Commodity chemicals are bulk chemicals that are produced on a large scale and play a major role in the production of other chemicals. Chemicals produced by using commodity chemicals are used across a wide range of applications are adhesives, plastics, construction materials, apparel, and tires. They are classified under broad categories such as acetic acid, acrylate esters, acetone, benzene, adipic acid, acrylonitrile, butadiene, bisphenol, butanediol, hexane, butyl acetate, melamine, propylene, methanol, polyvinyl chloride, methyl, glycol, and glycerine. All these chemicals are either used directly or indirectly across various manufacturing industries.
The North America commodity chemicals market is estimated to be valued at US$ 57,611.94 million in 2021 and is expected to exhibit a CAGR of 5.70 % over the forecast period (2021-2028).
Figure 1. North America Commodity Chemicals Market Value (US$ Mn), by Country, 2020
U.S. held dominant position in the North America commodity chemicals market in 2020, accounting for 93% share in terms of revenue, followed by Canada.
Growth in the development of the building &construction industry with high-quality and energy-efficient products is expected to propel the growth of the North America Commodity Chemicals market. Growing usage of commodity chemicals to produce proactive and protective coatings and lightweight plastic products is augmenting the market growth over the forecast period.
Rising demand for multi-purpose, high-quality paints and coatings with excellent weather resistance properties is projected to propel the growth of the U.S. Commodity Chemicals market. Commodity chemicals such as resins, pigments, and solvents are primarily used to paint and coatings, these chemicals have different in the formulation of paints.
North America Commodity Chemicals Market Report Coverage
|Base Year:||2020||Market Size in 2020:||US$ 54,764.2 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.7%||2028 Value Projection:||US$ 76,374.20 Mn|
BASF SE, Bayer Group, AkzoNobel N.V., The Dow Chemical Company, LyondellBasell Industries Holdings B.V., E.I. DuPont de Nemours and Company, Mitsui Chemicals, Braskem SA, PPG Industries, and Eastman Chemical Company
|Restraints & Challenges:||
Recovery in the oil &gas sector in the North America region due to increasing investment is expected to propel the market growth of commodity chemical. For instance, in 2018, the US overtook Saudi Arabia to become the world’s leading producer of crude oil outputting 17,886,000 barrels per day (bpd). Thus, growth in the oil &gas sector in the U.S. is expected to favor the market growth.
Strong growth in the U.S. economy due to increasing consumer spending along with the demographic and policy changes. This is expected to fuel the market growth of Commodity Chemicals in the region. According to Chemical Processing, in the United States, gross domestic product (GDP) grew 2.9% during 2018.
Booming aerospace industry in North America has increased the production of commodity chemicals over the last past few years. According to The International Trade Administration (ITA), in 2018, the U.S. aerospace industry contributed $151 billion in export sales to the U.S. economy. Moreover, at the end of 2018, foreign direct investment (FDI) into the U.S. aerospace industry totaled nearly $22 billion.
Growth in the food industry due to increasing consumer and government spending is expected to accelerate the growth of the North America Commodity Chemicals market. According to the United States Department of Agriculture Economic Research Service, in 2018, U.S. consumers, businesses, and government entities spent $1.71 trillion on food and beverages in grocery stores and other retailers and on away-from-home meals and snacks.
Figure 2. North America Commodity Chemicals Market Share, By End Use , 2020
Key Takeaways of the Graph:
On the basis end use Household, Industrial and Institutional (HI & I) end use industry dominated the market in 2020, held 37.0% market share. This end use industry segment is strengthened by a growing demand from the food & beverage sector and consumer retail stores globally. Commodity chemicals offer its unique lightweight and safe features to the plastic industry to produce various goods. The commodity chemicals market is expected to grow as close alternatives such as glass simply do not match up in cost-effectiveness and reliability
Intense competition in the North America commodity chemical due to the presence of various domestic and international players has decreased the profitability. This is expected to hamper the market growth over the forecast period.
Growing environmental concerns has led to the implementation of strict regulations by the U.S. government which has affected the production and exporting of commodity chemicals. This is projected to hamper the growth of the North America Commodity Chemicals market.
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