Basic Chemicals Market Analysis, Opportunities & Trends 2031
Basic Chemicals Market Analysis, Opportunities & Trends 2031
Segments - Basic Chemicals Market by Device (Inorganic and Organic), Type (Chlorine, Organic Ammonia, Sodium Hydroxide, Ethylene, Inorganic Benzene, and Propylene), End-user (Pharmaceuticals, Chemical Industry, Polymer, Food & Beverages, Textiles, Pulp & Paper, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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Report Description
Basic Chemicals Market Outlook 2031
The global basic chemicals market size was USD 681.13 Billion in 2022 and is likely to reach USD 1015.6 Billion by 2031, expanding at a CAGR of 4.64% during 2023–2031. The market is driven by increasing use of basic chemicals in the chemical industry.
Growing demand for basic chemicals in the food and beverage industry is anticipated to boost the market during the assessment period. Basic chemicals are used in this industry in the form of food additives to enhance the flavor, appearance, and fragrance of food products. They are also extensively used as preservatives to reduce the bacterial growth in food products, thereby preventing them from spoiling. The increasing consumption of packaged and processed food all across the globe is likely to fuel the market in the coming years.
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According to the data published by New York University in October 2021, the consumption of processed food has grown significantly over the years. The consumption of ultra-processed food has risen from 53.5% in 2001-2002 to 57% by the end of 2017-2018.
There is a high demand for basic chemicals in other industries such as the pharmaceutical industry for the manufacturing of medicines. Other industries with a surging requirement for basic chemicals include inks, crop protection, engineering, paint, textile, and others. Consequently, the market is projected to have a significant propulsion during the forecast period.
The COVID-19 pandemic impeded the market, due to the lockdown restrictions levied by various governments across the globe. The manufacturing activities were halted, due to the absence of workers that was caused by fear of the spread of disease. Furthermore, the import and export activities in several countries were heavily restricted. This led to a decline in the availability of various end-use products, thereby creating a market slowdown.
Impact of Artificial Intelligence (AI) in Basic Chemicals Market
The use of artificial intelligence is anticipated to substantially augment the basic chemicals market. AI is implemented in several processes of basic chemicals, including research & development, manufacturing, and operational processes. It aids in material design, drug discovery, spectroscopy, reaction optimization, and analysis.
The optimization of synthesis helps in creating new materials and chemicals in the laboratory. Previous experiments are thoroughly analyzed and preferable outcomes are able to be predicted with the use of machine learning. In addition, AI helps in augmenting the reaction outcomes to enhance yields and decrease waste.
Basic Chemicals Market Dynamics
Major Drivers
High demand from the construction and the food & beverage industries is expected to drive the market during the projection period. The manufacturing of various construction-related products requires extensive use of basic chemicals. Several developing economies across the globe are showcasing considerable infrastructural growth, which is leading to significant expansion of the construction industry, and thereby elevating the need for basic chemicals. In addition, the increasing consumption of processed meat and other packaged foods in developed and developing nations is largely contributing to the surge of the basic chemicals market during the projection period.
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As per a recent survey report published in August 2023, the global revenue generated by the construction industry in 2020 was approximately USD 6.4 trillion. The value is expected to grow constantly and reach close to USD 14.4 trillion by 2030.
Existing Restraints
Rising awareness of healthy foods among people is likely to hamper the market during the forecast period. People are proactively opting for healthy foods, as they become mindful and conscious of the benefits of organic foods. This is likely to bring a decline in the demand for processed food, which affects the requirement for basic chemicals in the food and beverage industry, thereby leading to the market slowdown.
Emerging Opportunities
Increasing investment in chemical industries is anticipated to provide substantial growth opportunities for the market in the coming years. Large investments are being made in the establishment and expansion of chemical industries with the surge in construction and manufacturing activities in various developed and developing economies across the globe. This helps to ensure the constant supply of basic chemicals to increase the production of various end-use products. This is likely to provide lucrative prospects for the propulsion of the market.
