The naphthalene derivatives market size was valued at US$ 3.83 billion in 2023 and is expected to reach US$ 5.04 billion by 2031; it is estimated to register a CAGR of 3.5% from 2023 to 2031.

Naphthalene derivatives are used in a diverse range of industries, including pharmaceuticals, agrochemicals, dyes, resins, textiles, and plastics industries. China, one of the most influential emerging economies, is known as a manufacturing hub for many sectors. According to the National Bureau of Statistics of China, the country is the world's largest producer of plastics; it produced ~7.95 million metric tons of plastic products from August 2020 to August 2021. Phthalic anhydride, one of the derivatives of naphthalene, is used as a key intermediate in the production of plastics and polymers. It is also incorporated in the production of unsaturated polyester resins, which are blended with glass fibers to manufacture fiberglass-reinforced plastics. Thus, the flourishing plastics industry in China is likely to provide notable growth prospects for the naphthalene derivatives market.

On the basis of derivative type, the naphthalene derivatives market is bifurcated into sulfonated naphthalene formaldehyde, phthalic anhydride, naphthalene sulphonic acid, alkyl naphthalene sulfonate salts, and others. In 2023, the phthalic anhydride segment accounted for the largest market share. Phthalic anhydride, an anhydride of phthalic acid, is used as a key intermediate in the production of plastics and polymers, polyester resins, plasticizers, dyes, and rubber modifiers. It also finds minor applications in the production of alkyd resins (for paint and coating manufacturing), insecticides, and urethane polyester polyols. Phthalic anhydride is used in the production of unsaturated polyester resins, which are blended with glass fibers to manufacture fiberglass-reinforced plastics. Plastics reinforced with fiberglass are used in end-use industries such as building and construction, marine, and transportation. It also finds application as a rubber scorch inhibitor and retarder.

Asia Pacific is estimated to register the fastest CAGR in the global naphthalene derivatives market from 2023 to 2031. According to a report by Invest India, the pharmaceutical industry in India ranks third worldwide in terms of pharmaceutical production by volume, and it was valued at US$ 50 billion in 2023. The annual Pharmaceutical Production statistics report by the Japan Ministry of Health, Labor and Welfare revealed that the Japanese market for prescription and nonprescription pharmaceuticals was valued at US$ 106 billion in 2021. The region has established a few of the major pharmaceutical companies such as Pfizer Inc., Merck & Co. Inc., and Reckitt Benckiser Group plc. India, China, and Japan are among the major agrochemical producers in the world. According to the World Trade Organization, India was recorded to be the second-largest exporter of agrochemicals in 2022. Naphthalene derivatives such as 1-naphthyl methylcarbamate are used as insecticides and pesticides.

As per the International Energy Agency, the global oil demand rebounded in 2021. Moreover, Asia is expected to account for 77% of the global demand by 2025. Oil import requirements of the continent are expected to surpass 31 million barrels per day by 2025. According to the International Trade Administration, total investments in Chinese infrastructure are estimated to reach ~US$ 4.2 trillion during the 14th Five-Year Plan period (2021-2025). According to the National Investment Promotion & Facilitation Agency, India announced its plan to invest ~US$ 1.4 trillion in infrastructure under the National Infrastructure Pipeline by 2025, 18% of which would be invested in roads and highways, while 17% and 12% would be invested in urban infrastructure and railways. Therefore, the growth of the pharmaceuticals, agrochemicals, and construction industries, among others, is expected to boost the naphthalene derivatives market in Asia Pacific.

A few players operating in the global naphthalene derivatives market include JFE Holdings Inc; Stepan Co; Nouryon Chemicals Holding BV; Merck KGaA; Hefei TNJ Chemical Industry Co., Ltd.; Himadri Speciality Chemical Ltd; Chempro Group; Methanol Chemicals Co; MUHU (China) Construction Materials Co., Ltd.; PCC SE; Rain Industries Ltd; King Industries, Inc.; MP Biomedicals; Shandong Jufu Chemical Technology Co., Ltd.; and Nan Ya Plastics Corp. Players operating in the market focus on providing high-quality products to fulfill customer demand. Also, they are focusing on launching new and high-quality products for their customers.

The overall global naphthalene derivatives market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the naphthalene derivatives market.