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 halts in the automotive manufacturing units 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 negatively impacting the market demand. However, the demand for 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, increased in food and e-commerce applications, which, in turn, has boosted the market demand for benzene.

· Over the short term, increasing demand for styrene polymers from various end-user industries such as textile, packaging, and building and construction, is expected to drive the market’s growth.

· Detrimental effects of benzene exposure may hinder the market’s growth.

· 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 register the highest CAGR during the forecast period.

Key Market Trends

Increasing Demand for Ethylbenzene

• Ethylbenzene is a highly flammable colorless liquid with an aromatic odor. It is majorly used to manufacture 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, and cassette tape housing.
• China exported more than 60,000 MT of styrene in Q1 2021, 160% higher than the country’s total styrene exports of 27,020 MT over 2020, registering a huge demand in the world and augmenting the benzene market.
• According to the Chemical and Petrochemicals Manufacturers Association, India (CPMAI), styrene imports in India stood at 799 kiloton in FY2020-21, and the consumption is likely to increase as per the rising demand in the country.
• The demand for styrene is continuously growing due to an increased demand for rubber tires in both countries. According to the National Bureau of Statistics of China, the country's tire production reached 807.47 million units in 2020. It is further expected to increase in the upcoming years.
• Besides 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, thus boosting the benzene market in the coming years.

Asia-Pacific to Dominate the Market

• Asia-Pacific presently leads benzene consumption, with around 50% share of global consumption.
• The region is also expected to be the fastest-growing market during the forecast period, with an increasing market for end-users like electronics and home appliances, packaging, and construction in China, India, and ASEAN countries.
• Benzene is widely used to produce construction products like adhesives, paints, flooring, and fiberglass. According to the National Bureau of Statistics of China, in 2021, the country’s construction output was valued at approximately CNY 29.31 trillion, which is likely to boost the demand for benzene in the region.
• In 2021, China's private-sector Hengyi Petrochemical announced its plan to set up a naphtha 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 an annual production capacity of 1400 KT, which is sustaining the domestic demand in India and exports to various countries globally.
• Due to such factors, the demand for benzene from Asia-Pacific is likely to increase during the forecast period.

Competitive Landscape

The benzene market is consolidated in nature. Some of the major players in the market (not in any particular order) include BASF SE, Chevron Phillips Chemical Company LLC, ExxonMobil Corporation, LG Chem, and Shell PLC.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

• 1 INTRODUCTION

  • 1.1 Study Assumptions

  • 1.2 Scope of the Study

• 2 RESEARCH METHODOLOGY

• 3 EXECUTIVE SUMMARY

• 4 MARKET DYNAMICS

  • 4.1 Drivers

    • 4.1.1 Increasing Demand for Styrene Polymers from Various End-user Industries

    • 4.1.2 Other Drivers

  • 4.2 Restraints

    • 4.2.1 Detrimental Effects of Benzene Exposure

    • 4.2.2 Other Restraints

  • 4.3 Industry Value Chain Analysis

  • 4.4 Porter's Five Forces Analysis

    • 4.4.1 Bargaining Power of Suppliers

    • 4.4.2 Bargaining Power of Consumers

    • 4.4.3 Threat of New Entrants

    • 4.4.4 Threat of Substitute Products and Services

    • 4.4.5 Degree of Competition

  • 4.5 Technological Snapshot

  • 4.6 Trade Analysis

  • 4.7 Price Trends

  • 4.8 Regulatory Policy Analysis

• 5 MARKET SEGMENTATION

  • 5.1 Derivative

    • 5.1.1 Ethylbenzene

    • 5.1.2 Cumene

    • 5.1.3 Alkylbenzene

    • 5.1.4 Cyclohexane

    • 5.1.5 Nitrobenzene

    • 5.1.6 Other Derivatives (Aniline, Maleic Anhydride, Etc.)

  • 5.2 Geography

    • 5.2.1 Asia-Pacific

      • 5.2.1.1 China
      • 5.2.1.2 India
      • 5.2.1.3 Japan
      • 5.2.1.4 South Korea
      • 5.2.1.5 Rest of Asia-Pacific

    • 5.2.2 North America

      • 5.2.2.1 United States
      • 5.2.2.2 Canada
      • 5.2.2.3 Mexico

    • 5.2.3 Europe

      • 5.2.3.1 Germany
      • 5.2.3.2 United Kingdom
      • 5.2.3.3 Italy
      • 5.2.3.4 France
      • 5.2.3.5 Russia
      • 5.2.3.6 Rest of Europe

    • 5.2.4 South America

      • 5.2.4.1 Brazil
      • 5.2.4.2 Argentina
      • 5.2.4.3 Rest of South America

    • 5.2.5 Middle-East and Africa

      • 5.2.5.1 Saudi Arabia
      • 5.2.5.2 South Africa
      • 5.2.5.3 Rest of Middle-East and Africa

• 6 COMPETITIVE LANDSCAPE

  • 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

  • 6.2 Market Share Analysis**/Ranking Analysis

  • 6.3 Strategies Adopted by Leading Players

  • 6.4 Company Profiles

    • 6.4.1 BASF SE

    • 6.4.2 Braskem

    • 6.4.3 Chevron Phillips Chemical Company LLC

    • 6.4.4 China Petroleum & Chemical Corporation

    • 6.4.5 Eastman Chemical Company

    • 6.4.6 Exxon Mobil Corporation

    • 6.4.7 Flint Hills Resources

    • 6.4.8 Hengyi Industries Sdn Bhd

    • 6.4.9 INEOS

    • 6.4.10 LG Chem

    • 6.4.11 LyondellBasell Industries Holdings BV

    • 6.4.12 Marathon Petroleum Company

    • 6.4.13 Maruzen Petrochemical

    • 6.4.14 Mitsubishi Chemical Corporation

    • 6.4.15 Reliance Industries Limited

    • 6.4.16 Shell PLC

    • 6.4.17 SABIC

    • 6.4.18 SIBUR

• 7 MARKET OPPORTUNITIES AND FUTURE TRENDS

  • 7.1 Rising Demand for Bio-based Benzene