Global Organic Chemicals Market - Industry Trends, Outlook, Regulatory Bodies & Regulations and Key Market Players

  • To Be Published : Aug 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Carbon and its various derivatives combine with elements such as hydrogen, oxygen, nitrogen, and sulfur, to form organic chemicals. The derivatives exist either in carbon chain or carbon ring. Increasing global population and surging urbanization are expected to fuel growth of end-use industries such as agrochemicals, pharmaceuticals, food & beverages, and cosmetics in turn fueling growth of the organic chemicals market. Asia Pacific is growth engine of this market, mainly attributed to the strong economic growth in India and China. Ethyl alcohols, synthetic organic alcohols, synthetic flavors, and pesticides are among the most widely used organic compound used in various end-use industries such as pharmaceuticals, food & beverages, and fertilizers. As per The World Bank data, the consumption of food and beverages is increasing significantly across the globe. The market for food and beverages in the lower low income people is around US$ 5 trillion in emerging economies, which is expected to boost the food and beverages industry in countries such as China and India during the forecasted period.

Organic Chemicals Market Taxonomy

On the basis of product type, the global market is classified into:

  • Acetic acid
  • Ethyl alcohol
  • Methanol
  • Formaldehyde
  • Aldehydes
  • Citric acid
  • Ketones
  • Aliphatic
  • Polymers
  • Amides
  • Others

On the basis of end user, the global market is classified into:

  • Pharmaceuticals
  • Pesticides
  • Agrochemicals
  • Plastics and polymers
  • Cosmetics
  • Food & Beverages
  • Others

On the basis of geography, the global market is classified into:

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • Italy
    • France
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • Northern Africa
    • Central Africa
    • South Africa

Organic Chemicals Market Outlook – Surge in Pharmaceuticals Industries Augmenting Market Growth

The last decade has witnessed a spike in incidence rate of various diseases. This in turn has led to increasing spending by various government and non-governmental organizations on developing effective drugs to combat such diseases, subsequently propelling growth of the pharmaceuticals industry. This trend is expected to prevail over the forecast period, consequently fueling growth of the organic chemicals market. Global giants in pharmaceuticals space, such as Pfizer spent US$ 7872 million in 2016, which increased by 2% as compared to 2015 and Novartis spent US$ 8400 million in 2016, which have significantly increased investment in R&D for effective drug development. While North America currently accounts for the largest share in the global organic chemicals industry, owing to a robust production base, emerging economies of Asia Pacific are projected to witness fastest growth in the market over the following decade. This is mainly attributed to rapid industrialization and benefits of economies of scale in countries such as China, Japan, and India.

Organic chemicals Market Challenges – Stringent Environmental Regulations

Rising awareness regarding harmful health & environmental effects associated with manufacturing and use of organic compounds is expected to be one of the key challenges for the end user industry. For instance, on December 23, 2010, the Ministry of Environment and Forest (MoEF) of India implemented water (prevention and pollution control) act 1974 and air pollution act 1981. The law enforces strict regulation for production, use, import, and export of various hazardous chemicals such as phthalates, benzothiazole, among others. Treatment of hazardous waste chemicals prior to releasing in the environment, the organic chemical manufacturing company has to go through a series of complex processes. Moreover, the Chinese Ministry of Environmental Protection implemented penalty on manufacturer to lower the environmental pollution level, which led to shut down of many end user industries.

Organic Chemicals Market – Regulatory Scenario:

  • 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

Key players in the organic chemicals market include TCI America, BASF SE, PPG Industries, The Dow Chemicals Company, AkzoNobel, Royal Dutch Shell, Sinopec, ExxonMobil, Formosa Plastics, LyondellBasell Industries, DuPont, Ineos, Huntsmann and Reliance Industries. The market is fragmented, with some of the key companies in North America and Asia Pacific. Moreover, continuous development in R&D and M&A among the key players is expected to enhance their market opportunity.

Research Methodology

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  • 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.

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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.
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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.
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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

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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:

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  • 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

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