MARKET OVERVIEW
The India Naphthalene Market was valued at USD 163.26 Million in 2024 and is expected to reach USD 245.17 Million by 2033, growing at a CAGR of 4.28% during 2025-2033. This growth is driven primarily by increased demand from the construction, paints, and agrochemical sectors, supported by rapid infrastructure expansion and urbanization. Additionally, the market is benefiting from the rising need for phthalic anhydride in plasticizers and resins, alongside a transition toward bio-based alternatives driven by tightening environmental regulations. Capacity expansions and sustainability initiatives also play a key role in market growth. For more details, see the India Naphthalene Market..)
STUDY ASSUMPTION YEARS
INDIA NAPHTHALENE MARKET KEY TAKEAWAYS
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MARKET GROWTH FACTORS
The growing construction and paints industries significantly contribute to the growth of the India naphthalene market. Naphthalene serves as a key raw material in producing phthalic anhydride, essential for plasticizers, alkyd resins, and coatings. India's infrastructure development accelerates demand, with INR 10 Lakh Crore (approx. USD 125,000 Million) allocated for the fiscal year 2023-24 focusing on roadways, railways, and aviation. The PM Gati Shakti National Master Plan integrates 44 ministries and drives 208 major infrastructure projects estimated at INR 15.39 Lakh Crore (approx. USD 192,375 Million). These efforts, alongside expanding railway networks and missions like Bharatmala Pariyojana and Smart Cities Mission, fuel demand for naphthalene-based products.
Environmental regulations are tightening around traditional naphthalene, prompting a shift towards bio-based alternatives. Naphthalene derived from coal tar has health and environmental concerns leading to stricter usage norms. R&D efforts focus on eco-friendly substitutes such as bio-based naphthalene and green solvents. A study showed that synthesizing naphthalene from renewable feedstocks like furfural and olefins using MFI zeolite-based catalysts provided a 27.4% yield, representing a sustainable manufacturing approach. Government initiatives including the National Chemical Policy promote cleaner production, encouraging manufacturers to adopt green technologies.
Capacity expansion and sustainability initiatives also drive market growth. Manufacturers are enhancing production to meet increasing demands and exploring sustainable alternatives to comply with environmental norms. The Indian market is gradually transitioning from traditional naphthalene towards sustainable solutions, reshaping the competitive landscape. Companies investing in bio-based product innovation are expected to gain a competitive advantage over the forecast period. This dynamic fosters steady growth aligned with urbanization, industrial modernization, and environmental priorities.
MARKET SEGMENTATION
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REGIONAL INSIGHTS
The report analyses the India naphthalene market across four major regions: North India, South India, East India, and West India. The dominant region and specific market shares or CAGR data are Not provided in source. The segmentation aids in understanding regional consumption patterns but exact regional statistics are not detailed.
RECENT DEVELOPMENTS & NEWS
In January 2025, the Odisha government approved investment proposals totaling INR 4,222.24 crore (approx. USD 4.92 Billion) across 25 industrial projects. Among these, Utkal Hydrocarbon Pvt. Ltd. in Jharsuguda received INR 63.02 crore (about USD 7.35 Million) to establish a manufacturing unit specializing in coal tar pitch, dehydrated coal tar, and naphthalene. These projects span diverse sectors including green energy equipment, chemicals, pharmaceuticals, textiles, plastics, food processing, and downstream aluminum. Implementation spans 11 districts such as Angul, Ganjam, Khordha, and Sambalpur.
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