Basic Chemicals Global Market Report 2024

The basic chemicals market size has grown strongly in recent years. It will grow from $675.35 billion in 2023 to $713.59 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period of basic chemicals can be attributed to various factors, including the expansion of consumer goods manufacturing, developments in the oil and gas industry, growth in the healthcare and pharmaceuticals sectors, historical periods of world wars that drove demand for chemical products, and the influence of environmental regulations shaping the industry. These factors collectively contributed to the increasing production and utilization of basic chemicals during the historical period.

The basic chemicals market size is expected to see steady growth in the next few years. It will grow to $864.15 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. The forecasted growth in the basic chemicals sector is driven by several factors, including a transition to green chemistry, increased utilization of renewable resources, initiatives promoting circular economy practices, advancements in clean technologies and energy transition, as well as the ongoing digitalization trends associated with Industry 4.0. Additionally, major trends in the forecast period include a focus on customization and tailored solutions, an emphasis on safety and risk management, the implementation of circular economy principles, a growing demand for health and personal care chemicals, and the development of advanced materials. These trends reflect the industry's response to evolving environmental considerations, technological advancements, and changing consumer preferences.

Anticipated growth in the basic chemicals market is being fueled by increasing demand within the expansive and intricate food and beverage industry. This sector encompasses various operations related to the production, processing, packaging, distribution, and retailing of food and drink items. Basic chemicals, functioning as additives such as flavorings, thickeners, sweeteners, colorants, or preservatives, play a pivotal role in this industry. Notably, in June 2022, as per the USDA Rural Development's 2021 Highlights, F&B sales amounted to $467.20 billion in the United States. Additionally, data from December 2022 released by Kirin Brewery Company Limited revealed a global beer consumption of 185.60 million kiloliters in 2021. Thus, the surge in demand within the food and beverage sector is instrumental in propelling the basic chemicals market.

The burgeoning growth of the basic chemicals market is significantly bolstered by the escalating building and construction activities worldwide. These activities encompass the intricate processes involved in erecting structures such as buildings, bridges, roads, and various other infrastructure elements. Critical raw materials required for these endeavors are often derived from basic chemicals, serving as fundamental components in manufacturing construction materials such as plastics, adhesives, coatings, and sealants. For instance, data from a 2022 report published by the US-based Bureau of Economic Analysis (BEA) revealed a substantial increase in the size of the US construction industry, rising from $1.916 trillion in the first quarter of 2021 to $2.016 trillion in the first quarter of 2022. Consequently, the burgeoning global building and construction activities are poised to drive the basic chemicals market further.

Notable advancements within the basic chemicals market involve major companies engaging in product innovation to uphold their market positions. A case in point is Evonik Industries AG, a German specialty chemicals firm, introducing the ELATUR DINCD plasticizer in January 2022. This plasticizer, a cyclohexanone variant, offers commendable UV resistance and flexibility at low temperatures. Its simplified processing, owing to low viscosity, makes it particularly suitable for demanding applications in both exterior and interior realms. These applications span textile fabrics, roofing membranes, floor coverings, adhesives, sealants, paints, and coatings.

Prominent companies in the basic chemical market are strategically investing in the establishment of state-of-the-art sulfuric acid plants, leveraging innovative technologies to fortify their market position. The implementation of new sulfuric acid plants involves the construction and operation of advanced facilities for sulfuric acid production. For example, in October 2022, Andritz AG, a technology group based in Austria, achieved a milestone by inaugurating the world's inaugural sulfuric acid plant for Klabin's Ortigueira mill in Brazil. This cutting-edge facility has the capacity to generate 150 metric tonnes of commercial-grade sulfuric acid daily (>98%) from concentrated odorous vapors and elemental sulfur. The technology deployed in this plant is grounded in Andritz's proprietary A-Recovery+ concept, empowering pulp mills to extract valuable side streams from the pulping process and transform them into marketable goods and commodities. Notably, this facility is a significant component of Andritz's CircleToZero product line, designed to eliminate waste byproducts, create new commodities with added value, and establish the groundwork for zero-emission, zero-waste manufacturing. This strategic initiative underscores the commitment of major industry players to adopting advanced technologies and sustainable practices to enhance operational efficiency and maintain a competitive edge in the market.

In December 2022, INEOS Group Limited, a United Kingdom-headquartered chemicals corporation, completed the acquisition of ASHTA Chemicals Inc. The financial terms of this acquisition remain undisclosed. This strategic move aims to bolster INEOS' existing portfolio and establish a sustainable, strategic alignment for the local market's production and utilization of chlorine and potassium hydroxide. ASHTA Chemicals Inc., a chemical manufacturing company based in the United States, specializes in the production of chlorine, potassium hydroxide, hydrochloric acid, and chloropicrin.

Major companies operating in the basic chemicals market report are Reliance Industries Limited, BASF SE, Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries Holdings B.V., China National Chemical Corporation (ChemChina), LG Chem Ltd., Mitsubishi Chemical Corporation, Yara International ASA, INEOS Group Limited, Sumitomo Chemical Co. Ltd., Asahi Kasei Corporation, Shin-Etsu Chemical Co. Ltd., Solvay SA, DuPont de Nemours Inc., Lotte Chemical Corporation, Eastman Chemical Company, Eurochem Agro GmbH, Israel Chemicals Limited, Celanese Corporation, Formosa Plastics Corporation, Tosoh Corporation, Nippon Shokubai Co Ltd, UBE Industries Ltd, Borealis AG, Versum Materials Inc., Tata Chemicals Limited, Jordan Bromine Company Limited, Tokyo Chemical Industry Co. Ltd., Indo Chemicals Pvt. Ltd., Bhavani Chemicals.

Asia-Pacific was the largest region in the basic chemicals market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the basic chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the basic chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of basic chemicals are organic and inorganic. Organic chemicals, also referred to as organic compounds, consist of carbon atoms bonded with other elements such as hydrogen, oxygen, nitrogen, sulfur, and halogens. These organic chemicals find applications in pharmaceuticals and medical products. They are also used in various industries, including chemical manufacturing, food and beverages, textiles, pharmaceuticals, pulp and paper, and polymers. The applications range from fibers, rubber, fertilizers, soaps and detergents, adhesives, to building materials, among others. The end-use industries benefit from the versatile properties of these basic chemicals, contributing to the overall economic development.

The basic chemicals market research report is one of a series of new reports that provides basic chemicals market statistics, including basic chemicals industry global market size, regional shares, competitors with a basic chemicals market share, detailed basic chemicals market segments, market trends and opportunities, and any further data you may need to thrive in the basic chemicals industry. This basic chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The basic chemicals market consists of sales of ammonia, bromine, calcium carbonate, chlorine, fluorine, hydrogen, hydrogen chloride, and hydrogen fluoride. 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.