Organic Chemicals Market Size was valued at USD 12.15 Billion in 2023. The organic chemicals industry is projected to grow from USD 13.06 Billion in 2024 to USD 21.66 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.53% during the forecast period (2024 - 2032). Food and beverage applications have a huge need, while the pharmaceutical business is seeing an increase in demand are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for organic chemicals is being driven by their abilities as antioxidants and preservatives, organic chemicals are frequently used in the food and beverage sector. Additionally, there is a rising market for foods made using softer processes like heat, salt, sugar, and chemicals. In addition, more advanced methods of preventing the development of hazardous bacteria are being developed, which raises the demand for organic chemicals used in food applications. The market for organic compounds in the expanding food and beverage industry.
Additionally, organic compounds have been demonstrated to have anti-coagulant and catabolic properties; as a result, they are primarily present in alcoholic beverages. The need for organic chemicals has also increased due to the millennial generation's increased consumption of packaged foods preserved with organic chemical-based preservatives to stop the spread of bacteria and fungus. These elements can be a major force boosting the organic chemical market in the expanding food and beverage industry.
As a result of the technology-driven nature of the organic chemical sector, R&D spending is essential to its value chain. The industry participants will have plenty of opportunities thanks to these R&D expenditures in cutting-edge applications and lower production costs. There are expected to be plenty of chances for organic market development due to significant government initiatives to support the manufacturing sector in emerging nations.
For instance, a new production line for propionic acid with a capacity of 30 kilotons per year was created in May 2019 by BASF-YPC Company Limited, a joint venture between BASF and Sinopec that is owned equally by both companies. As a result, it is anticipated that throughout the projection period, demand for organic chemicals will increase due to the rising extensive demand for food and beverage applications. Thus, driving the organic chemicals market revenue.
November 2023
Organic World (TOW), India's biggest organic and natural retail chain, launched three new Osh plant-powered home care products. As Indian families prepare for the Christmas season, the Bengaluru-based startup makes plant-based home cleaning products more affordable.
TOW launched Osh Fabric Conditioner, Toilet Cleaner, and Multipurpose Kitchen Cleaner, adding six plant-based home care products. Nimida Group brands include Organic World. Bengaluru-based Nimida Group enterprises provide better choices and create sustainable value. The firm operates in retail, consumer products, farming, and sports.
The global organic chemicals market segmentation, based on source, includes natural and synthetic. The natural segment dominated the market, accounting for 35% of market revenue (3.95 Billion). The majority of organic compounds found in nature contain carbon. The segment's growth is projected to be fueled by the increasing emphasis on natural products and the depletion of fossil fuels.
The global organic chemicals market segmentation, based on type, includes aliphatic, aromatic, and carbonyl. The aromatic category generated the most income (41.2%). They are also known as arenes or aromatics. The two aromatic compounds that are most often used are toluene and benzene. Many are used as nonpolar solvents and chemicals for organic synthesis.
The global organic chemicals market segmentation, based on application, includes food and beverages, agrochemicals, pharmaceuticals, personal care, cosmetics, plastics and polymers. The food and beverages category generated the most income (36.5%). Due to the rising demand for fortified food and beverages, the food and beverage segment accounted for the largest market. Organic chemicals are frequently used in manufacturing food, beverages, and feed.
Figure 1: Organic Chemicals Market, by Application, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Organic Chemicals market will dominate this market, owing to the large turnover for animal feed, the sizeable manufacturing facilities for producers of organic compounds, and modern manufacturing techniques. Recently, a preference for biological insecticides has emerged, largely due to the quick uptake of sustainable agricultural practices, including organic farming and integrated pest management (IPM) methods. According to empirical studies, biopesticides are a key element of eco-friendly IPM programs since they work in concert with other agricultural inputs.
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: ORGANIC CHEMICALS MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Organic Chemicals market accounts for the second-largest market share due to the demand for organic chemicals rising quickly due to quick industrialization and urbanization, supported by supportive government measures. Further, the German Organic Chemicals market held the largest market share, and the UK Organic Chemicals market was the fastest-growing market in the European region.
The Asia-Pacific Organic Chemicals Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to large-scale domestic production, ambitious development plans in China, and the widespread presence of important producers in the area are the main causes of this. Moreover, China’s Organic Chemicals market held the largest market share, and the Indian Organic Chemicals market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the organic chemicals market, grow even more. Participants in the market are also engaging in a variety of strategic initiatives to footprint, with important market developments including new product launches, contracts, acquisitions, heftier investments, and cooperation with other parties organizations. To expand and survive in a more competitive and rising market climate, the organic chemicals industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global organic chemicals industry to benefit clients and increase the market sector. In recent years, the organic chemicals industry has offered some of the most significant advantages to medicine. Major players in the Organic Chemicals market, Global organic chemicals market leaders include Cargill (US), Eastman Chemical Company (US), BASF SE (Germany), Koninklijke DSM N.V. (Netherlands), Royal Dutch Shell (Netherlands), PPG Industries (US), AkzoNobel (Netherlands), Sinopec (China), ExxonMobil (US), Ineos (UK), Reliance Industries (India), LyondellBasell Industries (Netherlands), and The Dow Company (US).
BASF SE is a chemical company. Chemicals, plastics, performance goods, practical solutions, agricultural solutions, and oil and gas are among the six business segments that the company engages in. In addition to offering items for these industries, BASF also offers a variety of system solutions and services. These include products for the chemical, automotive, construction, agriculture, oil, plastics, electrical, electronics, furniture, and paper sectors. A new production line for propionic acid with a capacity of 30 kilotons per year was created in May 2019 by BASF-YPC Company Limited, a joint venture between BASF and Sinopec owned equally by both companies.
Akzo Nobel N.V. manufactures specialty chemicals. The business sells decorative paints, coatings, surfactants, polymers, pulp and paper, bleaching and oxidizing, salt chlorine, and other chemical goods. Products from Akzo Nobel are available for purchase by customers worldwide. AkzoNobel, a producer of performance coatings, said in January 2018 that its facility in Los Reyes, Mexico, would be upgraded and its manufacturing capacity would be increased.
August 2019: The chemical intermediates division of Huntsman Corporation will be purchased by Indorama Ventures, a Thai-based petrochemical firm, for US$ 2.1 billion.
January 2019: A joint venture between BP and Lotte called Lotte BP Chemical Company Limited has agreed to increase production capacity in Ulsan, South Korea. The factory is anticipated to raise its annual production capacity to 650 kilotons by adding a 100,000-tonne capacity for acetic acid.
November 2018: The acetic acid production at Clear Lake, Texas, will increase to 2,000 kilotons per year by the end of 2021, according to an announcement by Celanese Corporation, a multinational specialty chemicals manufacturer.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 12.15 Billion |
| Market Size 2024 | USD 13.06 Billion |
| Market Size 2032 | USD 21.66 Billion |
| Compound Annual Growth Rate (CAGR) | 6.53% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Type, Application, 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 | Cargill (US), Eastman Chemical Company (US), BASF SE (Germany), Koninklijke DSM N.V. (Netherlands), Royal Dutch Shell (Netherlands), PPG Industries (US), AkzoNobel (Netherlands), Sinopec (China), ExxonMobil (US), Ineos (UK), Reliance Industries (India), LyondellBasell Industries (Netherlands), and The Dow Company (US). |
| Key Market Opportunities | Development of bio-based organic compounds.Financial support for R&D and technical breakthroughs. |
| Key Market Dynamics | Large demand from the food and beverage industry.Demand for the pharmaceutical sector is rising. |
Organic Chemicals Market Highlights:
Frequently Asked Questions (FAQ) :
The Organic Chemicals market size was valued at USD 12.15 Billion in 2023.
The organic chemicals market is projected to grow at a CAGR of 6.53% during the forecast period, 2024-2032.
North America had the largest share of the organic chemicals market.
The key players in the organic chemicals market are Cargill (US), Eastman Chemical Company (US), BASF SE (Germany), Koninklijke DSM N.V. (Netherlands), Royal Dutch Shell (Netherlands), PPG Industries (US), AkzoNobel (Netherlands), Sinopec (China), ExxonMobil (US), Ineos (UK), Reliance Industries (India), LyondellBasell Industries (Netherlands), and The Dow Company (US).
The natural category dominated the organic chemicals market in 2023.
The aromatic had the largest share in the organic chemicals market.
Food and beverages had the largest share of the organic chemicals market.
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