• Global market growth trajectory—the naphthalene market was valued at approximately USD 2.7 billion in 2023 and is projected to reach USD 3.6 billion by 2032, expanding at a compound annual growth rate (CAGR) of over 3.3% from 2024 to 2032.

• Asia-Pacific leads market share&mdash>the region accounted for over 67% of the global market share in 2023, driven by robust industrial activities in countries like China and India, particularly in construction and agriculture sectors.

• Phthalic anhydride remains the dominant application&mdash>utilizing naphthalene as a key raw material, this application held a significant share in 2023 and is expected to continue its growth due to increasing demand in plasticizers and resins.

• Coal tar is the primary feedstock&mdash>accounting for over 55% of global production in 2024, coal tar's cost-effectiveness and established supply chains contribute to its dominance in naphthalene production.

• Refined naphthalene holds substantial market share&mdash>with a purity of 99% and above, refined naphthalene accounted for approximately 67% of the market in 2024, favored for its applications in dyes, plastics, and specialty chemicals manufacturing.

• Price fluctuations observed in 2024&mdash>refined naphthalene prices experienced a 2.31% increase in Q4 2024, reflecting market stabilization and sustained demand from industrial applications.

• Key industry players&mdash>include Rain Carbon Inc., ExxonMobil Corporation, Epsilon Carbon Private Limited, CARBOTECH, DEZA a.s., JFE Chemical Corporation, Koppers Inc., PCC Rokita SA, Gautam Zen International, and Dong-Suh Chemical Ind. Co., Ltd.

• 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. The market is influenced by expanding use of naphthalene-based intermediates, construction chemicals, plasticizers and agrochemical formulations. Increasing demand for high-performance industrial chemicals, improved surfactant systems and polymer additives continues to propel market development, alongside transition toward cleaner production and sustainable feedstocks.

Naphthalene Market, Segmentation by Source

The Source segment includes Coal Tar, Petroleum and Naphthalene. Feedstock preference is shaped by regional refining capacities, environmental regulations and cost advantages. Growing industrial chemical output and innovations in naphthalene refining, extraction and purification support reliable raw material availability across major markets.

Coal Tar

Coal tar remains the primary raw material for naphthalene production owing to high aromatic hydrocarbon concentration, cost efficiency and established industrial supply. Increased steel and metallurgy operations, where coal tar is a by-product, continue to strengthen this source’s dominance, particularly in Asia-based manufacturing hubs.

Petroleum

Petroleum-derived naphthalene offers consistent quality and lower impurity levels, supporting specialty chemical and high-purity applications. Its adoption rises with expansion in refinery cracking operations and petrochemical facilities, especially where environmental compliance standards are strict.

Naphthalene

This category includes refined naphthalene from chemical waste streams and industrial residues. Adoption increases where industries leverage waste valorization, circular chemistry principles and aromatic recovery systems to reduce environmental footprint and optimize resource utilization.

Naphthalene Market, Segmentation by Application

The Application segment includes Plasticizer, Pesticide and Surfactant & Wetting Agent. Rapid industrial growth in construction chemicals, agriculture solutions and chemical processing fuels demand, with innovations targeting performance efficiency, enhanced dispersion and eco-friendly formulations.

Plasticizer

Naphthalene-based plasticizers are widely used in concrete admixtures, construction additives and polymer production. Surging infrastructure development and adoption of high-strength concrete and flow-improving admixtures support long-term growth, driven by global construction and urban expansion trends.

Pesticide

In agriculture, naphthalene is a precursor for insecticides, fumigants and plant-protection chemicals. Demand increases as farmers and agribusinesses adopt pest management solutions and yield-enhancing crop protection systems, amplified by expanding agricultural production regions.

Surfactant & Wetting Agent

Surfactant applications leverage naphthalene sulfonates for detergents, dispersants and wetting systems. Industrial applications include textile processing, oilfield chemicals and water treatment. Rising focus on improved wettability, dispersion efficiency and cleaner formulations supports adoption in specialty chemical industries.

Naphthalene Market, Segmentation by End-User Industry

The End-User Industry segment includes Agriculture, Building & Construction, Textile, Chemical, Polymer and Pharmaceutical. Demand trends are driven by urban growth, industrialization, agrochemical advancements and polymer technology innovations, strengthening diversified industry utilization.

Agriculture

Agriculture uses naphthalene-based fumigants, soil agents and pesticide intermediates. Increasing focus on crop protection and sustainable pest control systems drives market relevance, particularly in emerging agricultural economies.

