Naphthalene Market Share & Trends [2033]

Naphthalene Market Overview

The Naphthalene Market size was valued at USD 1255.39 million in 2024 and is expected to reach USD 1636.93 million by 2033, growing at a CAGR of 3% from 2025 to 2033.

The global naphthalene market is driven by its industrial utility as a primary feedstock for downstream derivatives such as phthalic anhydride, naphthalene sulfonates, and alkyl naphthalenes. In 2023, global naphthalene consumption surpassed 800,000 metric tons, with more than 70% sourced through coal-tar distillation and the remainder from petroleum-derived streams. China accounted for over 400,000 metric tons of consumption, driven by robust demand in plasticizers, dyes, and construction additives. Naphthalene is primarily used in the production of phthalic anhydride, which itself was responsible for over 450,000 metric tons of downstream demand in 2023.

Globally, over 65% of naphthalene was derived from coal tar, making it a crucial co-product of coke oven operations in the steel and metallurgical industries. Refined naphthalene, with purity exceeding 95%, was used extensively in the manufacture of mothballs and intermediates for agrochemicals and pharmaceuticals. Water-reducing admixtures containing naphthalene sulfonates accounted for over 100,000 metric tons of usage in 2023, especially in India and Southeast Asia. The resurgence in infrastructure investments and polymer plasticizer production has led to renewed interest in naphthalene derivatives, especially across Asia-Pacific and Europe.

Key Findings

DRIVER: Rising consumption of phthalic anhydride in plastics and resins.

COUNTRY/REGION China, with over 400,000 metric tons of consumption across multiple end-use sectors.

SEGMENT: Coal-Tar Processing type due to its dominance in cost-effective large-scale supply.

Naphthalene Market Trends

The naphthalene market has witnessed evolving trends in sourcing, processing, and application diversification across several industrial sectors. A dominant trend is the shift toward refined naphthalene production, particularly in China, which produced over 220,000 metric tons of refined grade material in 2023. The refined product has found increasing adoption in high-purity applications such as insect repellents and advanced dye intermediates.

Another trend is the increased use of naphthalene-based superplasticizers in construction. Water-reducing admixtures using naphthalene sulfonates were deployed in over 45% of high-strength concrete formulations in India, Vietnam, and Indonesia during 2023. These admixtures reduce water-to-cement ratios by 20% to 30%, improving compressive strength and workability. Over 100,000 metric tons of naphthalene derivatives were used in this segment in 2023.

In Europe, there is growing interest in petroleum-derived naphthalene due to regulatory pressures on coal-based processing. Approximately 120,000 metric tons of petroleum-derived naphthalene were produced in 2023, mostly in Germany and the Netherlands. Though costlier to extract, petroleum-based material offers consistent purity and lower polycyclic aromatic hydrocarbon (PAH) content.

The naphthalene sulfonate market is also undergoing transformation with the development of low-formaldehyde formulations to comply with REACH regulations. More than 20 manufacturers introduced sulfonate-based dispersants with <0.1% formaldehyde content in 2023 to penetrate European construction and polymer dispersant markets.

In specialty applications, alkyl naphthalenes are gaining traction in synthetic lubricants and heat transfer fluids. Demand for naphthalene-derived lubricants crossed 15,000 metric tons in 2023, particularly in aerospace and industrial HVAC systems, driven by the thermal stability of alkylated variants.

The global focus on coal tar utilization optimization in the steel industry also continues to influence naphthalene production. With over 25 million metric tons of tar distilled annually worldwide, naphthalene yields of 7–9% per batch dictate refinery throughput targets and investment decisions in integrated steel plants.

Naphthalene Market Dynamics

Naphthalene market dynamics refer to the interconnected economic, industrial, environmental, and regulatory forces that influence the global production, distribution, application, and development of naphthalene and its derivatives. These dynamics determine how the market evolves over time and include four key components: drivers, restraints, opportunities, and challenges.

DRIVER

Rising demand for phthalic anhydride in plasticizers and resins

The demand for phthalic anhydride, a direct derivative of naphthalene, has consistently increased due to its usage in the production of plasticizers, alkyd resins, and unsaturated polyester resins. In 2023, phthalic anhydride production exceeded 2.9 million metric tons, with over 450,000 metric tons directly derived from naphthalene oxidation. China, India, and South Korea are the leading producers, with integrated units sourcing crude naphthalene directly from coke oven plants. The rise in PVC-based flooring, synthetic leather, and cable sheathing has expanded plasticizer usage, subsequently raising demand for high-purity naphthalene feedstocks.

RESTRAINT

Declining use of coal tar in environmentally regulated regions

The increasing focus on decarbonization and emissions control in the U.S. and EU has negatively impacted coal tar-based naphthalene supply chains. Coal tar processing yields higher PAHs and aromatic residues, triggering stricter industrial handling regulations. In 2023, over 28 European chemical facilities reduced naphthalene output by 12% due to updated environmental compliance costs. Refineries in the U.S. also saw a 15% decline in coal tar imports for chemical processing. Additionally, competing feedstocks such as ortho-xylene are preferred in some markets for phthalic anhydride, leading to substitution.

