Commodity chemicals such as polymers, petrochemicals, synthetic rubber, and speciality chemicals are organic or inorganic substances used across numerous end-use industries for producing variety of products. These chemicals are required to manufacture day-to-day use items ranging from paints, detergents, plastics to pharmaceuticals. The global commodity chemicals market is estimated to be valued at US$ 67.72 Bn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand from end-use industries has been a key trend propelling growth of the global commodity chemicals market. Commodity chemicals act as basic raw materials for various end-use industries such as construction, automotive, food and beverages, textiles, and personal care among others. Over the forecast period, the rising construction activities along with growing automotive production is expected to surge the demand for commodity chemicals. This is estimated to fuel the market growth in upcoming years. Besides this, expanding population and improving standards of living is also projected to boost consumption of consumer goods which in turn will increase the consumption of commodity chemicals over the forecast period.
SWOT Analysis
- Strength: Commodity chemicals have widespread applications across industries like construction, automotive, packaging, etc. This ensures consistent demand.
- Weakness: Market is highly fragmented with presence of numerous local and international players. Intense competition on pricing keeps margins under pressure.
- Opportunity: Growing construction and infrastructure development activities in emerging economies of Asia Pacific and Middle East & Africa is expanding the market scope.
- Threats: Stringent government regulations around the world pertaining to environmental safety and production processes act as a challenge. Supply chain disruptions can impact the prices.
Key Takeaways
The global commodity chemicals market is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis- The Asia Pacific region dominates the global commodity chemicals market and is expected to witness the fastest growth during the forecast period. Countries like China, India, Indonesia, and Vietnam are leading the regional market supported by rapid industrialization and infrastructure development. Growing construction, automotive, and packaging industries have been driving the demand for commodity chemicals in Asia Pacific.
Key players operating in the commodity chemicals market are BASF SE, Dow Inc., SABIC, and LyondellBasell Industries. Focus on expanding production capacities, backward integration, and new product development are the preferred strategies of key players to strengthen their market position. Partnerships with end-use industries help establish long-term supply agreements. However, pricing pressure due to intense competition is a major challenge for key players.
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