Aromatic Compounds Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Aromatic Compounds Market is segmented By Type (Xylene (m-xylene, p-xylene, o-xylene), Toluene (Toluene Diisocyanate, Solvents), Benzene (Cumene, Ethylbenzene, Cyclohexane, Alkylbenzene, Chlorobenzene, Others)), By Application (Additive, Solvent), By End-User (Xylene (Packaging, Clothing, Paint & Coatings, Tire, PVC Pipes & cables, Others), Toluene (Gasoline, Tire, Pharmaceuticals, Cosmetics, Household Goods, Paints and Coatings, Others), Benzene (Packaging, Detergent & Dyes, Automobile, Electronics& Household Goods, Medical Devices, Pharmaceuticals, Cosmetics, Others), Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Aromatic Compounds Market Overview

The Global Aromatic Compounds Market is estimated to reach at CAGR of 2.5%  during the forecast period (2024-2031).

Aromatic compounds are important intermediates that consist of conjugated planar and cyclic ring systems as part of the synthetic organic chemical industry. It consists of a sweet smell and is used in various end-use industries in the paint industry as a thinner, in the oil and grease industry as an aromatic additive, in the pharmaceutical industry as additives and sometimes solvent. The aromatic compound provides stability and distinctive reactivity in the chemical industries. Aromatic compounds are substantially used in end-user industries such as paint & coatings, chemical, pharmaceuticals, building & construction and among others.

Aromatic Compounds Market Summary

For More Insights about the Market Request Free Sample

Aromatic Compounds Market Dynamics

The global aromatic compounds are driven by rising demand for the formation of various pharmaceutical drugs with increasing spending on healthcare and the pharmaceutical industry. Further growing demand for the formation of chemicals in the paint and coating industry with the rising construction sector has propelled the aromatic compound market. As aromatic compounds are petroleum-based chemicals are widely used in the chemical industries of paints & coatings. As it dissolves the pigment and binding agent for these applications and have a long drying and curing time.

Rising demand for paints and coatings with the surge in construction sector spending due to urbanization around the globe

 Aromatic compounds are used to bind the chemicals together in the paints and coatings industry. Further growing the paint and coating industry at a rapid pace owing to increasing construction sector demand has impelled the aromatic compound market. For instance, as per the American Coatings Association Organization report in 2019, the global paints and coatings industry was valued at around US$ 158 billion reaching 45 million litres. Among this, China paints and coatings industry was valued at aroundUS$ 44.5 billion representing approximately 28% of the total global value, and its 14.4 billion litres represent 32% of the global volume of litres. Thus it created a massive demand for the aromatic compounds used in the manufacturing of the paint and coating industries.

Growing demand for aromatic compounds in the pharmaceuticals industry for the formations of various drugs

Aromatic compounds are widely used in the formations of new pharmaceutical drugs as it has drug-like properties which maintain stability and the right amount of polarity required for the drug formulations. Further growing demand in the pharmaceutical industries due to the surge in prevalence of several diseases around the globe have propelled the aromatic compound market growth.

For instance, as per the International Federation of Pharmaceutical Manufacturers & Associations, the global pharmaceutical market reached around US$ 1,430 billion in 2020 with a 40$% share of the United States. It created a massive demand for the aromatic compound used in the pharmaceutical industries.

The launch of new aromatic compounds used in the chemical industry, paints and coatings with the help of advanced additives by the leading players is expected to strengthen the market growth

Several leading players of the aromatic compound are evolving the new chemicals used in the pharmaceutical industries. For instance on 2nd Dec 2019, Researchers at the Tokyo Medical and Dental University (TMDU) have launched a new synthetic process for diverse aromatic compounds for producing carbon-based molecules known as γ-aryl-β-ketoesters. These molecules contain aromatic compounds used in the Type of many vital pharmaceutical drugs to treat non-small-cell lung cancer and diabetes.

Several health hazardous effects that occur when continuously exposed to the aromatic compounds may restrain the market growth

Some of the polycyclic aromatic compounds are carcinogenic and causes several hazardous ill effects by consuming, eating certain foods such as chargrilled meat or smoked fish which contain aromatic compounds. Animal experiments done by National Toxicology Program have shown that certain polycyclic aromatic compounds cause damage to the immune and reproductive systems.

COVID-19 Impact Analysis on Aromatic Compounds Market Growth

The global aromatic compounds market has shown slight declination due to theCovid-19  pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further, the growth of the textile & apparel was also declined due to low demand and several leading players have stopped the construction projects of chemical plants from Feb to June 2020.

For instance, on 10th April 2020, Petrochemical companies plant constructions slow down as pandemic threatens workforce due to concern about the virus spreading in construction sites. For instance in between Feb to June, on March 27, 2020, Nova Chemicals have stopped the new polyethylene (PE) facility plant construction workforce by 90%. Further on 18th March 2020, Shells suspended the construction of polymers plant in Pennsylvania due to the Covid-19 pandemic. Also on 6th June 2020, Formosa suspended glycols plant construction in Texas, United States due to the Covid-19 pandemic.

However, the demand for the aromatic compounds slightly increased in August 2020, as several leading manufacturers started production. The leading manufacturers of the chemicals have planned the investment, merger and acquisition for enhancing the production required in the pharmaceutical industry due to growing demand.

For instance, on 27th Feb 2020, Lasa Supergenerics completed the acquisition of Harishree Aromatics and take over the manufacturing unit along with all other assets and liabilities which will increase market share and Type and services diversification. Further increasing demand for medical devices, pharmaceutical drugs during the covid-19 pandemic created a huge opportunity for the aromatic compounds market. Further demand for aromatic compounds will increase as soon as the pandemic is over.

Aromatic Compounds Market Segment Analysis

The global aromatic compounds are segmented based on type, application, end-user and region.

Rising demand in the automotive sector with the surge in the global sale of passenger vehicles have propelled the polyurethane resins market

In terms of type, the global aromatic compounds bifurcated into Xylene, Toluene and benzene. Further Xylene is bifurcated into m-xylene, p-xylene, and o-xylene.  Benzene segment is divided into cumene, ethylbenzene, cyclohexane, alkylbenzene, chlorobenzene and others. Toluene is segmented into toluene diisocyanate and solvents. Among these, benzene has the highest market share in 2019, owing to rising demand in the demand in the pharmaceutical manufacturing facilities with the growing launching of new drugs and medicines for several diseases.

For instance, in 2019, there were around 48 new drug medicines launched and approved by the Food and Drug Administration of the United States which made it a highly productive year for the pharmaceutical industry, with cancer and rare-disease drugs having the highest demand. Thus benzene type of aromatic compounds plays a vital role in the formation of such new drugs in the pharmaceutical industries.

Increasing eco-friendly chemicals demand and launching of new coatings  with the surge in construction industry demand have propelled the demand for additive segmental growth for this  market

Based on the application, the global aromatic compounds market is divided into additive and solvent. Among these, the additive segment has the highest market share in 2019, this is primarily due to a surge in demand by the chemicals manufacturing industries due to the rising expansion of production capacity of chemicals as well as a surge in the launching of new coatings for the construction industry. For instance, in 2018, Covestro, one of the world’s largest polymer manufacturers launched a wide range of smart and sustainable polyurethane (PU) coatings for the construction, footwear, automobile,  and furniture industries at the Paint India 2018 exhibition.

Industrialization and urbanization with the growing building and construction sector around the globe have propelled the paints & coatings segmental growth

In terms of the end-user, the global aromatic compound market is divided into Xylene, Toluene and Benzene. Xylenes end-user segmented into includes Packaging, Clothing, Paint & Coatings, Tire PVC Pipes & cables and others. Toluene end-user segmented into consists of gasoline, tire pharmaceuticals, cosmetics, household goods, paints and coatings and others. Benzene end-user segmented into includes packaging, detergent & dyes, automobile, electronics & household goods, medical devices, pharmaceuticals, cosmetics and others.  . Among this, paints & coatings segment has the highest market share in 2019, this is primarily due to surge in demand by construction sector due to growing urban population around the globe. For instance, as per our world data in 2018, the global urban population reached around 4.2 billion and is projected to reach 6 billion by 2045. It created a huge demand for the growth of the aromatic compound market require in paint and coating industries with growing urban areas.

Further, increasing manufacturing facilities of the electronics goods, medical devices, automobiles, pharmaceuticals and chemical factories in the developing countries have propelled the demand for the aromatic compound market.

Aromatic Compounds Market Geographical Share

Asia-Pacific region holds the largest market share global aromatic compounds Market

Asia-Pacific region is dominating the global aromatic compounds market accounted for the largest market share in 2019, due to the presence of several manufacturing companies related to the paints and coatings, electronics, automotive as well as chemicals, growing industrialization and rising investment by the leading players in this region followed by North America and Europe.

Further increasing demand in the paint and coating industries with the surge in production and growing construction sector has propelled the aromatic compounds market in this region. For instance, as per the American Coating Association Organization, between the years 2013–2018, paints and coatings revenues from the Asia-Pacific region increased fromUS$ 56.2 billion to US$ 74.2 billion representing 18.5 billion litres and 23.7 billion litres, respectively. It created a huge demand for the aromatic compounds used in these industries.

Similarly, North America is also the fastest-growing region for the growth of the aromatic compounds market due to growing paint and coating industries, presence of several leading manufacturing facilities related to the pharmaceutical and chemical industries. For instance, as per the paint organization, the United States consists of more than 1000 companies of the paint and coating industry which accounted for around US$28 billion to the United State industry in 2018. It created a massive demand for the aromatic compounds require in this region followed by Europe.

Aromatic Compounds Companies and Competitive Landscape

The aromatic compounds market is moderately competitive with the presence of local as well as global companies.  Some of the key players which are contributing to the growth of the market include Reliance Industries Limited, Formosa Plastics Corporation, Honeywell International Inc., ENEOS Corporation, Shell Chemicals, Exxon Mobil Corporation, Total, CB&I, Koch Industries, Inc, SABIC, INEOS, Chevron Phillips Chemical Company, Caltex Corporation, Toray Industries, Inc, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., Saudi Basic Industries Corporation and among others.

The major players are adopting several growth strategies such as Type launches, acquisitions, and collaborations, which are contributing to the growth of the Aromatic Compounds Market globally.  For instance, on 25th Sept 2020, AkzoNobel has increased the production capacity of the powder coatings at the Italian site.

The Company planned to invest around 23 million to increase the production capacity of automotive and building coatings. It created a huge demand for the aromatic compounds used in the coating industry for enhancing the properties. Further on 23rd Nov 2020, Sabic expanded its portfolio of CYCOLOY and LEXAN resins post-consumer recycled engineering thermoplastics for consumer electronics and other applications.

Further in 2019, AkzoNobel coatings manufacturer expanded its coating production capacity in the groundbreaking of a 500,000-square-foot that is in the 37-acre with an investment of around US$ 55 million. It includes expansion of its wood coating, stains, lacquers, ultraviolet finishes, solvent-based paint, and water-based finishes. It created a massive demand for the aromatic compound used in the formation of resins at manufacturing facilities.

Chevron Phillips Chemical Company LLC:

Overview: Chevron Phillips Chemical Company LLC, is a manufacturer of olefins and polyolefins and a leading supplier of aromatics, speciality chemicals, alpha olefins, styrenics plastic piping and polymer resins. The company has approximately 5,000 employees, and it has 33 manufacturing plants and research facilities in seven countries.

Product Portfolio: The company has a product portfolio of aromatic compounds includes:  Benzene, Cyclohexane and Styrene

• Benzene: Benzene is an industrial chemical that has many commercial uses, and demand continues to grow despite increasing restrictions and environmental regulations. The creation of styrene monomer is the largest use of benzene, followed by cumene/phenol, cyclohexane, and nitrobenzene. Those derivatives are used to produce a wide range of plastics, fibres, resins and films
• Cyclohexane: It is used for the production of intermediates for nylon, which has a variety of common applications such as clothing, tents and carpets as well as thermoplastics. Cyclohexane is also used as a solvent in chemical and industrial processes
  • Features: Coil coating provides beautiful topcoats, durable surfaces, innovative applications, green benefits, and cost savings as compared to other substrates and other coating options

Key Development:

• On 2nd April 2019, Chevron Phillips Chemical Company has planned the expansion of its world-scale 1-Hexene unit, as per hydrocarbon processing. The new Hexene unit would augment the production of normal alpha olefins (NAO) with the brand name Alpha Plus. It is used extensively used in the production of polyethylene, plasticizers, synthetic motor oils, lubricants, automotive additives, surfactants, paper and multiple other speciality products. It created a huge demand for the aromatic compound market in the industry
• On 12th March 2018, Chevron Phillips Chemical Company LLC launched new feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas, United States. The unit capacity increased to 1.5 million metric tons/3.3 billion lbs per year. This unit will be one of the largest and most energy-efficient crackers in the world which created a huge demand for the aromatic compounds used in the manufacturing of the crackers.