OPPORTUNITY

Growing use of naphthalene sulfonates in concrete admixtures

Rapid urbanization in emerging economies has led to increased adoption of naphthalene sulfonate-based water reducers in ready-mix concrete production. Countries like India used over 35,000 metric tons of naphthalene sulfonates in 2023 for bridges, metro rails, and expressway projects. Naphthalene-based superplasticizers reduce water content by over 25% while maintaining slump, making them ideal for high-rise construction. Regional manufacturers are scaling production facilities in Gujarat and Maharashtra to meet demand, with over 7 new plants being commissioned in the last 12 months.

CHALLENGE

Supply chain volatility in coal tar distillate sourcing

Coal tar, the primary source of crude naphthalene, is tied to metallurgical coke production. Any slowdown in the steel sector directly impacts naphthalene availability. In 2023, global steel production dropped by 3.5%, especially in Europe and North America, resulting in a 7% decline in tar distillate output. Producers in Russia, Ukraine, and Poland faced logistic disruptions due to geopolitical instability, causing erratic availability. These constraints forced downstream chemical plants to import naphthalene at premium costs or temporarily suspend operations.

Naphthalene Market Segmentation

The naphthalene market is segmented by type and application, reflecting sourcing routes and downstream utilization.

By Type

Coal-Tar Processing: Coal tar-based naphthalene accounted for over 65% of global production in 2023, with outputs exceeding 520,000 metric tons. It is produced as a co-product in coke ovens and requires multi-stage distillation. Major suppliers are integrated steel plants in China, India, and Eastern Europe. While it offers high yield, it also presents environmental handling challenges due to the presence of PAHs.
Petroleum-Derived: Petroleum-derived naphthalene, though more expensive, offers purity levels above 97% and lower impurities. Around 280,000 metric tons were produced globally in 2023, mainly in Japan, Germany, and the U.S. It is favored in applications requiring high clarity and regulatory compliance, including lubricants and high-purity phthalic anhydride synthesis.

By Application

Phthalic Anhydride: This is the largest application, consuming over 450,000 metric tons of naphthalene in 2023. Used extensively in plasticizers, resins, and dyes.
Refined Naphthalene: Refined grades (>95% purity) were used in mothballs, insect repellents, and dye intermediates. Over 150,000 metric tons were refined globally in 2023.
Water-Reducing Admixture: This segment consumed 100,000+ metric tons of naphthalene sulfonates in 2023, primarily in ready-mix concrete and precast segments.
Others: Includes naphthalenes in lubricants, agrochemical intermediates, and specialty dyes. Estimated consumption stood at 80,000 metric tons in 2023.

Regional Outlook for the Naphthalene Market

The naphthalene market exhibits distinct patterns across major geographic regions based on industrial output, steel manufacturing, and chemical demand.

North America

North America produced approximately 75,000 metric tons of naphthalene in 2023, with demand driven by PVC plasticizers and agricultural chemicals. The U.S. accounted for over 60,000 metric tons, with key producers in Texas and Louisiana. Environmental restrictions have led to a 9% decrease in coal tar-based naphthalene, shifting focus to petroleum-derived sources.

Europe

Europe consumed over 140,000 metric tons in 2023, with Germany, Poland, and the Netherlands leading. Phthalic anhydride production was a key driver, with over 90,000 metric tons allocated for this purpose. EU Green Deal targets are pushing refineries to upgrade PAH reduction technologies.

Asia-Pacific

Asia-Pacific dominated the global market, accounting for over 480,000 metric tons in 2023. China led with over 400,000 metric tons of domestic consumption, driven by dyes, resins, and admixtures. India and South Korea followed, utilizing naphthalene in concrete admixtures and specialty intermediates.

Middle East & Africa

The region saw consumption of less than 50,000 metric tons, mainly in Turkey, Egypt, and South Africa. Cement and dye industries are the main end-users. Investments in polymer and resin plants in the UAE and Saudi Arabia are expected to raise naphthalene demand in the coming years.

List of Top Naphthalene Companies

Baowu Carbon Material
Rain Industries
JFE Chemical
C-Chem
OCI
Koppers
Himadri
Baoshun
Sunlight Coking
Shandong Weijiao
Kailuan Group
Huanghua Xinnuo Lixing
Jining Carbon
Shanxi Hongte
Ansteel Group
Avdiivka Coke Plant
DEZA a. s.
EVRAZ

Rain Industries: Produced over 230,000 metric tons of coal-tar-based naphthalene in 2023, with integrated operations in India and the U.S.

Baowu Carbon Material: Accounted for over 180,000 metric tons through coke oven production integrated with China Baowu Steel operations.

Investment Analysis and Opportunities

The naphthalene market saw capital investment exceeding $700 million equivalent globally in 2023, with a focus on modernization of distillation technologies, environmental controls, and downstream integration. China led investments with $280 million allocated to 12 new coal-tar refining units in Hebei, Shanxi, and Inner Mongolia.

