Organic Chemicals Market Research Report: Information By Source (Natural, Synthetic) Type (Aliphatic, Aromatics, Carbonyls) Application (Food & Beverages, Agrochemicals, Pharmaceuticals, Personal Care & Cosmetics, Plastics & polymers) Forecast till 2030

Organic Chemicals Market Overview

Organic Chemicals Market size is projected to be worth USD 21.25 Billion by 2030, registering a CAGR of 7.50% during the forecast period (2021 - 2030), The market was valued at around USD 10.31 billion in 2020.

Organic chemicals are chemical compounds with carbon in their molecular structure. Other elements found in these compounds include hydrogen, oxygen, nitrogen, sulphur, and chlorine. Organic chemicals can be both natural and man-made. Because most organic chemicals are carbon-based, they are natural, which means they can be produced by plants or animals. Others, on the other hand, are organic-synthetic chemicals, which means they must be produced through a chemical reaction.

COVID-19 Impact vs Opportunities for Organic Chemicals Market:

Bio-based organic chemicals are increasingly appealing to a wide range of manufacturers and consumers worldwide. 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. Bio-based Organic Chemicals are environmentally friendly because they are made from renewable feedstocks. Organic chemicals derived from renewable sources have chemical properties similar to organic chemicals derived from conventional sources, and the manufacturing process produces very little toxic waste. These Organic Chemicals are used as building blocks in the manufacture of a wide range of specialty and commodity chemicals, including polymers, food, metals, pharmaceuticals, coatings, fibres, solvents, lubricating oils, diesel fuel oxygenates, and cosmetics. As a result, bio-based Organic Chemicals are expected to provide lucrative opportunities to market participants throughout the forecast period.

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 had an impact on global operations of various industries such as food and beverage, animal feed, and pharmaceuticals, limiting the production of organic chemicals. Because Organic Chemicals are widely used in a variety of industries, a decrease in their operations has a direct impact on the growth of the Organic Chemicals market.

Organic chemicals, on the other hand, are widely used in the food and beverage, agrochemical, and pharmaceutical industries. Because these sectors fall under essential services, demand has increased slightly. 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.

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. Given the circumstances, many companies have halted production at their facilities all over the world. Some large companies that are still in operation are only operating at 40-60% efficiency. However, these businesses have resumed operations in accordance with government regulations. 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 certain relief.

Market Dynamics

• Drivers
  
  
  
  • Extensive demand for Organic Chemicals from food and beverage applications
  
  
  
  

Organic Chemicals are widely used in food and beverage industry, because of their antioxidant and preservative properties. 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.

• Opportunity
  
  
  
  • Emergence of bio-based Organic Chemicals
  
  
  
  

Manufacturers are increasingly investing in the technological advancement and production of bio-based organic chemicals in response to rising demand for green and environmentally friendly organic chemicals.

• Restraints
  
  
  
  • Volatile prices of raw material and availability
  
  
  
  

Commodity price increases, such as wheat, corn, and others, as well as fluctuating crude oil prices, are weighing on the global organic chemicals market. The high cost of raw materials affects the production cost of organic chemicals, resulting in price increases that affect manufacturer margins.

• Challenges
  
  
  
  • Environmental concerns
  
  
  
  

Several Organic Chemicals are toxic and hazardous to the environment. Acetic acid is commonly used in pesticide and herbicide formulation. High concentrations of acetic acid, on the other hand, can be harmful to animals, plants, and aquatic life. Furthermore, volatile organic compounds which was majorly used in paints & coatings industry has witnessed a major setback due it toxic nature.

• Cumulative Growth Analysis
  
  
  
  • The global Organic Chemicals market is expected to witness a healthy growth with CAGR 7.50% throughout the forecast period. However, due to the outbreak of COVID-19 globally, the demand for organic chemicals has declined slightly in the year 2020.
  
  
  
  

Regulatory Implications

Various food safety authorities consider the majority of organic chemicals, such as acetic acid, citric acid, lactic acid, and fumaric acid, to be safe food additives. According to the CODEX Alimentarius, citric acid, for example, may be used in a variety of listed food and beverage products under Good Manufacturing Practices (GMP) as outlined in the Preamble of the Codex GSFA.

Supply Chain Analysis:

The supply chain analysis is the process of evaluating every stage and step taken by stakeholders involved throughout the production and distribution of organic chemicals. The supply chain includes raw materials and suppliers, filled fluoropolymer producers, distribution channels, and end-use industries. The distribution channel in this market comprises distributors, wholesalers, and e-commerce merchants.

Segmentation

By Source

• Natural: Natural organic chemicals are compounds that are produced by plants or animals. Natural organic chemicals are generally carbon-based. Growing emphasize on natural products and depleting fossil fuel is likely to fuel the growth of the segment.


• Synthetic: Synthetic organic chemicals are produced by the chemical reaction. Synthetic compounds are majorly produced from the coal or petrochemicals. This segment accounts for the largest market share and is expected to witness a healthy growth in the forecast period.

By Type

• Aliphatic: An aliphatic compound is one that contains carbon and hydrogen in straight chains, branched trains, or non-aromatic rings. Aliphatic segment includes alkane and alkene such as butane, propane, pentane, hexane, pentene, methane, etc. However, most aliphatics are flammable, they are commonly used as various types of fuels (propane, pentane).


