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.

View More

Bulk Chemicals Published Insights

Coherent Market Insights Textile Chemicals Market

Published Date : Feb 2024

The global textile chemicals market has been witnessing steady growth over the past few years. Textile chemicals are widely used across the textile industry during the processing of various textile materials, such as natural and synthetic fibers, yarns, fabrics, and g... View more

Coherent Market Insights Global Electric Vehicle Plastics Market

Published Date : Feb 2024

The growth of the electric vehicle plastics market has significantly boosted demand for plastics used in electric vehicles. Plastics play a pivotal role in electric vehicles as these are lightweight and helps in reducing the overall weight of the vehicle. These are us... View more

Coherent Market Insights Global Agrigenomics Market

Published Date : Feb 2024

Agrigenomics is the use of various advanced omics technologies such as genomics, transcriptomics, proteomics, and metabolomics for augmenting agriculture and attaining sustainability in food production. It involves the application of molecular tools and techniques to ... View more

Coherent Market Insights Ethanol Market

Published Date : Feb 2024

The ethanol market has seen significant growth over the past decade and is expected to expand further going forward. Ethanol is a biofuel that is produced through the fermentation of carbohydrate biomass such as corn, sugarcane, and wheat. It is mixed with gasoline to... View more

Coherent Market Insights Ethanolamines Market

Published Date : Feb 2024

The global ethanolamines market has been witnessing significant growth over the past few years. Ethanolamines are alkaline compounds largely used in the manufacture of cleaners, cosmetics, metalworking fluids, and gas treatment. Growth in end-use industries such as in... View more

Coherent Market Insights Global Flexfuel Market

Published Date : Feb 2024

Flexfuel is a type of fuel that is blended with gasoline and ethanol in varying quantities. It is designed to be used in flexible fuel vehicles (FFVs), which have the ability to run on a mixture of gasoline and ethanol, or even on pure ethanol. Increasing concern over... View more

Coherent Market Insights Brazil Flexfuel Market

Published Date : Feb 2024

The Brazil flexfuel market has gained immense popularity in recent years due to the increasing demand for vehicles that can run on both gasoline and ethanol. Flexfuel vehicles offer the flexibility to use either fuel, depending on availability and cost, making them hi... View more

Coherent Market Insights Global Microplastic Recycling Market

Published Date : Feb 2024

Micro plastics are tiny plastic fragments less than 5mm in length that are polluting oceans and waterways. They enter the environment from various sources such as cosmetics, clothing, and plastic waste. Micro plastic recycling aims to divert these micro plastics from ... View more

Coherent Market Insights Calcium Citrate Malate Market

Published Date : Feb 2024

Calcium citrate malate is a calcium supplement compound formed by combining calcium with citric acid and malic acid. This unique combination enhances calcium absorption in the body, making it an effective option for individuals with low calcium intake or absorption is... View more

Coherent Market Insights Calcium Formate Market

Published Date : Feb 2024

Calcium formate is an inorganic calcium salt with the chemical formula Ca (HCOO)2. It is a white, odorless, crystalline solid that is highly soluble in water. Calcium formate has a variety of industrial uses but is mainly produced and consumed as an animal feed additi... View more

Coherent Market Insights Low Profile Additives Market

Published Date : Feb 2024

Low profile additives are compounds that are added in small amounts to polymers such as polyester, epoxy and polyurethane resins in order to reduce shrinkage and warp that occurs during curing or hardening. They help improve the aesthetic and physical properties of th... View more

Coherent Market Insights Rubber Processing Chemicals Market

Published Date : Feb 2024

The rubber processing chemicals market has been growing steadily over the past few decades driven by rising demand from the tire industry as well as other rubber goods industries. Rubber chemicals play a vital role in imparting different properties and characteristics... View more

Coherent Market Insights Glutaraldehyde Market

Published Date : Feb 2024

Glutaraldehyde is an organic compound that is widely used as a sterilizing and disinfecting agent. It is known for its high efficacy against microbes and spores. Glutaraldehyde finds major applications in hospitals and healthcare facilities as a cold sterilizing agent... View more

Coherent Market Insights Strontium Nitrate Market

Published Date : Jan 2024

Strontium nitrate is a chemical compound that is widely used in various industries such as pyrotechnics, fireworks, and ceramics. It is an inorganic salt that is commonly used as an oxidizing agent in fireworks to produce the vibrant red color. Strontium nitrate can a... View more

Coherent Market Insights Titanium Nitride Coating Market

Published Date : Jan 2024

Titanium Nitride Coating, also known as TiN coating, is a high-performance surface treatment that offers excellent levels of hardness, wear resistance, and thermal stability. It is widely used in various industries such as automotive, aerospace, medical, and industria... View more

Coherent Market Insights Electrical Insulation Coatings Market

Published Date : Jan 2024

Electrical insulation coatings refer to protective coatings applied to electrical components and devices to provide insulation from voltage and current. They help minimize power loss and prevent short circuits and equipment failure. Factors such as rapid industrializa... View more

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

Mastic gum, also known as Mastiha, is a resinous substance derived from the Pistacia lentiscus tree, which is native to the Mediterranean region. This unique gum has been prized for its medicinal and therapeutic properties for centuries. The use of mastic gum dates ba... View more

© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.