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, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1889.12 Million
CAGR (2026-2031)	3.29%
Fastest Growing Segment	Direct
Largest Market	Asia Pacific
Market Size (2031)	USD 2294.08 Million

Market Overview

The Global Naphthalene Market will grow from USD 1889.12 Million in 2025 to USD 2294.08 Million by 2031 at a 3.29% CAGR. Naphthalene is a white crystalline aromatic hydrocarbon produced through the distillation of coal tar or petroleum and serves as a critical raw material for the synthesis of phthalic anhydride, naphthalene sulphonates, and dye intermediates. The global market is primarily propelled by the expanding construction industry which necessitates naphthalene sulphonates as superplasticizers for high strength concrete, alongside steady demand from the automotive sector for plasticizers derived from phthalic anhydride. According to the American Chemistry Council, in 2025, global chemical production volumes were projected to rise by 3.1%, reflecting a resilient industrial appetite for these essential downstream derivatives.

However, the market faces a substantial impediment in the form of volatile raw material prices as fluctuations in crude oil and coal tar costs directly impact manufacturer profit margins and pricing stability. Additionally, stringent environmental protocols and health regulations governing the handling of potentially carcinogenic substances continue to create compliance burdens that may restrict production capacities in key mature markets.

Key Market Drivers

Expanding production of phthalic anhydride serves as a primary catalyst for the global naphthalene market, as this derivative acts as a precursor for plasticizers used extensively in Polyvinyl Chloride manufacturing. Naphthalene derived from coal tar distillation provides the essential feedstock for phthalic anhydride synthesis, which subsequently feeds into the automotive and building sectors for cables, pipes, and hoses. The resilience of this segment is evident in recent industrial outputs; according to Koppers Holdings Inc., November 2025, in their 'Third Quarter 2025 Earnings Results', the company reported specific volume increases for refined tar and naphthalene, offsetting declines in other segments. This consistent feedstock flow supports downstream chemical producers who are scaling operations to meet end-user requirements. Furthermore, according to IG Petrochemicals Limited, November 2025, in their 'Earnings Presentation', the domestic demand for phthalic anhydride in rapidly industrializing regions is projected to grow at a steady rate of 5% to 6% per annum, ensuring sustained consumption of naphthalene-based inputs.

Increasing utilization of Sulfonated Naphthalene Formaldehyde (SNF) in the construction sector further solidifies market expansion, particularly through its role as a superplasticizer in high-performance concrete. As infrastructure projects demand materials with superior durability and workability, SNF admixtures are becoming indispensable for reducing water content while maintaining flow properties. This shift toward advanced building materials is reflected in the sales mix of major construction conglomerates. According to Holcim, October 2025, in the 'Q3 2025 Trading Update', net sales of the company's specialized ECOPact concrete product increased to account for 31% of their total ready-mix net sales, illustrating the robust uptake of formulated concrete solutions that rely on effective chemical dispersants. This trend underscores the critical link between modern construction standards and the rising consumption of naphthalene sulphonates globally.

Download Free Sample Report

Key Market Challenges

The volatility of raw material prices stands as a significant impediment to the stability and expansion of the naphthalene market. Since naphthalene production is heavily dependent on the distillation of coal tar and petroleum, manufacturers are directly exposed to the unpredictable cost fluctuations of these upstream commodities. When crude oil or coal tar prices spike, the operational costs for producing naphthalene rise explicitly, eroding profit margins and forcing suppliers to increase prices. This pricing instability makes it difficult for producers to secure long-term contracts with buyers in the construction and automotive industries, who require predictable cost structures for their own planning.

The impact of this volatility is further compounded by the tight competition for petrochemical feedstocks. According to the International Energy Agency, in 2025, global oil demand was forecast to increase by approximately 990,000 barrels per day, indicating sustained pressure on the availability and pricing of petroleum-based resources. This intense demand for the primary inputs of naphthalene synthesis creates a challenging environment where input costs remain erratic. Consequently, manufacturers often hesitate to expand production capacities, fearing that sudden raw material price escalations will render new output economically unviable.

Key Market Trends

Expansion into naphthalene-based mesophase pitch for carbon fibers is actively reshaping the high-value segment of the global market, driven by the material's superior modulus and thermal conductivity required in aerospace and advanced automotive applications. As manufacturers seek precursors that offer higher carbon yields and performance consistency than standard isotropic pitch, the industrial focus is shifting toward mesophase variants derived from purified aromatic streams. This momentum is evident in the strategic capacity escalations of major composite producers who are responding to the surging requirements of the hypercar and satellite sectors. According to Mitsubishi Chemical Group, December 2025, in the announcement 'Mitsubishi Chemical Expands Carbon Fiber Production in Japan and US', the company revealed plans to approximately double its carbon fiber production capacity by 2027, underscoring the robust industrial trajectory for high-performance pitch-based materials.

Growing adoption of alkylated naphthalene in high-performance lubricants is simultaneously emerging as a critical trend, spurred by the need for superior solubility and seal compatibility in modern synthetic formulations. As the lubricant industry transitions toward severe hydrocracked and polyalphaolefin base stocks to meet stringent fuel economy standards, alkylated naphthalene is increasingly utilized as a co-base stock to counteract the poor solubility inherent in these non-polar fluids. This shift is stimulating significant investment in synthetic base stock manufacturing infrastructure to support the production of premium engine and industrial oils. According to ExxonMobil, August 2025, in the press release 'ExxonMobil Announces Group III Base Stocks Production', the company confirmed it will produce around 8,000 barrels per day of new high-performance base stocks at its Baytown complex, reflecting the escalating market demand for advanced synthetic lubricant components.

Segmental Insights

The Direct segment is recognized as the fastest-growing category within the Global Naphthalene Market, primarily driven by the increasing preference for streamlined supply chain management among industrial consumers. Large-scale manufacturers of phthalic anhydride and concrete admixtures are shifting toward direct procurement to eliminate intermediary costs and ensure the consistent availability of raw materials. This purchasing model allows buyers to negotiate favorable terms for bulk volumes, effectively mitigating risks associated with price volatility. Consequently, the trend toward direct engagement between producers and end-use industries is expanding to support continuous large-scale production requirements.

Regional Insights

Asia Pacific maintains a dominant position in the global naphthalene market, driven by substantial manufacturing output in China and India. This leadership is primarily attributed to the ready availability of coal tar feedstock, which ensures steady production capabilities. The region experiences high consumption rates from the construction industry, which utilizes naphthalene derivatives as vital additives for concrete. Furthermore, the established textile and agrochemical sectors generate consistent demand for dye intermediates and pest control products, effectively sustaining the region's market superiority through diverse industrial applications.

Recent Developments

• In November 2025, Rain Carbon Inc. and Northern Graphite Corporation announced a collaboration to develop sustainable battery anode materials, supported by a research and development grant. The partnership aims to combine Northern Graphite’s natural graphite with Rain Carbon’s carbon-based coating materials, which are derived from its coal tar and petrochemical operations. This joint research initiative seeks to enhance the performance and environmental profile of battery anodes used in electric vehicles. The collaboration highlights the increasing role of traditional carbon and naphthalene derivative producers in the evolving supply chain for next-generation energy storage technologies.
• In January 2025, Himadri Speciality Chemical Ltd announced a capital expenditure of Rs 120 crore to set up a new manufacturing facility focused on high-value specialty products. The project involves the extraction of refined chemicals such as anthraquinone, carbazole, and fluorene from the company's existing coal tar distillates. These specialty derivatives, which are produced alongside naphthalene during the distillation process, are critical inputs for dyes, pigments, and pharmaceutical applications. The new facility is expected to be operational within 18 months and represents a strategic move to maximize the value derived from the coal tar value chain and reduce import dependency for these specialized chemicals.
• In August 2024, Rain Carbon Inc. announced the opening of its new North American Innovation Center for Energy Storage Materials in Hamilton, Ontario. This facility is dedicated to the research and development of advanced carbon precursors and materials derived from coal tar and petroleum distillation, including those used in lithium-ion batteries. The initiative underscores the company's strategic focus on expanding its portfolio beyond traditional naphthalene and pitch products into high-growth applications like energy storage. By leveraging its expertise in carbon chemistry, the company aims to accelerate the commercialization of sustainable materials for the electric vehicle and renewable energy sectors.
• In January 2024, Epsilon Carbon Private Limited entered into a Memorandum of Understanding (MoU) with the Government of Odisha to establish a new Integrated Carbon Complex (ICC) in Jharsuguda. The company announced a substantial investment of INR 10,000 crore for this project, which is designed to process raw coal tar into various value-added derivatives. The facility will feature a production capacity of 300,000 tonnes per annum for coal tar distillation, yielding products such as naphthalene, pitch, and carbon black oil. This development aims to cater to the growing demand from the aluminum, steel, and chemical sectors while strengthening the company's position in the global carbon market.

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.

By Sales Channel	By End Use	By Region
Direct Indirect	Chemical Synthesis Agriculture Dye stuffs Pharmaceuticals Consumer Goods Others	North America Europe Asia Pacific South America Middle East & Africa

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:

• Direct
• Indirect

• Naphthalene Market, By End Use:

• Chemical Synthesis
• Agriculture
• Dye stuffs
• Pharmaceuticals
• Consumer Goods
• Others

• Naphthalene Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE