At 4.8% CAGR, the South & Central America Basic Aromatics Market is Projected to be Worth US$ 7,950.18 Million by 2031, Says Business Market Insights

According to Business Market Insights' research, the South & Central America basic aromatics market was valued at US$ 5,462.67 in 2023 and is expected to reach US$ 7,950.18 million by 2031, registering a CAGR of 4.8% from 2023 to 2031. Growth of paints & coatings industry and growth of pharmaceuticals and personal care industry are among the critical factors attributed to the South & Central America basic aromatics market expansion.

Paints and coatings are used for decorative purposes and enhancing surface properties such as corrosion resistance, scratch-resistance, adhesion, appearance, and water resistance. Paints & coatings are increasingly used in end-use industries such as construction, furniture, automotive & transportation, and other industrial applications. Brazil's paint and coatings industry produced 1.647 billion and 1.715 billion liters of product in 2022 and 2021, marking 2021 as the industry's peak production year to date. This information comes from recent statistics released by the Associação Brasileira dos Fabricantes de Tintas, the national association for paint and coatings manufacturers based in São Paulo. Despite the decline in production, Brazil remains one of the top five producers of paint and coatings in the world. Basic aromatics such as benzene, toluene and xylene play major role in the paints and coatings industry. Benzene is used as precursor to produce various resins and polymers such as styrene, which are major components in paints & coatings formulations. Toluene and xylene are utilized as feedstock in the production of toluene diisocyanate and xylene-based isocyanates, further used for making polyurethane resins and coatings. A wide range of paints & coatings are used in automotive applications for high gloss surface finishes. The growing global sales of electric vehicles drive the demand for high-performance coatings and electrical insulating coatings. According to the International Energy Agency, the electric car market has witnessed exponential growth in the past few years, with reported global sales of more than 10 million electric cars in 2022.

Global Electric Car Sales (2016–2023)

On the contrary, fluctuation in raw material prices hampers the growth of South & Central America basic aromatics market.

Based on type, the South & Central America basic aromatics market is segmented into styrene monomer, divinylbenzene, benzene, toluene, xylene, cresol, and pyridine. The xylene segment held 31.2% share of the South & Central America basic aromatics market in 2023, amassing US$ 1,702.08 million. It is projected to garner US$ 2,604.69 million by 2031 to expand at 5.5% CAGR during 2023–2031.

By end user, the South & Central America basic aromatics market is segmented into pharmaceuticals, pesticides, agriculture, food and beverages, cosmetics and personal care, paints and coatings, and solvents. The paints and coatings segment held 28.0% share of the South & Central America basic aromatics market in 2023, amassing US$ 1,531.29 million. It is projected to garner US$ 2,332.51 million by 2031 to expand at 5.4% CAGR during 2023–2031.

Based on country, the South & Central America basic aromatics market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil held 48.0% share of South & Central America basic aromatics market in 2023, amassing US$ 2,619.38 million. It is projected to garner US$ 3,893.15 million by 2031 to expand at 5.1% CAGR during 2023–2031.

Key players operating in the South & Central America basic aromatics market are BASF SE, Exxon Mobil Corp, Jubilant Ingrevia Limited, Lanxess AG, LyondellBasell Industries NV, Nippon Steel Corp, Shell Plc, and The Dow Chemical Co, among others.

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