Chemicals Market Definition And Segments
Chemical compounds are substances that are produced based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. Chemicals have characteristics such as flammability, toxicity, acidity, reactivity, and heat of combustion.
The main types of chemicals are general chemical products, printing inks, toiletries, soap and cleaning compounds, adhesives, paints and coatings, pesticide and other types of agricultural chemicals, chemical fertilizers, synthetic rubber and fibers, plastic material and resins, ethyl alcohol, and other basic types of organic chemical, and other types of basic inorganic chemical, synthetic dye, and pigment, industrial gas, and petrochemicals. Printing ink is ink used in printing and contains a pigment or pigments of the required color mixed with oil or varnish. The types of intermediate chemicals are methanol, ethylene oxide, and propylene oxide. The end-users involved are pharmaceuticals, agrochemicals, water treatment, construction, paints and dyes, oil and gas, rubber chemicals, surfactants, personal care, and other end-users.
The chemicals market covered in this report is segmented –
1) By Type: General Chemical Product, Printing Inks, Toiletries, Soap and Cleaning Compounds, Adhesives, Paints and Coatings, Pesticide and Other Agricultural Chemicals, Chemical Fertilizers, Synthetic Rubber and Fibers, Plastic Material and Resins, Ethyl Alcohol and Other Basic Organic Chemical, Other Basic Inorganic Chemical, Synthetic Dye and Pigment, Industrial Gas, Petrochemicals
2) By Type of Intermediate Chemicals: Methanol, Ethylene Oxide, Propylene Oxide
3) By End User: Pharmaceuticals, Agrochemicals, Water Treatment, Construction, Paints and Dyes, Oil & Gas, Rubber Chemicals, Surfactants, Personal Care, Other End-Users
Subsegments Covered:, Oil-Based Printing Inks, Solvent-Based Printing Inks, Water-Based Printing Inks, Lotions (Including Sunscreens), Hair Preparations, Face Creams, Perfumes, Shaving Preparations, Other Cosmetic Preparations, Soap and Other Detergents, Surface Active Agents, Polish and Other Sanitation Goods, Water-Based Adhesives, Solvent-Based Adhesives, Hot-Melt-Based Adhesives, Reactive & Other Adhesives, Water Borne Coatings, Solvent Based Coatings, Powder Coatings, Other Paints and Coatings, Herbicides, Insecticides, Fungicides, Other Pesticide and Other Agricultural Chemicals, Nitrogen Fertilizer, Phosphate Fertilizer, Potash Fertilizer, Synthetic Fibers, Styrene Butadiene Rubber (SBR), Polybutadiene (BR), Ethylene Propylene (EPDM), Other Synthetic Rubber and Fibers, Polypropylene-Plastic Material and Resins, High-Density Polyethylene, Poly-Vinyl Chloride, Polyethylene Terephthalate, Polyurethane, Low-Density Polyethylene, Polystyrene-Plastic Material and Resins, Other Plastic Material and Resins, Synthetic Sweeteners, Plasticizers, Ethyl Alcohol, Silicone (except Resins), Fatty Acids, Gum and Wood Chemicals Synthetic Dye, Synthetic Pigments, Nitrogen, Oxygen, Carbon Dioxide, Hydrogen, Other Industrial Gas, Ethylene-Petrochemicals, Propylene-Petrochemicals, Benzene-Petrochemicals, Xylene, Styrene-Petrochemicals, Toluene, Cumene, Other Petrochemicals
The chemicals market size has grown strongly in recent years. It will grow from $5,115.19 billion in 2023 to $5,574.05 billion in 2024 at a compound annual growth rate (CAGR) of 9.0%. The growth in the historic period can be attributed to global economic conditions, global economic trends, raw material costs, market consolidation, global population growth.
The chemicals market size is expected to see strong growth in the next few years. It will grow to $7,788.18 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to stringent environmental regulations, shift in consumer preferences, renewable and bio-based materials, geopolitical factors, health and safety prioritization. Major trends in the forecast period include sustainability and green chemistry, digital transformation, circular economy, advanced materials and nanotechnology, supply chain resilience, digitalization and industry 4.0.
Growth In The Inorganic Chemicals Market
The rising demand for inorganic chemicals in the fertilizer industry is expected to propel the growth of the chemicals market going forward. Fertilizer is a substance made naturally or artificially that contains chemical elements that improve the growth and productivity of plants. Inorganic fertilizers comprise basic inorganic chemicals that transport essential nutrients to sustain crops and increase output. Thus, a demand for inorganic chemicals in the fertilizer industry will increase the need for chemicals. For instance, in December 2022, according to a report shared by S&P Global Inc., a US-based publicly traded corporation, Fertilizer shipments totaled 224 million metric tonnes. Fertilizer intermediates such as ammonia, sulfur, and phosphate rock are sold to more than 100 million metric tonnes. The value of primary fertilizer demand will have more than doubled, rising from $115 billion to roughly $231 billion, driven by variables in both the supply and demand chains. Therefore, the rising demand for inorganic chemicals in the fertilizer industry drives the growth of the chemicals market.
