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The coal tar market is estimated to grow at a CAGR of 2.24% between 2022 and 2027. The size of the market is forecast to increase by USD 1,775.59 million. The growth of the market depends on several factors, including the demand for coal tar products from the healthcare sector, the use of coal tar pitch in aluminium smelting, and the global growth in liquid fuel consumption.
This report extensively covers market segmentation by application (coal tar processing, carbon black, and others), type (low temperature coal tar, medium temperature coal tar, and high temperature coal tar), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global coal tar market as a part of the global coal and consumable fuels market within the global coal market. The global coal and consumable fuels market covers companies primarily involved in the production and mining of coal, related products, and other consumable fuels related to the generation of energy. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The demand for coal tar products from the healthcare sector is notably driving the market growth, although factors such as the restrictions on the use of coal tar-based products may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Coal Tar Market Driver
The demand for coal tar products from the healthcare sector is the key factor driving the global coal tar market growth. Coal tar has various applications in the healthcare industry. Coal tar is used as a topical medicine to treat many skin diseases, such as psoriasis, seborrheic dermatitis, eczema, and dandruff. The treatment involves the application of coal tar to the affected area. Coal tar in such medications comes in various forms, such as cream, shampoo, lotion, ointment, and bath additive forms. Previously, coal tar products for skin applications were available only in pharmacies, but presently, coal tar formulations are also available as cosmetic products. In the healthcare sector, coal tar is majorly used for treating psoriasis.
The use of coal tar to treat psoriasis has been followed for many centuries. This is because of the anti-scaling and anti-inflammatory properties of coal tar, which can treat plaque psoriasis. Coal tar also helps to slow down the growth of skin cells and make the skin look better. Hence, there is a continuous demand for coal tar products for the treatment of skin conditions. Therefore, the demand for coal tar products for skin treatments is driving the market growth during the forecast period.
Key Coal Tar Market Trend
The growing use of advanced types of coal tar pitch will fuel the global coal tar market growth. Over the years, the demand for coal tar pitch has grown significantly, mainly due to its use in the production of electrodes that are used in primary aluminum production. The demand for coal tar pitch is related to the production of aluminum. The production of 100 lbs. of aluminum requires around 10 lbs. of coal tar pitch. Global annual primary aluminum production was 5,744 thousand metric tons in May 2021. As of May 2021, China accounted for 3,344 thousand metric tons, the highest in overall global aluminum production. Therefore, the rising demand for aluminum from various sectors is driving the market for coal tar pitch, which is a distilled form of coal tar.
The demand for coal tar pitches is also increasing due to the advances in coal tar pitches. Graphite and carbon electrodes are impregnated with advanced types of pitch, such as Zero QI impregnation pitch, to increase their density and strength. Zero QI impregnation pitch is derived from the processing of high-temperature coal tar. Such factors will drive market growth during the forecast period.
Key Coal Tar Market Challenge
The restrictions on the use of coal tar-based products are major challenges to the global coal tar market growth. Coal tar-based products contain high concentrations of carcinogenic chemicals such as polycyclic aromatic hydrocarbons (PAHs). Human exposure to high amounts of coal tar can lead to cancer because of the presence of PAHs. The major routes of human contact with coal tar and coal tar products are ingestion, inhalation, and absorption through the skin. Exposure to coal tar and coal tar pitch may occur during coke production at foundries, in aluminum production, and in coal gasification. People who are involved in the production or use of roofing tar, coal tar enamels, pavement tar, refractory bricks, or other coal tar coatings are highly vulnerable to coal tar pitch exposure.
In October 2018, Howard County Council, Maryland, US, passed a bill to ban coal tar pavement sealants and some alternatives. The bill was introduced by Councilman Jon Weinstein at the behest of 16 fifth-grade students from Centennial Lane Elementary School in Ellicott City. Therefore, such restrictions and bans on the use of coal tar-based products because of their carcinogenic properties are likely to hinder the growth of the market during the forecast period.
