Global Naphthalene Market Overview

The Global Naphthalene Market is projected to register stable growth during the forecast period from 2025 to 2035, driven by sustained demand from chemical manufacturing, plastics, pharmaceuticals, and specialty industrial applications. Naphthalene, a polycyclic aromatic hydrocarbon primarily derived from coal tar or petroleum streams, remains a critical intermediate for the production of phthalic anhydride, dyes, resins, insecticides, and specialty chemicals.

The Naphthalene Market Report 2025 presents a comprehensive analysis of market size, structural evolution, and long-term growth outlook. The report evaluates historical performance alongside current market conditions to forecast future demand. Extensive primary and secondary research has been undertaken to analyze factors such as industrial production trends, regulatory policies, feedstock availability, technological developments in chemical processing, and competitive dynamics. The study also examines downstream demand patterns and regional manufacturing capabilities shaping the global naphthalene industry.

Impact of COVID-19 on the Naphthalene Market

The COVID-19 pandemic adversely impacted the naphthalene market in 2020 due to temporary shutdowns of steel plants, chemical manufacturing units, and downstream industrial facilities. Disruptions in coal tar supply chains and reduced demand from construction, automotive, and consumer goods sectors affected short-term consumption. However, gradual recovery in industrial activity and stabilization of chemical supply chains supported market normalization in the post-pandemic period.

Global Naphthalene Market Segmentation

By Type

Natural Naphthalene
Natural naphthalene is primarily derived from coal tar distillation. This segment dominates global supply, supported by integrated steel and coke oven operations. It is widely used in large-scale industrial chemical applications due to cost efficiency and established production infrastructure.

Synthetic Naphthalene
Synthetic naphthalene is produced from petroleum-based feedstocks through catalytic processes. This segment benefits from higher purity levels and consistent quality, making it suitable for pharmaceutical, specialty chemical, and high-value applications.

By Application

Spice Usage
Naphthalene has limited and highly regulated use in spice and pest-repellent applications. Demand in this segment is relatively small and subject to stringent safety regulations.

Medical Usage
In the medical and pharmaceutical sector, naphthalene is used as a chemical intermediate for the synthesis of drugs, antiseptics, and specialty compounds. This segment emphasizes high purity and controlled formulations.

Plastic Usage
Plastic usage represents a major application segment, as naphthalene is a key raw material for phthalic anhydride production, which is further used in plasticizers, resins, and polymers.

Others
Other applications include dyes, pigments, surfactants, agrochemicals, construction chemicals, and moth repellents. This segment supports diversified demand across multiple industrial verticals.

Key Players in the Global Naphthalene Market

The global naphthalene market is moderately consolidated, with major players focusing on production scale, feedstock integration, and downstream chemical linkages. Key companies include:

• Koppers
• Rutgers
• Nippon Steel Chemical
• JFE Chemical
• Koch Industries
• Coast Oil
• DEZA
• Anshan Iron and Steel
• Baosteel
• Baogang Group
• Baoshun
• Huanghua Xinnuo Lixing
• Gude Chemical
• Hebei Dongxu Chemical
• Risun

These companies compete on production capacity, feedstock security, product purity, pricing, and regional distribution. Strategic initiatives include vertical integration with steel and coke oven operations, expansion of chemical derivative portfolios, and optimization of production efficiency.

Regional Analysis

North America

North America represents a mature market, driven by demand from chemical manufacturing, plastics, and pharmaceutical industries. The United States leads regional consumption due to established downstream chemical production and stable industrial demand.

Europe

Europe is a regulated but stable market, supported by specialty chemical manufacturing and controlled industrial usage. Germany, the U.K., France, and Italy are key contributors, with emphasis on high-purity and specialty naphthalene derivatives.

Asia-Pacific

Asia-Pacific is the largest and fastest-growing regional market, driven by extensive steel production, coal tar processing capacity, and expanding chemical industries. China, India, Japan, and Southeast Asia dominate both production and consumption, supported by strong downstream demand for plastics, dyes, and construction chemicals.

South America

South America shows moderate growth potential, supported by expanding chemical manufacturing and infrastructure development. Brazil and Argentina are the primary markets in the region.

Middle East & Africa

The Middle East & Africa region is experiencing gradual growth, driven by developing industrial infrastructure and rising chemical imports. Saudi Arabia and South Africa are key emerging markets.

Drivers, Restraints, Trends & Opportunities (DRTO)

Market Drivers

Strong Demand from Chemical Intermediates and Plastics Industry
Naphthalene is a key feedstock for phthalic anhydride, which is widely used in plasticizers, resins, coatings, and construction materials. Growth in plastics and construction chemicals continues to drive demand.

