Basic Chemicals Market Size, Share, and Trends 2024 to 2034

Basic Chemicals Market Size and Forecast 2024 to 2034

The global basic chemicals market size is estimated at USD 721.36 billion in 2024 and is anticipated to reach around USD 1057.56 billion by 2034, expanding at a CAGR of 3.90% from 2024 to 2034. 

Basic Chemicals Market Key Takeaways

• The Asia Pacific region has garnered a 39% revenue share in 2023.
• By device, the organic segment has extended 57% revenue share in 2023.
• By end user, the chemical industry has outstretched 43% revenue share in 2023.

Asia Pacific Basic Chemicals Market Size and Growth 2024 to 2034

The Asia Pacific basic chemicals market size is evaluated at USD 281.33 billion in 2024 and is predicted to be worth around USD 417.74 billion by 2034, rising at a CAGR of 4.02% from 2024 to 2034.

Due to the abundance of the chemical industry, the Asia-Pacific region dominated the worldwide market for basic chemicals. This dominance in the basic chemicals industry is caused by the substantial presence of producers of petroleum chemicals in China and India. Furthermore, it is anticipated that factors like rising investment and fierce rivalry would fuel demand in the Asia-Pacific basic chemicals market. Due to the growth of the transportation sector, which comprises the car, airline, and maritime sectors, North America is also anticipated to have a sizable market share in the upcoming years.

Market Overview

Basic chemicals are produced in vast numbers and play a significant role in the creation of goods that are consumed by consumers and the general public. Among them are fundamental inorganics, intermediates in chemical processes, and chemical raw materials derived from oil. Understanding the manufacturing procedures and chemical composition of these fundamental compounds is essential for achieving cost-saving objectives and adhering to increasingly strict security and ecological norms. One of the key reasons driving the worldwide market for basic chemicals is the expanding use of these chemicals in the food and beverage sector. To enhance the flavors and fragrance, and appearance of food, a variety of chemicals are used as direct food additives. These substances can also function as preservatives, limiting bacterial activity and avoiding spoilage. In the food industry, chemical products are also employed to create packaging that will come into contact with food. They include utensils, containers, foils, and a range of other things.

The pharmaceutical business is expanding quickly, which is motivating the major players to increase the production of organic and inorganic basic chemicals. A fundamental chemical raw material utilized in pharmacies is chlorine. It serves as the first stage in the manufacturing of medications. Additionally, it's conceivable that it enters their molecules. There are several different sorts of medicines that may be made with chlorine. Health risks related to basic chemicals and tight regulatory requirements for their use are some of the reasons that are restricting the market's growth. Chemical and hazardous chemicals can result in a range of physical and physiological issues, including flammability, corrosion, and explosibility, as well as health issues including irritability, sensitization, and carcinogenicity. The OSHA-recognized Hazard Communication Standard (HCS) is designed to ensure that employers and employees are educated about potential dangers from dangerous chemical substances in the workplace as well as preventative actions. In addition, the expansion of private and public major investments in the chemical sector is one of the trends in the global basic chemicals market that is anticipated to open up a lot of potentials for the market to expand in the years to come.

Chemicals are more in demand when emerging sectors start to take off as a result of development. The term "basic chemical products" refers to a broad range of chemicals used in anything from engineering to textiles, paints, and inks to crop protection. To suit consumer demands and new environmental restrictions, new goods are continually being produced.

Basic Chemicals Market Growth Factors

The key drivers of the growth of the global basic chemicals market are the expanding use of basic chemicals in the food and beverage industry and the expansion in the pharmaceutical industry. Chemicals may be extremely important in the production and preservation of food. Food additives, for instance, may increase the shelf life of some meals while others, like colors, may make them look more appetizing. Food is given a flavor boost through the use of flavorings.

Market Scope

Market Dynamics

Key Market Drivers

Strong demand from the construction market

• The market for basic chemicals will rise during the forecast period due to the rising number of construction projects being undertaken throughout the globe. As per the Construction Review Survey, India, China, and the US will dominate the $8 trillion global construction market by 2030. This is due to the fact that these substances boost a building's structural and aesthetic qualities while also increasing its lifespan.
• Additionally, they lessen the requirement for maintenance and support the strength of concrete structures. Some of the most crucial elements of the building process are chemicals used for surface treatment, foaming agents, or coatings. They so make up a sizable share of the market for basic chemicals. After the epidemic, it is anticipated that the building industry would recover. It is anticipated to fuel the expansion of the basic chemical sector.

Research and development proficiencies

• R&D and innovation are two areas with substantial development potential in the basic chemical sector since it is often consumer-focused. Due to manufacturers' attention on producing new and customized product offers for target applications and satisfying specific clients' expectations, innovative basic chemicals have been created. As a result, there are now a greater number of products present on the market.

