Asia Pacific Dominated Basic Aromatics Market in 2023
According to our latest market study on "Basic Aromatics Market Forecast to 2031 – Global Analysis – by Type, Form, and Application," the market was valued at US$ 161.59 in 2023 and is projected to reach US$ 259.55 billion by 2031; it is anticipated to record a CAGR of 6.1% from 2023 to 2031. The report highlights key factors driving the basic aromatics market growth and prominent players along with their developments in the market.
In 2023, Asia Pacific accounted for the largest basic aromatics market share. The pharmaceutical industry generates a huge demand for basic aromatics in this region. According to the Invest India report, in terms of pharmaceutical production by volume, the pharmaceutical industry in India ranks third worldwide and was valued at US$ 50 billion in 2023. The region marks the presence of a few of the major pharmaceutical companies such as Pfizer Inc., Eli Lilly and Company, Merck & Co. Inc., The Procter & Gamble Company, and Reckitt Benckiser Group plc. Asia Pacific also marks the presence of major agrochemical producers in India, China, and Japan. According to the World Trade Organization, India was recorded to be the second-largest exporter of agrochemicals in 2022. Basic aromatics, namely benzene and xylene, are used for the production of pesticides. Benzene is also used for the production of rubber, dyes, drugs, and lubricants. p-Xylene is used as a building block chemical for the production of polyethylene terephthalate and polyester plastics. According to the Japan Plastics Industry Federation, in 2022, Japan produced more than 3 million metric tons of plastic products; in terms of weight, plastic film and sheets accounted for a significant share of the total production. Therefore, the growth in the end-use industries is expected to boost the demand for basic aromatics during the forecast period.
Basic Aromatics Market Breakdown – by Region
Basic Aromatics Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Styrene Monomer, Divinylbenzene, Benzene, Toluene, Xylene, Cresol, and Pyridine), End Use (Pharmaceuticals, Pesticides, Agriculture, Food and Beverages, Cosmetics and Personal Care, Paints and Coatings, and Solvents), and Geography
Basic Aromatics Market Growth Insights and Trends (2021-2031)
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China accounts for the largest basic aromatics market share in Asia Pacific. According to the European Chemical Industry Council, the chemical industry in China is one of the largest industries worldwide, valued at ~US$ 2,600 billion in 2022. According to the Information Technology & Innovation Foundation, China accounted for 44% of global chemical production in 2022. Per the National Bureau of Statistics of China, the country is the world's largest producer of plastics; it produced ~7.95 million metric tons of plastic products between August 2020 and August 2021. China has many major plastic and polymer manufacturers; these include Qingdao Xintongda Plastic Products Co Ltd, Suzhou Fansheng Plastic Manufacture Co Ltd, and Dongguan Xinhai Environmental-Friendly Material Co Ltd. Thus, the chemical industry is a major contributor to the basic aromatics market growth in China.
The food & beverages industry in India is witnessing significant growth owing to the increased demand for processed vegetables and fruits, beverages, and dairy products. According to Invest India, the country's food processing industry is anticipated to account for a revenue of US$ 535 billion by 2026. The flourishing food & beverages industry boosts the demand for basic aromatics in India. In addition, according to the India Brand Equity Foundation, the country marks the presence of 30,000 plastic processing units as of 2022, of which 85–90% comprise small and medium enterprises. The government aims to develop 10 plastic parks in the country to boost plastic manufacturing output. Thus, the development of end-use industries such as plastics, chemicals, and petrochemicals in the country boosts the demand for basic aromatics in the country. Further, the pharmaceutical sector is one of India's top ten attractive sectors for foreign investments. The proliferating pharmaceutical industry contributes to the growing basic aromatics market size in India.
Basic Aromatics Market: Trends
The need for increased cost-effectiveness, efficiency, and environmental sustainability drives advancement in the recovery processes of basic aromatics. Techniques such as continuous catalytic reforming have improved yield and stability allowing better recovery rates. The development of new solvents and solvent systems, such as ionic liquids, has improved the selectivity and efficiency of extractive distillation processes. In February 2024, Sulzer Chemtech was awarded a technology license contract to revamp its existing glycol-based aromatics extraction unit. In 2022, Sulzer Chemtech finalized an agreement with Encina Development Group LLC to provide technology to recover high-purity circular aromatics from cracked oil products derived from the mixed-plastics-to-aromatics catalytic conversion platform. Encina has developed a catalytic platform wherein the cracked products selectively contain high levels of circular aromatics. Sulzer Chemtech offers its hydrotreating and aromatics extraction technology to recover high purity circular benzene and toluene. In 2022, GTC Vorro Technology launched BTX Gold Solvent for petrochemical separations. BTX Gold solvents are utilized for benzene, toluene, and xylene recovery from feed, including catalytic reformate, pyrolysis gasoline, coker naphtha, coke oven light oil, FCC gasoline, and straight run naphtha. The integration of advanced sensors, real-time monitoring, and automation is expected to provide better control and optimization of aromatic recovery processes, resulting in high efficiency and low operational costs. Thus, the advancement in recovery processes of basic aromatics is expected to bring new basic aromatics market trends in the coming years.
The Dow Chemical Co, Exxon Mobil Corp, Lanxess AG, Sasol Ltd, Lyondellbasell Industries NV, BASF SE, Nippon Steel Corp, Shell Plc, Ineos Group Holdings SA, and Jubilant Ingrevia Ltd are among the key players profiled in the basic aromatics market report.
Basic Aromatics Market Segmentation:
The basic aromatics market analysis is based on type, end use, and geography. By type, the market is segmented into styrene monomer, divinylbenzene, benzene, toluene, xylene, cresol, and pyridine. In terms of end use, the market is segmented into pharmaceuticals, pesticides, agriculture, food and beverages, cosmetics and personal care, paints and coatings, and solvents. The geographic scope of the basic aromatics market report encompasses North America (US, Canada, and Mexico), Europe (Germany, France, UK, Italy, Russia, and Rest of Europe), Asia Pacific (China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).
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