Pune, India, Jan 2022, MRFR Press Release/Market Research Future has published a Half- Cooked Research Report on the Global Organic Chemicals Market.
According to the MRFR analysis, the global organic chemicals market size was valued at around USD 10.31 billion in 2020 and is expected to reach around USD 21.25 Billion by the end of 2030 at a CAGR of 7.50%.
Organic chemicals are molecularly structured chemical compounds that contain carbon. Hydrogen, oxygen, nitrogen, sulphur, and chlorine are among the other elements found in these compounds. Organic chemicals can be both natural and created by humans. Most organic chemicals are natural because they are carbon-based, which means they can be produced by plants or animals. Others, on the other hand, are organic-synthetic chemicals, which require a chemical reaction to be produced.
Organic Chemicals are in high demand due to their antioxidant and preservative properties, which are used in food and beverage applications. There is also a growing demand for foods produced with less harsh methods, such as heat, salt, sugar, and chemicals. Furthermore, newer technologies for preventing the growth of harmful bacteria are being introduced, increasing the demand for organic chemicals in food applications. However, factors such as volatile raw material prices and raw material availability impede market growth. Furthermore, rising environmental concerns about the use of synthetic acids and the harmful effects of some organics are impeding market growth. Nonetheless, rising demand for environmentally friendly Organic Chemicals has resulted in the development of a number of bio-based Organic Chemicals. Bio-based Organic Chemicals are manufactured from natural sources such as wheat or corn and are a less expensive alternative to conventionally derived Organic Chemicals. As a result, the emergence of bio-based Organic Chemicals has created profitable opportunities for market participants operating in the global Organic Chemicals market.
COVID-19 has had a negative impact on overall chemical production, particularly on the production of organic chemicals, owing to disruptions in the global supply chain. This is due to the global lockdown and travel restrictions imposed to limit the spread of the coronavirus. The pandemic has hampered Organic Chemical production, affecting a wide range of industries, including agrochemicals, food and beverage, pharmaceuticals, personal care & cosmetics, and others. Organic chemicals like acetic acid, citric acid, lactic acid, formic acid, and fumaric acid are commonly used in the food and beverage, pharmaceutical, personal care, and cosmetic industries. As a result, demand for Organic Chemicals increased from a variety of end-use industries during the global pandemic. Organic Chemicals producers have kept their facilities running with a limited workforce in order to meet the increased demand from end-users. As a result, even during the pandemic, demand increased slightly. Furthermore, procurement of raw materials was a major impediment, as the majority of raw material suppliers in the market were forced to close their operations due to the outbreak of COVID-19. The closure of several raw material producers and Organic Chemicals manufacturers has resulted in a drop in global consumption. Furthermore, the imposition of various fiscal and monetary policies by governments and managements around the world to limit the damage caused by COVID -19 is expected to result in some relief.
The global Organic Chemicals market is highly fragmented with presence of numerous global, regional, and numerous unorganized players. Some of the prominent players in the global organic chemicals market include BASF SE (Germany), Cargill (US), Eastman Chemical Company (US), Koninklijke DSM N.V. (Netherlands), PPG Industries (US), AkzoNobel (Netherlands), Royal Dutch Shell (Netherlands), Sinopec (China), ExxonMobil (US), LyondellBasell Industries (Netherlands), Ineos (UK), Reliance Industries (India), and The Dow Company (US). Manufacturers seek to gain a competitive advantage over other players by expanding production facilities, acquiring, forming joint ventures, and forming partnerships with key stakeholders. Furthermore, in order to gain the largest share of the global market, producers are increasingly focusing on strategic alliances with stakeholders, new product development, and capacity expansion.