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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).

Market Overview

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.

Market Dynamics

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.

Market Outlook

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.

Key Players

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.

Key Developments:

  • 21 November 2019, Cabot Corporation announced carbon black capacity expansion in Cilegon, Indonesia by adding approximately 80,000 metric tons per year of additional production capacity. This is expected to be completed in 2021.
  • 17 January 2019, Phillips Carbon Black is in talks with state governments personals of Tamil Nadu, Andhra Pradesh and Telangana to zero in on a location for setting up 1,50,000-tonne new carbon black plant with an investment of Rs 600-620 crore.
  • 16 January 2019, Phillips Carbon Black Ltd (PCBL) expects their share of value-added and specialty carbon black to almost double to 15 per cent of its total production capacity in the next two years.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users