The North America commodity chemicals market consists of various basic chemicals that serves as raw materials to many downstream industries. Some of the commonly produced commodity chemicals includes; ethylene, propylene, benzene, methanol, and acetone. These products find wide applications in various end-use industries such as construction, automotive, packaging, pharmaceutical, personal care & cosmetics, and agriculture. The increasing residential and non-residential construction activities in the US and Canada has significantly driven the demand for commodity chemicals over the years. Due to rapid urbanization and industrialization projects, the regions have observed substantial growth in construction of buildings, roads, bridges, and other infrastructure developments. The North America Commodity Chemicals market is estimated to be valued at US$ 144 Billion in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The North America Commodity Chemicals market is expected to be flourished by increasing demand from construction industry. As mentioned earlier, rapid growth in construction projects across residential, commercial and industrial sectors in the US and Canada is fueling the demand for basic chemicals that are used in building materials manufacturing. Apart from construction, increasing population and urbanization are also driving the manufacturing sector in the regions. This has augmented the production of various consumer goods and commodities, thereby positively impacting the demand for raw materials like ethylene, propylene and methanol. Moreover, rising investments in infrastructure development projects by governments will further promote the market growth over the forecast period. However, stringent regulations imposed on emissions from commodity chemical plants may hinder the market expansion to some extent.
Segment Analysis
The North America commodity chemicals market is dominated by basic chemicals sub-segment. Basic chemicals comprise of basic petrochemicals such as ethylene, propylene, etc. which are further processed to produce various other chemicals. The demand for basic petrochemicals is high as they find wide applications in industries like plastics, synthetic fibers, rubber etc. They serve as key feedstock for these industries. This makes the basic chemicals sub-segment the largest in terms of value and volume.
PEST Analysis
Political: Trade policies of US and Canada along with political stability in the region positively impact the market growth.
Economic: Strong economic growth rate of North America supports domestic demand from end-use industries like construction and automotive.
Social: Rising standards of living and increasing disposable income increases demand for various commodities and consumer goods requiring specialty chemicals.
Technological: Continuous innovation and development of new production techniques by key players helps improve efficiencies and reduces costs of operations.
Key Takeaways
The North America Commodity Chemicals Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The North America Commodity Chemicals market is estimated to be valued at US$ 144 Billion in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030.
Regional analysis – The United States dominates the North America commodity chemicals market accounting for over 80% share. This is attributed to presence of large production facilities and important consumer markets in the country. Presence of major petrochemical complexes especially in Gulf region provides cost advantage to domestic manufacturers. Canada is another significant market growing at a CAGR of around 4% during forecast period.
Key players – Key players operating in the North America commodity chemicals market are BASF SE, Dow Chemicals, LyondellBasell Industries, DuPont, Eastman Chemical Company. BASF SE dominates the market with wide product portfolio and large production capacities. The company offers a diversified range of basic chemicals which are further processed to manufacture various specialty and consumer goods.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