Industrial And Economic Expansion Fuels The Growth Of The Chemicals Market
The industrial and economic expansion is expected to propel the growth of the chemicals market going forward. Industrial and economic expansion occur due to several factors, including technological advancements, increased productivity, and improved transportation systems. Industrialization is the process by which an economy moves from primarily agrarian production to mass-produced and technologically advanced goods and services. Most industries such as paper and pulp, energy, packaging, adhesives and sealants, others extensively use various types of chemicals during production. For instance, in September 2023, according to Bureau of Economic Analysis (BEA), he real gross domestic product (GDP) of the United States increased at an annual rate of 2.1% in the second quarter of 2023. Further, according to the Federal Reserve Board, there was a 0.4% rise in industrial production in August 2023, and capacity utilization reached 79.7%, consistent with its historical average. Therefore, the industrial and economic expansion is driving the growth of the chemicals market.
Major companies operating in the chemicals market report are Sinopec Limited, China National Chemical Corporation (ChemChina), BASF SE, Procter & Gamble Company, Unilever PLC, Dow Inc., Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries N.V., L'Oreal SA, LG Chem Ltd., Mitsubishi Chemical Holdings Corp., Wanhua Chemical Group Co. Ltd., Sumitomo Chemical Co. Ltd., Evonik Industries AG, Covestro AG, PPG Industries Inc., Solvay S.A., Arkema S.A., DuPont de Nemours Inc., Air Products and Chemicals Inc., Shin-Etsu Chemical Co. Ltd., Akzo Nobel N.V., Eastman Chemical Company, Celanese Corporation, Huntsman Corporation, Formosa Plastics Corporation, FMC Corporation, Guardian Industries LLC, JXTG Holdings Inc., Clariant AG, Nippon Paint Holdings Co. Ltd., Henkel AG & Co. KGaA, The Sherwin-Williams Company, DIC Corporation
Rising Costs And Competitive Pressures Hindering The Growth Of The Chemicals Market
Rising costs had a negative impact on the growth of the industrial gas market during the forecast period. This rise in raw material costs resulted in higher manufacturing costs, thus decreasing the investments available for research and development of new products. Additionally, companies invested heavily in marketing their products due to intense competition in the market. Rising trucking, railroad, dry-bulk, and air-freight rates also negatively impacted the market. This rise in operating costs increased the pressure on companies to protect margins while maintaining the quality of their products.
Innovations In Green Manufacturing By Chemical Companies For Creating Sustainability
Chemical companies are increasingly adopting sustainable and eco-friendly processes to eliminate the negative impact of chemical manufacturing on the environment. Evolution in technology and chemical sciences enables chemical companies to utilize alternative fuels to produce chemical products. They are using naturally available carbon dioxide to produce fuels, industrial products, and other substances. For instance, Akzo Nobel N.V., a chemicals and coatings giant, is planning to make a seven-figure investment in Green Lizard Technologies’ patented process to make surfactants from plants rather than from oils.
Blockchain Revolutionizing Chemicals Industry To Enhance Transparency In Circular Value Chains
Major companies operating in the chemicals market are introducing innovative technologies such as blockchain to increase visibility along circular polymers and chemicals value chains. The blockchain technology aims to enhance supply chain visibility and is of significant importance in the polymers and chemicals sector, given the multiple processing stages and frequent blending and co-processing of materials within the industry. For instance, in May 2022, Neste, a chemical producing company partnered with Circularize to launch its blockchain technology. The blockchain technology helps establish digital solutions for enhancing supply chain visibility is of great significance in the polymers and chemicals sector, especially considering the multiple processing stages and material blending in the industry.
Asia-Pacific was the largest region in the chemicals market in 2023. North America was the second-largest region in the chemicals market. The regions covered in the chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the chemicals market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.
The chemicals market consists of the sales of petrochemicals, industrial gas, ethyl alcohol, organic chemicals and inorganic chemicals, resins, synthetic rubber, and artificial and synthetic fibers and filaments, pesticides, fertilizers, and other agricultural chemicals. The chemicals industry establishments produce a variety of chemical products by processing raw materials such as air, water, natural gas, oil, metals and minerals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The chemicals market research report is one of a series of new reports from The Business Research Company that provides chemicals market statistics, including chemicals industry global market size, regional shares, competitors with a chemicals market share, detailed chemicals market segments, market trends and opportunities, and any further data you may need to thrive in the chemicals industry. This chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.