Phosgene Market Report 2026

The phosgene market size has grown strongly in recent years. It will grow from $5.1 billion in 2025 to $5.37 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to growth of polyurethane production, demand from agrochemicals sector, expansion of dye manufacturing, use in pharmaceutical synthesis, growth of fine chemical industries.

The phosgene market size is expected to see strong growth in the next few years. It will grow to $6.58 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to increasing demand for lightweight materials, expansion of polycarbonate applications, growth of specialty chemicals market, advancements in safe handling technologies, rising industrial chemical consumption. Major trends in the forecast period include rising demand for polycarbonate production, growing use in isocyanate manufacturing, expansion of specialty chemical applications, increasing focus on process safety, growth of downstream chemical integration.

The expansion of the pharmaceutical industry is expected to propel the growth of the phosgene market going forward. The pharmaceutical industry involves the development, production, and commercialization of drugs and medications used for medical treatments. Phosgene plays a critical role in this sector as a key building block in the production of pharmaceutical active ingredients, specialty plastics, activated amino acids, and peptide synthesis. For instance, in April 2025, according to Eurostat, a Luxembourg-based government agency, EU exports of medicinal and pharmaceutical products increased by 13.5% in 2024 compared with 2023, reaching $316.38 billion (€313.4 billion). Meanwhile, imports rose only slightly, by 0.5%, totaling $112.7 billion (€119.7 billion). Therefore, the expansion of the pharmaceutical industry is driving the growth of the phosgene market.

Major companies operating in the phosgene market are focusing on technological advancements such as bio-derived isocyanates to support eco-friendly polyurethane production. Bio-derived isocyanates are produced from renewable biological sources, such as plants or microorganisms, instead of conventional petroleum-based feedstocks. For instance, in August 2025, Algenesis Corp., a US-based material science company, launched the Bio-Iso pilot plant to produce the world’s first fully biogenic, plant-based isocyanate. Bio-Iso is made entirely from plant-based dicarboxylic acids and eliminates the use of highly toxic phosgene, offering a safer and more environmentally responsible alternative to traditional isocyanates. When paired with Algenesis’ Soleic® polyol, Bio-Iso enables the creation of 100% biobased thermoplastic polyurethane (TPU), validated through ASTM D6866-24 analysis, providing fully circular and sustainable materials without compromising performance or industrial applicability.

In February 2023, Archroma, a Switzerland-based specialty chemicals company, acquired the Textile Effects business of Huntsman Corporation for an undisclosed amount. This acquisition aims to create a strengthened organizational structure, ensuring both divisions receive appropriate resources and strategic focus. Huntsman Corporation is a US-based chemical manufacturer that produces phosgene.

Major companies operating in the phosgene market are Altivia, Paushak Ltd, VanDeMark Chemical Inc, Synthesia a.s., Puyang Shenghuade Chemical Co., Ltd., ISOCHEM, Atul Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), SABIC, Clariant AG, Huntsman Corporation, Hodogaya Chemical Co., Ltd., Solvay S.A., Arkema Group, Celanese Corporation, Eastman Chemical Company, Westlake Chemical Corporation, Braskem S.A., Wanhua Chemical Group Co., Ltd., Chongqing Changshou Chemical Co., Ltd., Dow Inc., LyondellBasell Industries, BASF SE, Shandong Tianan Chemicals Co., Ltd., Akzo Nobel N.V.

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

The phosgene market consists of sales of carbamates, phosphonates, toluene diisocyanate (TDI), hexamethylene diisocyanate and methylene diphenyl diisocyanate (MDI). 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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