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Commodity Chemicals Market Size

ID: MRFR//10074-HCR | 128 Pages | Author: Anshula Mandaokar| June 2024

The Commodity Chemicals Market- an integral part of the chemical industry- is influenced by several market dynamics. One of these factors is the global demand for commodities because these chemicals are employed in basic production processes across industries. In 2022, the Commodity Chemicals Market Size was evaluated at USD 715.9 billion. The commodity chemicals market is expected to reach USD 1,272.5bn in 2032 from USD 763.2bn in 2023, growing at a CAGR of around 6.60%. Raw material prices also significantly determine the fate of the commodity chemicals market. Most of these chemicals come from base feedstocks such as natural gas, crude oil, and minerals. If there are any changes in the costs of such inputs, this can lead to huge shifts in product-related costs, thereby affecting pricing structures within this sector.
Government regulations and environmental policies influence the commodity chemicals market. Environmental concerns have resulted in a growing focus on sustainable and green approaches to doing things in this industry. The use of stricter rules on emissions, waste disposal, and hazardous substances may require investments into cleaner technologies, thus disrupting production processes, during which case many companies may be forced to close down operations entirely. Innovation and technological advancement have been among the major market forces driving competition and growth within the commodity chemicals market so far. Therefore, many firms invest their resources in research and development that focuses on improving efficiency during manufacturing, coming up with new products, or finding alternative sources; they make significant investments related to research and development aimed at increasing efficiency during manufacturing.
The commodity chemicals market heavily relies on international trade to source raw materials and distribute them. The imposition of tariffs, the signing of trade agreements, and political tensions between countries may interrupt supply chains, thus making it difficult to access markets. Consumer preferences, together with social trends, also influence the shape taken by the commodity chemicals market as a whole. Increased demand for green products has been driven by growing consumer awareness of environmental sustainability. Market consolidation and mergers/ acquisition deals are other factors that determine the shape of the Commodity Chemicals Market. Firms pursuing strategic acquisitions or alliances often target expanding their product portfolios, penetrating new markets, or merging with organizations that share similar interests and thus may experience economies of scale. This can either lead to increased competition in the market or create monopolistic tendencies within some sub-sectors.

Covered Aspects:

Report Attribute/Metric Details
Market Size Value In 2022 USD 715.9 Billion
Market Size Value In 2023 USD 763.2 Billion
Growth Rate 6.60% (2023-2032)

Global Commodity Chemicals Market Overview

Commodity Chemicals Market Size was valued at USD 715.9 billion in 2022. The commodity chemicals market is projected to grow from USD 763.2 billion in 2023 to USD 1272.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.60% during the forecast period (2023 - 2032). There is a rise in demand for goods like petrochemicals and explosives as a result of rising income levels and population growth around the world. The market for commodity chemicals is growing because of this market driver.

Commodity Chemicals Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commodity chemicals Market Trends

  • 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.

Commodity Chemicals Market Segment Insights

Commodity Chemicals Product Insights

The Commodity Chemicals Market segmentation, based on product includes Ester, Ether, Amine, Alcohol, Aliphatic Hydrocarbon, Aromatic Hydrocarbon, Chlorinated Solvents, Ketones, Fatty Chemicals, Chelating Agents and Others. The ester segment dominated the market. The increased demand for esters FAEs from a variety of end-use industries, including personal care, pharmaceuticals, and food processing, is the cause of the market expansion.

Commodity Chemicals End-Use Insights

The Commodity Chemicals Market segmentation, based on end-use, includes Plastics & Rubber, Electronics & IT, Food & Beverages, Pharmaceuticals & Personal Care, Building & Construction, Automotive, Agriculture, Mining, Oil & Gas, Household Industrial and Institutional (HI & I) and Others. The household industrial and institutional (HI & I) category generated the most income. A rising demand from the food and beverage industry and consumer retail establishments around the world has boosted this end use industry segment. The plastics sector can generate a wide range of products because to the special lightweight properties of commodity chemicals. As close substitutes like glass simply fall short in terms of cost-effectiveness and dependability, the market for commodity chemicals is anticipated to expand.

Figure 1: Commodity Chemicals Market, by End-Use, 2022 & 2032 (USD billion)

Commodity Chemicals Market, by End-Use, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commodity Chemicals Regional Insights

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.



Source: Secondary Research, Primary Research, MRFR 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.

Commodity Chemicals Key Market Players & Competitive Insights

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.

Key Companies in the commodity chemicals market include


  • Bayer Group

  • AkzoNobel N.V.

  • The Dow Chemical Company

  • LyondellBasell Industries Holdings B.V.

  • I. DuPont de Nemours and Company

  • Mitsui Chemicals

  • Braskem SA

  • PPG Industries

  • Eastman Chemical Company

Commodity Chemicals Industry Developments

November 2020: Cabot Corporation reported an increase in carbon black production capacity of about 80,000 metric tonnes per year in Cilegon, Indonesia. In 2021, this is anticipated to be finished.

January 2019: The state governments of Tamil Nadu, Andhra Pradesh, and Telangana are in discussions with Phillips Carbon Black to determine the best location for a new 1,50,000-tonne carbon black factory that will cost between Rs 600 and 620 crore to build.

Commodity Chemicals Market Segmentation

Commodity Chemicals Product Outlook (USD Billion, 2018-2032)

  • Ester

  • Ether

  • Amine

  • Alcohol

  • Aliphatic Hydrocarbon

  • Aromatic Hydrocarbon

  • Chlorinated Solvents

  • Ketones

  • Fatty Chemicals

  • Chelating Agents

  • Others

Commodity Chemicals End-Use Outlook (USD Billion, 2018-2032)

  • Plastics & Rubber

  • Electronics & IT

  • Food & Beverages

  • Pharmaceuticals & Personal Care

  • Building & Construction

  • Automotive

  • Agriculture

  • Mining

  • Oil & Gas

  • Household Industrial and Institutional (HI & I)

  • Others

Commodity Chemicals Regional Outlook (USD Billion, 2018-2032)

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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