• In November 2022, Sulzer Chemtech Ltd. announced a collaboration with Dong-Suh Company to provide process engineering and essential equipment for the development of a high-purity naphthalene production facility in Serang, Indonesia. This partnership aims to enhance the quality and efficiency of naphthalene production in the region.

• In September 2022, Epsilon Carbon announced an investment of approximately USD 71 million to increase its carbon black production capacity from 115,000 tons to 215,000 tons annually at its facility in Karnataka, India. This expansion is expected to bolster the supply of naphthalene used in the production of phthalic anhydrides, pesticides, and concrete plasticizers.

In this report, the Naphthalene Market has been segmented by Source, Application, End-User Industry and Geography.

Naphthalene Market, Segmentation by Source

The Naphthalene Market has been segmented by Source into Coal Tar and Petroleum.

Coal Tar

Coal tar is a dominant source of naphthalene production, making up around 60% to 65% of the global market. Extracted from the by-products of steel manufacturing, coal tar contains high concentrations of aromatic hydrocarbons, which are ideal for producing naphthalene. This source is especially important in the creation of industrial chemicals, paints, and disinfectants, with a growing demand in various chemical industries worldwide.

Petroleum

Petroleum serves as another significant source for naphthalene, contributing approximately 35% to 40% of global supply. Naphthalene derived from petroleum is produced as a by-product during the refining process and is widely used in applications such as solvents, plastics, and chemical synthesis. With increasing petroleum production capacity and an advanced refining infrastructure, this source is gaining traction, especially in regions with developed oil industries.

Naphthalene Market, Segmentation by Application

The Naphthalene Market has been segmented by Application into Phthalic Anhydride, Naphthalene Sulfonates, Low-Volatility Solvents, Moth Repellent, Pesticides and Other Applications.

Phthalic Anhydride

Phthalic anhydride remains the largest application for naphthalene, contributing around 45% to 50% to the global market. It is a key raw material in producing plasticizers, polymer resins, and various plastic products. The growing demand for phthalic anhydride in coatings, adhesives, and the automotive industry fuels this application, with its ability to improve the quality and durability of products in high-demand markets.

Naphthalene Sulfonates

Naphthalene sulfonates represent about 15% to 18% of the total naphthalene market. These compounds are primarily used in concrete admixtures, where they help improve workability and strength in construction materials. Additionally, naphthalene sulfonates are essential in the production of dispersants, detergents, and other industrial chemicals, playing a crucial role in construction and cleaning industries.

Low-Volatility Solvents

Naphthalene-derived low-volatility solvents account for approximately 10% to 12% of the market. These solvents are especially favored in industrial coatings, paints, and varnishes due to their slow evaporation rates and excellent solvency properties. Their use in products requiring long-lasting finishes and resistant coatings continues to drive demand in sectors like automotive and construction.

Moth Repellent

Moth repellent applications, including mothballs, make up around 8% to 10% of the naphthalene market. Naphthalene’s strong pest-repelling properties, especially in protecting woolen fabrics from moth damage, drive its continued use. As consumers seek eco-friendly alternatives to traditional pesticides, naphthalene-based moth repellents maintain their popularity for both household and commercial use.

Pesticides

Naphthalene is utilized in the production of certain pesticides, accounting for approximately 5% to 7% of the market share. It is primarily used in fumigation products to control pests in agricultural settings. Its strong toxic properties and effectiveness as a fumigant make it a key component in protecting crops from a variety of harmful insects and pests, supporting sustainable agricultural practices.

Other Applications

Other niche applications make up about 10% to 12% of the naphthalene market. These include its use in textile treatments, water treatment chemicals, and as a precursor for chemical synthesis. Additionally, growing interest in its role in biofuels, as well as in pharmaceutical formulations, is expected to drive demand in these emerging sectors.

Naphthalene Market, Segmentation by End-User Industry

The Naphthalene Market has been segmented by End-User Industry into Agriculture, Building & Construction, Textile, Chemical, Polymer, and Pharmaceutical.

Agriculture

The agriculture sector is an essential end-user of naphthalene, accounting for approximately 5% to 7% of the global market. Naphthalene is primarily utilized in pesticides and fumigants, offering effective pest control solutions for crops. Its strong toxic properties are key to preserving crop health, especially in regions where pest infestations can severely impact agricultural yield.

Building & Construction

The building and construction industry is another prominent sector in the naphthalene market, contributing about 15% to 18% of the total share. Naphthalene is used in concrete admixtures to enhance the strength and workability of concrete. As demand for durable and high-performance construction materials grows, naphthalene’s role in infrastructure projects and industrial construction continues to expand.

Textile

The textile industry accounts for around 10% to 12% of naphthalene consumption. It is used in the treatment of wool fabrics to prevent moth damage. Additionally, naphthalene is employed in dyeing processes and as a solvent in textile production. As the textile industry continues to evolve, naphthalene remains an essential component for quality and durability in fabric production.

Chemical

The chemical industry is the largest consumer of naphthalene, holding a dominant share of approximately 40% to 45% of the market. Naphthalene is a key raw material for the production of essential chemicals like phthalic anhydride and naphthalene sulfonates. Its use in the synthesis of industrial chemicals plays a crucial role in a variety of applications, ranging from plastics to synthetic materials.

Polymer

Within the polymer industry, naphthalene is utilized in the production of resins and plastic components, particularly in automotive and packaging applications. This segment comprises approximately 15% of the market, driven by increasing plastic consumption and innovation in polymer materials.

