Global Naphthalene Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• November 2022: Sulzer Chemtech Ltd. will provide process engineering and essential equipment to the Dong-Suh company in Indonesia for the growth of the naphthalene downstream industry. With the installation of a cutting-edge separation unit at the Dong-Suh plant in Serang, Indonesia, it will be easier to make naphthalene that is very pure.

• September 2022: Epsilon Carbon will increase its carbon black production capacity from 115,000 tons to 215,000 tons annually with a new investment of approximately USD 71 million in Karnataka. Naphthalene from carbon black feedstock can be used to make phthalic anhydrides, pesticides, and concrete plasticizers.

In this report, the Global Naphthalene Market has been segmented by Source, Application, End-User Industry, and Geography, providing a comprehensive analysis of the market’s structure and growth potential across various dimensions.

The Source segment of the market includes Coal Tar, Crude Oil, and Natural Gas. Naphthalene is primarily produced as a byproduct of coal tar distillation, making coal tar the most dominant source. The increasing demand for naphthalene in multiple industries such as chemicals and polymers is driving the expansion of this segment. Crude oil and natural gas are also key sources, with naphthalene being obtained through refining processes. The availability and cost-effectiveness of these sources directly impact naphthalene production, influencing overall market trends. With the rise in demand for synthetic chemicals and plastics, these sources will continue to support market growth, especially in regions where crude oil and natural gas are abundant.

The Application segment is divided into Plasticizers, Disinfectants, Dyes & Pigments, Fumigants, Solvents, and Others. Plasticizers are among the largest application segments, with naphthalene derivatives used to enhance the flexibility and durability of plastics. Naphthalene is also widely used in disinfectants and dyes due to its strong chemical properties, which make it effective in killing bacteria and coloring materials. The fumigants application is driven by the agricultural sector, where naphthalene-based products are used to protect crops and food products from pests. Additionally, solvents derived from naphthalene are used in the paint and coatings industry. The growing demand for these applications, especially in emerging economies, will continue to drive the market.

The End-User Industry segment includes Agriculture, Building & Construction, Textile, Chemical, Polymer, and Pharmaceutical industries. Agriculture remains one of the largest end-users, with naphthalene being crucial for pesticide production. In the Building & Construction industry, naphthalene is used to enhance concrete properties, while in Textiles, it is used in the production of dyes and moth repellents. The Chemical and Polymer industries rely heavily on naphthalene derivatives for the manufacture of plasticizers and resins, while the Pharmaceutical industry uses naphthalene as an intermediate for certain medications. As these industries continue to grow globally, especially in developing regions, the demand for naphthalene will increase significantly.

Geographically, the Global Naphthalene Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is the largest market for naphthalene, driven by industrialization and increasing demand from countries like China and India. The Chemical and Polymer industries in the region are rapidly expanding, further fueling naphthalene consumption. North America and Europe are significant markets due to the established chemical and pharmaceutical sectors, where naphthalene is used as a key raw material. Latin America and the Middle East & Africa are emerging markets, with growth driven by the development of industrial sectors, including construction, textiles, and agriculture, where naphthalene-based products are essential.

This segmentation analysis reveals the global naphthalene market’s diverse applications and robust growth across multiple industries and regions. As demand for chemical products, polymers, and agricultural solutions continues to rise, the naphthalene market is poised for substantial growth, particularly in emerging economies.

Global Naphthalene Segment Analysis

In this report, the Global Naphthalene Market has been segmented by Source, Application, End-User Industry and Geography.

Global Naphthalene Market, Segmentation by Source

The Global Naphthalene Market has been segmented by Source into Coal Tar and Petroleum.

The global naphthalene market is segmented by its primary sources: coal tar and petroleum. Coal tar has historically been a significant source of naphthalene due to its byproduct nature in the coking of coal for steel production. It remains a key source particularly in regions where coal-based industries are prevalent. The extraction of naphthalene from coal tar involves complex distillation processes to isolate and purify the compound, ensuring high purity for various industrial applications.

On the other hand, petroleum-derived naphthalene has gained prominence with advancements in refining technologies. Naphthalene is obtained during the refining of crude oil, where it is separated from other hydrocarbons through processes such as fractional distillation. Petroleum-derived naphthalene often offers advantages in terms of consistency and purity, meeting stringent quality standards required by industries such as chemicals, plastics, and pharmaceuticals.

The choice of naphthalene source can be influenced by factors such as availability, cost-effectiveness, and environmental considerations. Coal tar remains a reliable source in regions with abundant coal resources, while petroleum-derived naphthalene is favored for its high purity and reliability in industrial applications. Both sources play critical roles in meeting global demand for naphthalene across a diverse range of industries, reflecting the market's adaptability to different raw material inputs and technological advancements in extraction and refining processes.