Key Coal Tar Market Customer Landscape
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, Japan, South Korea, and India. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Coal Tar Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
baosteel.com - The company offers coal tar through its subsidiary Shanghai Baosteel Chemical Co. Ltd. Also, the company offers a line of steel products such as carbon steel, stainless steel, and special steel among others.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the coal tar processing segment will be significant during the forecast period. Coal tar is produced as a byproduct during the production of metallurgical coke in a recovery-type coke oven plant. Coal tar pitch is a complex mixture of chemicals such as cresols, phenols, and xylenols, which are collectively called tar acids, PAHs, and heterocyclic compounds that can be recovered by the distillation of coal tar to provide various valuable chemical products. The residue obtained after the distillation process is a coal tar pitch, which is further processed into a coal tar pitch with the desired physical and chemical properties. The main objective of the coal tar distillation process is to produce a number of tar acid products from coal tar.
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The coal tar processing segment showed a gradual increase in market share with USD 9,971.73 million in 2017 and continued to grow by 2021. The coal tar processing segment is expected to grow moderately during the forecast period. China is the leading country and accounts for the largest share of this market segment. Coal tar pitch is mainly used in the graphite electrode, prebaked anode, and needle coke industries. Apart from China, many other countries are setting up coal tar distillation plants to produce coal tar pitch. NALCO India and NINL agreed to promote a joint venture (JV) to set up a coal tar distillation plant in Odisha. The growth of the segment depends on the growth of the aluminium and construction industries, as coal tar pitch is not only used in the production of aluminium but also forms the base for coatings and paints and in roofing and paving applications in the construction industry. Therefore, the growth of these sectors will drive the growth of the coal tar processing segment of the market during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of Coal Tar, which is driven by an increase in the global demand for the Coal Tar Market.
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APAC is projected to contribute 90% of market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Steel production in China and India is also growing at a significant rate, owing to the growth in the construction industry. According to World Steel Data, India's crude steel output registered a year-over-year (YoY) growth of 49.6% and reached 9.2 million tons in May 2021. Due to the growth in the steel industry, the production of coal tar will also increase in China, where the second-most common use of coal tar, after coal tar distillation processing, is carbon black production. However, the country's newly formulated policies on reducing severe air pollution and GHG emissions are impeding the market for coal tar. Several provinces in China have released goals on reducing production capacity in both the steel and coal sectors, with the aim of eliminating surplus capacities and optimizing the industries.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to a decline in demand for coal tar in APAC. In the second quarter of 2021, India witnessed the second wave of the COVID-19 pandemic. As of June 29, 2021, the country has registered over 30.32 million COVID-19 cases. The significant rise in the number of COVID-19 cases during the second wave led to partial or complete lockdowns in various states of the country, which adversely impacted the aluminium, graphite, and electrode industries. APAC is the largest consumer of coal tar globally, and several industries are highly dependent on coal tar for manufacturing various products. India and China are the major exporters of coal tar in APAC. The COVID-19-induced lockdowns resulted in unmet demand for coal tar, which is expected to hinder the growth of the regional market in 2021. However, with the implementation of large-scale COVID-19 vaccination drives, the number of COVID-19 cases is expected to decline further during the forecast period. Moreover, the operations at coal tar manufacturing sites have resumed, which is anticipated to fuel the growth of the regional market in focus during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by application, type, and region.
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Coal Tar Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.24% |
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Market growth 2023-2027 |
USD 1775.59 million |
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Market structure |
Fragmented |
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YoY growth (%) |
1.2 |
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Regional analysis |
APAC, Europe, North America, South America, and the Middle East and Africa |
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Performing market contribution |
APAC at 90% |
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Key consumer countries |
US, China, Japan, South Korea, and India |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Baosteel Group Corp., Coopers Creek Chemical Corp., Epsilon Carbon Pvt. Ltd., Ganga Rasayanie Pvt. Ltd., Himadri Speciality Chemica, Indian Tar Coal Co., Italiana Coke Srl, Jalan Carbons and Chemicals, Koppers Holdings Inc., Metinvest B.V, National Aluminium Co. Ltd., Nippon Steel Corp., Palriwal Industries Pvt. Ltd., POSCO, Rain Carbon Inc., Shree Shyam Chemicals, Spectrum Laboratory Products, Tata Steel Ltd., thyssenkrupp AG, and voestalpine AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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