Pharmaceutical

The pharmaceutical industry uses naphthalene derivatives in the formulation of medicinal intermediates and antiseptic compounds. Though relatively smaller in share, contributing around 11%, the segment is growing steadily due to advancements in drug development and chemical synthesis technologies.

Naphthalene Market, Segmentation by Geography

In this report, the Naphthalene Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa and Latin America.

Naphthalene Market Share (%), by Geographical Region

North America

North America represents a significant portion of the naphthalene market, accounting for approximately 20% to 25% of the total market share. The demand in this region is largely driven by its use in chemical manufacturing, particularly for the production of phthalic anhydride and other industrial chemicals. The strong presence of the automotive and construction industries in the U.S. and Canada further supports the consumption of naphthalene-based products.

Europe

Europe holds a market share of about 18% to 22% in the naphthalene market. The region is a key player in the chemical and automotive industries, where naphthalene is used extensively in the production of plastics, polymers, and phthalic anhydride. The growing demand for sustainable solutions and high-performance materials in sectors like construction and automotive is expected to continue fueling the naphthalene market in Europe.

Asia Pacific

Asia Pacific dominates the naphthalene market, accounting for more than 40% to 45% of the market share. This is due to the region’s robust manufacturing base, particularly in China and India, where naphthalene is heavily utilized in chemical manufacturing, construction, and textile industries. As industrialization and urbanization continue at a rapid pace, the demand for naphthalene is expected to grow significantly in the coming years.

Middle East and Africa

The Middle East and Africa contribute to about 7% to 10% of the naphthalene market. The demand in this region is primarily driven by the petrochemical industry, where naphthalene is used in chemical synthesis and as a precursor for plastics and polymers. The ongoing expansion of the region’s industrial sectors, particularly in oil and gas and construction, continues to increase the consumption of naphthalene-based products.

Latin America

Latin America accounts for approximately 5% to 8% of the naphthalene market. The demand is mainly driven by the construction and textile industries. Countries like Brazil and Argentina rely on naphthalene for its use in concrete additives, paints, and moth repellents. With increasing infrastructure development in the region, the market for naphthalene is expected to experience steady growth.

This report provides an in depth analysis of various factors that impact the dynamics of Naphthalene Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Growing demand in construction chemicals and superplasticizers
• Expansion of the textile industry utilizing naphthalene derivatives
• Increased use in agrochemicals and pesticides

• Rising applications in pharmaceuticals and dyes - Increasing applications of naphthalene in pharmaceuticals and dyes are serving as key drivers for the naphthalene market. In the pharmaceutical sector, naphthalene is used as a key intermediate in the synthesis of antiseptics, antihistamines, and other specialty drug compounds due to its aromatic structure and chemical versatility. Its ability to act as a building block in active pharmaceutical ingredients (APIs) is gaining importance amid growing global demand for advanced healthcare solutions.

  Simultaneously, naphthalene’s role in the production of azo dyes and other colorants for textiles, leather, and plastics is experiencing a resurgence, especially in emerging economies. With the textile industry expanding and consumer preference shifting toward vibrant, durable colors, the demand for naphthalene-based dye intermediates is rising. This dual relevance in pharmaceuticals and dyes ensures consistent demand and supports market growth across both mature and developing industrial regions.

Restraints

• Stringent global environmental regulatory policies
• Rising public health-related concerns

• Volatility in crude oil prices - Volatility in crude oil prices is a significant restraint impacting the global naphthalene market, as naphthalene is primarily derived from crude oil and coal tar. Fluctuating oil prices directly influence the cost of raw materials and production, leading to inconsistent pricing and supply chain instability for manufacturers. These cost variations can disrupt long-term planning, reduce profit margins, and increase operational risks, especially for industries that rely heavily on stable input costs for bulk chemical processing.

  Moreover, frequent shifts in global oil supply due to geopolitical tensions, trade imbalances, and OPEC production decisions contribute to market unpredictability. End-use sectors such as construction, textiles, and agriculture may respond to rising costs by seeking lower-cost or bio-based alternatives, reducing demand for naphthalene-based products. As sustainability initiatives and raw material diversification gain momentum, crude oil dependency continues to pose a structural challenge for the long-term stability of the naphthalene market.

Opportunities

• Rising demand for sustainable solutions
• Market expansion in emerging economies

• Increased focus on research development - Increased focus on research and development is opening promising opportunities in the global naphthalene market by enabling the creation of high-performance and environmentally sustainable products. R&D initiatives are driving innovations in superplasticizers, agrochemicals, and pharmaceutical intermediates, allowing for improved chemical properties and broader industrial applications. Enhanced production techniques are also helping to boost efficiency, reduce waste, and meet stricter environmental standards, which is essential for staying competitive in regulated markets.

  Moreover, research efforts are being directed toward developing bio-based and cleaner synthesis methods to minimize the environmental footprint of naphthalene production. These advancements are aligning with global sustainability goals and creating opportunities to serve eco-conscious markets. As industries continue to invest in innovation and form strategic R&D partnerships, the market is poised to benefit from expanded application potential and stronger long-term growth prospects.

Key players in Naphthalene Market include;

• Rain Carbon Inc.
• JFE Chemical Corporation
• ExxonMobil Corporation
• CARBOTECH
• Epsilon Carbon Private Limited
• Koppers Inc.
• DEZA a.s.
• Química del Nalón S.A.
• PCC Rokita SA
• Industrial Química del Nalón S.A.

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis