Press release
Global Naphtha Market to hit US$ 255.95 billion by 2031 | Trends, Opportunities, and Industry Insights
"The Naphtha Market reached US$ 193.2 billion in 2024 and is expected to reach US$ 255.95 billion by 2031, growing at a CAGR of 4.1% during the forecast period 2024-2031." As per DataM intelligence research reportDownload your exclusive sample report today: (corporate email gets priority access): https://www.datamintelligence.com/download-sample/naphtha-market?sp
United States: Recent Industry Developments
✅ In mid-2025, the U.S. Gulf Coast recorded a surge in naphtha exports-up over 50% year-on-year, averaging around 273,000 barrels per day, driven by strong gasoline blending demand.Refineries are balancing weak domestic demand by exporting surplus volumes while navigating policy uncertainties.
✅ In late 2024, global petrochemical oversupply led several firms, including Formosa Petrochemical, to idle or reduce operations in their naphtha cracker facilities.Falling margins continue driving consolidation and strategic asset realignment across the U.S. and European markets.
Japan: Recent Industry Developments
✅ In 2025, Japan's METI projected a 3.25% decline in naphtha demand for fiscal year 2025-26 compared to pre-pandemic levels, largely due to weaker gasoline demand and competitive global supply.Crackers are operating at full capacity, but growth remains limited mainly to domestic consumption.
✅ In 2025, Mitsui Chemicals began importing 10,000 tonnes of bio-naphtha from Neste, while Mitsubishi Chemical and Eneos also accelerated their bio-naphtha initiatives.This reflects Japan's strategic pivot toward sustainable feedstocks aligned with bio-plastics and circular economy goals.
Naphtha Market: Drivers
The naphtha market is driven by its critical role as a feedstock in the petrochemical industry for producing ethylene, propylene, and other key building blocks of plastics and synthetic materials. Rapid industrialization and rising demand for consumer goods are boosting the need for petrochemicals, thereby increasing naphtha consumption. Expanding construction, automotive, and packaging industries are fueling demand for plastics derived from naphtha-based chemicals. Growing energy needs in emerging economies are also driving naphtha demand as a blending component in gasoline production. The flexibility of naphtha in multiple downstream applications supports its steady market growth.
Market expansion is further supported by increasing investments in refinery and petrochemical capacity, particularly in Asia-Pacific and the Middle East. Rising use of light naphtha in the production of high-octane gasoline and heavy naphtha in steam cracking highlights its versatile demand. Technological advancements in refining processes are improving production efficiency and output quality. Strategic partnerships between oil companies and petrochemical producers are boosting the supply chain for naphtha-based products. With the growing global shift toward petrochemical-driven industrial growth, the naphtha market continues to witness significant momentum.
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Segment Covered in the Naphtha Market:
➥ By Type: Light Naphtha, Heavy Naphtha
➥ By Application: Chemical, Energy and Fuels, Others
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