Global Chemicals Market - Industry Trends and Forecast to 2031

Global Chemicals Market, By Product (Specialty Chemicals, and Commodity Chemicals), End-Use (Specialty Chemicals and Commodity Chemicals), Application (Agrochemicals, Flavors Ingredients, Fragrances Ingredients, Dyes and Pigments, Personal Care Active Ingredients, Water Treatment Chemicals, Construction Chemicals, Surfactants, Textile Chemicals, Bio-Based Chemicals, Polymer Additive, Oilfield Chemicals, Paper and Pulp Chemicals, Electronics Chemicals, Specialty Polymers, Pharmaceutical Ingredients, and Others) - Industry Trends and Forecast to 2023 to 2031.

Chemicals Market Analysis and Size

In manufacturing, the chemicals industry serves as a foundational pillar, providing essential raw materials, intermediates, and additives for a wide array of industries. The chemicals market is integral to the production of plastics, polymers, resins, and synthetic fibers, which are used extensively in the automotive, aerospace, packaging, and construction sectors. Chemicals act as catalysts, solvents, and processing aids in manufacturing processes, facilitating reactions, purification, and formulation of end products.

The global chemicals market size was valued at USD 138.09 million in 2023 and is projected to reach USD 204.17 million by 2031, with a CAGR of 5.01% during the forecast period of 2024 to 2031.

In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Chemicals encompass a broad range of substances with diverse properties and applications, including industrial chemicals, specialty chemicals, and consumer chemicals. They are fundamental components of countless products and processes, playing vital roles in sectors such as manufacturing, agriculture, healthcare, and technology. The chemical industry involves the production, distribution, and application of these substances, driving innovation and economic growth.

Chemicals Market Dynamics

Drivers

• Growing Technological Advancements

Innovations in chemical synthesis, catalysis, and molecular engineering enable the creation of novel materials with enhanced properties, functionality, and sustainability profiles. Moreover, advancements in process technologies, such as automation, digitization, and artificial intelligence, optimize manufacturing efficiency, reduce costs, and improve product quality. Innovations in biotechnology and renewable feedstocks drive the adoption of green chemistry principles, promoting eco-friendly and sustainable practices across the chemicals industry.

• High Regulatory Environment

Stringent regulations governing safety, environmental protection, and product quality drive investments in compliance measures and sustainable practices in the production of chemicals. Companies must adhere to a complex web of regulations regarding chemical production, handling, transportation, and disposal, influencing operational strategies and supply chain management. In addition, regulatory requirements for chemical registration, labeling, and risk assessment impact market access and product acceptance. Adapting to evolving regulatory standards and consumer expectations is crucial for companies to maintain competitiveness and ensure market viability in the chemicals industry.

Opportunities

• Growing Infrastructure Development

The demand for construction chemicals, including adhesives, sealants, coatings, and concrete additives, increases, as countries invest in building and upgrading infrastructure, such as roads, bridges, railways, airports, and energy facilities. Moreover, infrastructure projects often require specialized chemicals for water treatment, corrosion protection, and insulation. Rapid urbanization and population growth further fuel this demand, particularly in emerging economies where extensive infrastructure development is underway, driving growth opportunities for chemical manufacturers and suppliers globally.

• Rising Consumer Shift Towards Sustainable Practices

Increasing environmental concerns are prompting industries to adopt greener alternatives and practices. This shift encompasses various aspects, including the use of renewable feedstocks, eco-friendly manufacturing processes, and the development of biodegradable and recyclable chemical industry products. Companies embracing sustainability initiatives meet regulatory requirements and cater to consumer demand for environmentally responsible products. This driver encourages innovation and investment in green chemistry, driving market growth and competitiveness while mitigating environmental impacts associated with traditional chemical production processes.

Restraints/Challenges

• Increasing Volatility in Raw Material Prices

Fluctuations in the prices of key raw materials such as oil, natural gas, and minerals can significantly impact production costs and profit margins for chemical manufacturers. Sudden change in prices disrupt supply chains which leads to the inventory management challenges and uncertain market conditions. Moreover, prolonged periods of high raw material prices can erode profitability and competitiveness, particularly for companies operating in price-sensitive markets or facing intense competition.

• High Geopolitical Tensions

Trade disputes, tariffs, and sanctions between countries can lead to increased uncertainty and volatility, impacting the flow of raw materials, intermediates, and finished goods. Such disruptions can result in supply shortages, higher production costs, and reduced competitiveness for chemical manufacturers operating in affected regions. Moreover, geopolitical instability can create barriers to investment, innovation, and collaboration, limiting growth opportunities and market expansion for the chemicals industry on a global scale.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In June 2023, Avient Corporation and BASF SE collaborated to launch colored grades of Ultrason high-performance polymers worldwide. These grades integrate BASF’s Ultrason polyarylethersulfones (PAES) as a superior base polymer, complemented by Avient’s Colorant Chromatics proficiency in high-temperature color formulation. This collaboration aims to offer both color concentrates and pre-colored solutions, providing customers with enhanced options for high-quality, customized polymer solutions across various applications

Chemicals Market Scope

The market is segmented on the product, end-use, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Specialty Chemicals
• Commodity Chemicals

End-Use

• Specialty Chemicals
• Commodity Chemicals

Application

• Agrochemicals
• Flavors Ingredients
• Fragrances Ingredients
• Dyes and Pigments
• Personal Care Active Ingredients
• Water Treatment Chemicals
• Construction Chemicals
• Surfactants
• Textile Chemicals
• Bio-Based Chemicals
• Polymer Additive
• Oilfield Chemicals
• Paper and Pulp Chemicals
• Electronics Chemicals
• Specialty Polymers
• Pharmaceutical Ingredients
• Others

Chemicals Market Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, product, end-use, and application as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, and Rest of Middle East and Africa.

Asia-Pacific dominates the market due to the surge in manufacturing activities driven by the region's robust industrial growth. Additionally, rising per capita disposable income has spurred increased consumption across various sectors, notably automotive, construction, and electrical and electronics. The expansion of these industries further fuels the demand for chemicals, positioning the Asia-Pacific market at the forefront of the global chemical industry.

North America is expected to have significant growth, attributed to heightened emphasis and investments in research and development within the chemicals and related products sector. This trend underscores a strategic commitment to innovation and technological advancements, driving the region's chemical industry forward. Such investments foster a conducive environment for the development of novel products and solutions, positioning North America as a key player in the global chemical landscape over the forecast period.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Chemicals Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the company’s focus related to the market.

Some of the major players operating in the market are:

• BASF SE (Germany)
• Dow (U.S.)
• China Petrochemical Corporation (China)
• SABIC (Saudi Arabia)
• Exxon Mobil Corporation (U.S.)
• DuPont (U.S.)
• LyondellBasell Industries Holdings B.V. (U.S.)
• INEOS Group Holdings S.A. (Switzerland)
• Mitsubishi Chemical Group Corporation (Japan)
• LG Chem. (South Korea)
• Formosa Plastics Corporation U.S.A. (U.S.)
• Sumitomo Chemical Co., Ltd. (Japan)
• Evonik Industries AG (Germany)
• Akzo Nobel N.V. (Netherlands)
• Air Liquide  (France)