Toluene Market Set To Grow At 4.54% CAGR Through 2031 Demand For Aromatics And Polyurethane Feedstocks Strengthens, Reports Mordor Intelligence

(MENAFN- GlobeNewsWire - Nasdaq) Global toluene market is projected to reach around 47.43 million tons by 2031, with Asia-Pacific emerging as the largest and fastest-growing region due to strong demand from petrochemicals, paints and coatings, and automotive sectors.

Hyderabad, March 12, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the global toluene market size is projected to increase from 36.33 million tons in 2025 to 37.98 million tons in 2026, reaching 47.43 million tons by 2031, reflecting a CAGR of 4.54% during 2026–2031.

The growth is largely linked to its role as a key aromatic compound used to produce derivatives such as benzene, xylene, and toluene diisocyanate (TDI), which are widely applied in industries including construction, automotive materials, and electronics manufacturing. At the same time, stricter environmental policies are encouraging manufacturers to upgrade production processes to lower VOC emissions and improve energy efficiency, pushing the industry toward more sustainable and integrated supply chains.

Toluene Market Trends and Insights :

Rising Polyurethane Foam Production in Southeast Asia Supporting TDI Demand

Growing manufacturing of flexible polyurethane foam used in furniture, mattresses, and automotive seating is increasing the need for TDI across Southeast Asia. Countries such as Malaysia, Vietnam, and Thailand are witnessing expanding production capacity. Large petrochemical developments, including the RAPID complex by Petronas, are improving the availability of toluene-based intermediates within the region. As refiners aim to extract more value from crude through aromatics production, toluene is becoming an essential feedstock in the regional polyurethane value chain.

Fuel Quality Regulations Increasing Toluene Use in Gasoline Blending

Stricter fuel emission standards in India and China are encouraging refiners to incorporate higher-octane blending components such as toluene. Environmental policies like Bharat Stage VI and China 6 require cleaner and more efficient fuel formulations. Refinery upgrades, including those by Numaligarh Refinery, are helping increase domestic aromatics output, which in turn supports gasoline blending demand and stabilizes regional supply.

Toluene Industry Segmentation Insights :

By Derivative

• Benzene and Xylene

• Gasoline Additives

• Toluene Diisocyanates (TDI)

• Other Derivatives (Benzoic Acid, Trinitrotoluene (TNT), Benzaldehyde)

By Application

• Paints and Coatings

• Adhesives and Inks
  

• Chemical Industry

• Explosives

• Other Applications (Pharmaceuticals, Solvents and Degreasers, Dyes and Pigments)

By End-user Industry

• Automotive

• Construction

• Oil and Gas

• Military and Defense

• Other End-user Industries (Electronics, Consumer Products)

By Geography

• Asia-Pacific

• North America

• Europe

• South America

• Middle East and Africa
  

“Industrial demand for toluene continues to reflect broader activity in chemicals, construction materials, and fuel blending. Research from Mordor Intelligence draws on consistent cross-industry data review and market validation, helping executives interpret shifts with a disciplined, evidence-based perspective.” Says, Himanshu Vasisht, Senior Research Manager, Mordor Intelligence

For a full breakdown of toluene market size, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report:

Toluene Market Share by Region :

The Asia-Pacific remains the central hub for toluene consumption, supported by rapid urban development, infrastructure expansion, and increasing automobile ownership across Southeast and South Asian economies. Countries within Association of Southeast Asian Nations continue to see rising demand for derivatives used in construction materials, coatings, and industrial chemicals, reinforcing the region's role as a major growth driver.

In North America, the toluene industry operates in a relatively mature environment but remains influenced by regulatory shifts. The United States has introduced restrictions on highly toxic solvents, indirectly encouraging the use of toluene in certain industrial formulations. Meanwhile, Europe enforces strict VOC regulations that are limiting traditional solvent demand while simultaneously pushing chemical companies to develop cleaner and more efficient production technologies.

Toluene Companies

• BASF

• Braskem

• Chevron Phillips Chemical Company LLC

• China Petrochemical Corporation

• China National Petroleum Corporation

• CPC Corporation

• Exxon Mobil Corporation

• Formosa Chemicals & Fibre Corp

• Indian Oil Corporation Ltd

• INEOS

• LyondellBasell Industries Holdings B.V.

• Mangalore Refinery and Petrochemicals Limited

• Mitsubishi Chemical Group Corporation

• Mitsui Chemicals Inc

• Reliance Industries Limited

• SABIC

• Shell plc

• SK Innovation Co Ltd
  

• TotalEnergies

• Valero

Access the Japanese Version of the Toluene Market Report:

Check out related reports published by Mordor Intelligence:

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