Global Commodity Chemicals Market Overview
Commodity Chemicals Market Size was valued at USD 715.9 billion in 2022. The commodity chemicals market is projected to grow from USD 763.2 billion in 2023 to USD 1272.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.60% during the forecast period (2023 - 2032). There is a rise in demand for goods like petrochemicals and explosives as a result of rising income levels and population growth around the world. The market for commodity chemicals is growing because of this market driver.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Commodity chemicals Market Trends
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Rising use of commodity chemicals in plastic industry is driving the market growth
The demand from the plastics industry, which is growing, drives the market for commodity chemicals globally. A rising demand from the food and beverage industry and consumer retail establishments around the world supports this business. The plastics sector uses commodity chemicals because of their distinct lightweight and secure properties to create a variety of products. The market for commodity chemicals is predicted to expand since near substitutes like glass just cannot compete in terms of reliability and cost-effectiveness. Additionally, the need for packaging materials has grown recently in a number of sectors, including consumer goods, healthcare, and construction. The COVID-19 epidemic increased demand for consumer goods, medical equipment, etc. in 2020–2021, which in turn increased demand for the materials used to package these products. Demand for plastic packaging in grocery and online retail has increased dramatically. In the healthcare sector, there will continue to be a high demand for flexible plastic packaging from hospitals, pharmaceutical companies, and PPE producers. Throughout the forecast period, the demand for packaging materials for the healthcare industry is anticipated to hold steady. During the forecast period, rising packaging material demand will be the key factor driving the market CAGR for commodity chemicals.
Leading manufacturers are noticing a noticeable spike in demand for hygiene items including hand sanitizers, liquid soaps, disinfectant sprays, and germ-protecting wipes as the COVID-19 pandemic's effects spread across the globe. Chemical businesses have observed an increase in the use of speciality goods during the last 12 to 18 months. Now that they have evaluated their production strategies in light of the current situation, they are accelerating the scaling up and streamlining of their manufacturing capabilities. Therefore, the market has been quietly boosted by the growing adoption of cleaners and disinfectants. Additionally, a United Nations report states that there were 962 million people aged 60 and older in 2017, and that number is projected to nearly double by 2050. These older people have ageing and health issues like hair loss and skin degeneration, which would encourage the personal care business to adopt commodity chemicals, benefiting the market. Thus, driving the commodity chemicals market revenue.
Commodity Chemicals Market Segment Insights
Commodity Chemicals Product Insights
The Commodity Chemicals Market segmentation, based on product includes Ester, Ether, Amine, Alcohol, Aliphatic Hydrocarbon, Aromatic Hydrocarbon, Chlorinated Solvents, Ketones, Fatty Chemicals, Chelating Agents and Others. The ester segment dominated the market. The increased demand for esters FAEs from a variety of end-use industries, including personal care, pharmaceuticals, and food processing, is the cause of the market expansion.
Commodity Chemicals End-Use Insights
The Commodity Chemicals Market segmentation, based on end-use, includes Plastics & Rubber, Electronics & IT, Food & Beverages, Pharmaceuticals & Personal Care, Building & Construction, Automotive, Agriculture, Mining, Oil & Gas, Household Industrial and Institutional (HI & I) and Others. The household industrial and institutional (HI & I) category generated the most income. A rising demand from the food and beverage industry and consumer retail establishments around the world has boosted this end use industry segment. The plastics sector can generate a wide range of products because to the special lightweight properties of commodity chemicals. As close substitutes like glass simply fall short in terms of cost-effectiveness and dependability, the market for commodity chemicals is anticipated to expand.
Figure 1: Commodity Chemicals Market, by End-Use, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Commodity Chemicals Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American commodity chemicals market area will dominate this market. The market is expanding as a result of the rising demand for commodity chemicals from end-use industries such hospitals, biotechnology firms, academic institutions, and others. Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: COMMODITY CHEMICALS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe commodity chemicals market accounts for the second-largest market share. The expansion of this market is being driven by the region's rising demand for plastic resins and synthetic rubbers. Additionally, the expansion can be linked to the increase in demand for medical equipment and supplies, which are made of commodity chemicals. The expansion of this market is also being driven by customers' increasing awareness of hygiene. Further, the German commodity chemicals market held the largest market share, and the UK commodity chemicals market was the fastest growing market in the European region
The Asia-Pacific Commodity chemicals Market is expected to grow at the fastest CAGR from 2023 to 2032. The development of the economy, industrialization, and the expansion of important end-use sectors are cited as contributing factors in this. China and India are the two countries driving the most growth in the Asia Pacific market for commodity chemicals. The need for additives in the region is influenced by the manufacture of food, beverages, personal care and cosmetics items, as well as pharmaceutical applications. China, India, and Japan are the key producing countries in the region. China is the world's top producer, which encourages the growth of the goods market. Moreover, China’s commodity chemicals market held the largest market share, and the Indian commodity chemicals market was the fastest-growing market in the Asia-Pacific region.
Commodity Chemicals Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the commodity chemicals market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the commodity chemicals industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global commodity chemicals industry to benefit clients and increase the market sector. In recent years, the commodity chemicals industry has offered some of the most significant advantages to medicine. Major players in the commodity chemicals market attempting to increase market demand by investing in research and development operations include 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.