Key Market Challenges 

• Sluggish industrial activities and covid 19 - The COVID-19 pandemic and rising environmental concerns are two obstacles impeding the basic chemical market's expansion. The suspension of international travel and transportation has resulted in inventory shortages, which have further reduced chemical sales. Almost all industries have been affected by the COVID-19 epidemic. 2019 has already seen the chemical sector grapple with sustainability-related concerns including trade restrictions, lower earnings, economic sanctions, and others. The COVID-19 outbreak and the drop in oil prices have added to the stress on the chemical industry. But the impact differed across various groups.

Key Market Opportunities

• Surging demand for individual care goods - Key manufacturers are observing a significant surge in the need for hygiene goods including liquid soaps, hand sanitizers, disinfectant sprays, and germ-protecting products as the COVID-19 epidemic spreads around the globe. The chemical industry has observed a rise in the use of fundamental chemical products during the last 12 to 18 months. In the wake of the present situation, they have recently evaluated their manufacturing plans and are swiftly expanding and simplifying their production capacities. Therefore, the industry has been increased by the rising acceptance of cleansers and disinfectants. In addition, 960 million people aged 60 and over lived in the world in 2017, and by 2050, that figure is projected to nearly quadruple. These elderly individuals experience aging and health issues including loss of hair and skin degeneration, which will encourage them to use market-friendly cosmetic chemicals. The market for basic chemicals is expanding as a result of the significant increase in demand for personal care chemicals and surfactants.
• Increase in demand for a wide range of consumer goods - One of the key reasons driving the market is the increasing use of fundamental chemicals in the manufacturing of consumer products. Many products that we use on a daily basis, like paints, plastics, dish soap, and cosmetics, are made mostly of chemicals. Chemicals that serve as raw materials in other processes include specialty chemicals and commodity chemicals as examples of intermediate products. Contrarily, consumer products are the end result of a certain process. For instance, in Europe, downstream industries fabricate their final products using around 70% of the chemicals produced.

Device Insights

Based on the device, the organic market segment had about three-fifths of the worldwide market for basic chemicals in 2022, dominating with the biggest share. Beer, wine, and distilled spirits all require the addition of intoxicating components, and the main market trend is the usage of ethanol as an intoxicating element in these alcoholic beverages. The fact that ethanol is made from sugarcane, cereals, and other organic compounds makes it an excellent renewable fuel. These elements fuel this market segment's expansion.

On the other hand, the inorganic category is anticipated to register the quickest CAGR of 4.9% over the course of the projection year. When making fertilizers, ammonia is a crucial raw element that is employed as an intermediary chemical molecule. On the other hand, chlorine is a widely utilized inorganic chemical that is used as a bleaching agent and to disinfect tap water. This segment's growth is fueled by these factors.

End-User Insights

The section of the chemical industry, which accounted for about two-fifths of the worldwide market for basic chemicals, had the biggest market share in terms of revenue. This is because basic chemicals are used as either raw materials or intermediates in the production of many products in both established and emerging countries, where the demand for a wide range of consumer goods has increased. However, it is anticipated that the polymer category would grow at the quickest rate, 4.9%, during the course of the projected period. This is because the widespread use of basic chemicals as a raw materials in the creation of products has accelerated the rise of the polymer manufacturing industry, which manufactures polymers for a variety of end uses.

Basic Chemicals Market Companies

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

Recent Developments

• In July 2021, Platinum Equity stated that it will merge with Sigura Water and purchase Solenis, a chemical company from Clayton, Dubilier, and Rice and BASF, for $5.25 billion. In order to fulfill the growing demand, the combination would enable Sigura to increase the supply of chemicals and water treatment products to the food packaging and paper sectors.
• Canlak Inc., a Canadian coatings company, and Valentus Chemicals, a US-based company, were both acquired by private investment firm SK Capital in May 2021. SK Capital focuses its investments on the basic chemicals and pharmaceutical industries. The company intends to combine the twp firms to become Canlak Coatings, a North American wood coatings company. The new company is anticipated to provide a broad range of wood finishing solutions for the fabrication of cabinets, furniture, and flooring for use in sports facilities, business and residential buildings, and homes.
• The H2O Innovation Speciality Chemicals Group was established in July 2021 from the merger of the two chemical business divisions of H2O innovation Inc., PWT, and Genesys. The business will increase the Cheshire (UK) facility's manufacturing capacity.

Segments Covered in the Report

By Device

• Organic
• Inorganic

By Type

• Organic Ammonia
• Chlorine
• Sodium Hydroxide
• Inorganic Benzene
• Ethylene
• Propylene

By End User

• Chemical Industry
• Pharmaceuticals
• Food & Beverages
• Polymer
• Pulp & Paper
• Textiles
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)