Toluene is an aromatic hydrocarbon that is a colorless, water-insoluble liquid with a sweet, pungent smell. It is produced during the production of reformulated gasoline and is also added to gasoline to increase the octane rating. Toluene is primarily used as an industrial feedstock which comprises more than 80% of annual consumption. Its primary uses include production of benzene which is further used for styrene monomer or other chemicals like bisphenol-A.

The Global Toluene Market Growth is estimated to be valued at US$ 28.12 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.

Toluene has wide industrial applications including its use as a solvent, as a component in paints, thinners, lacquers, and varnishes. It is also used as an intermediate in the production of other chemicals like benzene, xylene, toluene diisocyanate (TDI) and trinitrotoluene (TNT). Rising demand from automotive sector, construction industry along with resumption of manufacturing activities post COVID-19 is projected to drive the toluene market growth over the forecast period.

Current Geopolitical Situation and Its Impact on the Global Toluene Market Growth

The ongoing geopolitical tensions and conflicts across many regions are negatively impacting the global toluene market. The Russia-Ukraine war that started in 2022 has disrupted energy and commodity supply chains. Both Russia and Ukraine are major producers and exporters of toluene. With exports from the Black Sea region constrained due to the war, global toluene supply has tightened substantially.

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