Chemicals Market Report 2026

The chemicals market size has grown strongly in recent years. It will grow from $5.33 trillion in 2025 to $5.68 trillion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to expansion of industrial manufacturing activities, growth in construction and infrastructure development, rising demand from agrochemical applications, increasing consumption of personal care products, expansion of oil and gas processing activities.

The chemicals market size is expected to see strong growth in the next few years. It will grow to $7.58 trillion in 2030 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to growing emphasis on green and bio-based chemicals, rising investments in advanced chemical manufacturing technologies, expansion of specialty chemicals demand, increasing regulatory pressure on emissions and waste, growing adoption of digital process optimization. Major trends in the forecast period include rising demand for specialty and high-performance chemicals, increasing focus on sustainable chemical production, growing adoption of process automation in chemical plants, expansion of downstream chemical applications, enhanced compliance with environmental regulations.

The industrial and economic expansion is expected to propel the growth of the chemicals market going forward. Industrial and economic expansion occur due to several factors, including technological advancements, increased productivity, and improved transportation systems. Industrialization is the process by which an economy moves from primarily agrarian production to mass-produced and technologically advanced goods and services. Most industries such as paper and pulp, energy, packaging, adhesives and sealants, others extensively use various types of chemicals during production. For instance, in September 2023, according to Bureau of Economic Analysis (BEA), he real gross domestic product (GDP) of the United States increased at an annual rate of 2.1% in the second quarter of 2023. Further, according to the Federal Reserve Board, there was a 0.4% rise in industrial production in August 2023, and capacity utilization reached 79.7%, consistent with its historical average. Therefore, the industrial and economic expansion is driving the growth of the chemicals market.

Major companies operating in the chemicals market are increasingly focusing on developing sustainable and bio-based solutions to address multi-industry challenges and minimize environmental impact. Bio-based materials, derived from renewable resources, are used across sectors such as packaging, construction, automotive, and personal care. For instance, in May 2025, HH Chemical, a China-based chemical manufacturer, introduced BIODEX, the world’s first fully integrated bio-based materials brand. The brand is designed to offer innovative, eco-friendly alternatives that combine performance, versatility, and sustainability, helping industries transition toward circular economy models. This initiative reflects the industry’s move toward fully integrated, sustainable material solutions that support long-term environmental and economic progress.

In May 2025, Novopor Advanced Science Pvt Ltd, an India-based specialty chemicals company, acquired Pressure Chemical Company for an undisclosed amount. Through this acquisition, Novopor Advanced Science aims to strengthen its specialty chemicals portfolio, improve operational capabilities, expand its presence in the US market, and support long-term growth and profitability. Pressure Chemical Company is a US-based specialty chemicals manufacturer providing innovative chemical solutions for various industrial applications.

Major companies operating in the chemicals market are Sinopec Limited, China National Chemical Corporation (ChemChina), BASF SE, Dow Inc., Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries N.V., LG Chem Ltd., Mitsubishi Chemical Holdings Corp., Wanhua Chemical Group Co. Ltd., Sumitomo Chemical Co. Ltd., Evonik Industries AG, Covestro AG, PPG Industries Inc., Solvay S.A., Arkema S.A., DuPont de Nemours Inc., Air Products and Chemicals Inc., Shin-Etsu Chemical Co. Ltd., Akzo Nobel N.V., Eastman Chemical Company, Celanese Corporation, Huntsman Corporation, Formosa Plastics Corporation, FMC Corporation, Clariant AG, JXTG Holdings Inc., Henkel AG & Co. KGaA, The Sherwin-Williams Company, DIC Corporation.

Asia-Pacific was the largest region in the chemicals market in 2025. North America was the second-largest region in the chemicals market. The regions covered in the chemicals market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the chemicals market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The chemicals market consists of the sales of petrochemicals, industrial gas, ethyl alcohol, organic chemicals and inorganic chemicals, resins, synthetic rubber, and artificial and synthetic fibers and filaments, pesticides, fertilizers, and other agricultural chemicals. The chemicals industry establishments produce a variety of chemical products by processing raw materials such as air, water, natural gas, oil, metals and minerals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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