Bulk chemicals, commonly known as commodity chemicals, are produced in large quantities to meet the ever-growing demand across various industries. Bulk chemicals are manufactured using the batch process and continuous process. Large volumes of raw materials such as crude oil and natural gas are used in production of bulk chemicals. The bulk chemicals or commodity chemicals are traded... View more

Bulk chemicals, commonly known as commodity chemicals, are produced in large quantities to meet the ever-growing demand across various industries. Bulk chemicals are manufactured using the batch process and continuous process. Large volumes of raw materials such as crude oil and natural gas are used in production of bulk chemicals. The bulk chemicals or commodity chemicals are traded as organic chemicals and inorganic chemicals. The bulk chemicals market is highly fragmented, with a large number of global players and small regional players. Asia Pacific is the largest market for bulk chemicals, spearheaded by China, India, and Japan. Bulk chemicals find wide application across industries such as agriculture, construction, and automotive. Burgeoning growth of these industries in highly populous emerging economies such as India and China, along with rampant economic growth in these countries is expected to fuel growth of the global bulk chemicals market in the foreseeable future.

Bulk chemicals or commodity chemicals are used in healthcare, food processing, chemicals, fertilizer, construction, and automobiles industries among others. Price instability of crude and natural gas due to a technological shift towards renewable energy and disparity in supply and demand are expected to be the key challenges for the growth of the global bulk chemicals market. Integration of advanced automation systems such as SCADA, DCS, and PLC among others could significantly increase the production process without a major spike in additional costs. This is projected to create a highly lucrative growth opportunity for players in the market.

Rising demand for chemicals in the construction industry across the globe is projected to be a key driver for the bulk chemicals market. Moreover, increasing crude oil production and consequent decrease in prices is expected to augment the market growth. Growing GDP and rapid urbanization in Asia Pacific, primarily in China, Japan and India, is expected to create a highly conducive environment for market growth. Furthermore, increasing government investment in infrastructure development, especially in India and China, is propelling demand for bulk chemicals. According to India Brand Equity Foundation (IBEF)—part of Department of Commerce, Ministry of Commerce and Industry, Government of India—the Indian government plans to invest US$ 376.53 billion in infrastructure development throughout 2020. Moreover, the Indian government plans to establish special economic zones (SEZs) in the port-based chemical parks across the country. The market in Middle Eastern countries, mainly Saudi Arabia, UAE, Iran, and Iraq is also growing due to large petroleum reserves and high production in these countries. The UAE is primarily focused in improved and modern infrastructure development to boost tourism across the region. The region also witnessed major investment in the manufacturing units of bulk chemicals by global players such as SABIC, The Dow Chemical Company, and BASF SE. Thus, this region is positioned as a key exporter of bulk chemicals to other regions.

Bulk Chemicals Challenges – Reduce Environmental Impact

Effective and eco-friendly mode of waste disposal is a key challenge faced by chemicals manufacturing companies. All waste water, gases, and semi-solid waste can only be disposed after undergoing a series of treatments. The Ministry of Environment and Forest (MoEF) of India, on December 23, 2010, implemented water prevention and control pollution act 1974 and air prevention and control pollution act 1981. These lay out a stringent regulatory framework for manufacturers and users regarding production, import, export, and storage of hazardous chemicals which has significantly increased costs associated with production, which in turn affects profitability of companies in this highly competitive market, in turn inhibiting the market growth.

Decentralized production of bulk chemicals is an opportunity for players to enter local markets. Production of bulk chemicals in small quantities involves utilization of local resources and translates into low operating costs and cheap labor, especially in emerging economies of Asia Pacific and Latin America, in turn increasing profit margins. Also, proximity to end users decreases time-to-market and significantly reduces cost involved in handling and transportation which is a crucial factor for hazardous chemicals. Forward integration by bulk chemical manufacturers is another lucrative growth opportunity for players in this market. 

Bulk Chemicals– Regulatory Scenario:

  • United States Environmental Protection Agency
  • The Frank R. Lautenberg Chemical Safety for the 21stCentury Act, on December 17, 2015.
  • The Toxic Substances Control Act (TSCA) Modernization Act of 2015, on June 23, 2015
  • Registration, Evaluation and Authorization and Restriction of Chemicals (REACH) and Classification, Labelling and Packaging (CPL) regulations
  • Regulations regarding fertilizer production
  • Regulations regarding detergents production
  • Regulation regarding explosive production
  • Regulation regarding drug precursors production
  • Resource Conservation and Recovery Act (RCRA)
  • Chemical Waste Disposal Law Govern by U.S. Environmental Protection Agency

Bulk Chemicals – Key Global Conferences:

  • Strategic Approach to International Chemicals Management (SAICM)
  • In Dubai, government, intergovernmental and non-governmental organizations held an International conference on chemicals management in 2006 between February 4th and 6th
  • Summit Meeting on Chemical Regulations (SMCR) in Asia Pacific in 2011
  • Transparency in sharing regulatory updates and enforcement measures, to provide and promote safety and sustainability of chemical industry in the Asia Pacific region.

