The global commodity chemicals market size is expected to witness significant growth by 2027, and register a CAGR of 5.41% over the forecast period (2019 - 2027).
Commodity chemicals, also known as bulk chemicals or bulk commodities, are chemicals produced on a large scale with the goal of meeting demand of the global market. They have primary application as intermediate materials for producing other chemicals, which are then used for manufacturing products in end use industries such as construction, adhesives, apparels, plastics, tires, and others. Commodity chemicals are classified into two broad classes, organic and inorganic. Some of the major sectors served by commodity chemicals are plastics, dyes, fertilizers, pigments, pharmaceuticals, mining, synthetic fibers, and agricultural chemicals.
Commodity chemicals have direct or indirect application in a wide range of end use industries from automotive to the personal care products industry, and several manufacturing industries. Moreover, increasing industrialisation and growing gross domestic product (GDP) of emerging economies worldwide are some of the factors propelling demand for commodity chemicals. Also, easy availability and lower costs of commodity chemicals compared to specialty chemicals, is favoring growth of the market around the world. The growing number of automotive, aerospace, personal care, and transportation industries will also have a positive impact on the growth of the market in all regions. Business strategies such as mergers and acquisitions by key players to produce a variety of commodity chemicals is expected to be another contributing factor to the overall growth of the global commodity chemicals market.
However, stringent laws and regulations implemented by regional governments across the globe owing to health and environmental hazards posed by volatile chemicals, as well as continually changing prices natural gas and crude oil are expected to restrain growth of the global commodity chemicals market over the forecast period.
As a result of a thriving manufacturing sector and increasing number of expansions in the end use industries, Asia Pacific is expected to be the largest and fastest growing market in the near future. Governments and regulatory bodies in emerging economies such as India, China, and Indonesia are taking active interest and initiatives to expand their manufacturing capabilities, which in turn will have a positive impact on the regional market. Furthermore, bulk availability of natural gas and crude oil from GCC counties is benefiting the commodity chemicals market in the Asia Pacific region. The North America and Europe markets are projected to witness gradual growth and emerge as key markets in terms of revenue generated over the forecast period. This is owed to the presence of leading market players in the regions. Additionally, the Latin America and Middle East markets are projected to witness rising industrialisation in the agricultural and manufacturing sectors over the forecast period.
Some of the prominent manufacturers in the global commodity chemicals market are Mitsubishi Chemicals, BASF SE, Sinopec, the Dow Chemical Company, CNPC, DuPont, Sumitomo Chemicals, and Arkema.