Building & Construction

Construction dominates usage due to demand for high-strength concrete admixtures, fluidizing agents and corrosion-resistant building materials. Global infrastructure expansion and adoption of advanced concrete technologies support strong sectoral demand.

Textile

The textile industry uses naphthalene derivatives as dye intermediates, wetting agents and dispersants. Growth in apparel manufacturing and technical textile production drives consumption, especially across Asia-based textile hubs.

Chemical

In chemical industries, naphthalene serves as a key feedstock for resins, industrial solvents and intermediates. Advancements in aromatic chemical processing and specialty chemical production underpin continued usage.

Polymer

Polymer manufacturers rely on naphthalene for plasticizers, insulation materials and specialty polymer additives. Rising adoption of performance polymers, composites and industrial coatings strengthens market penetration.

Pharmaceutical

Pharmaceutical applications include intermediate synthesis and excipient applications. Increased demand for active ingredient development and high-purity industrial organics supports niche growth in regulated markets.

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 and Africa and Latin America.

North America

North America benefits from strong demand in construction chemicals, agrochemicals and industrial resins. Well-developed chemical processing facilities and innovation in sustainable intermediates support advanced product development and steady adoption.

Europe

Europe’s growth is influenced by eco-friendly chemical manufacturing, regulatory compliance and sustainable building materials demand. Investments in bio-based aromatic production and high-performance dispersing agents fuel innovation and regional competitiveness.

Asia Pacific

Asia Pacific leads global consumption due to extensive construction projects, textile manufacturing strength and chemical production base. Markets such as China, India and South Korea support capacity expansions, supported by rapid urbanization and industrial scale-up.

Middle East & Africa

This region experiences rising demand with industrial expansion in construction, petrochemical clusters and agricultural applications. Infrastructure development and diversification initiatives shape emerging opportunities.

Latin America

Latin America grows steadily due to increasing infrastructure projects, agricultural chemical usage and resin manufacturing. Countries like Brazil and Mexico promote industrial growth and regional chemical processing capabilities.

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.

Naphthalene Market is becoming increasingly competitive, with nearly 62% of the share dominated by chemical producers and industrial material suppliers implementing targeted strategies. Consolidation through merger and partnerships expands manufacturing networks, while continuous innovation in processing and purification methods fuels growth. Strong collaboration with textile, construction, and agrochemical sectors supports adoption.

Market Structure and Concentration
The market reflects moderate concentration, with about 57% of production capacity managed by top-tier enterprises. Strategic merger initiatives and downstream partnerships strengthen industrial presence, while mid-sized companies pursue niche strategies targeting high-purity grades and eco-friendly derivatives. Regional collaboration ensures efficiency, supporting steady growth across multiple applications.

Brand and Channel Strategies
Around 65% of companies emphasize strong brand positioning and robust channels to achieve consistent growth. Core strategies include partnerships with distributors, resin manufacturers, and agrochemical producers. Larger enterprises highlight branding linked to quality and reliability, while smaller players rely on innovation in cost-effective and specialized naphthalene products to strengthen competitiveness.

Innovation Drivers and Technological Advancements
More than 72% of producers invest in R&D and technological advancements in eco-friendly sulfonation processes, high-performance naphthalene derivatives, and energy-efficient production. Continuous innovation enhances sustainability and product performance, while collaboration with research bodies fosters new industrial uses. Durable partnerships with construction and chemical industries drive consistent growth.

Regional Momentum and Expansion
Nearly 55% of expansion efforts are concentrated in regions with robust textile, construction, and chemical industries. Adaptive strategies focus on localized production, regulatory compliance, and cost optimization, while global suppliers secure partnerships with regional distributors. Regional collaboration ensures accessibility, fueling sustainable growth in diverse market segments.

Future Outlook
The future outlook suggests that more than 69% of companies will prioritize sustainable innovation in green chemistry, bio-based alternatives, and high-purity naphthalene derivatives. Continued expansion, reinforced by durable partnerships and industrial collaboration, will shape competitiveness. Aligning technological advancements with adaptive strategies ensures lasting growth in the naphthalene market.

Key players in Naphthalene Market include:

• ExxonMobil Corporation
• JFE Chemical Corporation
• Rain Carbon Inc.
• Koppers Inc.
• Epsilon Carbon Private Limited
• PCC Rokita SA
• Deza a.s.
• King Industries Inc.
• Himadri Specialty Chemical Ltd.
• China Steel Chemical Corporation
• Tulstar Products Inc.
• Dong-Suh Chemical Ind. Co., Ltd.
• Atom Scientific
• CDH Fine Chemical
• Industrial Química del Nalón S.A.

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

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