Basic Chemicals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Organic Ammonia, Chlorine, Sodium Hydroxide, Inorganic Benzene, Ethylene, Propylene, Others), By End User (Chemical Industry, Pharmaceuticals, Food & Beverages, Polymer, Pulp & Paper, Textiles, Others), By Region and Competition, 2019-2029F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationBasic Chemicals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Organic Ammonia, Chlorine, Sodium Hydroxide, Inorganic Benzene, Ethylene, Propylene, Others), By End User (Chemical Industry, Pharmaceuticals, Food & Beverages, Polymer, Pulp & Paper, Textiles, Others), By Region and Competition, 2019-2029F
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 665.28 Billion |
| CAGR (2024-2029) | 4.75% |
| Fastest Growing Segment | Chemical Industry |
| Largest Market | Asia Pacific |
| Market Size (2029) | USD 868.90 Billion |
Market Overview
Global Basic Chemicals Market was valued at USD 665.28 Billion in 2023 and is anticipated to project steady growth in the forecast period with a CAGR of 4.75% through 2029. Basic chemicals, also known as commodity chemicals, are typically produced in large quantities and play a crucial role in various industrial and consumer sectors. Inorganic chemicals, which lack a carbon-hydrogen bond, and organic chemicals, which contain a carbon-hydrogen bond, are the two main categories of chemicals.
Basic chemicals, often referred to as commodity chemicals, constitute a fundamental component of various industrial and consumer sectors, contributing to the production of a wide array of goods. These chemicals are typically manufactured in large quantities and are essential for the production of numerous everyday products. They are categorized into two main groups such as inorganic chemicals, which lack a carbon-hydrogen bond, and organic chemicals, which contain a carbon-hydrogen bond. Organic chemicals encompass a diverse range of compounds, including acetic acid, ethanol, phenol, urea, benzene, ethylene, and methanol. These chemicals find applications across various industries, such as vinegar production, pharmaceuticals, paints & adhesives, and de-scalers. Inorganic chemicals are utilized in pigmentation, semiconductor manufacturing, fuel production, medicine, and various chemical processes.
The expansion of the chemical industry is significantly driven by the growing demand for consumer goods in both developed and developing economies. Basic chemicals serve as raw materials or intermediates in the manufacturing process of numerous products, ranging from household items to industrial goods. The influx of foreign direct investment (FDI) in the chemical industry has further fueled the growth of chemical manufacturing activities, where a diverse range of basic chemicals are utilized for product manufacturing.
Despite their widespread utility, it's essential to acknowledge the potential health hazards associated with exposure to certain chemicals. Chemicals like sulfuric acid, phosphoric acid, and nitric acid can pose acute or long-term health risks if their permissible exposure limits are exceeded. For instance, regulatory bodies like the Occupational Safety and Health Administration (OSHA) have set legal airborne exposure limits for chemicals such as sulfuric acid, emphasizing the importance of stringent safety measures in handling these substances.
Prolonged exposure to highly concentrated acids like sulfuric acid can lead to adverse health effects, including damage to the eyes, skin, teeth, and lungs. Therefore, it's imperative for industries involved in chemical manufacturing and handling to adhere to strict safety protocols and regulations to mitigate health risks and ensure the well-being of workers and the surrounding environment. These considerations act as constraints on the growth of the basic chemicals market, necessitating a balanced approach that prioritizes both industrial productivity and safety standards.
Key Market Drivers
Growing Demand of Basic Chemicals in Pharmaceutical Industry
Within the pharmaceutical industry, basic chemicals play a crucial role in drug formulation and production. They are employed at different stages of pharmaceutical manufacturing, starting from the synthesis of active ingredients to the creation of final dosage forms. The ongoing COVID-19 pandemic and other health crises have significantly underscored the importance of pharmaceuticals, consequently driving the demand for basic chemicals utilized in their production.