A material science business, Dow Inc. is based. Through its fully owned subsidiary, The Dow Chemical Co (TDCC), the company conducts business. The product line of the company consists of silicones, industrial intermediates, silicone coatings, and plastics. The business caters to clients in the packaging, infrastructure, mobility, and consumer care sectors with a variety of goods and services. In addition to home and personal care, adhesives and sealants, durable goods, coatings, food, and specialty packaging, Dow's products are used in a variety of industries. In August 2021, Dow Chemical Company reported investing in the US Gulf Coast's methyl acrylate industry. The new 50 kiloton nameplate capacity of methyl acrylate, scheduled to go online in the first half of 2022, will be manufactured at St.Charles Operations in Louisiana, United States, and will enable worldwide growth with an emphasis on meeting North American demand.
BASF SE is a chemical business. It manufactures, markets, and sells chemicals, polymers, crop protection products, and performance items. The company's product line includes solvents, adhesives, surfactants, electronic chemicals, fuel additives, food additives, fungicides, pigments, paints, and herbicides. The company works with a wide range of industries, including those related to building, woodworking, agriculture, paints and coatings, transportation, home care, electronics and electrical, nutrition, and chemicals. In partnership with international customers, partners, and researchers, BASF carries out R&D. In December 2020, select polyetheramine products will have new prices in the United States and Canada starting on January 1, 2021, or as long as current contracts allow. The amine products from BASF are utilised in a wide range of applications as highly effective curing agents, such as coatings and sealing compounds for the wind energy and electrical industries, as well as composites, adhesives, and floors.
Key Companies in the commodity chemicals market include
- BASF SE
- Bayer Group
- AkzoNobel N.V.
- The Dow Chemical Company
- LyondellBasell Industries Holdings B.V.
- I. DuPont de Nemours and Company
- Mitsui Chemicals
- Braskem SA
- PPG Industries
- Eastman Chemical Company
Commodity Chemicals Industry Developments
In September 2023, Peregrine Hydrogen announced the completion of its oversubscribed seed round of 7.8 million dollars. Bidra heads this round by participating alongside Builders, Gates Frontier, Presidio Ventures, RiSC Capital, and Schox. Peregrine is expecting this money to further enhance and commercialize its patented technology and expand into the commodity chemical markets.
In April 2021, Evonik Industries AG reported that it is looking into the utilization of high-performance PEEK polymer VESTAKEEP, which is used as an implant polymer in the medical field, to develop efficient structural prosthesis systems. The firm is taking the expertise of medical specialists from the well-known Center for Knee and Hip Replacement Massachusetts General Hospital in the USA. If the innovation succeeds, the operational lifetime of VESTAKEEP-based joint prostheses may be significantly improved, making recurring surgery or multiple days of pain therapy less necessary.
In January 2021, BASF Polymer Chemicals began raising prices on certain polyetheramine products in the U.S. and, Canada and Canada as had been announced earlier in December 2020. According to BASF representatives, such products are marketed for multiple applications as effective curing agents marketed widely for the segments in coatings and sealing compounds for wind energy and electrical applications as well as in composites, adhesives and flooring. BASF is a multi-industry company engaged in providing solutions to the automotive, construction, agricultural as well as consumer sectors. The focus of the company is on developing new sustainable solutions for its clients without compromising on the environment.
In November 2020, Cabot Corporation confirmed capacity growth in carbon black production in Cilegon, Indonesia, with the addition of an initial output of around 80,000 metric tons per year, which will be expected to be finished during 2021. Cabot has a clear vision of providing top-notch quality products like carbon blacks, special chemicals and advanced materials.
Commodity Chemicals Market Segmentation
Commodity Chemicals Product Outlook (USD Billion, 2018-2032)
- Ester
- Ether
- Amine
- Alcohol
- Aliphatic Hydrocarbon
- Aromatic Hydrocarbon
- Chlorinated Solvents
- Ketones
- Fatty Chemicals
- Chelating Agents
- Others
Commodity Chemicals End-Use Outlook (USD Billion, 2018-2032)
- Plastics & Rubber
- Electronics & IT
- Food & Beverages
- Pharmaceuticals & Personal Care
- Building & Construction
- Automotive
- Agriculture
- Mining
- Oil & Gas
- Household Industrial and Institutional (HI & I)
- Others
Commodity Chemicals Regional Outlook (USD Billion, 2018-2032)
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North America
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 715.9 billion |
| Market Size 2023 |
USD 763.2 billion |
| Market Size 2032 |
USD 1272.5 billion |
| Compound Annual Growth Rate (CAGR) |
6.60% (2023-2032) |
| Base Year |
2022 |
| Market Forecast Period |
2023-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Product, End-Use, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
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 |
| Key Market Opportunities |
Rising use in personal care and cosmetics sectorl |
| Key Market Dynamics |
Increased use in plastic industry |
Commodity Chemicals Market Highlights:
Frequently Asked Questions (FAQ) :
The Commodity Chemicals Market size was valued at USD 715.9 Billion in 2022.
The global market is projected to grow at a CAGR of 6.60% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are 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.
The ester category dominated the market in 2022.
The household industrial and institutional (HI & I) category had the largest share in the global market.
