Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Benzenoid Market size was USD 869.50 million in 2024 and is estimated to reach USD 1.76 billion by the end of 2037, expanding at a CAGR of 5.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of benzenoid is assessed at USD 918.19 million.
The global benzenoid market is expected to grow owing to the increasing demand for fragrances and flavors across various industries. Benzenoids are frequently utilized as essential aromatic chemicals in food and beverage formulations, cosmetics, personal care items, and perfumes. Manufacturers are investing in benzenoid-based formulations to improve sensory appeal in response to consumers' growing preference for premium scented products and natural components.
The need for benzenoids has been further stimulated by the growth of the luxury fragrance market and the rising demand for high-end skincare and haircare products. The demand for scented and flavored items is predicted to increase significantly as urbanization and disposable incomes rise, especially in emerging economies. Additionally, the rise of e-commerce and direct-to-consumer perfume brands has further accelerated benzenoid market growth, ensuring a steady supply chain for benzenoids in global fragrance manufacturing.
The Observatory of Economic Complexity reported that with USD 26.9 billion in total sales in 2023, perfumes ranked 166th in the world in terms of product commerce. Perfume exports increased by 20.8% between 2022 and 2023, from USD 22.3 billion to USD 26.9 billion. Perfume trade accounts for 0.12% of global trade. According to the Product Complexity Index (PCI), perfumes are ranked 527th.
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Exporters |
Export Revenue of Perfumes (USD billion) |
Importers |
Import Revenue of Perfumes (USD billion) |
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France |
10.4 |
U.S. |
4.27 |
|
Spain |
3.67 |
Germany |
2.1 |
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Italy |
2.38 |
Netherlands |
1.43 |
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Germany |
1.74 |
UK |
1.33 |
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U.S. |
1.38 |
UAE |
1.24 |
Source: OEC
Benzenoid Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing demand in the pharmaceutical industry: Benzenoid is used in the pharmaceutical industry as an intermediate in the synthesis of many drugs and as a flavoring agent in oral medications and medicinal syrups. Phenol benzenoid compounds are used in pharmaceutical drugs for the treatment of sore throats, while small amounts of aniline benzenoids are used in some paracetamols. Benzenoid benzoic acid is used in many medicines for the treatment of diseases and fungal skin infections.
To synthesize complicated benzenoids, researchers have created new methods using innovative reagents and catalysts. Numerous novel benzenoid compounds with unique characteristics and uses have been made possible by these methods. Another recent development in benzenoid research is the identification of novel biological functions of benzenoid compounds. It has been found that several natural compounds with benzenoid rings exhibit potent biological activity, including antibacterial, anticancer, and anti-inflammatory qualities. - Shift towards bio-based and sustainable compounds: The benzenoid market is expanding as a result of the move to sustainable and bio-based benzenoid chemicals. This shift guarantees adherence to strict environmental rules while satisfying consumer preferences for eco-friendly products. The synthesis of high-purity bio-based benzenoids has been made possible by developments in green chemistry and biotechnology, increasing its use in medicinal formulations, organic food additives, and natural perfumes.
Manufacturers are concentrating on creating bio-derived benzenoids from renewable sources such as essential oils and plant extracts in response to growing environmental concerns and regulatory limitations on synthetic compounds. For instance, in April 2024, Pili, an innovative French firm at the forefront of sustainable colorant and pigment production, made a significant contribution to the decarbonization of the chemical sector. It has manufactured many tons of a 100% biobased aromatic chemical using a reliable and repeatable industrial technique.
Similarly, in April 2023, BioBTX B.V., the global leader in renewable aromatics technology, and Agilyx ASA, a leading post-consumer plastics recycling company, have formed a strategic partnership to investigate the scaling-up of BioBTX technology at a commercial demonstration plant for the production of renewable aromatic chemicals (benzene, toluene, xylene: BTX).
Challenges
- Stringent regulations & competition from alternatives: The strict regulatory frameworks controlling synthetic chemicals and their effects on the environment are the main sources of the limitations facing the benzenoid sector. Certain benzenoid compounds may have fewer uses due to stringent regulations enforced by regulatory bodies such as the European Chemicals Agency (ECHA) and the U.S. Food and Drug Administration (FDA). Furthermore, raw material price volatility, especially for petroleum-based feedstocks, makes it difficult for manufacturers to maintain cost-effectiveness. benzenoid market participants are under additional pressure to constantly innovate and distinguish their product offerings due to competition from substitutes and alternative aromatic chemicals in fragrance and medicinal formulations.
- Environmental and health-related concerns: Benzene exposure from many sources, such as petroleum products including motor fuels and solvents, is one of the harmful impacts of benzenoid chemicals. Exposure to benzene can cause acute or chronic health problems, hematological problems, and cancer impacts. Since benzene is so volatile, the majority of exposure happens through inhalation. Exposure to benzene from paints, industrial operations, emissions from burning coal or oil, evaporation from gas stations, and automobile exhausts are examples of environmental consequences. These elements may limit the benzenoid market's expansion.
Benzenoid Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.6% |
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Base Year Market Size (2024) |
USD 869.50 million |
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Forecast Year Market Size (2037) |
USD 1.76 billion |
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Regional Scope |
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Benzenoid Segmentation
Source (Natural, Synthetic)
Natural segment is expected to account for benzenoid market share of around 57.7% by 2037. Plants, oil deposits, coal, biomass/organic matter combustion, such as incinerators, engines, and forest fires, are among the natural sources of benzenoid. Growing consumer demand for organic and natural products, especially those with essential oil-derived tastes and fragrances. Natural benzenoid found in essential oils contributes to benzenoid market expansion. Essential oils are concentrated plant extracts used in aromatherapy that have a strong scent and a variety of mental and physical benefits. Some symptoms, including dry mouth, sadness, anxiety, nausea, inflammation, pain, and insomnia, may be eased by essential oils. It aids in the destruction of bacteria, fungi, and viruses. Additionally, it enhances mood, lowers stress, improves sleep, and enhances job performance. These factors support the expansion of the market and the growth of the natural source type.
Type (Benzaldehyde, Benzoic Acid, Toluene, Xylene, Styrene)
The benzaldehyde segment in benzenoid market is predicted to garner a significant share during the assessed period. Benzaldehyde is utilized in the production of soap, cosmetics, and personal care items, as well as a building ingredient in dyestuffs, medications, and pesticides. Low-temperature lubricants, solvents, and plasticizers containing benzaldehyde benzenoid compounds are used to flavor food with almond flavor. Lauraldehyde, lauric acid benzaldehyde, and magenta are manufactured. Agrochemicals, paint and industrial coatings, resin, perfume or scent chemicals, dye and textile fiber processing, personal care and cosmetics, electroplating, cleaning goods, and pharmaceuticals all employ benzaldehydes as basic materials. Benzaldehyde is mostly utilized in the essence sector to make edible essence, and it is also employed daily as chemical essence and cigarette essence. The taste and fragrance industry makes extensive use of benzaldehyde. Benzaldehydes can be used as a flavoring ingredient, as a solvent for oils and resins, and as a bee repellant in honey production. These factors support the expansion of the benzenoid market and the benzaldehyde-type segment.
Our in-depth analysis of the global market includes the following segments:
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Customize this ReportBenzenoid Industry - Regional Synopsis
APAC Market Statistics
Asia Pacific benzenoid market is expected to garner a share of 34.6% by 2037. The benzenoid industry in the Asia Pacific is growing due to rapid industrialization and technological developments in chemical synthesis. Regional market participants benefit from enhanced production methods, economical raw material procurement, and large-scale manufacturing capacities in China and India. Furthermore, incorporating automation and artificial intelligence (AI) into chemical processing has improved productivity and quality assurance, guaranteeing high-purity benzenoid compounds for various uses. The demand for benzenoid compounds is anticipated to stay high across several industries as the region continues to see economic expansion and technological breakthroughs.
