Global Benzene Market (2022 - 2027) - Increasing Demand for Styrene Polymers is Expected to Drive the Market's Growth - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--The "Benzene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The benzene market size was estimated at over 45 million ton in 2021, and the market is projected to register a CAGR of more than 3% during the forecast period (2022-2027).
The market was moderately impacted by COVID-19 in 2020. Temporary halt in the automotive manufacturing units have minimized the demand for products like nylon tires, foam seatings, and paints, which are made from benzene-derived intermediates like nylon, styrene, and phenol resins, thus, creating a negative impact on the market demand.
However, demand for the drugs like paracetamol, which consumes benzene-derived intermediates such as chlorobenzene, has increased in the current situation, thus, stimulating the market demand in the pharmaceutical sector.
Furthermore, the usage of packaging made up of polystyrene, an intermediate derived from benzene, has increased in food and e-commerce applications, which, in turn, has stimulated the market demand for benzene.
Over the short term, increasing demand for styrene polymers from various end-user industries such as textile, packaging, building and construction, etc., is expected to drive the market's growth.
Detrimental effects of benzene exposure are likely to hinder the growth of the market studied.
Downstream expansion or upcoming plants in the petrochemical business may create opportunities for the market in the coming years.
The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Key Market Trends
Increasing Demand for Ethylbenzene
Ethylbenzene is a highly inflammable colorless liquid with an aromatic odor. It is majorly used in the manufacturing of styrene.
Styrene is used in the production of various products, such as polystyrene, acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile (SAN) resins, styrene-butadiene elastomers, latexes, and unsaturated polyester resins.
Styrene polymers are used in various products such as televisions, IT equipment, disposable medical products, like test kits, consumer electronics, portable speakers, cassette tape housing, etc.
China have exported more than 60,000 MT of sytrene in Q1 2021, which is 160% higher than China's total styrene exports of 27,020 MT over the full year 2020, registering huge demand in the world and hence augment the benzene market.
According to Chemical and Petrochemicals Manufacturers Association, India (CPMAI), the styrene imports in India stood at 799 kilotons in FY2020-21 and the consumption is likely to increase as per the rising demand in the region.
The demand for styrene is continuously growing owing to increased demand for rubber tires in both regions. According to National Bureau of Statistics of China, the tire production of the country reaches 807.47 million units in 2020 and is further expected to increase in the upcoming years.
Apart from styrene, ethylbenzene is also used as a solvent in fuels and as an intermediate for other chemical applications. These applications are likely to support the demand for and growth of ethylbenzene and thus augment the market studied in the coming years.
Asia-Pacific Region to Dominate the Market
Asia-Pacific presently leads the consumption of benzene with around 50% share of global consumption.
This region is also expected to be the fastest-growing market during the forecast period, with increasing markets for end-users like electronics and home appliances, packaging, and construction in China, India, and ASEAN countries.
Benzene is widely used in the production of construction products like adhesives, paints, flooring, fiberglass, and others. According to National Bureau of Statistics of China, in 2021, the construction output in China is valued at approximately CNY 29.31 trillion, which is likely boost the demand of benzene in the region.
In 2021, China's private-sector Hengyi Petrochemical have announced that it is planning to setup naptha cracker that will add 80,000 TPA benzene capacity along with other products.
Reliance Industries Limited is among the top player in the production of benzene in the region with the annual production capacity of 1400 KT, which is sustaining the dosmestic demand of India and exports to various countires in the world.
With the abovementioned factors, the demand of benzene from Asia-Pacific is likely to increase in the forecast period.
- BASF SE
- Chevron Phillips Chemical Company LLC
- China Petroleum & Chemical Corporation
- Eastman Chemical Company
- Exxon Mobil Corporation
- Flint Hills Resources
- Hengyi Industries Sdn Bhd
- LG Chem
- LyondellBasell Industries Holdings BV
- Marathon Petroleum Company
- Maruzen Petrochemical
- Mitsubishi Chemical Corporation
- Reliance Industries Limited
- Shell PLC
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Laura Wood, Senior Press Manager
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