Naphthalene Derivatives Market Report By Insights, Size, and Growth - 2031

The market for naphthalene derivatives was valued at approximately US$ 3.83 billion in 2023 and is projected to grow to around US$ 5.04 billion by 2031, reflecting an estimated compound annual growth rate (CAGR) of 3.5% during the period from 2023 to 2031.

Naphthalene derivatives find applications across a variety of sectors, including pharmaceuticals, agrochemicals, dyes, resins, textiles, and plastics. China, recognized as a significant emerging economy, serves as a manufacturing powerhouse for numerous industries. According to the National Bureau of Statistics of China, the nation is the leading global producer of plastics, having produced approximately 7.95 million metric tons of plastic products between August 2020 and August 2021. One of the key derivatives of naphthalene, phthalic anhydride, plays a crucial role as an intermediate in the production of plastics and polymers. It is also utilized in the creation of unsaturated polyester resins, which are combined with glass fibers to produce fiberglass-reinforced plastics. Consequently, the thriving plastics sector in China is anticipated to offer significant growth opportunities for the naphthalene derivatives market.

The naphthalene derivatives market can be segmented based on derivative type into categories such as sulfonated naphthalene formaldehyde, phthalic anhydride, naphthalene sulphonic acid, alkyl naphthalene sulfonate salts, and others. In 2023, the phthalic anhydride segment held the largest share of the market. As an anhydride of phthalic acid, phthalic anhydride is essential in the manufacturing of plastics and polymers, polyester resins, plasticizers, dyes, and rubber modifiers. It also has minor roles in the production of alkyd resins used in paints and coatings, insecticides, and urethane polyester polyols. Phthalic anhydride is integral to the creation of unsaturated polyester resins, which are reinforced with glass fibers for use in various industries, including construction, marine, and transportation. Additionally, it serves as a rubber scorch inhibitor and retarder.

The Asia Pacific region is projected to experience the highest CAGR in the global naphthalene derivatives market from 2023 to 2031. A report by Invest India indicates that India?s pharmaceutical sector ranks third globally in terms of production volume, valued at US$ 50 billion in 2023. Furthermore, the Japanese pharmaceutical market, as reported by the Ministry of Health, Labor and Welfare, was valued at US$ 106 billion in 2021. This region is home to several major pharmaceutical companies, including Pfizer Inc., Merck & Co. Inc., and Reckitt Benckiser Group plc. India, China, and Japan are also leading producers of agrochemicals. The World Trade Organization noted that India was the second-largest exporter of agrochemicals in 2022. Naphthalene derivatives, such as 1-naphthyl methylcarbamate, are utilized as insecticides and pesticides.

According to the International Energy Agency, global oil demand saw a rebound in 2021, with Asia expected to account for 77% of this demand by 2025. The continent's oil import needs are projected to exceed 31 million barrels per day by that year. The International Trade Administration estimates that total investments in Chinese infrastructure will reach approximately US$ 4.2 trillion during the 14th Five-Year Plan period (2021-2025). In India, the National Investment Promotion & Facilitation Agency has announced plans to invest around US$ 1.4 trillion in infrastructure by 2025, with significant portions allocated to roads, urban infrastructure, and railways. As a result, the growth of the pharmaceuticals, agrochemicals, and construction sectors is expected to significantly enhance the naphthalene derivatives market in the Asia Pacific region.

Key players in the global naphthalene derivatives market include JFE Holdings Inc., Stepan Co., Nouryon Chemicals Holding BV, Merck KGaA, Hefei TNJ Chemical Industry Co., Ltd., Himadri Speciality Chemical Ltd., Chempro Group, Methanol Chemicals Co., MUHU (China) Construction Materials Co., Ltd., PCC SE, Rain Industries Ltd., King Industries, Inc., MP Biomedicals, Shandong Jufu Chemical Technology Co., Ltd., and Nan Ya Plastics Corp. These companies are focused on delivering high-quality products to meet customer demands and are actively engaged in launching innovative and superior products.

The overall size of the global naphthalene derivatives market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants to validate the findings and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the naphthalene derivatives market.