Toluene Market Set to Grow at 4.54% CAGR Through 2031 Demand for Aromatics and Polyurethane Feedstocks Strengthens, Reports Mordor Intelligence
Hyderabad, March 12, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the global toluene market size is projected to increase from 36.33 million tons in 2025 to 37.98 million tons in 2026, reaching 47.43 million tons by 2031, reflecting a CAGR of 4.54% during 2026–2031.
The growth is largely linked to its role as a key aromatic compound used to produce derivatives such as benzene, xylene, and toluene diisocyanate (TDI), which are widely applied in industries including construction, automotive materials, and electronics manufacturing. At the same time, stricter environmental policies are encouraging manufacturers to upgrade production processes to lower VOC emissions and improve energy efficiency, pushing the industry toward more sustainable and integrated supply chains.
Toluene Market Trends and Insights:
Rising Polyurethane Foam Production in Southeast Asia Supporting TDI Demand
Growing manufacturing of flexible polyurethane foam used in furniture, mattresses, and automotive seating is increasing the need for TDI across Southeast Asia. Countries such as Malaysia, Vietnam, and Thailand are witnessing expanding production capacity. Large petrochemical developments, including the RAPID complex by Petronas, are improving the availability of toluene-based intermediates within the region. As refiners aim to extract more value from crude through aromatics production, toluene is becoming an essential feedstock in the regional polyurethane value chain.
Fuel Quality Regulations Increasing Toluene Use in Gasoline Blending
Stricter fuel emission standards in India and China are encouraging refiners to incorporate higher-octane blending components such as toluene. Environmental policies like Bharat Stage VI and China 6 require cleaner and more efficient fuel formulations. Refinery upgrades, including those by Numaligarh Refinery, are helping increase domestic aromatics output, which in turn supports gasoline blending demand and stabilizes regional supply.
Toluene Industry Segmentation Insights:
By Derivative
By Application
By End-user Industry
By Geography
“Industrial demand for toluene continues to reflect broader activity in chemicals, construction materials, and fuel blending. Research from Mordor Intelligence draws on consistent cross-industry data review and market validation, helping executives interpret shifts with a disciplined, evidence-based perspective.” Says, Himanshu Vasisht, Senior Research Manager, Mordor Intelligence
For a full breakdown of toluene market size, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/toluene-market?utm_source=globenewswire
Toluene Market Share by Region:
The Asia-Pacific remains the central hub for toluene consumption, supported by rapid urban development, infrastructure expansion, and increasing automobile ownership across Southeast and South Asian economies. Countries within Association of Southeast Asian Nations continue to see rising demand for derivatives used in construction materials, coatings, and industrial chemicals, reinforcing the region’s role as a major growth driver.
In North America, the toluene industry operates in a relatively mature environment but remains influenced by regulatory shifts. The United States has introduced restrictions on highly toxic solvents, indirectly encouraging the use of toluene in certain industrial formulations. Meanwhile, Europe enforces strict VOC regulations that are limiting traditional solvent demand while simultaneously pushing chemical companies to develop cleaner and more efficient production technologies.
Toluene Companies
Access the Japanese Version of the Toluene Market Report: https://www.mordorintelligence.com/ja/industry-reports/toluene-market?utm_source=globenewswire
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