The growth of the generic drugs market is another factor contributing to the rising demand for basic chemicals. As generic drugs are bioequivalent to their brand-name counterparts, they require the same basic chemicals for their production. This increased demand for basic chemicals within the pharmaceutical industry is not only shaping the global basic chemicals market but also stimulating manufacturers to innovate and expand their product offerings to cater to the specific needs of the pharmaceutical sector.
Growing Demand of Basic Chemicals in Food & Beverage Industry
Basic chemicals, such as citric and acetic acid, play a critical and multifaceted role in the food and beverage industry. They are indispensable in every step of food processing, from preservation to packaging, ensuring the safety and quality of the final products.
Urbanization and changing consumer lifestyles have significantly impacted the food industry, leading to a growing preference for ready-to-eat and processed foods. These convenient food options heavily rely on the utilization of basic chemicals for their production. Basic chemicals enable the efficient manufacturing and mass production of these food products, meeting the demands of modern consumers.
By adhering to these regulations, manufacturers can provide consumers with safe and trustworthy food choices.
Key Market Challenges
Volatility in Price of Raw Materials
To facilitate the production of basic chemicals, a diverse array of raw materials is required, such as crude oil, natural gas, minerals, and metals. However, the prices of these raw materials are subject to frequent fluctuations influenced by various factors, including geopolitical tensions, disruptions in the supply chain, shifts in demand and supply dynamics, and changes in regulatory policies.
Price volatility in raw materials can cause disruptions in the supply chain, leading to delays or even cancellations of orders, thereby impacting the overall market dynamics.
Key Market Trends
Surge in Stringent Environmental Regulations
In recent years, there has been a growing global concern regarding environmental sustainability. As a result, governments worldwide have started implementing stricter environmental regulations. The primary objective of these regulations is to reduce the emission of harmful pollutants, promote energy efficiency, encourage waste reduction, and foster the use of renewable raw materials.
Segmental Insights
Type Insights
Based on type,
Organic ammonia serves as a vital component in the production of cleaning agents and industrial chemicals, contributing to the manufacturing processes across multiple sectors. Its versatility and utility make it indispensable in modern industrial applications, driving its dominance in the global market for basic chemicals.
End User Insights
Based on end user, the chemical industry segment is projected to experience rapid growth during the forecast period. The increasing demand for a diverse array of consumer goods, ranging from everyday household items to advanced technological products, has led to a significant surge in the growth of the chemical industries. This trend is observed in both developed and developing economies, where basic chemicals play a crucial role as raw materials or intermediates in the manufacturing process of a wide variety of products. As a result, the basic chemicals market in the chemical industries is experiencing remarkable growth, driven by the need to meet the evolving demands of consumers worldwide.
Regional Insights
Asia Pacific have emerged as the dominant region in the Global Basic Chemicals Market in 2023, holding the largest market share in terms of value. The chemical industry sector in China is experiencing significant growth and continues to outpace other major chemical producing countries. This growth can be attributed to various factors, including increased investments, intense competition, and the presence of a large number of chemical manufacturing companies.
Recent Development
In January 2023, Henkel and Shell Chemical LP entered into a five-year alliance with the objective of replacing fossil-based feedstocks with renewable raw materials in the surfactant production process. This collaboration has the potential to replace up to 200,000 tonnes of conventional materials. The renewable-based surfactants resulting from this partnership will be incorporated into Henkel's laundry product lineup, including various iterations of Persil, Purex, and all brand variations. Surfactants, crucial components in cleaning formulations, play a vital role in generating foam and removing dirt.
Key Market Players
- BorealisAG
- BASF SE
- EastmanChemical Company
- IneosGroup Ltd
- TokyoChemical Industry (India) Pvt. Ltd.
- MitsubishiChemical Group Corporation
- Solvay SA
- Shin-EtsuChemical Co. Ltd.
- SumitomoChemical Co. Ltd.
- LyondellBasellIndustries Holdings B.V.
| By Type | By End User | By Region |
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