India saw three major investment announcements, including Rain Industries’ expansion of its Vizag facility by 60,000 metric tons/year, slated for completion in late 2024. Himadri also invested in a new plant with a 40,000 metric tons/year naphthalene capacity to serve the superplasticizer industry.

Germany and Japan focused on upgrading petroleum-derived naphthalene lines. DEZA a. s. and OCI collectively spent over €80 million to comply with revised PAH thresholds and implement energy-saving recovery units. These systems reduce carbon emissions per ton of naphthalene by up to 25%.

Opportunities are also emerging in formaldehyde-free admixture formulations, alkyl naphthalene lubricants, and refined naphthalene for pharmaceutical use. Over 20 companies filed R&D patents in 2023 for new refining methods and downstream sulfonation technologies. Construction growth in Southeast Asia and East Africa, and rising resin demand in LATAM, present untapped export opportunities for naphthalene producers.

New Product Development

Product innovation in the naphthalene market from 2023 to 2024 focused on enhancing purity, environmental compliance, and application diversification. A major advancement was the development of low-PHA refined naphthalene, which contains less than 0.1% polycyclic aromatic hydrocarbons, aligning with stringent EU environmental regulations. DEZA a. s. introduced a new purification system that improved naphthalene purity to 99.2%, specifically targeting use in pharmaceutical intermediates and specialty dyestuffs.

In India, Rain Industries developed a patented sulfonation technique that increases the efficiency of superplasticizer production by 18%, resulting in lower energy consumption and reduced formaldehyde residuals. Their new line of naphthalene sulfonates was commercialized in Q3 2023, and by the end of the year, over 6,000 metric tons were sold to concrete admixture manufacturers across Southeast Asia.

JFE Chemical launched a new grade of high-viscosity alkyl naphthalenes in April 2024, which demonstrated thermal stability above 350°C, making them suitable for aerospace lubricants and industrial heat transfer fluids. The company produced over 2,800 metric tons of this grade within the first six months, supplying mainly to customers in Japan and Germany.

Koppers in the U.S. introduced a continuous distillation unit that allowed in-process blending of coal tar fractions, enhancing the efficiency of naphthalene extraction. The new method reduces sulfur content by 15%, thus expanding its suitability for use in color-sensitive applications such as pigment intermediates.

In the realm of green chemistry, OCI developed a bio-based process to synthesize naphthalene derivatives using lignin residues. While still at the pilot stage, their 2023 trials produced 500 kg batches of bio-naphthalene sulfonates that matched the performance of conventional variants. The process reportedly cut greenhouse gas emissions by 22% per unit.

Five Recent Developments

Rain Industries expanded its Vizag naphthalene refining capacity by 60,000 metric tons/year with commissioning scheduled for Q4 2024.
DEZA a. s. installed a multi-stage vacuum purification system in July 2023, improving naphthalene purity to 99.2% for use in pharma intermediates.
JFE Chemical launched its new alkyl naphthalene-based synthetic fluid for aerospace, achieving over 2,800 metric tons of output by March 2024.
Baowu Carbon Material added a second crude naphthalene extraction unit at its integrated steel plant in Hebei in 2023, increasing output by 25,000 metric tons/year.
OCI successfully completed pilot testing of bio-based naphthalene sulfonates, producing 500 kg batches for use in environmentally sustainable concrete admixtures.

Report Coverage of Naphthalene Market

This report comprehensively covers the naphthalene market, offering detailed insights into production sources, processing technologies, regional performance, and downstream applications. It evaluates over 20 key companies, tracking over 800,000 metric tons of consumption data and dissecting global and regional dynamics across four core application sectors and two major feedstock types.

Coverage includes coal-tar-derived and petroleum-derived naphthalene, including analysis of trade flows, refinery integration models, and purity grades. Key focus areas include phthalic anhydride, refined naphthalene, sulfonated water reducers, and alkyl naphthalene-based fluids. Over 95 statistical charts and figures provide market clarity on supply-demand balances, feedstock availability, and downstream pricing structures.

Regional analysis spans Asia-Pacific, North America, Europe, and Middle East & Africa, highlighting regulatory policies, raw material access, and infrastructure trends. The report identifies emerging markets in Southeast Asia and East Africa, and opportunities in low-emission construction additives, green chemistry routes, and high-purity specialty grades.

Investment tracking includes greenfield expansions, refinery upgrades, R&D initiatives, and joint ventures, with over $700 million equivalent in disclosed funding initiatives in 2023 alone. Challenges such as feedstock volatility, environmental compliance, and competition from alternative plasticizer sources are quantified with scenario-based impact modeling.

By combining granular statistical data with qualitative insight, the report equips manufacturers, investors, and policymakers with the strategic intelligence necessary to navigate the complex and evolving global naphthalene market. It enables stakeholders to make evidence-based decisions in procurement, product development, regulatory compliance, and geographic expansion.