Bulk Chemicals Industries | Coherent Market Insights

Bulk chemicals, commonly known as commodity chemicals, are produced in large quantities to meet the ever-growing demand across various industries. Bulk chemicals are manufactured using the batch process and continuous process. Large volumes of raw materials such as crude oil and natural gas are used in production of bulk chemicals. The bulk chemicals or commodity chemicals are traded as organic chemicals and inorganic chemicals. The bulk chemicals market is highly fragmented, with a large number of global players and small regional players. Asia Pacific is the largest market for bulk chemicals, spearheaded by China, India, and Japan. Bulk chemicals find wide application across industries such as agriculture, construction, and automotive. Burgeoning growth of these industries in highly populous emerging economies such as India and China, along with rampant economic growth in these countries is expected to fuel growth of the global bulk chemicals market in the foreseeable future.

Bulk chemicals or commodity chemicals are used in healthcare, food processing, chemicals, fertilizer, construction, and automobiles industries among others. Price instability of crude and natural gas due to a technological shift towards renewable energy and disparity in supply and demand are expected to be the key challenges for the growth of the global bulk chemicals market. Integration of advanced automation systems such as SCADA, DCS, and PLC among others could significantly increase the production process without a major spike in additional costs. This is projected to create a highly lucrative growth opportunity for players in the market.

Rising demand for chemicals in the construction industry across the globe is projected to be a key driver for the bulk chemicals market. Moreover, increasing crude oil production and consequent decrease in prices is expected to augment the market growth. Growing GDP and rapid urbanization in Asia Pacific, primarily in China, Japan and India, is expected to create a highly conducive environment for market growth. Furthermore, increasing government investment in infrastructure development, especially in India and China, is propelling demand for bulk chemicals. According to India Brand Equity Foundation (IBEF)—part of Department of Commerce, Ministry of Commerce and Industry, Government of India—the Indian government plans to invest US$ 376.53 billion in infrastructure development throughout 2020. Moreover, the Indian government plans to establish special economic zones (SEZs) in the port-based chemical parks across the country. The market in Middle Eastern countries, mainly Saudi Arabia, UAE, Iran, and Iraq is also growing due to large petroleum reserves and high production in these countries. The UAE is primarily focused in improved and modern infrastructure development to boost tourism across the region. The region also witnessed major investment in the manufacturing units of bulk chemicals by global players such as SABIC, The Dow Chemical Company, and BASF SE. Thus, this region is positioned as a key exporter of bulk chemicals to other regions.

Bulk Chemicals Challenges – Reduce Environmental Impact

Effective and eco-friendly mode of waste disposal is a key challenge faced by chemicals manufacturing companies. All waste water, gases, and semi-solid waste can only be disposed after undergoing a series of treatments. The Ministry of Environment and Forest (MoEF) of India, on December 23, 2010, implemented water prevention and control pollution act 1974 and air prevention and control pollution act 1981. These lay out a stringent regulatory framework for manufacturers and users regarding production, import, export, and storage of hazardous chemicals which has significantly increased costs associated with production, which in turn affects profitability of companies in this highly competitive market, in turn inhibiting the market growth.

Decentralized production of bulk chemicals is an opportunity for players to enter local markets. Production of bulk chemicals in small quantities involves utilization of local resources and translates into low operating costs and cheap labor, especially in emerging economies of Asia Pacific and Latin America, in turn increasing profit margins. Also, proximity to end users decreases time-to-market and significantly reduces cost involved in handling and transportation which is a crucial factor for hazardous chemicals. Forward integration by bulk chemical manufacturers is another lucrative growth opportunity for players in this market.

Bulk Chemicals– Regulatory Scenario:

United States Environmental Protection Agency
The Frank R. Lautenberg Chemical Safety for the 21stCentury Act, on December 17, 2015.
The Toxic Substances Control Act (TSCA) Modernization Act of 2015, on June 23, 2015
Registration, Evaluation and Authorization and Restriction of Chemicals (REACH) and Classification, Labelling and Packaging (CPL) regulations
Regulations regarding fertilizer production
Regulations regarding detergents production
Regulation regarding explosive production
Regulation regarding drug precursors production
Resource Conservation and Recovery Act (RCRA)
Chemical Waste Disposal Law Govern by U.S. Environmental Protection Agency

Bulk Chemicals – Key Global Conferences:

Strategic Approach to International Chemicals Management (SAICM)
In Dubai, government, intergovernmental and non-governmental organizations held an International conference on chemicals management in 2006 between February 4th and 6th
Summit Meeting on Chemical Regulations (SMCR) in Asia Pacific in 2011
Transparency in sharing regulatory updates and enforcement measures, to provide and promote safety and sustainability of chemical industry in the Asia Pacific region.

Key players in the bulk chemicals market includes BASF-SE, The Dow Chemical Company, Sinopec, SABIC, ExxonMobil, Formosa Plastics, Lyondel Basell Industry, DuPont, Ineos, Bayer, Mitsubishi Chemicals, Royal Dutch Shell, LG Chem Ltd., Braskem, Air liquid, Akzo Nobel, The Linde Group, Sumitomo Chemicals, Mitsui Chemicals, Evonik Industries. In recent times, the market has witnessed a trend of consolidation through strategic mergers and acquisitions. For instance, in March 2017, the European Union approved the proposed merger of Dow Chemical and DuPont as part of a US$ 62 billion deal. The companies would subsequently break into three separate publicly traded companies that would focus on agriculture, material science, and specialty chemicals.

