The naphthalene derivatives market size is projected to reach US$ 5.04 billion by 2031 from US$ 3.83 billion in 2023. The market is expected to register a CAGR of 3.5% during 2023–2031. Rapid growth in technological advancements is likely to remain a key naphthalene derivatives market trend.

Naphthalene Derivatives Market Analysis

Sulfonates are the most commonly used naphthalene derivatives in the agrochemical industry. It is used as a dispersant in pesticide and insecticide formulations for the uniform distribution of active ingredients. The increasing global population has positively contributed to the demand for food production. As per Our World in Data, the US, Brazil, and China reported soybean production of 116.38 million tonnes, 120.7 million tonnes, and 20.28 million tonnes, respectively, in 2022. Also, the sugar beet production in France rose from 26.16 million tonnes in 2020 to 31.50 million tonnes in 2022. The high demand for food production has further created the need for efficient and high crop yields, thereby propelling the use of agrochemicals in farming practices.

Naphthalene Derivatives Market Overview

Naphthalene derivatives are compounds derived from naphthalene, also known as toxic aromatic hydrocarbon. They are colorless solid compounds having a melting point of 123–124°C. These compounds are insoluble in water and benzene, and are highly soluble in alcohol and ether. Naphthalene derivatives can disperse colloids and enhance the solubility of hydrophobic compounds, which are utilized as wetting agents, surfactants, and insecticides. Naphthalene is most extensively incorporated in the production of phthalic anhydride, which is applied as an intermediate to make plasticizers for polyvinyl chloride and to produce alkyd resin polymers that are used in paints and varnishes. The combination of naphthalene and compounds with various functional groups, such as alcohols, amines, and sulfonic acids, acts as an intermediate in producing dyes and textile additives. The construction industry, in particular, generates a significant demand for naphthalene derivatives. It is widely used in the preparation of free-flowing and pumpable concrete mixtures for the construction industry. Thus, surging investments in infrastructure development and industrialization in emerging economies contribute to the expansion of the naphthalene derivatives market.

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Naphthalene Derivatives Market: Strategic Insights

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Naphthalene Derivatives Market Drivers and Opportunities

Surging Demand for Agrochemicals Favor Market Growth

As per the Gulf Petrochemicals and Chemicals Association, China is among the largest producers, consumers, exporters, and importers of fertilizers in the world. The country accounts for more than 50% of the total fertilizers consumed worldwide, making it a significant contributor to the agrochemicals sector. Naphthol is used as an intermediate in the production of insecticides, aiding in crop health. Further, naphthalene acetic acid is a synthetic plant hormone derived from naphthalene, which is used as a plant growth regulator. The need for effective crop protection solutions due to the elevating global food requirements bolsters the demand for agrochemicals, fueling the growth of the naphthalene derivatives market.

Growing Demand from Emerging Economies to Create Growth Opportunities in Market

Naphthalene derivatives are used in a diverse range of industries, including pharmaceuticals, agrochemicals, dyes, resins, textiles, and plastics industries. China, one of the most influential emerging economies, is known as a manufacturing hub for many sectors. According to the National Bureau of Statistics of China, the country is the world's largest producer of plastics; it produced ~7.95 million metric tons of plastic products from August 2020 to August 2021. Phthalic anhydride, one of the derivatives of naphthalene, is used as a key intermediate in the production of plastics and polymers. It is also incorporated in the production of unsaturated polyester resins, which are blended with glass fibers to manufacture fiberglass-reinforced plastics. Thus, the flourishing plastics industry in China is likely to provide notable growth prospects for the naphthalene derivatives market.

Naphthalene Derivatives Market Report Segmentation Analysis

Key segments that contributed to the derivation of the naphthalene derivatives market analysis are form, derivative type, and end-use industry.

• Based on form, the market is segmented into powder and liquid. The powder segment held a larger share of the market in 2023.
• In terms of derivative type, the market is segmented into sulfonated naphthalene formaldehyde, phthalic anhydride, naphthalene sulfonic acid, alkyl naphthalene sulfonate salts, and others. The phthalic anhydride segment held the largest share of the market in 2023.
• By end-use industry, the naphthalene derivatives market is divided into building and construction, agrochemicals, textile, pharmaceuticals, oil and gas, dyes and pigments, and others. The building and construction segment held the largest market share in 2023.

Naphthalene Derivatives Market Share Analysis, by Geography

The geographic scope of the naphthalene derivatives market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Asia Pacific dominates the market with the largest revenue share. The naphthalene derivatives market in Asia Pacific is consistently growing with significantly increasing investments in residential and commercial construction across major countries such as China, India, and Japan. The rising demand for infrastructure development with rapid urbanization and industrialization compel governments of developing economies to raise investments in the building and construction industries, along with the businesses complementing these industries. The construction industry is anticipated to expand considerably due to growing disposable income in developing economies. In China, the total investment in infrastructure during the 14th Five-Year Plan period (2021–2025) is predicted to reach ~US$ 4.2 trillion as per the International Trade Administration. Naphthalene derivatives such as sulfonated naphthalene formaldehyde are used in the preparation of a free-flowing and pumpable concrete mixture. It also serves as a superplasticizer in producing concrete admixtures of different plasticity values. Thus, the burgeoning construction industry fuels the naphthalene derivatives market growth in Asia Pacific.

Naphthalene Derivatives Market Report Scope

Naphthalene Derivatives Market News and Recent Developments

The naphthalene derivatives market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the naphthalene derivatives market are listed below:

• BASF has signed a Memorandum of Understanding (MoU) with UPC Technology Corporation (UPC), marking a significant step in their longstanding collaboration. This strategic partnership aims to foster long-term regional cooperation for the supply of plasticizer alcohols and catalysts for phthalic anhydride (PA) and maleic anhydride (MA) production processes. (Source: BASF SE, Press Release, August 2024)
• KLJ Group, a leading player in the chemical/plasticizers industry, invested INR 1,200 crore (US$ 145 million) and commissioned a plasticizers and phthalic anhydride production facility (BIS certified) at the GIDC Jhagadia Industrial Estate, Bharuch, Gujarat. This integrated manufacturing facility represents a significant milestone in KLJ Group's commitment to expanding its product portfolio and meeting the growing demands of the market. The facility has a production capacity of 300,000 MT of phthalate plasticizers, 100,000 MT of phthalic anhydride, 3,500 MT of maleic anhydride, and 700 MT of benzoic acid annually. (Source: KLJ Group, Press Release, June 2023)

Naphthalene Derivatives Market Report Coverage and Deliverables

The "Naphthalene Derivatives Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Naphthalene derivatives market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Naphthalene derivatives market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Naphthalene derivatives market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the naphthalene derivatives market
• Detailed company profiles