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 Agar Market

Published Date : Jan 2023

Agar are natural product extracted from algae of Gracilaria and Powderidium. It is available in different forms such as granules, strips, and powder. Agar find its applications in food & beverages, bacteriological, technical including cosmetology and medical appli... View more

Coherent Market Insights Linear Alkylbenzene Sulfonate Market

Published Date : Jan 2023

Linear alkylbenzene sulfonate (LAS) is an anionic surfactant obtained by sulfonation of linear alkylbenzene. It is used in detergents, soaps, and industrial cleaning products as wetting agents and emulsifiers. Linear alkylbenzene sulfonate is cost-effective, biodegrad... View more

Coherent Market Insights Packaging Adhesives Market

Published Date : Jan 2023

Adhesives are used in packaging materials such as corrugated boards, cartons, winding of cardboard tubes, sealing of cases and bags, and adhesion of labels. Growing demand for adhesives from the packaging industry is driving growth of the global packaging adhesive mar... View more

Coherent Market Insights Antistatic Agents Market

Published Date : Dec 2022

Antistatic agents reduce buildup of static electricity in polymers to stop handling problems and dust building during storage and transportation. Growing e-commerce packaging market is a major factor driving growth of the global antistatic agents market. ... View more

Coherent Market Insights Butadiene Market

Published Date : Dec 2022

One of the most widely used chemicals in the rubber industry is butadiene. It is used in a variety of applications including the production of rubbers and the manufacturing of styrene-butadiene rubbers. Its chemical properties make it a potential human carcinogen. 1, ... View more

Coherent Market Insights Global Chlorine Market

Published Date : Dec 2022

Chlorine derivatives are used in various applications such as disinfection, bleaching, organic chemicals, inorganic chemicals, and metal separation. Chlorine is used for as a disinfectant in various forms such as elemental chlorine (chlorine gas), sodium hypochlorite ... View more

Coherent Market Insights Glycol Market

Published Date : Nov 2022

Glycol is an organic compound with the formula CH2OH2. It is primarily used in the manufacture of polyester fibers and in the formulation of antifreeze. It is colorless and odorless, and a viscous liquid. In its liquid form, it is highly flammable. Glycol has several ... View more

Coherent Market Insights White Oil Market

Published Date : Nov 2022

White oil is an excellent emollient, chemical contact inhibitor, and softening agent. It also possesses superior properties for the manufacturing of water-resistant creams. In addition, it is a great choice for hot melt adhesives. It also induces transparency and main... View more

Coherent Market Insights Australia Ammonia Market

Published Date : Aug 2022

Nitrogen and hydrogen combine to form the colorless gas known as ammonia, which has a distinctively strong odor. The primary application of ammonia is as a fertilizer and for the production of other fertilizers including urea, ammonium sulphate, and ammonium phosphate... View more

Coherent Market Insights Phenoxyethanol Market

Published Date : Jul 2022

Phenoxyethanol is an oily and slightly sticky liquid with a faint rose-like smell. It is used as a preservative in various applications in pharmaceuticals, paints & coatings, dyes & inks, insect repellent, aquaculture, and metal working fluids. Phenoxyethanol ... View more

Coherent Market Insights Propylene Market

Published Date : Jul 2022

Propylene is used in various end-use industries such as automotive, construction, textile, packaging, and others. Propylene is considered as one of the key building blocks of petrochemicals and the second highly used petrochemical after ethylene. Major propylene deriv... View more

Coherent Market Insights Brominated Polystyrene Market

Published Date : May 2022

The global brominated polystyrene market is growing due to its various applications in the electrical and electronics industry. The growth of the electrical and electronic industry benefits the market for both the markets. The global electrical and electronics industr... View more

Coherent Market Insights Sodium Hexametaphosphate Shmp Market

Published Date : May 2022

Sodium Hexametaphosphate (SHMP) is a solid, translucent material. This glossy phosphate is widely used as an input in the manufacturing of many industrial and consumer products. Sodium hexametaphosphate is manufactured and marketed in technical and food grade. The hig... View more

Coherent Market Insights Lubricants Market

Published Date : Apr 2022

Industrial lubricants are used to decrease the wear and tear of materials and reduce friction. These lubricants can be either petroleum based or water based. The primary function of industrial lubricants is to avoid metal contact amongst the tools. Industrial lubrican... View more

Coherent Market Insights Biocides Market

Published Date : Nov 2021

Biocides are used to eradicate or control the growth of bacteria, viruses, and fungi by using toxic chemicals. Biocides are classified according to how they affect the target organisms. A biocide is defined in European law as a microorganism or chemical substance mean... View more

Coherent Market Insights Graphite Market

Published Date : Sep 2021

Graphite is a mineral composed of stacked sheets of carbon atoms with a hexagonal crystal structure. It is also called plumbago or black lead and has a layered structure that consists of rings of six carbon atoms arranged in widely spaced horizontal sheets. Graphite i... View more

Coherent Market Insights North America Commodity Chemicals Market

Published Date : Sep 2021

Commodity chemicals constitute a vast array of substances that are manufactured on a large scale in order to meet global markets. Commodity chemicals, also known as commodity chemicals, are a category of chemicals that are manufactured on a large scale in order to mee... View more

Coherent Market Insights Propionitrile Market

Published Date : Jun 2021

Propionitrile is a colorless organic compound that is also known as ethyl cyanide and propanenitrile and is a simple aliphatic nitrile. Propionitrile is majorly used in the pharmaceutical industry for the preparation of flopropione using the Houben-Hoesch reaction. Ap... View more

Coherent Market Insights White Spirits Market

Published Date : Jan 2021

White spirits are also known as mineral spirits, varsol, and petroleum spirits derived from petroleum. It is used as common organic solvent in paints, aerosols, varnishes, asphalt products, lacquers, wood preservatives, and for cleaning & degreasing machine parts.... View more

Coherent Market Insights Us Europe And Asia Industrial Hydrogen Market

Published Date : Jan 2020

Hydrogen is a chemical which can be obtained through various chemical reactions such as electrolysis of water, reforming of steam, reaction of metal & acid, thermochemical reaction and others. It is highly combustible in nature and occurs in different forms such a... View more

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