Benzene Market - Global Industry Analysis, Market Size, Opportunities and Forecast 2021 - 2028

The Global Benzene Market accounted for US$ 62 Bn in 2020 and is expected to reach over US$ 81 Bn by 2028 with a considerable CAGR of 3.4% during the forecast period of 2021 to 2028.

Benzene is a colorless or light-yellow liquid at room temperature having a pleasant odor and is extremely flammable. Benzene evaporates quickly into the air and its vapor being heavier than air can sink to the ground in low-lying areas. It is a critical feedstock for the production of various chemicals, which are then used in a variety of industries including building and construction, textile, electrical and electronics, and automotive.

Drivers

• Rise in demand for methylene diphenyl diisocynate for the production of polyurethane foams.
• Growing phenol and styrenic polymer consumption in plastic and resin processing

Restraints

• Harmful effect of benzene on human health and environment

Opportunities

• Growing consumption of Benzene derivatives in the automotive industry for manufacturing synthetic rubber

Benzene is produced by both natural and human processes. Volcanoes and forest fires are natural sources of benzene while it is also found in natural sources such as crude oil, gasoline, and cigarette smoke. In the United States, benzene is widely used. It is one of the top 20 chemicals in terms of production volume. Some industries use benzene to create other chemicals, such as plastics, resins, nylon, and synthetic fibers. Benzene is also used in the production of some lubricants, rubbers, dyes, detergents, drugs, and pesticides

Global Benzene Market Growth Factors

Benzene demand in the global market has increased due to increased consumption of Benzene derivatives in the automotive industry for the production of synthetic rubber. Furthermore, an increase in the demand for polyester is a critical factor driving market growth, as is an increase in crude oil production, low feedstock costs, and an economical commodity product. Among the major factors driving the benzene market in Asia-Pacific are an increase in phenol consumption and an increase in demand for methylene diphenyl diisocyanate. The rising demand for Cumene to produce acetone for use in the automotive and architectural industries is also propelling the global benzene market forward. 

Health effects of exposure to benzene

Human benzene exposure has been linked to a number of short- and long-term negative health effects and disorders, including cancer and aplastic anemia. Exposure can occur both at work and at home as a result of the widespread use of benzene-containing petroleum products such as motor fuels and solvents. Because benzene is highly volatile, most exposure occurs through inhalation. However, raised public awareness regarding sources of exposure to benzene and risk mitigation measures and continuous educational activities to discourage the use of benzene or petrol for cleaning and degreasing in industry and domestically are major concern of organizations. Such factors are hampering the growth of global benzene market.

Report Coverage: 

Market Segmentation

Market by Derivatives

• Ethylbenzene
• Cumene
• Alkylbenzene
• Aniline
• Chlorobenzene
• Cyclohexane
• Maleic Anhydride
• Others

Based on the derivatives, the ethylbenzene segment will dominate the market in 2020. Ethylbenzene is a high-yielding aromatic hydrocarbon that is primarily used in the production of styrene. Styrene is a building-block chemical used in the manufacture of many products that have improved the quality of everyday life. Worldwide, about 60% of all styrene becomes polystyrene a plastic which comes in several forms, including solid, foam, and film. In addition to its intended use, ethylbenzene can be found in low concentrations in fuels and in automobile exhaust. In the United States alone, hundreds of metric tons of ethylbenzene are produced each year. Ethylbenzene is primarily used in the production of another chemical, styrene. Other applications include use as a solvent, in fuels, and in the production of other chemicals.

Market by Applications

• Plastics
• Resins
• Synthetic fiber
• Rubber lubricants
• Dyes
• Detergents
• Drugs
• Pesticides
• Others

Based on the applications, the plastics segment holds the largest market shares in 2020. Benzene is primarily used as a feedstock, or raw material to make other industrial chemicals, such as ethylbenzene, cumene and cyclohexane, which are then reacted and used in the manufacture of a variety of materials and plastics such as polystyrene, ABS, and nylon. Benzene is also used as a solvent in the chemical and pharmaceutical industries.

Benzene Market Regional Overview

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Brazil
• Mexico
• Rest of Latin America

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa

The Asia-Pacific region consumes the most benzene. It is also expected to be the fastest growing market due to rising demand from end users such as packaging, construction, and electronics, and home appliances, all of which increase demand for styrene. Because of the increased use of plastic in automotive applications and the growing use of polyurethane foams in the furniture industry, China is the leading producer and consumer in Asia-Pacific. Moreover, an increase in pygas production and gasoline consumption will further spur the demand for benzene in the key Asia Pacific region. Benzene is a plentiful commodity, and it served as one of the low-cost feedstocks fueling the burgeoning petrochemicals industry in Asia's developing economies.

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, China Petroleum & Chemical Corporation, The Dow Chemical Company, Total S.A., among others.

• In May 2021, Neste, Mitsui Chemicals, and Toyota Tsusho partnered to launch Japan's first production of renewable plastics derived entirely from bio-based hydrocarbons. Mitsui Chemicals will manufacture renewable ethylene, propylene, C4 fraction, and benzene, among other things, and process them into basic chemicals like phenol or plastics.