Global benzene and its derivatives market is expected to witness strong growth over the forecast period owing to increasing demand in coating & paints and automotive industries. Benzene is an aromatic hydrocarbon that is extracted from crude oil through refinery processes. They are mainly consumed by petrochemical industries. Key benzene derivatives include alkyl benzene, chlorobenzene, cumene, toluene, ethylbenzene, cyclohexane, aniline, nitrobenzene, and phenol. Ethylbenzene, which is one of the major benzene derivatives, is an important styrene feedstock. Increasing styrene demand in foam & films and paint & coatings industries are expected to augment global benzene and its derivatives demand over the forecast period. Other major applications that are expected to positively impact the global market include construction, electrical & electronics, and textile industries across the globe.
Increasing styrenic polymers demand coupled with high methylene diphenyl diisocyanate and phenol consumption are expected to propel the market over the forecast period. Rising downstream sector investment initiatives in Saudi Arabia is expected to emerge as major opportunity for global benzene and its derivatives market. In order to reduce the overall production costs, multinational companies are investing in the Middle East owing to proximity to raw material. Ethylbenzene show adverse effects on human health and the environment. Long exposure to ethylbenzene is harmful to humans while ethylbenzene traces in the soil can cause environmental issues. Such severe environmental effects are expected to hinder market growth. Stringent government policies mainly in North America and Europe is expected to further restrict the global market over the forecast period. Volatile crude oil price is also expected to emerge as a restraint as well as an opportunity for global benzene and its derivative market on account of benzene dependency on it as sudden increase in crude oil prices negatively impacts raw material prices while a decrease in crude oil prices helps in expanding overall profits. In the current scenario, a fall in crude oil prices has boosted global benzene and its derivative production globally.
The global benzene and its derivatives market is segmented on the basis of products and application. The product segment is sub-segmented on the basis of benzene derivatives which include chlorobenzene, toluene, nitrobenzene, cyclohexane, cumene, phenol, ethylbenzene, alkylbenzene, and aniline. Cumene is used for acetone and phenol production. Increasing acetone and phenol demand from chemical industries is expected to boost the cumene market which is anticipated to have a direct impact on global benzene derivative demand over the forecast period. Polycarbonate, foams, and epoxy resin markets use phenol in huge amounts as raw material which is further expected to drive global benzene derivative market. The application segment includes textile, specialty chemicals, building & construction, and transportation.
Asia Pacific covered major market share in the global market. Rise in manufacturing facilities in countries such as India and China coupled with cheap labor is expected to increase regional benzene and its derivatives demand over the forecast period. Japan and China were the biggest regional benzene and its derivatives consumer followed by South Korea and India. In North America and Europe, the market is expected to grow at a stagnant rate owing to stringent government regulation by REACH and EPA.
Major players in benzene and its derivatives market include BASF, Sinopec, Royal Dutch Shell Plc., China National Petroleum Corporation, Dow Chemical Company, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation, ExxonMobil Corporation, JX Holdings, Total and Bp Plc. In order to reduce the adverse effect of ethylbenzene and to cope up with stringent government policies, companies are expected to continue their research and development activities.
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The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.