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Global chemicals market driven by the commodity chemicals segment

Press Release   •   Jul 10, 2013 10:13 BST

The global chemicals market has been forecast to increase at a compound annual growth rate (CAGR) of 8.2% for the five-year period 2011 - 2016, increasing from total revenues of $3,554 billion, to reach a value of $5,274.9 billion by the end of 2016.

According to a recent report, 'Chemicals: Global Industry Almanac,' the commodity chemicals segment was the markets most lucrative in 2011, with total revenues of $1,993.1 billion, equivalent to 56.1% of the market's overall value.

Chemicals are used to make a wide variety of consumer goods, as well as thousands of inputs to agriculture, manufacturing, construction, and service industries. The chemical industry itself consumes 26% of its own output.

Major industrial customers include rubber and plastic products, textiles, apparel, petroleum refining, pulp and paper, and primary metals. Chemicals are nearly a $3 trillion global enterprise, and the EU and US chemical companies are the world's largest producers.

The largest corporate producers worldwide, each with plants in numerous countries, include BASF, Bayer, Braskem, Celanese/Ticona, Arkema, Degussa, Dow, DuPont, Eastman Chemical Company, ExxonMobil, Givaudan, INEOS, LyondellBasell, Mitsubishi, PPG Industries, SABIC, Shell, and Wanhua along with thousands of smaller firms.

In the U.S. there are 170 major chemical companies. They operate internationally with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates operating. The U.S. chemical output is $750 billion a year. The U.S. industry records large trade surpluses and employs more than a million people in the United States alone. The chemical industry is also the second largest consumer of energy in manufacturing and spends over $5 billion annually on pollution abatement.

In Europe, especially Germany, the chemical, plastics and rubber sectors are among the largest industrial sectors. Together they generate about 3.2 million jobs in more than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of the entire manufacturing trade surplus of the EU. The chemical sector accounts for 12% of the EU manufacturing industry's added value.

By 2020, the global chemical industry could face a range of competitive dynamics that differ from today in nature and intensity. As the economy emerges from the Great Recession of 2007-2009, the chemical industry finds itself passing through a period of profound transformation.

In both developed and developing nations, growth rebounds as governments play an active role in managing their economies, directing investment, and promoting national competitiveness. Renewable energy and nanotechnology are among the top areas targeted for support.

For more information on the global chemicals market, see the latest research: Global Chemicals Market

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