Basic Chemicals Market Report

Market Insights

The basic chemicals market was estimated at US$ 649.8 billion in 2021 and is expected to grow at a CAGR of 3.8% during 2022-2028 to reach US$ 815.0 billion by 2028.

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The basic chemicals market is a broad category that includes a range of chemicals, such as acids, bases, solvents, and salts, among others. These chemicals are used in various end-use industries, including chemicals, plastics, healthcare, food & beverages, and textiles, among others.

Market Drivers:

The market for basic chemicals is driven by the increasing demand from end-use industries, especially from emerging economies, where rapid industrialization and urbanization are driving demand. Additionally, the growing population and increasing disposable income are fuellingdemand for products that use basic chemicals, such as healthcare and personal care products, plastics, and food & beverages.

The market is characterized by intense competition, with a large number of players operating in the market. Some of the key players in the basic chemicals market include BASF SE, The Dow Chemical Company, Bayer AG, DuPont de Nemours, Inc., and Akzo Nobel N.V., among others. These players are focusing on expanding their product portfolios, increasing their production capacity, and improving their distribution networks to strengthen their market position.

The basic chemicals market is also affected by various factors, including government regulations, environmental concerns, and fluctuations in raw material prices. In recent years, the market has witnessed a growing trend towards sustainable and eco-friendly products, with players focusing on developing products that have lower environmental impact.

COVID-19 Impact

The COVID-19 pandemic has had a significant impact on the basic chemicals market, as it has affected the demand and supply chains of various industries that use basic chemicals. The pandemic led to lockdowns and other restrictions that disrupted manufacturing and distribution networks, causing a decline in demand for basic chemicals in some end-use industries.

One of the most significant impacts of the pandemic on the basic chemicals market was the disruption of global supply chains, particularly those involving China, which is a major producer and exporter of basic chemicals. The lockdowns and restrictions in China led to disruptions in the supply of raw materials and finished products, causing a ripple effect across the global market.

The pandemic also affected demand for basic chemicals in various end-use industries. For example, the automotive industry, which is a significant consumer of basic chemicals such as solvents and coatings, experienced a decline in demand due to reduced consumer spending and disrupted supply chains. Similarly, the construction industry, which is another major consumer of basic chemicals, also experienced a decline in demand due to delays and disruptions caused by the pandemic.

However, the pandemic also led to an increased demand for basic chemicals in certain industries, such as healthcare and hygiene products. Basic chemicals such as disinfectants, sanitizers, and pharmaceutical intermediates experienced an increase in demand due to the heightened focus on hygiene and sanitation.

Overall, the COVID-19 pandemic has had a mixed impact on the basic chemicals market. While some end-use industries experienced a decline in demand, others experienced an increase, and the disruptions in the supply chain affected the market dynamics. However, the market is expected to recover as the global economy recovers from the pandemic, and players in the market are likely to focus on innovation and sustainability to remain competitive.

Investments in the Basic Chemicals Market:

Investments in the basic chemicals market have been significant in recent years, as players in the market focus on expanding their product portfolios, improving their production capacity, and investing in research and development to remain competitive. Here are some examples of investments in the basic chemicals market:

• Product Development: BASF is one of the largest chemical producers in the world and has invested heavily in expanding its production capacity and developing new products. In 2020, the company announced plans to invest €10 billion in Asia over the next decade to expand its production capacity and strengthen its position in the region.
• Expansion: Dow Chemical has made significant investments in the basic chemicals market, with a focus on developing sustainable and eco-friendly products. In 2020, the company announced plans to invest $100 million to expand its production of recycled plastic products and reduce plastic waste.
• Development & Expansion: LyondellBasell is a major player in the basic chemicals market, with a focus on developing innovative products and expanding its production capacity. In 2020, the company announced plans to invest $2.4 billion to build a new polyethylene plant in Texas, which will be one of the largest in the world.
• Research & Development: AkzoNobel is a leading producer of specialty chemicals, with a focus on developing sustainable and eco-friendly products. In 2020, the company announced plans to invest €20 million in a new research and development facility in the Netherlands to develop new technologies and products.
• Product Development: SABIC is one of the largest petrochemical producers in the world and has made significant investments in the basic chemicals market. In 2020, the company announced plans to invest $2 billion to build a new petrochemical complex in Saudi Arabia, which will include a cracker, olefins, and aromatics units.

