Toluene Market Report 2026

The toluene market size has grown steadily in recent years. It will grow from $37.86 billion in 2025 to $39.62 billion in 2026 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to growth of petrochemical industry, expansion of paints and coatings, long standing use as solvent, rising fuel demand, industrial chemical processing.

The toluene market size is expected to see strong growth in the next few years. It will grow to $49.76 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to growth of chemical manufacturing, rising demand for high octane fuels, expansion of pharmaceutical production, increasing industrial solvents demand, petrochemical capacity expansion. Major trends in the forecast period include growing demand for solvent applications, rising use in chemical intermediates, expansion of fuel blending applications, increasing demand from coatings industry, rising use in pharmaceutical manufacturing.

The rising demand for aromatics in the petrochemical industry is expected to drive the growth of the toluene market going forward. Aromatics are petroleum-derived hydrocarbons composed primarily of carbon and hydrogen. Their growing demand is largely driven by the increasing need for high-performance plastics that rely on aromatic compounds for improved strength, durability, and heat resistance. Toluene, a widely used aromatic, serves as a chemical feedstock, solvent, and fuel additive in the chemical industry. To meet this rising demand, companies are expanding their production capacities. For example, in July 2023, the U.S. Energy Information Administration, a U.S.-based government agency, reported that total world petroleum consumption reached approximately 97.26 million barrels per day. Therefore, the increasing need for aromatics in end-use industries is contributing to the growth of the toluene market.

Major companies in the toluene market are forming strategic partnerships to advance the production of circular aromatic chemicals. Strategic partnerships involve companies combining their strengths and resources to achieve mutual benefits and innovation. For example, in April 2024, BioBTX B.V., a Netherlands-based developer of renewable aromatic technologies, partnered with Agilyx ASA, a Norway-based technology company. Through this collaboration, BioBTX’s technology will be scaled up at a commercial demonstration plant to produce renewable aromatic chemicals, specifically benzene, toluene, and xylene (BTX). The partnership integrates Agilyx’s pyrolysis technology - engineered to process hard-to-recycle post-use plastics - with BioBTX’s catalytic technology that converts pyrolysis vapors into aromatic chemicals, creating an efficient pathway for renewable BTX production.

In May 2024, INEOS Group Limited, a UK-based chemicals company, acquired LyondellBasell’s Ethylene Oxide and Derivatives (EO&D) business for $700 million. This acquisition strengthens INEOS’s position in the production of essential chemicals and enhances its capabilities in high-demand sectors. LyondellBasell Industries, a U.S.-based chemical company, manufactures specialty chemicals such as toluene diisocyanate (TDI) and benzene.

Major companies operating in the toluene market are China National Petroleum Corp., Exxon Mobil Corporation, Royal Dutch Shell plc, TotalEnergies SE, BP Chemicals plc, Valero Energy Corp., Reliance Industries Ltd., INEOS Group Holdings S.A., CNOOC Ltd., SK Innovation Co. Ltd., Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries N.V., Mitsubishi Chemical Corporation, China Petroleum & Chemical Corporation (Sinopec), Covestro AG, Braskem SA, Mitsui Chemicals Inc., S.K. Global Chemical Co. Ltd., Formosa Plastics Corp., Koch Industries Inc., GS Caltex Inc., JX Nippon Oil and Energy Corp., Chevron Phillips Chemical Company LLC.

Asia-Pacific was the largest region in the toluene market in 2025. Middle East was the second-largest region in the toluene market report. The regions covered in the toluene market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the toluene market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The toluene market consists of the sales of toluene used for glues, paints, paint thinners, printing ink, rubber, leather tanners, and silicone sealants. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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