Key players in the bulk chemicals market includes BASF-SE, The Dow Chemical Company, Sinopec, SABIC, ExxonMobil, Formosa Plastics, Lyondel Basell Industry, DuPont, Ineos, Bayer, Mitsubishi Chemicals, Royal Dutch Shell, LG Chem Ltd., Braskem, Air liquid, Akzo Nobel, The Linde Group, Sumitomo Chemicals, Mitsui Chemicals, Evonik Industries. In recent times, the market has witnessed a trend of consolidation through strategic mergers and acquisitions. For instance, in March 2017, the European Union approved the proposed merger of Dow Chemical and DuPont as part of a US$ 62 billion deal. The companies would subsequently break into three separate publicly traded companies that would focus on agriculture, material science, and specialty chemicals.View less

Bulk Chemicals Published Insights

Coherent Market Insights Maleic Anhydride Market

Published Date : Dec 2024

The global maleic anhydride market is estimated to be valued at USD 4.56 Bn in 2024. The market is expected to reach USD 6.68 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031. Maleic anhydride is an organic compound which is widely... View more

Coherent Market Insights Vacuum Grease Market

Published Date : Dec 2024

The global vacuum grease market is estimated to be valued at USD 147.6 Mn in 2024 and is expected to reach USD 223.2 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031. Vacuum grease is a type of specialized high vacuum seal grease u... View more

Coherent Market Insights Brominated Polystyrene Market

Published Date : Dec 2024

The global brominated polystyrene market is estimated to be valued at USD 496.6 Mn in 2024 and is expected to reach USD 808.4 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031. The global brominated polystyrene market has witnessed ... View more

Coherent Market Insights Epichlorohydrin Ech Market

Published Date : Dec 2024

The Global Epichlorohydrin (ECH) Market is estimated to be valued at USD 2.95 Bn in 2024 and is expected to reach USD 4.17 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031. Epichlorohydrin (ECH) is an organic compound that finds wi... View more

Coherent Market Insights Polyester Fiber Market

Published Date : Nov 2024

The polyester fiber market is estimated to be valued at USD 103.33 Bn in 2024 and is expected to reach USD 174.32 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.8% from 2024 to 2031. Polyester fiber is primarily made from recycled plastic bottles and... View more

Coherent Market Insights Bitumen Market

Published Date : Nov 2024

The bitumen market is estimated to be valued at USD 65.34 Bn in 2024 and exhibit a CAGR of 1.24% over the forecast period (2024-2031). Bitumen is a sticky, black, and highly viscous liquid or semi-solid form of petroleum. It is a thick, dark brown to black tar-like ma... View more

Coherent Market Insights White Spirits Market

Published Date : Oct 2024

Global white spirits market is estimated to be valued at USD 6.55 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031. White spirits, also known as mineral spirits, are clear, volatile hydrocarbon liquids that are derived from petrole... View more

Coherent Market Insights North America Commodity Chemicals Market

Published Date : Oct 2024

North America commodity chemicals market is estimated to be valued at USD 57.33 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031. The North America commodity chemicals market has been growing consistently over the past few years ow... View more

Coherent Market Insights Biocides Market

Published Date : Oct 2024

Global biocides market is estimated to be valued at USD 9.71 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031. Biocides refer to chemical substances that are used to destroy or control harmful living organisms like pests, germs, al... View more

Coherent Market Insights Propionitrile Market

Published Date : Oct 2024

Propionitrile market is estimated to be valued at USD 105.2 Mn in 2024, exhibiting a CAGR of 5.01% over the forecast period (2024-2031). Propionitrile is an organic compound used as an intermediate in the production of other compounds. It is a colorless liquid with an... View more

Coherent Market Insights Green Ammonia Market

Published Date : Sep 2024

Global green ammonia market is estimated to be valued at USD 1.48 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 70.3% from 2024 to 2031. The global green ammonia market has been gaining significant traction in recent years, primarily driven by the inc... View more

Coherent Market Insights Polymer Foam Market

Published Date : Sep 2024

Global polymer foam market growth is driven by rising demand of Global polymer foam from various end-use industries such as automotive, construction, packaging, furniture, and others. Polymer foams are extensively used in insulation, cushioning, safety padding, floata... View more

Coherent Market Insights Fuel Additive Market

Published Date : Sep 2024

Global fuel additive market growth is driven by stringent regulations regarding fuel efficiency and vehicular emissions. Fuel additives are formulated chemicals that are added to vehicular fuels like gasoline and diesel to enhance performance characteristics. These he... View more

Coherent Market Insights Dimethoxyethane Market

Published Date : Sep 2024

Dimethoxyethane, also known as monoglyme, is a colorless, volatile, and water-miscible organic liquid. It finds wide applications as a solvent for chemical reactions owing to its high solvency and polarity. Dimethoxyethane dissolves a variety of inorganic salts and or... View more

Coherent Market Insights Spray Foam Insulation Market

Published Date : Sep 2024

Spray foam insulation is a type of insulation system that can insulate all shapes and sizes of buildings, both small spaces and larger buildings. It is a modern insulation method that uses a two-part liquid, which reacts and forms rigid polyurethane foam when sprayed.... View more

Coherent Market Insights Bio Based Ethylene Market

Published Date : Aug 2024

Global bio based ethylene market growth is driven by rising demand for sustainable alternatives to conventional petrochemical-based products. Bio based ethylene is manufactured using renewable feedstock such as sugarcane, corn, cellulosic biomass, and agricultural was... View more

Coherent Market Insights Light Powered Catalyst Market

Published Date : Aug 2024

Light powered catalysts, also known as photocatalysts, are substances that accelerate and drive photoreactions. They differ from traditional catalysts in that they require the absorption of light to activate their catalytic properties and initiate chemical reactions. ... View more

Coherent Market Insights Marine Chemicals Market

Published Date : Aug 2024

The global marine chemicals market has been witnessing significant growth over the past few years. Factors such as increasing maritime trade activities, expansion of offshore oil & gas exploration projects, and stringent environmental regulations regarding sulfur ... View more

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