Bulk Chemicals

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.

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Bulk Chemicals Published Insights

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Coherent Market Insights Titanium Nitride Coating Market

Published Date : Jan 2024

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Coherent Market Insights Electrical Insulation Coatings Market

Published Date : Jan 2024

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Coherent Market Insights Global Composite Adhesive Market

Published Date : Jan 2024

The composite adhesive market has seen significant growth over the past few years owing to increased adoption across various end-use industries like transportation, building and construction, marine, wind energy, and aerospace. Composite adhesives help bond composite ... View more

Coherent Market Insights Trivalent Chromium Finishing Market

Published Date : Jan 2024

Trivalent chromium finishing is the process of electroplating a thin layer of chromium onto the surface of a metal substrate. Chromium plating provides corrosion resistance, wear resistance, and an aesthetically pleasing shine to the substrate. The process involves su... View more

Coherent Market Insights Global Naphthenic Base Oil Market

Published Date : Jan 2024

Naphthenic Base Oil is a type of base oil that is derived from naphthenic crude oil. It is widely used in various industries such as lubricants, rubber processing, adhesives, and plastics. Naphthenic Base Oil offers excellent thermal stability, low pour point, low vol... View more

Coherent Market Insights Mastic Gum Market

Published Date : Jan 2024

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Coherent Market Insights Brazil Ethanol Market

Published Date : Jan 2024

Brazil ethanol market has gained significant attention in recent years due to its growing importance in the global energy landscape. As one of the largest producers and consumers of ethanol, Brazil plays a critical role in the renewable energy sector. Ethanol which is... View more

Coherent Market Insights Us Ethanol Market

Published Date : Jan 2024

Ethanol is a renewable fuel that has gained significant attention in recent years due to its potential to reduce greenhouse gas emissions and dependence on fossil fuels. Derived primarily from corn and other biomass, ethanol is widely used as a cleaner alternative to ... View more

Coherent Market Insights Ammonium Nitrate Market

Published Date : Jan 2024

Ammonium nitrate is a chemical compound that is widely used in various industries for its explosive properties and as a fertilizer. It is a white crystalline solid that is highly soluble in water and is composed of ammonium ions and nitrate ions. This compound is a ke... View more

Coherent Market Insights Pyroxasulfone Market

Published Date : Jan 2024

Pyroxasulfone is a pre-emergent herbicide that is widely used in the agricultural industry for controlling a variety of grasses and broadleaf weeds. It belongs to the chemical group of isoxazole derivatives and offers effective and long-lasting control over undesirabl... View more

Coherent Market Insights Methylene Chloride Market

Published Date : Jan 2024

Methylene chloride which is also known as dichloromethane, is a colorless liquid with a sweet aroma. It has a wide range of applications across various industries, including paint and coatings, pharmaceuticals, adhesives, and food and beverage. Methylene chloride is known for its excellent solven... View more

Coherent Market Insights Biocontrol Agents Market

Published Date : Dec 2023

BioControl agents are living organisms that are used to control pests, diseases, and weeds in agriculture. These agents include beneficial insects, bacteria, fungi, nematodes, and viruses, which are introduced into the environment to suppress or control the population... View more

Coherent Market Insights Sulfone Polymer Market

Published Date : Dec 2023

Sulfone polymers are a type of high-performance engineering thermoplastics that exhibit excellent mechanical, thermal, and chemical properties. They are widely used in various applications, such as automotive, aerospace, electrical and electronics, healthcare, and ind... View more

Coherent Market Insights Bond Breaker Market

Published Date : Dec 2023

The bond breaker market is a rapidly growing industry that plays a crucial role in the construction sector. Bond breakers are substances that are used to prevent adhesion between concrete surfaces, thus allowing for easy separation during construction processes. They ... View more

Coherent Market Insights Gcc Industrial Gases Market

Published Date : Dec 2023

Industrial gases are produced for industrial use to increase productivity and improve operational flexibility. Some of the industrial gases are oxygen, nitrogen, argon, helium, and hydrogen. Industrial gases play a crucial role in brazing, food processing, cutting, treating metals, refining, and ... View more

Coherent Market Insights Environmental Silica Market

Published Date : Dec 2023

Environmental silica which is commonly known as silicon dioxide (SiO2), plays a pivotal role in shaping our natural surroundings. This abundant compound exists in various forms, from crystalline structures, like quartz to amorphous particles, found in soils and sedime... View more

Coherent Market Insights Firefighting Foam Market

Published Date : Dec 2023

Firefighting foam is a specialized foam used to suppress and extinguish fires by forming a blanket over the fuel surface, preventing the release of flammable vapors. It is widely used in various industries, including oil and gas, aviation, manufacturing, and chemical.... View more

Coherent Market Insights Solvent Red Market

Published Date : Dec 2023

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Coherent Market Insights Graphite Crucible Market

Published Date : Dec 2023

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