Toluene Market

The global toluene market is driven by increasing demand and is expected to continue an upward consumption trend over the next eight years. Market performance is forecasted to expand with an anticipated CAGR of +0.8% for the period from 2022 to 2030, reaching a market volume of 12M tons by 2030. In terms of value, the market is projected to increase with an anticipated CAGR of +3.1% during the same period, reaching $12.9B by the end of 2030. The article provides detailed insights into consumption, production, imports, and exports of toluene, along with analysis of key players and countries involved in the market.

Market Forecast

Driven by increasing demand for toluene worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +0.8% for the period from 2022 to 2030, which is projected to bring the market volume to 12M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.1% for the period from 2022 to 2030, which is projected to bring the market value to $12.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Toluene

In 2022, consumption of toluene decreased by -1.6% to 12M tons for the first time since 2019, thus ending a two-year rising trend. Overall, consumption, however, continues to indicate a relatively flat trend pattern. As a result, consumption reached the peak volume of 12M tons. From 2016 to 2022, the growth of the global consumption failed to regain momentum.

The global toluene market revenue rose modestly to $10.1B in 2022, increasing by 4.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption showed a perceptible decrease. Global consumption peaked at $12.3B in 2012; however, from 2013 to 2022, consumption failed to regain momentum.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the United States (1.9M tons), China (1.9M tons) and India (1.1M tons), with a combined 42% share of global consumption. Japan, Brazil, Russia, Singapore, Germany, the UK, South Korea, Italy, Canada and Iran lagged somewhat behind, together accounting for a further 31%.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Singapore (with a CAGR of +39.5%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($1.8B), China ($1.4B) and India ($1.1B) were the countries with the highest levels of market value in 2022, together accounting for 42% of the global market. Russia, Japan, Singapore, Germany, Brazil, the UK, South Korea, Canada, Italy and Iran lagged somewhat behind, together comprising a further 30%.

In terms of the main consuming countries, Singapore, with a CAGR of +39.7%, saw the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of toluene per capita consumption was registered in Singapore (67 kg per person), followed by the United States (5.8 kg per person), Canada (5.6 kg per person) and Japan (5.5 kg per person), while the world average per capita consumption of toluene was estimated at 1.5 kg per person.

From 2012 to 2022, the average annual rate of growth in terms of the toluene per capita consumption in Singapore amounted to +38.3%. In the other countries, the average annual rates were as follows: the United States (+0.0% per year) and Canada (-1.1% per year).

Production

World Production of Toluene

In 2022, production of toluene decreased by -0.1% to 11M tons, falling for the fourth year in a row after two years of growth. Overall, production showed a relatively flat trend pattern. The growth pace was the most rapid in 2015 when the production volume increased by 8%. Global production peaked at 12M tons in 2018; however, from 2019 to 2022, production stood at a somewhat lower figure.

In value terms, toluene production stood at $8.3B in 2022 estimated in export price. Over the period under review, production recorded a noticeable descent. The most prominent rate of growth was recorded in 2017 when the production volume increased by 14% against the previous year. Over the period under review, global production hit record highs at $13.1B in 2012; however, from 2013 to 2022, production failed to regain momentum.

Production By Country

The countries with the highest volumes of production in 2022 were China (2.5M tons), the United States (1.3M tons) and Japan (1M tons), together comprising 42% of global production. Germany, India, Brazil, Taiwan (Chinese), Thailand, Russia, Italy, Spain, the UK and Singapore lagged somewhat behind, together accounting for a further 35%.

From 2012 to 2022, the biggest increases were recorded for Taiwan (Chinese) (with a CAGR of +28.7%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Toluene

In 2022, overseas purchases of toluene increased by 7.8% to 3.6M tons, rising for the third consecutive year after two years of decline. The total import volume increased at an average annual rate of +2.6% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2013 with an increase of 13%. Global imports peaked in 2022 and are expected to retain growth in the near future.

In value terms, toluene imports surged to $3.4B in 2022. In general, imports recorded a relatively flat trend pattern. Global imports peaked at $3.8B in 2013; however, from 2014 to 2022, imports remained at a lower figure.

Imports By Country

The United States (717K tons), South Korea (603K tons) and India (569K tons) represented roughly 53% of total imports in 2022. Singapore (219K tons) ranks next in terms of the total imports with a 6.1% share, followed by the Netherlands (5%). Belgium (123K tons), Indonesia (116K tons), Vietnam (110K tons), Taiwan (Chinese) (79K tons), Mexico (74K tons), Turkey (71K tons), China (68K tons) and Germany (67K tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Singapore (with a CAGR of +26.6%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest toluene importing markets worldwide were India ($615M), South Korea ($599M) and the United States ($303M), together accounting for 44% of global imports. Singapore, the Netherlands, Vietnam, Belgium, Indonesia, Mexico, Turkey, Germany, Taiwan (Chinese) and China lagged somewhat behind, together comprising a further 36%.

Singapore, with a CAGR of +26.8%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average toluene import price stood at $958 per ton in 2022, rising by 36% against the previous year. Overall, the import price, however, saw a perceptible curtailment. The pace of growth was the most pronounced in 2021 when the average import price increased by 42%. Global import price peaked at $1,237 per ton in 2013; however, from 2014 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Vietnam ($1,230 per ton), while the United States ($422 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Vietnam (+0.8%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Toluene

In 2022, shipments abroad of toluene was finally on the rise to reach 3.4M tons after three years of decline. The total export volume increased at an average annual rate of +1.8% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 19% against the previous year. The global exports peaked at 4.1M tons in 2018; however, from 2019 to 2022, the exports remained at a lower figure.

In value terms, toluene exports skyrocketed to $3.6B in 2022. Overall, exports recorded a relatively flat trend pattern. Over the period under review, the global exports reached the maximum at $4B in 2013; however, from 2014 to 2022, the exports remained at a lower figure.

Exports By Country

China (649K tons) and South Korea (504K tons) represented the key exporters of toluene in 2022, resulting at near 19% and 15% of total exports, respectively. Japan (333K tons) ranks next in terms of the total exports with a 9.9% share, followed by Taiwan (Chinese) (9.7%), Belgium (6.7%), Thailand (6.3%), Germany (6.2%) and the Netherlands (5.5%). Spain (113K tons), Singapore (86K tons), the United States (80K tons), Italy (73K tons) and Israel (66K tons) took a minor share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by China (with a CAGR of +64.1%), while the other global leaders experienced more modest paces of growth.

In value terms, the largest toluene supplying countries worldwide were China ($712M), South Korea ($510M) and Taiwan (Chinese) ($313M), together comprising 42% of global exports.

Among the main exporting countries, China, with a CAGR of +62.0%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average toluene export price amounted to $1,079 per ton, jumping by 44% against the previous year. Over the period under review, the export price, however, saw a slight setback. The growth pace was the most rapid in 2021 an increase of 57%. Over the period under review, the average export prices reached the peak figure at $1,193 per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the United States ($2,392 per ton), while the Netherlands ($861 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+6.4%), while the other global leaders experienced mixed trends in the export price figures.

Source: IndexBox Market Intelligence Platform