Benzene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Benzene Market is segmented by Derivative (Ethylbenzene, Cumene, Alkylbenzene, Aniline, Chlorobenzene, Cyclohexane, Maleic Anhydride, and Other Derivatives) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Benzene Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >3 %
Benzene Market Key Players

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Market Overview

The benzene market size was estimated at over 50 million ton in 2020, and the market is projected to register a CAGR of over 3% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Automotive manufacturing units were on a temporary halt owing to the pandemic scenario, which minimized the demand for products like nylon tires, injection-molded vehicle parts, foam seatings, and paints, which are made from benzene-derived intermediates like nylon, styrene, and phenol resins, thus, creating a negative impact on the market demand. However, demand for the 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, has increased in food and e-commerce applications, which, in turn, has stimulated the market demand for benzene.

  • Over the short term, increasing demand for styrene polymers from various end-user industries such as textile, packaging, building and construction, etc., is expected to drive the market’s growth. In developed countries, the construction sector is mature compared to the one in developing economies, and it is growing drastically, fueled by the growing population and increasing urbanization in these countries. By 2021, China and India are projected to account for around 40% of the global construction industry.
  • Detrimental effects of benzene exposure are likely to hinder the growth of the market studied.
  • 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 is also likely to witness the highest CAGR during the forecast period.

Scope of the Report

Benzene is an organic compound with the molecular formula C6H6. It is a clear, colorless, volatile liquid at room temperature and is considered to be a hazardous and carcinogenic chemical. Benzene is produced from five main sources, including catalytic reforming of naphtha (reforming), conversion of toluene and/or xylenes to benzene (hydrodealkylation), recovery from ethylene plant pyrolysis gasoline (steam cracking), conversion of toluene to benzene (toluene disproportionation), and conversion of toluene and C9/C10 aromatics to benzene and xylenes (trans alkylation). The benzene market is segmented by derivatives and geography. By derivative, the market is segmented into ethylbenzene, cumene, alkylbenzene, aniline, chlorobenzene, cyclohexane, maleic anhydride, and other derivatives. The report also covers the market size and forecasts for the benzene market in 17 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Derivative
Ethylbenzene
Cumene
Alkylbenzene
Aniline
Chlorobenzene
Cyclohexane
Maleic Anhydride
Other Derivatives
Geography
Asia-Pacific
China
India
Japan
South Korea
Australia and New Zealand
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand for Ethylbenzene

  • Ethylbenzene is a highly inflammable colorless liquid with an aromatic odor. It is majorly used in the manufacturing of 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, cassette tape housing, etc.
  • Ethylbenzene and its derivative, like styrene, are used to produce automotive products and materials such as rubber tires and plastic auto parts. As of Q3 2019, about 67.47 million vehicles were produced globally, whereas only 52 million vehicles were produced till Q3 2020 compared to the previous year, registering a decline rate of about 23%, thus witnessing a decrease in demand for ethylbenzene and styrene, which, in turn, has negatively impacted the market growth of benzene.
  • The demand for styrene is continuously growing in the Middle East and Asia-Pacific, owing to increased demand for rubber tires in both regions.
  • China is projected to produce 704 million tires per year by 2025, including 527 million passenger radial tires, 148 million truck/bus radial tires, 29 million bias truck tires, 20,000 extra-large industrial tires, 12 million agricultural tires, and 54,000 aircraft tires. In addition, China will produce 120.7 million motorcycle tires and 420 million bicycle tires annually by 2025.
  • Pyramids Tires started its first tire roll production line in May 2020 in Egypt. However, the factory currently manufactures motorcycles, forklifts, and agricultural tires as part of the first phase of the plant’s development. The second phase, which is scheduled to be completed by the end of 2022, is expected to add passenger car, truck, and off-the-road (OTR) tires to the company portfolio.
  • Apart from 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.
  • The increasing number of applications of styrene, such as in general-purpose polystyrene, EPS, and ABS, have also contributed to the positive trend that is expected to continue.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Benzene Market Revenue Share

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Asia-Pacific Region to Dominate the Market

