Commodity chemicals refer to basic chemicals that are consumed in large volumes and have various applications across industries. Some major commodity chemicals include ethylene, propylene, benzene, methanol, and butadiene. These chemicals find widespread usage in plastics, paints & coatings, adhesives, personal care products, construction materials, and other consumer and industrial goods. Commodity chemicals serve as building blocks for various downstream products. The growth of end-use industries is a key driver for the demand of commodity chemicals.
The Commodity Chemicals Market is estimated to be valued at US$ 67.72 Bn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Robust growth of end-use industries such as construction, automotive, packaging, and consumer goods has been propelling the demand for commodity chemicals globally. According to estimates, the global construction industry is expected to grow at approximately 5% annually till 2030. Expanding construction activities will augment the consumption of commodity chemicals that are used to manufacture various construction materials like cement, concrete, pipes, tiles, and others. Furthermore, rising population and urbanization are expected to fuel infrastructure development programs worldwide, thus driving the construction industry in the long run. This will subsequently boost the commodity chemicals market over the forecast period. Government initiatives and investments to develop petrochemical complexes and cracker plants are another key factor aiding market growth. Numerous projects have been announced by public and private players to augment production capacities of major commodity chemicals.
Commodity chemicals can be categorized into basic chemicals and petrochemical intermediates. Basic chemicals are further divided into inorganic chemicals and organic chemicals. Inorganic chemicals include alkalis, chlorine, caustic soda, and sodium hypochlorite. Organic chemicals include ethanol, methanol, ethylene, propylene, benzene, toluene, and xylene. Among these, organic chemicals dominate the market as they find wide applications in numerous end-use industries such as construction, automotive, packaging, consumer goods, and healthcare.
- Political: Governments across regions are supporting the growth of chemical industries through favorable trade policies and investments in infrastructure development, which is positively impacting the commodity chemicals market.
- Economic: Solid economic growth in emerging nations has increased demand for numerous consumer goods and industrial machinery, thereby driving consumption of commodity chemicals.
- Social: Rising population and increasing disposable incomes are propelling demand for packaged food, personal care products, and other consumer goods that utilize commodity chemicals.
- Technological: Advancements in catalyst technology have enabled petrochemical producers to improve process yields and optimize product mix. New extraction techniques are also improving recoveries from oil and gas reservoirs.
The global Commodity Chemicals market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing demand from numerous end-use industries, especially construction and automotive.
Regional analysis: Asia Pacific dominates the global market and is projected to exhibit the fastest growth during the forecast period. Expanding manufacturing sector coupled with heavy investment in infrastructure development are boosting commodity chemicals consumption in China and India.
Key players analysis: Key players operating in the commodity chemicals market are BASF SE, Dow Inc., SABIC, and LyondellBasell Industries. BASF is the global leader in chemicals production. Dow and SABIC have integrated production facilities across major geographic markets. LyondellBasell has a strong footprint in polyolefins and refining.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it