What Transformation Has the Chemicals Market Undergone?
The chemicals market has seen considerable growth due to a variety of factors.
• In the recent past, the size of the chemicals market has witnessed a robust growth. Its expansion from $5614.19 billion in 2024 to $6158.94 billion in 2025, showcasing a compound annual growth rate (CAGR) of 9.7%, is anticipated. The surge during the historical period can be credited to factors such as international economic conditions, worldwide economic patterns, costs of raw materials, market amalgamation, and global population increment.
What Can Be Expected from the Chemicals Market in the Coming Years?
The chemicals market is expected to maintain its strong growth trajectory in upcoming years.
• The chemical industry is projected to witness significant expansion in the coming years, with the market size anticipated to increase to $8580.4 billion by 2029, at a compound annual growth rate of 8.6%.
The expansion prediction for the period under review is mainly due to a combination of factors including, strict environmental laws, changes in consumer preferences, the direction towards renewable and bio-based materials, geopolitical issues, and the emphasis on health and safety. Trends predicted to influence the sector during this forecast period encompass sustainability and green chemistry, digital transformation, the implementation of a circular economy, advanced materials and nanotechnology, resilience in the supply chain, digitalization and the transition to industry 4.0.
What Main Forces Are Fueling Expansion In The Chemicals Market?
The chemicals market is predicted to expand owing to the escalating demand for inorganic chemicals used in the fertilizer industry. Fertilizers can be created naturally or synthetically and are composed of chemical elements that bolster plant growth and productivity. Inorganic fertilizers, containing fundamental inorganic chemicals, convey vital nutrients to nourish crops and amplify yields. As a result, the requirement for inorganic chemicals in the manufacture of fertilizers will augment the demand for chemicals. For instance, in December 2022, S&P Global Inc., a US-based publicly quoted company, reported that Fertilizer shipments amounted to 224 million metric tonnes. Over 100 million metric tonnes of fertilizer intermediates like ammonia, sulfur, and phosphate rock were sold. The worth of principal fertilizer demand is projected to more than double, escalating from $115 billion to approximately $231 billion, sparked by shifts in supply and demand dynamics. Hence, the burgeoning demand for inorganic chemicals in the fertilizer industry is promoting the growth of the chemicals market.
How Are The Segments Defined Within The Global Chemicals Market?
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, Others
2) By Type of Intermediate Chemicals: Methanol, Ethylene Oxide, Propylene Oxide
3) By End User: Pharmaceuticals, Agrochemicals, Water Treatment, Construction, Paints And Dyes, Oil And Gas, Rubber Chemicals, Surfactants, Personal Care, Other End-Users
Subsegments:
1) By General Chemical Product: Specialty Chemicals, Basic Chemicals
2) By Printing Inks: Solvent-Based Inks, Water-Based Inks, UV-Curable Inks
3) By Toiletries: Skin Care Products, Hair Care Products, Oral Care Products
4) By Soap And Cleaning Compounds: Household Cleaning Products, Industrial Cleaning Agents, Specialty Soaps
5) By Adhesives: Water-Based Adhesives, Solvent-Based Adhesives, Hot Melt Adhesives
6) By Paints And Coatings: Architectural Coatings, Industrial Coatings, Automotive Coatings
7) By Pesticide And Other Agricultural Chemicals: Herbicides, Insecticides, Fungicides
8) By Chemical Fertilizers: Nitrogen Fertilizers, Phosphate Fertilizers, Potash Fertilizers
9) By Synthetic Rubber And Fibers: Styrene-Butadiene Rubber (SBR), Ethylene Propylene Diene Monomer (EPDM), Synthetic Fibers
10) By Others: Polyethylene, Polypropylene, Polyvinyl Chloride (PVC), Ethanol, Methanol, Acetic Acid, Sodium Carbonate, Calcium Carbonate, Sulfuric Acid, Organic Dyes, Inorganic Pigments, Specialty Pigments, Oxygen, Nitrogen, Argon, Aromatics, Aliphatic Hydrocarbons, Olefins
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How Are New Trends Expected To Influence The Growth Of The Chemicals Market?
Chemical corporations are gradually embracing more environmentally friendly and sustainable methods to mitigate the ecological harm caused by chemical production. Progress in technology and chemical studies allows these firms to use alternate fuels for the creation of chemical goods. One way they are doing this is by employing naturally occurring carbon dioxide to generate fuels, industrial items, and other compounds. An example of this is Akzo Nobel N.V., a leading firm in the chemicals and coatings industry, who have planned to invest in the seven-figure region into Green Lizard Technologies' proprietary process that creates surfactants from plants instead of oils.
Who Are the Key Players in the Chemicals Market?
Major companies operating in the chemicals market include:
• 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
What Is The Most Dominant Region In The Chemicals Market?
Asia-Pacific was the largest region in the chemicals market in 2024. 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.