  • Asia-Pacific presently leads the consumption of benzene with around 50% share of global consumption.
  • This region is also expected to be the fastest-growing market during the forecast period, with increasing markets for end-users like electronics and home appliances, packaging, and construction in China, India, and ASEAN countries.
  • Benzene is widely used in the production of construction industry products like adhesives, paints, flooring, fiberglass, and others. In 2019, the Chinese construction industry was valued at about USD 1092.9 billion and was estimated to reach about USD 1117.42 billion by 2021, with a CAGR of about 1%, which, in turn, stimulates the demand for the benzene market.
  • Benzene is used to prepare intermediates like nylon, styrene, and phenol resins, which are further processed to produce products of the automotive industry, such as nylon tires, seating foam, and others. Up to Q3 of 2019, China produced 18.17 million vehicles and reached 16.96 million vehicles up to Q3 of 2020, registering a decline rate of about 6.66%, which, in turn, negatively affects the market growth for benzene.
  • The growth of these end-user industries, especially in emerging markets, like China, India is propelling the growth of styrene, which in turn is responsible for growth in the usage of benzene, as it is one of the key raw materials for styrene production.
  • Furthermore, the declining automotive industry, along with the temporary closure of automotive and construction activities, owing to the pandemic scenario, had led to a decrease in the demand for the materials made up of benzene and its derivative.
  • However, considering the post-pandemic scenario, end-user industries, such as construction, are picking up the pace in this region and are estimated to drive the regional market's demand for benzene.
Benzene Market Growth By Region

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Competitive Landscape

The benzene market is consolidated in nature. Some of the major players in the market include BASF SE, Chevron Phillips Chemical Company LLC, Exxon Mobil Corporation, Royal Dutch Shell PLC, and LG Chem, among others.

Recent Developments

  • In February 2021, Hengyi Petrochemical planned to construct a benzene plant to increase the annual capacity from 500 kiloton to 800 kiloton under its refining and petrochemical expansion project in Pulau Muara Besar of Brunei to further strengthening its petrochemical business.
  • In March 2020, SIBUR planned to rebuild its benzene separation plant with the introduction of an extractive distillation unit at its Kstovo site in Russia, which will allow for the separation of non-aromatic hydrocarbons as a product and increase the productivity of the facility.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Styrene Polymers from Various End-user Industries

      2. 4.1.2 Increasing Demand for Polyester

    2. 4.2 Restraints

      1. 4.2.1 Detrimental Effects of Benzene Exposure

      2. 4.2.2 Unfavorable Conditions Arising due to the Impact of COVID-19

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Feedstock Analysis and Trends

    6. 4.6 Technological Snapshot

    7. 4.7 Trade Analysis

    8. 4.8 Price Trends

    9. 4.9 Supply Scenario

    10. 4.10 Upcoming Projects

    11. 4.11 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Derivative

      1. 5.1.1 Ethylbenzene

      2. 5.1.2 Cumene

      3. 5.1.3 Alkylbenzene

      4. 5.1.4 Aniline

      5. 5.1.5 Chlorobenzene

      6. 5.1.6 Cyclohexane

      7. 5.1.7 Maleic Anhydride

      8. 5.1.8 Other Derivatives

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Australia and New Zealand

        6. 5.2.1.6 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Russia

        6. 5.2.3.6 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 BASF SE

      2. 6.4.2 Braskem

      3. 6.4.3 Chevron Phillips Chemical Company LLC

      4. 6.4.4 China Petroleum & Chemical Corporation

      5. 6.4.5 CPC Corporation

      6. 6.4.6 Eastman Chemical Company

      7. 6.4.7 ENEOS Corporation

      8. 6.4.8 Exxon Mobil Corporation

      9. 6.4.9 Flint Hills Resources

      10. 6.4.10 Hengyi Industries Sdn Bhd

      11. 6.4.11 INEOS

      12. 6.4.12 LG Chem

      13. 6.4.13 LyondellBasell Industries Holdings BV

      14. 6.4.14 Marathon Petroleum Company

      15. 6.4.15 Maruzen Petrochemical

      16. 6.4.16 Mitsubishi Chemical Corporation

      17. 6.4.17 Reliance Industries Limited

      18. 6.4.18 Royal Dutch Shell PLC

      19. 6.4.19 SABIC

      20. 6.4.20 SIBUR

      21. 6.4.21 SK global chemical Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Downstream Expansion

    2. 7.2 Others

**Subject to Availability

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Frequently Asked Questions

The Benzene Market market is studied from 2016 - 2026.

The Benzene Market is growing at a CAGR of >3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

BASF SE, Chevron Phillips Chemical Company LLC, Exxon Mobil Corporation, Royal Dutch Shell Plc, LG Chem are the major companies operating in Benzene Market.

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