Commodity Chemicals Market

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.

The Global Global Commodity Chemicals Market Industry is projected to experience substantial growth in the coming years. With an anticipated market value of 813.6 USD Billion in 2024 and a forecasted increase to 1541.9 USD Billion by 2035, the industry is poised for significant expansion. This growth trajectory, characterized by a CAGR of 5.98% from 2025 to 2035, reflects the increasing demand for commodity chemicals across various sectors. Such projections highlight the industry's resilience and adaptability in meeting evolving market needs.

The Global Global Commodity Chemicals Market Industry experiences a notable shift towards sustainable chemical production. This trend is driven by increasing environmental regulations and consumer preferences for eco-friendly products. Companies are investing in green chemistry and biobased feedstocks to meet these demands. For instance, the market is projected to reach 813.6 USD Billion in 2024, reflecting a growing emphasis on sustainability. This shift not only addresses environmental concerns but also opens new avenues for innovation and product development, potentially enhancing market competitiveness.

The versatility of commodity chemicals fosters their application across various industries, significantly impacting the Global Global Commodity Chemicals Market Industry. From agriculture to pharmaceuticals, the demand for these chemicals is expanding. For example, the agricultural sector increasingly relies on commodity chemicals for fertilizers and pesticides, driving market growth. This diversification of applications not only stabilizes demand but also enhances the industry's resilience against economic fluctuations. By 2035, the market is expected to reach 1541.9 USD Billion, underscoring the importance of commodity chemicals in multiple sectors.

The ongoing global population growth and urbanization trends are crucial drivers for the Global Global Commodity Chemicals Market Industry. As urban areas expand, the demand for construction materials, plastics, and other chemical products rises. This urbanization trend necessitates increased production of commodity chemicals to support infrastructure development and housing needs. Additionally, the growing population leads to higher consumption of consumer goods, further propelling the market. The interplay between these demographic shifts and the chemical industry suggests a robust growth trajectory in the coming years.

Regulatory frameworks increasingly support innovations within the Global Global Commodity Chemicals Market Industry. Governments worldwide are implementing policies that encourage research and development in chemical technologies, particularly those that promote sustainability and safety. This regulatory backing not only facilitates funding for innovative projects but also fosters collaboration between public and private sectors. As a result, companies are more likely to invest in new technologies and processes, potentially leading to enhanced market growth and competitiveness. The alignment of regulatory support with industry goals indicates a promising future for commodity chemicals.

Technological innovations play a pivotal role in shaping the Global Global Commodity Chemicals Market Industry. Advances in production processes, such as continuous flow chemistry and automation, enhance efficiency and reduce costs. These technologies enable manufacturers to optimize resource utilization and minimize waste, aligning with sustainability goals. As a result, the industry is likely to witness a compound annual growth rate (CAGR) of 5.98% from 2025 to 2035. This growth is indicative of the sector's adaptability to changing market dynamics and its commitment to improving production methodologies.

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, Market Research Future 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.

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.