Basic Chemicals Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product Type and End User : Global Opportunity Analysis and Industry Forecast, 2021-2030

Basic Chemicals Market Outlook - 2030

The global basic chemicals market size was valued at $649.8 billion in 2020, and is projected to reach $949.1 billion by 2030, growing at a CAGR of 3.9% from 2021 to 2030. Basic chemicals are usually produced in large quantities and these chemicals are crucial products that will be used in the industrial and consumer sectors. Inorganic chemicals are chemical compounds that lack carbon-hydrogen bond while organic chemicals are chemical compounds that contain carbon-hydrogen bond. Acetic acid, ethanol, phenol, urea, benzene, ethylene, and methanol are some examples of organic chemicals that are used in applications such as vinegar production, pharmaceuticals, paints & adhesives, and descalers. Inorganic chemicals are used in applications such as pigmentation, semiconductor, fuel, medicine, and chemical industry.               

The increase in demand for a wide range of consumer goods has surged the growth of the chemical industries in both developed and developing economies where basic chemicals are used either as raw material or intermediate in manufacturing different products. This may act as one of the key drivers responsible for the growth of the basic chemicals market in the chemical industries. Furthermore, the increase in foreign direct investment (FDI) inflow in chemical industries boost the growth of the chemical manufacturing sectors where a wide range of basic chemicals are used for product manufacturing purposes. For instance, according to a report published by India Brands Equity Foundation, the FDI inflows in the chemical sector reached $18.69 billion from April 2020 and June 2021. All these factors collectively surge demand for basic chemicals, thereby augmenting the global basic chemicals industry growth.

However, exposure to chemicals can cause acute or long-term detrimental health hazards. There are different types of chemicals such as sulfuric acid, phosphoric acid, nitric acid, and others that may be hazardous if exposed beyond the permissible exposure limit. For example, as per the standard industrial guidelines issued by the Occupational Safety and Health Administration (OSHA), the legal airborne exposure limit for sulfuric acid is 1mg/m3 for an 8-hour work shift. Prolonged exposure to sulfuric acid may harm the eyes, skin, teeth, and lungs. Also, highly concentrated acids must be handled carefully otherwise they may cause serious skin problems. These factors together restrain the basic chemicals market growth. 

On the contrary, presence of major chemical manufacturing companies such as BASF SE, Bayer AG, Boehringer Ingelheim GmbH, and Evonik Industries AG in Germany is anticipated to drive the demand of the basic chemicals market. Factors such as investments and favorable frameworks are anticipated to escalate the production and sales of basic chemicals in Europe. In addition, according to report by Germany Trade & Invest (GTAI), efficient cost structure and presence of highly skilled labors has pushed the demand for adhesives & sealants manufacturers. Leading automotive expertise has created new opportunities for key-players entering into the market. Basic chemicals are being widely used in production of adhesives & sealants. This is further anticipated to offer new opportunities in the global market. 

The basic chemicals market is segmented on the basis of type, end-use, and region. On the basis of type, the market is categorized into organic and inorganic. By end use, the market is divided into chemical industry, food & beverages, textile, pharmaceuticals, pulp & paper, polymer, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. 

Basic Chemicals Market, By Region

The Asia-Pacific basic chemicals market accounted for 49.4% of the market share in 2020, and is projected to grow at the highest CAGR of 4.5% during the forecast period. Chemical industry sector in China is growing and remains to outpace as compared to other major chemical producing countries. Factors such as rise in investments, intense competition, and presence of large number chemical manufacturing companies is anticipated to drive the demand of basic chemicals market in Asia-Pacific. Coupled with shift towards specialty-chemical manufacturing sector, growing consumer-demand, and mounting superiority of China’s industrial output is another considerable factor driving the demand of basic chemicals sector in Asia-Pacific.

Basic Chemicals Market, By Product Type

In 2020, the organic product type was the largest revenue generator, and is anticipated to grow at a CAGR of 3.2% during the forecast period. Phenol is a another important and widely used organic chemical compound in pharmaceutical sector. It is used to treat muscle spasticity by injecting phenol into muscles and it is widely used during ingrown toenail surgery is another considerable growth factor in the global market. Vaccines are utmost important in healthcare sector. However, proper storage of these vaccines is important in order to enhance the effectiveness of these vaccines. Bacteria tend to develop in these vaccines if not properly preserved and further leads to vaccine contamination. Thus, to overcome this problem, phenol is used as vaccine preservatives as it helps to prohibit the growth of bacteria and microbial contamination.

Basic Chemicals Market Analysis, By End Use

By end-use, the chemical industry segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 3.4% during forecast period. The increasing demand for a wide range of consumer goods has surged the growth of the chemical industries in both developed and developing economies where basic chemicals are used either as raw material or intermediate in manufacturing different products. This may act as one of the key drivers responsible for the growth of the basic chemicals market in the chemical industries.  

Key benefits for stakeholders

• Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• It outlines the current market trends and future estimations of global basic chemicals market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
• The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
• The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
• The profiles of key players and their key strategic developments are enlisted in the report.
• The report includes the analysis of the regional as well as global basic chemicals market trends, key players, market segments, application areas, and market growth strategies.
   

  Basic Chemicals Market Report Highlights

Aspects	Details
By Product Type	Organic Inorganic
By End-Use	Chemical Industry Food & Beverages Textiles Pharmaceuticals Pulp & Paper Polymer Others
By Region	North America  (U.S., Canada, Mexico) Europe  (Germany, UK, France, Italy, Spain, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific) LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players	Solvay, Borealis AG, Sumitomo Chemical Co. Ltd., LyondellBasell Industries Holdings B.V., INEOS, Tokyo Chemical Industry Co. Ltd., Eastman Chemical Company, Shin-Etsu Chemical Co. Ltd., Mitsubishi Chemical Corporation, BASF SE

Analyst Review

The global basic chemicals market is expected to exhibit high growth potential owing to its use in food & beverages, textile, pulp & paper, and pharmaceuticals end-user. Acetic acid is an important chemical compound that is used as food additive for regulating acidity level and as a preservative is the key market trend. For instance, it is used to increase the level of acidity and decrease the pH level of food products and it also improves the organoleptic quality in food products such as salt and vinegar chips. 

Moreover, the increase in utilization of plastics across several end-use sectors has surged the growth of the polymer manufacturing industries where basic chemicals are widely used as a raw materials for product manufacturing purposes. This may act as one of the key drivers responsible for the growth of the basic chemicals market. Furthermore, polymers are widely accepted as a substitute of metals owing to its excellent significant properties such as high strength, corrosion resistance, lightweight, and others. This has led the polymer sector to witness a significant increase in demand where basic chemicals are used as a raw material for manufacturing applications.

Basic chemicals also find applications in chemical industry, building & construction, energy, and agriculture end use industries. The building and construction sector uses a wide range of basic chemicals such as caustic soda, vinyl chloride monomer (VCM), and others for manufacturing different building materials such as window glass, fittings, pipes and others. Caustic soda is a major raw material used in manufacturing glasses and geopolymer concretes. Moreover, vinyl chloride monomer (VCM) is used as a major precursor in the polymerization process to manufacture polyvinyl chloride (PVC) resin. This is not only gaining immense attention in the market but is also emerging as a key strategy in terms of gaining additional market demand.

 

Author Name(s) : Chidanand Bilagi| Nikhil Mittal | Eswara Prasad

Related Tags

• Basic Chemicals
• Organic Chemicals
• Inorganic Chemicals
• Polymers

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