These are just a few examples of the significant investments in the basic chemicals market in recent years. The market is expected to continue to attract investments as players focus on innovation, sustainability, and expanding their presence in emerging markets.

Key Players

Some of the key players in the basic chemicals market include:

• BASF SE
• Borealis AG
• Eastman Chemical Company
• INEOS
• LyondellBasell Industries Holdings B.V
• Mitsubishi Chemical Corporation
• Shin-Etsu Chemical Co. Ltd.
• Solvay
• Sumitomo Chemical Co. Ltd.
• Tokyo Chemical Industry Co. Ltd.
• Saudi Basic Industries Corporation (SABIC)

Segment Analysis

Product Type

The market is segmented into Organic and Inorganic. Inorganic chemicals include acids, alkalis, salts, and other mineral-based chemicals, while organic chemicals include hydrocarbons, alcohols, ethers, and other carbon-based chemicals.Inorganic chemicals account for a significant portion of the basic chemicals market and are used in various end-use industries, such as agriculture, construction, and healthcare.

Acids, for example, are used in the production of fertilizers, while alkalis are used in the production of soaps and detergents. Salts are used in a wide range of industries, including food and beverage, healthcare, and chemicals.Organic chemicals are also an important segment of the basic chemicals market and are used in a wide range of industries, including pharmaceuticals, plastics, and textiles.

Hydrocarbons, for example, are used in the production of plastics, while alcohols are used in the production of personal care products and solvents.The demand for inorganic and organic chemicals is driven by various factors, including the growth of end-use industries, technological advancements, and increasing consumer demand for eco-friendly and sustainable products. In recent years, there has been a growing trend towards sustainable and eco-friendly products, which has led to an increased demand for organic chemicals.

Overall, both inorganic and organic chemicals play a vital role in various industries, and the basic chemicals market is expected to continue to grow as demand from end-use industries increases. However, players in the market will need to adapt to changing market dynamics, including evolving consumer preferences and increasing regulatory pressure, to remain competitive.

End User Type

The market is segmented intoChemical Industry, Food & Beverages, Textiles, Pharmaceuticals, Pulp & Paper, Polymer, and Others. The chemical industry is the largest consumer of basic chemicals, with applications in various sectors such as fertilizers, industrial chemicals, and specialty chemicals.

Basic chemicals such as acids, alkalis, and salts are used extensively in the chemical industry.Basic chemicals such as food-grade acids, preservatives, and sweeteners are used in the food and beverage industry to enhance taste, flavor, and shelf life of products. Acetic acid, citric acid, and sodium bicarbonate are some examples of basic chemicals used in this sector.

Others Basic chemicals are also used in various other industries such as construction, automotive, and electronics. Basic chemicals such as sulfuric acid and caustic soda are used in the production of batteries and solar panels.

Overall, the demand for basic chemicals from end-use industries is driven by various factors, including population growth, urbanization, and increasing demand for consumer goods. The basic chemicals market is expected to grow as end-use industries continue to expand, and players in the market will need to adapt to changing market dynamics and shifting consumer preferences to remain competitive.

Regional Analysis

The global basic chemicals market can be segmented by region into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.

• North America: This region includes the United States, Canada, and Mexico, and is a mature market for basic chemicals. The region is characterized by a strong emphasis on innovation, technology development, and sustainability initiatives. The demand for basic chemicals in North America is driven by various end-use industries, including construction, automotive, electronics, and agriculture.
• Europe: The European basic chemicals market is mature and highly competitive, with a strong focus on innovation and sustainability. Germany, France, and the United Kingdom are the major markets in the region. The demand for basic chemicals in Europe is driven by various end-use industries, including automotive, construction, and packaging.
• Asia-Pacific: This region includes countries such as China, India, Japan, South Korea, and Australia. It is the largest and fastest-growing market for basic chemicals, driven by the high demand for basic chemicals in various end-use industries, including automotive, construction, consumer goods, and agriculture. China is the largest market in the region, accounting for a significant share of the overall market.
• Middle East & Africa: The Middle East & Africa basic chemicals market is characterized by abundant availability of raw materials and low production costs. The region is a key exporter of basic chemicals to other regions. The demand for basic chemicals in the region is driven by the growth of the construction, automotive, and consumer goods industries.
• South America: The South American basic chemicals market is characterized by a growing demand for basic chemicals, particularly in Brazil and Argentina. The demand for basic chemicals in the region is driven by various end-use industries, including automotive, construction, and consumer goods.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com