Expansion of Steel and Coal-Tar Processing Capacity
Increasing steel production, particularly in Asia-Pacific, supports stable availability of coal-tar–derived natural naphthalene, strengthening supply-side growth.

Rising Demand for Dyes, Pigments, and Agrochemicals
Naphthalene derivatives are extensively used in dye intermediates, dispersants, and agricultural chemicals, supporting steady industrial consumption.

Growth of Infrastructure and Construction Activities
Infrastructure expansion increases demand for resins, coatings, and construction additives derived from naphthalene intermediates.

Market Restraints

Environmental and Health Concerns
Naphthalene is classified as hazardous, with potential health and environmental risks, leading to strict handling, storage, and usage regulations.

Regulatory Restrictions in Consumer Applications
Usage in consumer products such as moth repellents and household chemicals is increasingly restricted in several regions.

Dependence on Coal Tar and Crude Oil Feedstocks
Volatility in coal tar availability and petroleum refining output can affect pricing and supply consistency.

Market Trends

Shift Toward High-Purity Synthetic Naphthalene
Demand is growing for synthetic naphthalene in pharmaceuticals and specialty chemicals due to its consistent purity and controlled quality.

Integration with Downstream Chemical Manufacturing
Producers are increasingly integrating naphthalene production with downstream phthalic anhydride and specialty chemical facilities to improve margins.

Declining Consumer-Grade Applications
Traditional uses such as mothballs are gradually declining due to regulatory pressure, shifting market focus toward industrial applications.

Process Optimization and Emission Reduction Initiatives
Manufacturers are investing in cleaner processing technologies to reduce emissions and improve compliance with environmental standards.

Market Opportunities

Growth in Emerging Economies
Rapid industrialization in Asia-Pacific, South America, and parts of Africa presents long-term demand opportunities.

Expansion of Specialty Chemical Applications
Opportunities exist in high-value dyes, pigments, surfactants, and pharmaceutical intermediates.

Technological Improvements in Synthetic Production
Advances in catalytic synthesis can improve yield, purity, and cost efficiency of synthetic naphthalene.

Infrastructure-Led Chemical Demand
Urbanization and infrastructure projects drive downstream demand for construction chemicals and resins.

SWOT Analysis – Naphthalene Market

Strengths

• Established industrial importance
• Strong linkage with plastics and chemical intermediates
• Stable demand from large-volume industries
• Well-developed global production infrastructure

Weaknesses

• Health and environmental hazards
• Regulatory pressure on certain applications
• Limited growth in consumer markets

Opportunities

• Expansion in emerging industrial economies
• Growth of specialty and high-purity applications
• Downstream integration with value-added chemicals

Threats

• Stringent environmental regulations
• Substitution by alternative chemical intermediates
• Feedstock price volatility

Porter’s Five Forces Analysis

Threat of New Entrants – Low to Moderate

High capital investment, regulatory compliance requirements, and feedstock integration limit new market entry.

Bargaining Power of Suppliers – Moderate

Coal tar and petroleum feedstock suppliers have moderate influence, dependent on steel and refinery output.

Bargaining Power of Buyers – High

Large chemical manufacturers exert strong bargaining power due to bulk purchasing and availability of alternative suppliers.

Threat of Substitutes – Moderate

Alternative aromatic compounds and bio-based intermediates can substitute naphthalene in select applications.

Competitive Rivalry – Moderate

The market is moderately competitive, with players competing primarily on cost efficiency, scale, and downstream integration.

Competitive Landscape Matrix

Executive Summary

The Global Naphthalene Market is expected to witness stable growth during the 2025–2035 forecast period, supported by consistent demand from chemical intermediates, plastics, dyes, and construction-related industries. Naphthalene remains a critical raw material for phthalic anhydride production, which underpins multiple downstream applications including plasticizers, resins, and coatings.

While environmental and health concerns have reduced demand in consumer applications, industrial usage continues to dominate the market. Asia-Pacific leads global production and consumption due to large-scale steel manufacturing, coal-tar processing capacity, and expanding chemical industries. Europe and North America represent mature markets focused on high-purity and specialty applications.

Competitive dynamics are shaped by feedstock integration, production scale, and downstream chemical linkages. Leading producers benefit from vertical integration with steel and coke oven operations, ensuring cost efficiency and supply stability. Despite regulatory challenges, the naphthalene market maintains long-term relevance due to its entrenched role in industrial chemistry.

Overall, the market outlook remains steady, driven by industrial growth, infrastructure development, and continued demand for aromatic chemical intermediates.