Global Naphthalene Market, Segmentation by Application

The Global Naphthalene Market has been segmented by Application into Phthalic Anhydride, Naphthalene Sulfonates, Low-Volatility Solvents, Moth Repellent, Pesticides and Other Applications.

Naphthalene is a crucial raw material in the production of phthalic anhydride, which is primarily used in the manufacture of phthalate plasticizers. These plasticizers are essential additives in the production of PVC (polyvinyl chloride) and other polymers, enhancing their flexibility and durability. The demand for phthalic anhydride drives significant consumption of naphthalene in the chemical industry.

Naphthalene sulfonates are widely used as dispersing agents in concrete admixtures. They improve the workability and strength of concrete by reducing water content and enhancing flow characteristics. This application is critical in construction and infrastructure projects worldwide, where high-performance concrete is required.

Naphthalene serves as a low-volatility solvent in various industrial applications, including coatings, paints, and chemical processes where controlled evaporation rates are essential. Its chemical properties make it suitable for applications requiring stable solvency and compatibility with other chemicals.

Naphthalene has long been recognized for its effectiveness as a moth repellent. It is commonly used in mothballs and other products designed to protect textiles and stored goods from insect damage. This application remains important in consumer markets and storage facilities.

Naphthalene derivatives are utilized in the formulation of pesticides and agrochemicals. They play a role in crop protection by controlling pests and diseases, thereby supporting agricultural productivity and food security.

Beyond the major categories, naphthalene finds use in various niche applications such as in the synthesis of dyes and pigments, pharmaceutical intermediates, and as a chemical intermediate in the production of specialty chemicals.

Global Naphthalene Market, Segmentation by End-User Industry

The Global Naphthalene Market has been segmented by End-User Industry into Agriculture, Building & Construction, Textile, Chemical, Polymer, and Pharmaceutical.

In the Agriculture sector, naphthalene is primarily used in the production of pesticides and fumigants. It serves as an active ingredient in insecticides and herbicides, which help protect crops from pests and diseases. Naphthalene’s ability to repel and kill pests makes it a vital component in agricultural practices, particularly in developing regions where the demand for crop protection products is growing.

In the Building & Construction industry, naphthalene is used in the production of concrete admixtures and as a plasticizer. It helps improve the workability and durability of concrete, making it a valuable additive in construction materials. Additionally, naphthalene-based compounds are used in coatings, sealants, and other materials that enhance the structural integrity of buildings and infrastructure.

The Textile industry utilizes naphthalene in the production of dyes and finishing agents. Naphthalene is also used in the creation of mothballs, which are employed to protect fabrics from moth damage. As the textile industry continues to expand, especially in emerging markets, the demand for naphthalene in both production and preservation applications is expected to rise.

In the Chemical sector, naphthalene is a key feedstock in the production of various chemicals such as phthalic anhydride, which is used to make plasticizers, resins, and coatings. It is also used in the synthesis of other aromatic compounds, contributing to the production of materials used in paints, coatings, and adhesives.

The Polymer industry uses naphthalene derivatives in the manufacture of plastics and synthetic resins. Naphthalene-based compounds enhance the properties of polymers, including their flexibility, durability, and resistance to heat. As demand for plastic materials in packaging, automotive, and consumer goods grows, the polymer sector’s reliance on naphthalene is expected to increase.

In the Pharmaceutical industry, naphthalene is used in the synthesis of certain medications and as an intermediate in the production of active pharmaceutical ingredients (APIs). Naphthalene derivatives are also used in the creation of medicinal products, particularly those related to the treatment of various diseases, including cancer and other health conditions.

This segmentation of the global naphthalene market highlights the diverse applications across various industries, each contributing to the overall market growth. As industrialization continues to progress, the demand for naphthalene in these sectors is expected to expand, driving further market development.

Global Naphthalene Market, Segmentation by Geography

In this report, the Global Naphthalene Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Naphthalene Market Share (%), by Geographical Region, 2024

North America's naphthalene market is characterized by stringent environmental regulations and a focus on sustainable practices. The region utilizes naphthalene primarily in specialty chemicals, construction materials, and as a raw material in the production of phthalic anhydride. Innovations in chemical processing and stringent regulatory standards influence market dynamics, ensuring high-quality standards in industrial applications.

In Europe, the naphthalene market is driven by applications in the construction sector, particularly in the form of naphthalene sulfonates used as concrete admixtures. The region emphasizes sustainability, leading to increased adoption of environmentally friendly products in construction and chemicals. Naphthalene also finds application in the production of pesticides and agrochemicals, supporting agriculture across the continent.