• Aromatics: Aromatic compounds are chemical compounds that are made up of conjugated planar ring systems with delocalized pi-electron clouds instead of individual alternating double and single bonds. They're also known as aromatics or arenes. The most common type of aromatic compounds are toluene and benzene. Many are used as industrial solvents for nonpolar compounds and as organic synthesis derivatives.


• Carbonyls: Carbonyl includes carboxylic acids, acid anhydrides, acyl halides, acid amides, and esters. Carbonyl compounds are used to make a variety of products, including resins, solvents, pharmaceuticals, polymers, and food additives.


• Others: Others include aldehydes, alcohols, amides, ketones, nitriles, hydrazine, etc.

By Application

• Food & Beverages: Food and beverage segment accounted for the largest market due to increased demand for fortified food and beverage. Organic Chemicals are widely used in food, beverage, and feed productions.


• Agrochemicals: Organic Chemicals have long been used in the production of agrochemicals and the segment is expected to witness healthy growth throughout the forecast period. Organic Chemicals are widely used in chemical fertilizers, pesticides, and fungicides to improve crop yield.


• Pharmaceuticals: The pharmaceuticals segment is expected to grow the fastest during the forecast period, owing to increased global demand for anti-biotics and anti-viral products. Acetic acid is an antibiotic that is used to treat infections, cancer, and a variety of other diseases. Formic acids are used as astringents, foaming agents, and local stimulants. Other organic chemicals, such as citric acid, lactic acid, and ascorbic acid, among others, have a wide range of applications in the pharmaceutical industry.


• Personal Care & Cosmetics: This segment is expected to witness moderate growth over the forecast period. Organic chemicals act as preservative and also used as an active ingredient in personal care & cosmetics for applications such as anti-oxidant, anti-aging, anti-inflammatory, etc. It is also used in the formulation of hair conditioners, shampoos, hair rinses, wave sets and other hair care products.


• Plastics & Polymers: Organic chemicals, majorly synthetic chemicals are widely used in plastics & polymers. Some of the common examples include polyethylene, polypropylene, polystyrene, polyvinylchloride, and nylon-6, amongst others.


• Others: Others segment include paints & coatings, textiles, dyes & pigments, solvents, paper & pulp, metal, perfumes, etc.

Regional Analysis

Asia-Pacific held the largest market share and is expected to grow at the fastest rate in the market. This is primarily due to massive domestic production, large expansion plans in China, and the widespread presence of key producers in the region. Furthermore, increased awareness of the health benefits provided by organic chemicals, as well as lenient government regulations in the region, are expected to boost demand for organic chemicals in the region. Due to large production bases of Organic Chemicals producers, high demand for animal feed, and the presence of advanced manufacturing technologies, North America accounted for the second largest market share in the global market. Europe comes after North America. Due to stringent government regulation, Europe's growth in the global market has been stagnant. The Middle East and Africa, on the other hand, are expected to grow profitably due to a steady supply of raw materials. Because of the rise in urbanisation and the presence of major organic chemical producers in Brazil, the Latin America market is expected to provide significant growth opportunities.

Competitive Landscape

The global Organic Chemicals market is highly fragmented, with numerous global, regional, and unorganized players present. The major players in the global market have large production bases and advanced manufacturing facilities both at home and abroad. This allows them to supply the product to various end users around the world in less time than small-scale manufacturers, giving them a competitive advantage in the global market. Furthermore, manufacturers are heavily involved in R&D activities to develop advanced production technologies and expand their production facilities to meet the growing needs of end-users worldwide. Furthermore, manufacturers are forming long-term alliances with key stakeholders in order to gain a significant market share in the global organic chemicals market.

BASF SE (BASF) is one of the largest chemical producers in the world. The company divided its business segments into six divisions, namely, materials, industrial solutions, chemicals, surface technologies, agricultural solutions, and nutrition & care. BASF provides Organic Chemicals including ethylene, propylene, butadiene and benzene, amongst others.

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).

Some of the key developments include:

• In January 2018, AkzoNobel, a manufacturer of performance coatings, announced the expansion its production capacity and upgradation of its organic peroxides facility in Los Reyes, Mexico


• In August 2019, Indorama Ventures, a Thailand-based petrochemical company, announced the acquisition of Huntsman Corporation’s chemical intermediates business for US$ 2.1 billion.


• In May 2019, BASF-YPC Company Limited, a 50-50 joint venture between BASF and Sinopec, has established a new production line of propionic acid with capacity of 30 kilotons/annum.


• In January 2019, Lotte BP Chemical Company Limited, a joint venture between BP and Lotte, has agreed to expand the production capacity in Ulsan, South Korea. The facility is expected to add a capacity of 100,000 tons a year of acetic acid, which will increase its production capacity to 650 kilotons per year.


• In November 2018, Celanese Corporation, a global specialty chemicals company, announced the expansion of acetic acid production at Clear Lake, Texas to 2,000 kilotons/annum by the end of 2021.

Report Overview:

The Organic Chemicals market is segmented by source, type, application, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value-chain analysis, porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global organic chemicals' emerging and fast-growing segments, regions, and countries.

Objectives of the Study

• To get a comprehensive overview of the global organic chemicals market


• To get a wide-ranging information about the key factors driving the market and market opportunities


• To gain information regarding the key players in the industry, their product portfolio, strategies and key developments


• To gain insights about the key country/region in which the market is growing

Intended Audience

• Food and Beverage Companies


• Agrochemicals Producing Companies


• Personal care & cosmetics formulators


• Pharmaceutical Companies


• Research Institutes


• Academic Institutes


• Government Organizations