutions to meet the specific needs of end-users. By engaging directly with customers, manufacturers can provide specialized formulations of Naphthalene that are better suited to particular applications, whether in pest control, fumigation, or as an industrial solvent. This customization, along with the ability to source Naphthalene at competitive prices, has made direct sales an attractive option.

End Use Insights

Based on End Use, Dye stuffs have emerged as the fastest growing segment in the Global Naphthalene Market during the forecast period. Naphthalene-based dyes offer several advantages, including cost-effectiveness, vibrant color quality, and excellent fastness properties (resistance to fading). As industries, particularly in textiles and leather, require affordable yet high-quality dye solutions, naphthalene-derived dyes have gained preference due to their economic viability and superior color stability. This has contributed to their widespread adoption, fueling the growth of the dye stuffs segment.

Download Free Sample Report

Regional Insights

Based on Region, Asia Pacific have emerged as the dominating region in the Global Naphthalene Market in 2024. Asia Pacific, particularly countries like China and India, has experienced rapid industrialization over the past few decades. This growth has driven substantial demand for naphthalene in sectors such as construction, textiles, and agrochemicals. The need for naphthalene-based products, like superplasticizers in concrete and naphthalene derivatives in dyes and pigments, has significantly increased with the expansion of infrastructure and industrial production.

Recent Development

• In July 2024, the American Chemistry Council (ACC) and the American Petroleum Institute (API) established the Naphthalene Workgroup, a new industry coalition. This collaboration aims to address the Environmental Protection Agency’s (EPA) upcoming release of the draft IRIS Assessment for Naphthalene in 2025 and to monitor the EPA's 2023 decision to prioritize naphthalene under the Toxic Substances Control Act (TSCA), alongside other chemicals. Additionally, the group intends to review and provide feedback on the draft toxicological profile for naphthalene published by the Agency for Toxic Substances and Disease Registry (ATSDR).
• In September 2024, Croda introduced Atlox Metasperse 650S, an advanced solid aqueous dispersant that delivers consistent performance across a wide range of active ingredients. Initially developed for water dispersible granules (WDG), Atlox Metasperse 650S demonstrates versatility, making it suitable for various formulation types, including suspension concentrates (SC), wettable powders (WP), and oil dispersions (OD). This innovative solution effectively addresses common challenges in WDGs, such as agglomeration, initial dispersibility, and suboptimal suspensibility when granules are first added to the spray tank.
• In January 2024, researchers from the Indian Institute of Technology (IIT) Bombay identified bacteria capable of consuming toxic pollutants, including naphthalene, in soil and producing beneficial nutrients as a byproduct, according to an official release. The IIT Bombay team has been investigating bacteria that can metabolize harmful chemicals, such as naphthalene, a common environmental pollutant, as a potential solution to the growing pollution of natural resources. Their recent study, published in the journal Environmental Technology and Innovation, demonstrates how specific bacterial species can effectively degrade organic pollutants, including naphthalene, from soil, offering a sustainable method for pollution remediation.
• In August 2024, Coway, a leading wellness technology company, launched its first-ever customized filters for Intense Smoke, Pet, and Allergens in the U.S. These filters are designed for Coway’s popular Airmega models, including the Airmega Mighty AP-1512HH and the Airmega 200M, with over 1.5 million units sold to date. The new filters target specific air quality challenges, such as wildfire smoke, vehicle emissions, pet odors, and allergens. Naphthalene, a compound commonly found in smoke and air pollutants, can contribute to indoor air contamination, leading to respiratory issues. By incorporating advanced filtration technology developed through three decades of research at Coway’s R&D Center in South Korea, the company aims to address the presence of harmful substances like naphthalene. This innovation ensures cleaner, healthier air by mitigating the impact of volatile organic compounds (VOCs) such as naphthalene, providing consumers with tailored solutions for improved air quality.

Key Market Players

• Koppers Inc.
• Fangda Carbon New Material Co., Ltd.
• Industrial Química del Nalón S.A
• DEZA a. s.
• Rain Carbon Inc.
• Himadri Specialty Chemical Ltd.
• JFE Chemical Corporation
• Epsilon Carbon Private Limited
• Pingdingshan Aosida Technology Co Ltd
• Kedia Carbon Private Ltd

Report Scope

In this report, the Global Naphthalene Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Naphthalene Market, By Sales Channel:

o   Direct

o   Indirect

• Naphthalene Market, By End Use:

o   Chemical Synthesis

o   Agriculture

o   Dye stuffs

o   Pharmaceuticals

o   Consumer Goods

o   Others

• Naphthalene Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Naphthalene Market.

Available Customizations:

Global Naphthalene Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Global Naphthalene Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com