Asia Pacific is the largest consumer of naphthalene globally, driven by robust industrial growth in countries like China, India, and Japan. The region utilizes naphthalene extensively in the production of phthalic anhydride for plastics and resins. Additionally, naphthalene sulfonates are widely used in construction activities to improve concrete properties. Rapid urbanization, infrastructure development, and agricultural activities contribute to substantial demand in this region.

In the Middle East and Africa, naphthalene is utilized in diverse applications, including construction chemicals and pesticides. The region's growing infrastructure projects and agricultural sectors contribute to steady demand for naphthalene-based products. Moreover, the presence of petrochemical industries facilitates access to petroleum-derived naphthalene, supporting local manufacturing capabilities.

Latin America exhibits a varied market for naphthalene, driven by applications in agriculture, construction, and consumer products. The region uses naphthalene in pesticide formulations to support agricultural productivity. Construction activities in countries like Brazil and Mexico utilize naphthalene sulfonates for enhancing concrete properties. As economic growth continues, Latin America presents opportunities for naphthalene market expansion across different industrial sectors.

This report provides an in depth analysis of various factors that impact the dynamics of Global Naphthalene Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Phthalic anhydride
• Construction chemicals
• Pesticides

• Industrial growth - Industrial growth in the context of the global naphthalene market is driven by several key factors contributing to increased demand and expansion across various sectors. Firstly, the burgeoning construction industry plays a pivotal role, particularly in regions like Asia Pacific and North America. Naphthalene sulfonates are extensively used as concrete admixtures to enhance the durability, workability, and strength of concrete structures. This application is crucial in infrastructure projects such as residential buildings, bridges, and highways, where high-performance concrete is essential for sustainable urban development.

  The chemical industry's robust expansion fuels demand for naphthalene, particularly in the production of phthalic anhydride. Phthalic anhydride is a vital intermediate for manufacturing phthalate plasticizers, which are indispensable in the production of PVC and other polymers used in various industries such as automotive, electronics, and packaging. The increasing global demand for plastics and polymers further drives the consumption of naphthalene, reflecting its integral role in industrial processes.

  The agricultural sector presents significant growth opportunities for naphthalene-based products, particularly in the formulation of pesticides and agrochemicals. Naphthalene derivatives are used to develop effective pest control solutions that enhance crop yields and protect agricultural produce. As global population continues to grow, the need for sustainable agricultural practices and innovative solutions to combat pests underscores the importance of naphthalene in supporting agricultural productivity and food security.

Restraints

• Environmental regulations
• Health concerns
• Fluctuating crude oil prices

• Shift towards sustainable alternatives - The shift towards sustainable alternatives represents a significant opportunity and a challenge for the global naphthalene market. Increasing awareness of environmental impact and regulatory pressures are driving industries to seek greener, more sustainable alternatives to traditional chemical compounds like naphthalene. This shift is evident across several key areas:

  Research and development efforts are focusing on bio-based naphthalene derived from renewable sources such as biomass and bio-refineries. Bio-based naphthalene offers potential advantages in terms of reduced carbon footprint and lower environmental impact compared to traditional fossil fuel-derived naphthalene.

  Innovations in green chemistry are leading to the development of sustainable production processes for naphthalene and its derivatives. This includes technologies that minimize waste generation, improve energy efficiency, and utilize environmentally benign solvents.

  Stringent environmental regulations and policies worldwide are pushing industries towards adopting sustainable alternatives. Companies are under pressure to comply with regulations aimed at reducing emissions, minimizing chemical hazards, and promoting sustainable practices throughout the supply chain.

Opportunities

• Sustainable solutions
• Emerging economies
• Research and development

• Bio-based naphthalene - Bio-based naphthalene refers to naphthalene that is derived from renewable biological sources rather than traditional fossil fuels like coal tar or petroleum. This emerging sector within the naphthalene market is driven by several key factors:

  Bio-based naphthalene offers significant environmental benefits compared to its fossil fuel-derived counterparts. It reduces dependence on finite fossil resources and helps lower greenhouse gas emissions, contributing to sustainability goals and mitigating environmental impact.

  Bio-based naphthalene can be produced from a variety of renewable feedstocks, including biomass, agricultural residues, and bio-waste. This diversification of feedstock sources enhances resource efficiency and supports rural economies by utilizing biomass that might otherwise be wasted.

  Advances in biotechnology and chemical engineering have enabled the development of efficient processes for converting biomass into bio-based naphthalene. These processes often utilize innovative fermentation, enzymatic, or thermochemical conversion technologies to produce high-purity naphthalene.

Key players in Global Naphthalene Market include;

• CarbonTech Group
• Rain Carbon Inc.
• JFE Chemical Corporation
• Sulzer Chemtech Ltd
• Epsilon Carbon
• Exxon Mobil Corporation

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis