The Naphthalene Market is estimated to be valued at USD 2.9 billion in 2025 and is projected to reach USD 4.0 billion by 2035, registering a compound annual growth rate (CAGR) of 3.3% over the forecast period. This growth is driven by the increasing demand for naphthalene in various applications, such as the production of plasticizers, surfactants, and solvents. Additionally, its use in the textile and manufacturing industries for applications like mothproofing and dyes is expected to support this early-phase growth.
The second half (2030–2035) will contribute USD 0.5 billion, representing 50% of the total growth, reflecting continued demand from key industries, including the production of chemicals, plastics, and industrial goods. Annual increments will rise from USD 0.1 billion in the early years to USD 0.2 billion by 2035, as emerging market demands and innovations in naphthalene applications drive stronger momentum. Manufacturers focusing on improving efficiency and expanding production capacity will capture the largest share of this USD 1 billion opportunity.
| Metric | Value |
|---|---|
| Naphthalene Market Estimated Value in (2025 E) | USD 2.9 billion |
| Naphthalene Market Forecast Value in (2035 F) | USD 4.0 billion |
| Forecast CAGR (2025 to 2035) | 3.3% |
The naphthalene market is experiencing stable growth driven by rising demand in downstream chemical manufacturing, especially in the production of plasticizers, resins, and agrochemicals. A resurgence in construction and automotive activities is supporting consumption of phthalic anhydride, one of the key derivatives of naphthalene, thereby influencing upstream market dynamics.
Technological advancements in coal tar distillation and cleaner extraction processes are improving yield and reducing environmental impact, making coal tar a dominant source. Additionally, environmental regulations are pushing the development of more efficient refining techniques that enhance the purity and safety of naphthalene-based compounds.
Market players are also investing in supply chain optimization and backward integration to mitigate raw material volatility. As demand for high performance chemicals grows across industrial and infrastructural sectors, the market is expected to maintain steady progression backed by structural shifts in material sourcing and application-specific customization.
The naphthalene market is segmented by source, form, application, and geographic regions. By source, the naphthalene market is divided into Coal Tar and Petroleum. In terms of form, the naphthalene market is classified into Refined Naphthalene, Alkyl Naphthalene, Naphthalene Solid, and Other. Based on application, the naphthalene market is segmented into Phthalic Anhydride, Naphthalene Sulfonates, Low-Volatility Solvents, Moth Repellent, Pesticides, and Other Applications (dyes, pigments). Regionally, the naphthalene industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The coal tar segment is projected to contribute 63.20% of the total revenue by 2025 under the source category, making it the dominant feedstock. This leadership is attributed to coal tar’s high naphthalene yield, cost efficiency, and widespread availability as a byproduct of coke oven operations in steel manufacturing.
Its established supply infrastructure and favorable economics compared to petroleum-based alternatives have further supported its use in industrial production. Additionally, technological advancements in coal tar distillation have improved extraction efficiency and product quality, enabling broader applications across various chemical synthesis processes.
As a result, the coal tar source remains the primary contributor to overall market growth.
Refined naphthalene is expected to account for 47.50% of the total market revenue by 2025 under the form category, establishing it as the leading form. This preference is driven by increasing demand for high-purity inputs in specialty chemical applications including dyes, phthalic anhydride, and resins.
The ability of refined grades to meet stringent performance and regulatory standards makes them more suitable for use in pharmaceutical intermediates and high-value industrial processes. Furthermore, improvements in purification technologies and growing awareness around product quality among end users have supported this shift toward refined variants.
These advantages continue to reinforce its share across global markets.
The phthalic anhydride segment is set to contribute 53.90% of total market revenue by 2025 within the application category, positioning it as the dominant end use. This is due to its extensive use in plasticizers, unsaturated polyester resins, and alkyd resins, which are integral to construction, automotive, and consumer goods industries.
Naphthalene serves as a key raw material for phthalic anhydride production due to its favorable chemical structure and reactivity. Demand for durable and high-performance polymers is further fueling consumption in this segment.
The continuous growth in global infrastructure projects and urban development initiatives ensures steady demand, solidifying phthalic anhydride’s position as the leading application for naphthalene.
The naphthalene market is driven by rising demand from industrial applications and opportunities in expanding chemical manufacturing and pharmaceuticals. Emerging trends such as the shift toward eco-friendly alternatives and regulatory changes are reshaping the market, while challenges from environmental concerns and regulatory barriers continue to present obstacles. By 2025, overcoming these challenges through cleaner production methods and the development of safer alternatives will be critical to maintaining market growth and meeting evolving industry demands.
The naphthalene market is expanding due to the increasing demand from various industrial applications, especially in the production of phthalic anhydride, dyes, and plastics. Naphthalene is also widely used as a moth repellent in households, further contributing to market growth. Additionally, its applications in the production of chemicals for the textile, automotive, and construction industries are driving further expansion. By 2025, the naphthalene market will continue to benefit from its versatility in multiple industrial sectors, driving steady growth in both developed and emerging markets.
Opportunities in the naphthalene market are growing with the expansion of chemical manufacturing and pharmaceutical sectors. Naphthalene is increasingly being utilized in the synthesis of various chemicals such as plasticizers and solvents. The pharmaceutical industry is also finding new uses for naphthalene derivatives in drug formulations and treatments. By 2025, the rising demand from these sectors will offer significant opportunities for growth, as more industries adopt naphthalene-based chemicals for their processes, creating new avenues for market development.
Emerging trends in the naphthalene market include the growing preference for eco-friendly alternatives and evolving regulatory pressures. Environmental concerns regarding the toxicity of naphthalene, particularly its harmful effects on human health and the environment, are leading to the development of safer alternatives. As governments tighten regulations on chemical safety, industries are focusing on research and development to create naphthalene substitutes that are both effective and environmentally friendly. By 2025, these trends will shape the market, as companies seek to comply with environmental standards while maintaining production efficiency.
Despite growth, the naphthalene market faces challenges stemming from environmental concerns and stringent regulatory barriers. Naphthalene is classified as a hazardous substance, and concerns about its health impacts, such as carcinogenicity, are leading to stricter environmental regulations. These regulations, particularly in developed markets, create obstacles for production and use. Additionally, the cost of compliance with these regulations may increase operational costs for manufacturers. By 2025, navigating these challenges will require significant investment in cleaner production technologies and regulatory compliance strategies to sustain market growth.
| Countries | CAGR |
|---|---|
| China | 4.5% |
| India | 4.1% |
| Germany | 3.8% |
| France | 3.5% |
| UK. | 3.1% |
| USA | 2.8% |
| Brazil | 2.5% |
The global naphthalene market is projected to grow at a 3.3% CAGR from 2025 to 2035. China leads with a growth rate of 4.5%, followed by India at 4.1%, and France at 3.5%. The United Kingdom records a growth rate of 3.1%, while the United States shows the slowest growth at 2.8%. These varying growth rates are driven by increasing demand for naphthalene in industrial applications, including plasticizers, dyes, and moth repellents, along with growing investments in naphthalene production technologies. Emerging markets like China and India are experiencing higher growth due to industrialization, rapid urbanization, and rising demand for petrochemicals, while more mature markets like the USA and the UK see steady growth driven by regulatory policies, advancements in chemical manufacturing, and the adoption of naphthalene in niche applications. This report includes insights on 40+ countries; the top markets are shown here for reference.
The naphthalene market in China is growing rapidly, with a projected CAGR of 4.5%. China’s industrial expansion, increasing demand for petrochemicals, and significant investments in the chemical manufacturing sector are driving the demand for naphthalene. The country’s strong focus on petrochemical production and urbanization continues to boost the adoption of naphthalene in various applications, such as plasticizers, dyes, and moth repellents. Additionally, the government’s support for chemical manufacturing industries, coupled with the growing demand for specialty chemicals in construction, automotive, and textile industries, further accelerates the market growth in China.
The naphthalene market in India is projected to grow at a CAGR of 4.1%. India’s rapidly expanding industrial base, coupled with increasing demand for petrochemicals, is driving the demand for naphthalene. The country’s focus on improving infrastructure and industrialization continues to contribute to market growth. Additionally, the increasing use of naphthalene in industries like textiles, automotive, and construction, along with its role as a plasticizer in manufacturing processes, supports the market’s expansion. India’s growing middle class and the rising demand for consumer goods further contribute to the rising demand for naphthalene in industrial applications.
The naphthalene market in France is projected to grow at a CAGR of 3.5%. France’s demand for naphthalene is driven by the increasing use of specialty chemicals in industrial applications such as plastics, automotive, and textiles. The country’s commitment to improving manufacturing efficiency and reducing carbon emissions further contributes to the adoption of naphthalene in various production processes. Additionally, France’s focus on innovation in chemical manufacturing and the growing demand for eco-friendly solutions in industries such as construction and packaging continue to boost the market. Regulatory frameworks promoting sustainable chemical manufacturing contribute to the steady growth of the naphthalene market.
The naphthalene market in the United Kingdom is projected to grow at a CAGR of 3.1%. The UKs steady demand for naphthalene is driven by the increasing use of naphthalene in chemical manufacturing, particularly in applications such as plasticizers, dyes, and moth repellents. The country’s emphasis on energy-efficient manufacturing processes and sustainability is contributing to the adoption of naphthalene in various industries. Additionally, the UK’s growing focus on reducing carbon emissions and transitioning to sustainable chemical manufacturing solutions further accelerates the demand for naphthalene. The country’s mature industrial base and ongoing investments in chemical technologies support the growth of the market.
The naphthalene market in the United States is expected to grow at a CAGR of 2.8%. The USA market remains steady, driven by the continued demand for naphthalene in industrial applications, particularly in plastics, dyes, and petrochemicals. The country’s regulatory policies promoting clean manufacturing technologies and the increasing focus on energy efficiency continue to support the adoption of naphthalene in various sectors. Additionally, the USA chemical industry’s ongoing efforts to reduce carbon emissions and improve production processes contribute to market growth. The rising demand for eco-friendly and energy-efficient chemicals also boosts the demand for naphthalene in industrial applications.
The naphthalene market is dominated by ExxonMobil Chemical, which leads with its wide range of naphthalene-based products used in industries such as chemicals, plastics, and automotive. ExxonMobil’s dominance is supported by its extensive production capabilities, strong global presence, and commitment to providing high-quality naphthalene solutions that meet the growing demand for industrial chemicals and manufacturing applications. Key players such as Himadri Specialty Chemical Ltd., Koppers, and PCC Group maintain significant market shares by offering high-performance naphthalene derivatives, such as naphthalene sulfonates, that are used in the production of plasticizers, surfactants, and detergents. These companies focus on improving production efficiency, reducing environmental impact, and enhancing the chemical properties of naphthalene derivatives for diverse applications.
Emerging players like Atom Scientific, CDH Fine Chemical, and Dong-Suh Chemical Ind. Co., Ltd. is expanding its market presence by offering specialized naphthalene products for niche applications such as agrochemicals, dyes, and coatings. Their strategies include focusing on high-quality, sustainable production practices, offering customized solutions, and improving cost-efficiency to meet the evolving demands of the market. Market growth is driven by increasing demand for naphthalene in the automotive, textile, and chemical industries, along with the rise in industrialization and urbanization. Innovations in naphthalene production methods, eco-friendly alternatives, and diverse industrial applications are expected to continue shaping the competitive landscape and drive further growth in the global naphthalene market.
| Item | Value |
|---|---|
| Quantitative Units | USD 2.9 Billion |
| Source | Coal Tar and Petroleum |
| Form | Refined naphthalene, Alkyl naphthalene, Naphthalene solid, and Other |
| Application | Phthalic Anhydride, Naphthalene Sulfonates, Low-Volatility Solvents, Moth Repellent, Pesticides, and Other Applications (dyes, pigments) |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | Atom Scientific, CDH Fine Chemical, China Steel Chemical, Deza, Dong-Suh Chemical Ind. Co., Ltd., ExxonMobil Chemical, Himadri Specialty Chemical Ltd., JFE Chemical Corporation, King Industries, Koppers, PCC Group, Rain Carbon, and Tulstar Products |
| Additional Attributes | Dollar sales by derivative type and application, demand dynamics across construction, textiles, and agriculture sectors, regional trends in naphthalene adoption, innovation in low-emission and biodegradable formulations, impact of regulatory standards on safety and environmental concerns, and emerging use cases in renewable energy and sustainable manufacturing. |
The global naphthalene market is estimated to be valued at USD 2.9 billion in 2025.
The market size for the naphthalene market is projected to reach USD 4.0 billion by 2035.
The naphthalene market is expected to grow at a 3.3% CAGR between 2025 and 2035.
The key product types in naphthalene market are coal tar and petroleum.
In terms of form, refined naphthalene segment to command 47.5% share in the naphthalene market in 2025.
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