Asia's Aromatic Stance Soars With BTX Investments

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Researched by Industrial Info Resources (Sugar Land, Texas)--BTX, a composite of three aromatic hydrocarbons (benzene, toluene, and xylene) is integral to the production of polymers and various consumer goods such as solvents, paints, polishes and pharmaceuticals. The versatile role of BTX in creating indispensable materials for everyday life positions it as a vital contributor to global manufacturing.

Over the past decade, sustained buildout in capacity has meant that the market for aromatics has become oversupplied, superseding overall demand. At the same time, Industrial Info is tracking sizable investments in further adding/expanding capacity for BTX. While near-term tightness is expected to continue to persist, much of these new investments are targeted toward future demand growth as well as international exports.

According to Fortune Business Insights, the global aroma chemicals market size is projected to grow to US$6,968.3 million in 2028 from US$5,125.8 million in 2021 at a compound annual growth rate (CAGR) of 4.5%. Asia, notably, emerges as a constant participant in the production and supply of aromatic compounds worldwide. Trends like rising demand for cosmetics and perfumes, expanding paints and coatings, food and beverage, textiles, and the pharmaceuticals industry, as well as environmental and sanitary concerns, have propelled the growth of the market.

As observed in the past few years, Northeast Asia has been the primary global supplier of benzene. The major destinations for northeast Asian toluene exports are typically in India, and in Southeast Asia, China is slowly rising as the top exporter. The Asia-Pacific region is anticipated to become the fastest-growing region for mixed xylene and para-xylene.

Industrial Info is tracking 140 active capital-spending projects globally, worth US$17.33 billion, geared at the production of BTX aromatics. Asia leads all regions with investments worth US$16.74 billion across 126 projects. Country-wise, China and India are the top two countries, driving the highest spending with US$12.66 billion and US$2.20 billion, respectively. Some of the other countries that follow include Iran, Malaysia, Saudi Arabia, U.S., Indonesia, Japan and Russia.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.

The top three players in the market are China Petroleum & Chemical Corporation (Sinopec) (Beijing), Risun Holding Company Limited (Beijing) and Nanshan Group with a cumulative spending of US$4.1 billion. As the leading investor, Sinopec is responsible for US$1.41 billion across four projects. It is adding units to its BTX plants based in various locations in China, such as Zhangzhou, Ningbo and Nanjing.

Most of the projects are expected to be completed between the years 2024 and 2028. While 53% of the projects are in the planning phase; 28% are being engineered; and 19% are under construction.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).