Furthermore, as the world’s largest producer and consumer of chemicals, China has increased domestic benzene production and imports to support the synthesis of benzenoid derivatives including benzyl alcohol, vanillin, and cinnamaldehyde. The Chemical & Engineering News indicated that China is becoming the new center of mass for the production of aromatic chemicals worldwide. On Dayushan Island, close to the Chinese ports of Shanghai and Ningbo, Zhejiang Petroleum and Chemical (ZPC) inaugurated a complex in 2019 that could refine 20 million metric tons (t) of oil annually. Additionally, the nation’s booming food & beverage sector is driving the use of benzenoids as flavoring agents.
Similarly, India’s strong position in the pharmaceutical and agrochemical industries is boosting demand for benzenoids used in drug formulations and pesticides. According to the India Brand Equity Foundation, India is fourth globally in terms of agrochemical production, behind China, Japan, and the United States. 16–18% of the dyestuffs and dye intermediates produced worldwide are produced in India. Agrochemical exports totaled USD 661.18 million, dye exports totaled USD 379.61 million, and other dye intermediates totaled USD 27.87 million between April and May 2024.
With a well-established chemical manufacturing sector and abundant raw material availability, India has become a key producer and exporter of benzenoid compounds. The rise in Ayurveda and natural fragrances is also pushing the market toward bio-based benzenoids, further supporting growth.
North America Market Analysis
North America benzenoid market for benzenoid is expected to grow at a significant rate during the projected period. The market's expansion can be primarily ascribed to the growing need for organic substances like benzenoid in a variety of sectors, including flavors, fragrances, personal care goods, and pharmaceuticals. The benzenoid market is growing as a result of the large importation of benzenoid chemicals and products into the U.S. Numerous benzenoids' suppliers and producers in the U.S. also sell other products. These businesses operate in a wide variety of sectors that deal with chemicals and specialty goods. These elements contribute to the market's expansion.
One of the main drivers of the U.S. benzenoid market's expansion is the food and beverage sector. These substances are widely employed as flavoring agents to improve the taste and aroma of processed foods, drinks, and confections. A shift toward bio-based benzenoids has resulted from consumers' growing desire for natural and organic flavors, which is fueling investments in environmentally friendly production techniques. Furthermore, the benzenoid market has seen new development prospects due to the rising demand for functional foods and dietary supplements that contain substances derived from benzenoid.
Companies Dominating the Benzenoid Landscape
- BASF SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Evonik Industries AG
- Total S.A.
- LyondellBasell Industries Holdings B.V.
- Eastman Chemical Company
- Lanxess AG
- SABIC
- Huntsman Corporation
- The Dow Chemical Company
- Shell Chemical LP
The benzenoid market is expanding rapidly due to rising end-user demand spurred by factors like changing customer preferences, advances in technology, and increased awareness of the advantages of the product. Businesses are growing their products, coming up with new ways to satisfy customer demands, and leveraging new trends as demand increases, all of which contribute to the market's expansion. The distribution of businesses operating inside a specific benzenoid market or industry is referred to as market player density. It shows the number of rivals (market participants) in a certain market space in relation to its size or overall benzenoid market value.
In the News
- In June 2024, Encina Development Group, LLC, a producer of ISCC PLUS-certified circular chemicals, and BASF signed a long-term supply deal for chemically recycled circular benzene obtained from post-consumer end-of-life plastics. The deal represents a watershed moment in sustainable sourcing, as BASF enhances the circular economy by incorporating more chemically recycled, circular-based raw materials into its manufacturing processes. BASF will use chemically recovered benzene in its extensive Cycled product portfolio.
- In January 2021, Covestro received its first delivery of 2,000 metric tons of sustainable benzene from Total, marking another milestone on its path to a Circular Economy. Total Refining and Petrochemicals' Normandy platform in northwest France supplied the ISCC Plus-certified raw material, which was then delivered to Covestro's Antwerp plant.
Author Credits: Rajrani Baghel
- Report ID: 7337
- Published Date: Mar 18, 2025
- Report Format: PDF, PPT