Scope of the Basic Chemicals Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes |
Details |
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Report Title |
Basic Chemicals Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Device (Inorganic and Organic), Type (Chlorine, Organic Ammonia, Sodium Hydroxide, Ethylene, Inorganic Benzene, and Propylene), End-user (Pharmaceuticals, Chemical Industry, Polymer, Food & Beverages, Textiles, Pulp & Paper, and Others) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
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Key Players Covered in the Report |
Tokyo Chemical Industry Co. Ltd.; Sumitomo Chemical Co. Ltd.; Solvay; Shin-Etsu Chemical Co. Ltd.; Mitsubishi Chemical Corporation; LyondellBasell Industries Holdings B.V.; INEOS; Eastman Chemical Company; Borealis AG; Evonik; Laxmi Organic Industries Limited; and BASF SE. |
Basic Chemicals Market Segment Insights
Device Segment Analysis
Based on the device, the basic chemicals market is divided into inorganic and organic. The organic segment is projected to hold the major share of the market during the projection period. The production of alcoholic beverages, including wine, beer, and distilled spirits, necessitates the addition of intoxicating agents.
The market trends in this industry indicate that ethanol is primarily used as an intoxicating component. It is a sustainable and renewable fuel, as ethanol is derived from organic sources such as sugarcane and cereals,. These factors are driving the expansion of this market segment.
Type Segment Analysis
On the basis of type, the global market is segregated into chlorine, organic ammonia, sodium hydroxide, ethylene, inorganic benzene, and propylene. The organic ammonia segment is projected to register a high CAGR during the forecast period, as ammonia has a wide range of applications, ranging from the purification of water to the manufacture of dangerous explosives.
One of the most extensive uses of this chemical comes from the agriculture sector, where it is heavily used in making pesticides. Other uses of ammonia include its application as a refrigerant gas and in the manufacture of textiles, plastics, explosives, dyes pesticides, & other chemicals. Furthermore, it is also used in several industrial-strength as well as household cleaning solutions.
End-user Segment Analysis
On the basis of end-user, the basic chemicals market is segmented into pharmaceuticals, chemical industry, polymer, food & beverages, textiles, pulp & paper, and others. The chemical industry segment is anticipated to register a robust growth rate during the forecast period, due to the rising demand for various chemicals across various industries globally.
Different chemicals are used in making materials such as rubber, fiber, fertilizers, adhesives, soaps & detergents, and building materials. Therefore, the versatile applications of chemicals are projected to impel this segment during the assessment period.
The food & beverages segment is anticipated to expand at a substantial CAGR during the assessment period. The food industry employs various chemicals as direct food additives to enhance the sensory properties, such as aroma, taste, and appearance of the food. These chemicals also act as preservatives, preventing bacterial action and spoilage of the food items. Additionally, the food industry uses chemical substances in food packaging materials, including foils, containers, boxes, cutlery, and other items that come in contact with food.
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In July 2021, Platinum Equity announced a merger with Sigura Water for the acquisition of Solenis, a chemical company, for USD 5.25 billion. The combination is expected to allow Sigura to meet the growing demand for chemicals and water treatment products, particularly in the food packaging and paper industries.
Regional Outlook
In terms of region, the global basic chemicals market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, due to the rapid industrialization and urbanization in developing economies such as India and China.
The production of various end-use products has significantly increased over the years in this region. The surge in population and rising per capita income are some of the primary factors contributing to the growth of this market.
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In March 2021, Laxmi Organic Industries Limited launched an IPO worth INR 600 crore. LOIL is expanding its position in the basic chemicals space, particularly in fluorochemicals, and is one of largest ethyl acetate producers in India with a market share of more than 30%.
The market in North America is anticipated to witness a major surge, due to the high consumption of processed foods by people in this region. Extensive use of chemicals is made for creating flavoring substances and preservatives for packaged foods. Furthermore, the excellent industrial infrastructure leads to the high manufacturing capacity of various end-use products, and thereby increasing the demand for different basic chemicals in this region.
Segments
The basic chemicals market has been segmented on the basis of
Device
- Inorganic
- Organic
Type
- Chlorine
- Organic Ammonia
- Sodium Hydroxide
- Ethylene
- Inorganic Benzene
- Propylene
End-user
- Pharmaceuticals
- Chemical Industry
- Polymer
- Food & Beverages
- Textiles
- Pulp & Paper
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Tokyo Chemical Industry Co. Ltd.
- Sumitomo Chemical Co. Ltd.
- Solvay
- Shin-Etsu Chemical Co. Ltd.
- Mitsubishi Chemical Corporation
- LyondellBasell Industries Holdings B.V.
- INEOS
- Eastman Chemical Company
- Borealis AG
- Evonik
- Laxmi Organic Industries Limited
- BASF SE
Competitive Landscape
Key players competing in the global basic chemicals market are Tokyo Chemical Industry Co. Ltd.; Sumitomo Chemical Co. Ltd.; Solvay; Shin-Etsu Chemical Co. Ltd.; Mitsubishi Chemical Corporation; LyondellBasell Industries Holdings B.V.; INEOS; Eastman Chemical Company; Borealis AG; Evonik; Laxmi Organic Industries Limited; and BASF SE.
These companies adopt several development strategies including mergers, partnerships, collaboration, acquisitions, product launches, and production expansion to get an edge over the competitors. These market players heavily invest in research & innovation to stay ahead of the curve. For instance,
- In October 2021, Evonik divested its basic chemicals production site in Lulsdorf, Germany, as the company shifted its focus to high-margin specialty chemicals. Lulsdorf has significant capacity for chemical production and the company is looking for new owners to shape future of the site.
Table Of Content
1. Executive Summary2. Assumptions and Acronyms Used
3. Research Methodology
4. Basic Chemicals Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Basic Chemicals Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Basic Chemicals Market - Supply Chain
4.5. Global Basic Chemicals Market Forecast
4.5.1. Basic Chemicals Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Basic Chemicals Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Basic Chemicals Market Absolute $ Opportunity
5. Global Basic Chemicals Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Basic Chemicals Market Size and Volume Forecast by Types
5.3.1. Chlorine
5.3.2. Organic Ammonia
5.3.3. Sodium Hydroxide
5.3.4. Ethylene
5.3.5. Inorganic Benzene
5.3.6. Propylene
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Basic Chemicals Market Analysis and Forecast by End Users
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by End Users
6.2.2. Y-o-Y Growth Projections by End Users
6.3. Basic Chemicals Market Size and Volume Forecast by End Users
6.3.1. Pharmaceuticals
6.3.2. Chemical Industry
6.3.3. Polymer
6.3.4. Food & Beverages
6.3.5. Textiles
6.3.6. Pulp & Paper
6.3.7. Others
6.4. Absolute $ Opportunity Assessment by End Users
6.5. Market Attractiveness/Growth Potential Analysis by End Users
7. Global Basic Chemicals Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Basic Chemicals Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Basic Chemicals Demand Share Forecast, 2019-2026
8. North America Basic Chemicals Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Basic Chemicals Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Basic Chemicals Market Size and Volume Forecast by Types
8.4.1. Chlorine
8.4.2. Organic Ammonia
8.4.3. Sodium Hydroxide
8.4.4. Ethylene
8.4.5. Inorganic Benzene
8.4.6. Propylene
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Basic Chemicals Market Size and Volume Forecast by End Users
8.7.1. Pharmaceuticals
8.7.2. Chemical Industry
8.7.3. Polymer
8.7.4. Food & Beverages
8.7.5. Textiles
8.7.6. Pulp & Paper
8.7.7. Others
8.8. Basis Point Share (BPS) Analysis by End Users
8.9. Y-o-Y Growth Projections by End Users
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Basic Chemicals Demand Share Forecast, 2019-2026
