Commodity chemicals are basic chemicals that serve as building blocks and intermediates for the production of variety of industrial and consumer goods. They help to improve crop yield by providing necessary crop nutrition and protecting crops from pests and diseases.
The global Commodity Chemicals Market is estimated to be valued at US$ 67.72 Bn or Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the commodity chemicals market is growing demand from agriculture industry. There is rising requirement of crop protection chemicals, fertilizers and growth regulators, owing to surge in global population and depleting arable land. Agricultural commodity chemicals help farmers to boost their agricultural outputs to meet the increasing food demand. Further, adoption of modern and advanced farming practices is also fueling the need for high-quality agricultural chemicals.
SWOT Analysis
- Strength: Commodity chemicals have stable demand from various end-use industries such as automotive, construction, packaging, etc. Established supply chain and distribution networks of key players ensure reliable supplies.
- Weakness: Intense competition from local and regional players on pricing. Volatile petrochemical prices impact production costs.
- Opportunity: Growing demand for commodity chemicals from emerging economies driven by rapid industrialization and infrastructure development. Shift towards specialty chemicals through value-addition offers scope for differential pricing.
- Threats: Stringent environmental regulations regarding VOC emissions during production. Rising preference for sustainable chemicals may affect sales of conventional commodity chemicals over long term.
Key Takeaways
The global commodity chemicals market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing demand from various end-use industries globally driven by economic expansion, population growth, and urbanization. Asia Pacific dominated the global market in 2022, accounting for over 40% share, due to robust demand from China, India, and other developing Asian countries.
Regional analysis: Asia Pacific is expected to continue dominating the global commodity chemicals market during the forecast period, led by China. Countries such as India, Indonesia, Vietnam, and Malaysia are anticipated to witness fastest growth owing to heavy investments in infrastructure and rapid industrialization. North America and Western Europe are other major markets, though growth is expected to be modest compared to Asian countries.
Key players operating in the commodity chemicals market are BASF SE, Dow Inc., SABIC, and LyondellBasell Industries. Bayer AG, DuPont, Sumitomo Chemical Co. Ltd., and Mitsubishi Chemical Holdings Corporation are among other prominent manufacturers. Key players are focusing on niche applications and geographical expansion into high growth emerging economies to gain additional market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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