Specialty and Fine Chemicals

Cosmetic Ingredients

Food Ingredients

Aerospace and Defense

Automotive and Transportation

Consumer Electronics

Construction Engineering

Industrial Automation and Machinery

Semiconductors

Smart Technologies

Information and Communication Technology

Bulk Chemicals Published Insights

Water And Wastewater Treatment Chemicals Market

Published Date : Apr 2024

The water and wastewater treatment chemicals market is estimated to be valued at USD 38,903.1 Mn in 2024, growing at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031. Water and wastewater treatment chemicals are utilized extensively across various end-us... View more

Hydrogen Peroxide Market

Published Date : Apr 2024

The global hydrogen peroxide market is estimated to grow at a notable rate in the coming years owing to various factors. Hydrogen peroxide is an inorganic compound with the formula H2O2. Its chemical structure consists of two H-O-H units. Hydrogen peroxide is a clear ... View more

Gellan Gum Market

Published Date : Apr 2024

The global gellan gum market is estimated to be valued at USD 277 Mn in 2024, growing at a compound annual growth rate (CAGR) of 7% from 2024 to 2031. The global gellan gum market has been gaining significant traction over the recent years attributed to the wide range... View more

Ethyl Acetate Market

Published Date : Apr 2024

Global ethyl acetate market is estimated to be valued at USD 6.25 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2024 to 2031. Ethyl acetate is an ester with the formula C4H8O2. It is a colorless liquid with characterist... View more

Rheology Modifiers Market

Published Date : Apr 2024

The rheology modifiers market is estimated to be valued at USD 8.99 Bn in 2024 and is expected to reach USD 12.08 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.3% from 2024 to 2031. Rheology modifiers are specialty additives added in small quantitie... View more

Food Grade Alcohol Market

Published Date : Apr 2024

The food grade alcohol market is estimated to be valued at USD 2.40 Bn in 2024 and is expected to reach USD 3.21 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031. The global food grade alc... View more

Liquid Fertilizer Market

Published Date : Mar 2024

The liquid fertilizer market is estimated to be valued at USD 22.17 Bn in 2024, growing at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031. Liquid fertilizer refers to fertilizers that are in a fluid form as compared to dry or solid fertilizers. It is e... View more

Global Silicone Gel Market

Published Date : Mar 2024

The silicone gel market is estimated to be valued at USD 18.88 Bn in 2024, growing at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031. Silicone gel is a soft, pliable substance created from polydimethylsiloxane. Used in a wide variety of medical and ind... View more

Production Chemicals Market

Published Date : Mar 2024

The production chemicals market is estimated to be valued at USD 7.44 Bn in 2024, growing at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031. The production chemicals market involves various chemicals that aid in enhancing oil and gas recovery and impro... View more

Global Pultrusion Market

Published Date : Mar 2024

Pultrusion is a fabrication process that forms and cures thermosetting plastics while pulling them continuously through heated steel dies. Fibre reinforcement materials such as glass fibre, carbon fibre, and aramid fibre are often used with the plastic material and pu... View more

Global Organic Pigments Market

Published Date : Mar 2024

Global organic pigments market is estimated to be valued at USD 6.56 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031. Global organic pigments market has been witnessing steady growth over the past few years, owing to rising demand... View more

Sulphuric Acid Market

Published Date : Mar 2024

The sulfuric acid market is estimated to be valued at USD 26.89 Bn, growing at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031. Sulfuric acid is a highly corrosive mineral acid that is colorless, viscous, and soluble in water. It is strongly acidic and ... View more

Waste To Fuel Technology Market

Published Date : Mar 2024

The waste to fuel technology market is estimated to be valued at USD 493.5 Mn in 2024 and, growing at a compound annual growth rate (CAGR) of 34% from 2024 to 2031.Waste to fuel technology is gaining prominence globally as an effective way to address the challenges of... View more

Bromine Market

Published Date : Feb 2024

The global bromine market has been witnessing steady growth in the past few years, driven by the increasing use of bromine in various applications such as flame retardants, biocides, drilling fluids, and water treatment. Bromine possesses excellent chemical and flame-... View more

Sludge Treatment Chemicals Market

Published Date : Feb 2024

Global sludge treatment chemicals market has been witnessing significant growth in recent years. Global sludge treatment chemicals market is witnessing dynamic growth, driven by rapid industrialization, increasing awareness about environmental sustainability, and risi... View more

Bicycle Chain Lubricant Market

Published Date : Feb 2024

Bicycle chain lubricant is a crucial component in maintaining the performance and longevity of bicycles. It plays a vital role in reducing friction between the chain and gears, ensuring smooth shifting and minimizing wear and tear. With the increasing popularity of cy... View more

Global Ethylene Market

Published Date : Feb 2024

Ethylene is an important basic petrochemical product and building block primarily used in the production of polyethylene. The growing demand for polyethylene from end-use industries, such as packaging, construction, automotive, and electrical and electronics, has been... View more

Ammonia Market

Published Date : Feb 2024

Global ammonia market has witnessed significant growth at an exponential rate in the near future. Ammonia has a wide range of applications across various end use industries including agricultural, refrigeration, industrial chemicals, and others. Increasing demand from... View more

Citric Acid Market

Published Date : Feb 2024

The global citric acid market has been witnessing steady growth over the past few years. Citric acid is a weak organic acid that is present in citric fruits such as lemons and limes. It is used as an Acidulant and preservative in various food and beverage products. In... View more

Marine Lubricant Market

Published Date : Feb 2024

The global marine lubricants market has been growing steadily over the past few decades, owing to the expansion of seaborne trade activities. Marine lubricants play a vital role in reducing friction between moving parts and surfaces on marine vessels and offshore rigs... View more