9. Latin America Basic Chemicals Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Basic Chemicals Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Basic Chemicals Market Size and Volume Forecast by Types
9.4.1. Chlorine
9.4.2. Organic Ammonia
9.4.3. Sodium Hydroxide
9.4.4. Ethylene
9.4.5. Inorganic Benzene
9.4.6. Propylene
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Basic Chemicals Market Size and Volume Forecast by End Users
9.7.1. Pharmaceuticals
9.7.2. Chemical Industry
9.7.3. Polymer
9.7.4. Food & Beverages
9.7.5. Textiles
9.7.6. Pulp & Paper
9.7.7. Others
9.8. Basis Point Share (BPS) Analysis by End Users
9.9. Y-o-Y Growth Projections by End Users
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Basic Chemicals Demand Share Forecast, 2019-2026
10. Europe Basic Chemicals Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Basic Chemicals Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Basic Chemicals Market Size and Volume Forecast by Types
10.4.1. Chlorine
10.4.2. Organic Ammonia
10.4.3. Sodium Hydroxide
10.4.4. Ethylene
10.4.5. Inorganic Benzene
10.4.6. Propylene
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Basic Chemicals Market Size and Volume Forecast by End Users
10.7.1. Pharmaceuticals
10.7.2. Chemical Industry
10.7.3. Polymer
10.7.4. Food & Beverages
10.7.5. Textiles
10.7.6. Pulp & Paper
10.7.7. Others
10.8. Basis Point Share (BPS) Analysis by End Users
10.9. Y-o-Y Growth Projections by End Users
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Basic Chemicals Demand Share Forecast, 2019-2026
11. Asia Pacific Basic Chemicals Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Basic Chemicals Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Basic Chemicals Market Size and Volume Forecast by Types
11.4.1. Chlorine
11.4.2. Organic Ammonia
11.4.3. Sodium Hydroxide
11.4.4. Ethylene
11.4.5. Inorganic Benzene
11.4.6. Propylene
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Basic Chemicals Market Size and Volume Forecast by End Users
11.7.1. Pharmaceuticals
11.7.2. Chemical Industry
11.7.3. Polymer
11.7.4. Food & Beverages
11.7.5. Textiles
11.7.6. Pulp & Paper
11.7.7. Others
11.8. Basis Point Share (BPS) Analysis by End Users
11.9. Y-o-Y Growth Projections by End Users
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Basic Chemicals Demand Share Forecast, 2019-2026
12. Middle East & Africa Basic Chemicals Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Basic Chemicals Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Basic Chemicals Market Size and Volume Forecast by Types
12.4.1. Chlorine
12.4.2. Organic Ammonia
12.4.3. Sodium Hydroxide
12.4.4. Ethylene
12.4.5. Inorganic Benzene
12.4.6. Propylene
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Basic Chemicals Market Size and Volume Forecast by End Users
12.7.1. Pharmaceuticals
12.7.2. Chemical Industry
12.7.3. Polymer
12.7.4. Food & Beverages
12.7.5. Textiles
12.7.6. Pulp & Paper
12.7.7. Others
12.8. Basis Point Share (BPS) Analysis by End Users
12.9. Y-o-Y Growth Projections by End Users
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Basic Chemicals Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Basic Chemicals Market: Market Share Analysis
13.2. Basic Chemicals Distributors and Customers
13.3. Basic Chemicals Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. Tokyo Chemical Industry Co. Ltd.
13.4.2. Sumitomo Chemical Co. Ltd.
13.4.3. Solvay
13.4.4. Shin-Etsu Chemical Co. Ltd.
13.4.5. Mitsubishi Chemical Corporation
13.4.6. LyondellBasell Industries Holdings B.V.
13.4.7. INEOS
13.4.8. Eastman Chemical Company
13.4.9. Borealis AG
13.4.10. Evonik
13.4.11. Laxmi Organic Industries Limited
13.4.12. BASF SE
Methodology
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