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 Strontium Chloride Market

Published Date : Aug 2024

Strontium chloride is a compound formed between the alkali earth metal strontium and chlorine. It is commercially produced as strontium chloride hexahydrate or SrCl2·6H2O. Strontium chloride is widely utilized in the production of specialty glass for color cath... View more

Coherent Market Insights Graphite Market

Published Date : Aug 2024

Graphite is a naturally occurring mineral form of the element carbon. It is extremely soft and dark gray to black in color with a shiny appearance. Graphite is composed of layers of carbon atoms arranged in hexagonal rings. It is an excellent conductor of heat and ele... View more

Coherent Market Insights Honeysuckle Essential Oil Market

Published Date : Aug 2024

Honeysuckle is a flowering plant that grows widely in many regions across the globe. Honeysuckle plants bear brightly colored tubular flowers that give off a sweet fragrance. Honeysuckle flowers are processed to extract their essential oils known as honeysuckle essent... View more

Coherent Market Insights Antistatic Agents Market

Published Date : Jul 2024

The antistatic agents market has been gaining significant traction over the past few years owing to the growing electronics industry. Antistatic agents help reduce or eliminate the accumulation of static electric charges on non-conductive surfaces and fine particles. ... View more

Coherent Market Insights Waste Recycling Services Market

Published Date : Jul 2024

The global waste recycling services market is estimated to be valued at USD 65.38 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031. Waste recycling services provide valuable solutions for managing the waste generated across various... View more

Coherent Market Insights Glycol Market

Published Date : Jul 2024

The glycol market is estimated to be valued at USD 46.82 Bn in 2024 and, exhibiting a compound annual growth rate (CAGR) of 7% from 2024 to 2031. Glycol is an organic compound that finds a variety of applications across industries like cosmetics, food, pharmaceuticals... View more

Coherent Market Insights Activated Carbon Market

Published Date : Jul 2024

The activated carbon market is estimated to be valued at USD 4.83 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 9.7% from 2024 to 2031. Activated carbon, also called activated charcoal, is a form of carbon that has been processed to make it extremely ... View more

Coherent Market Insights Sodium Benzoate Market

Published Date : Jul 2024

Sodium benzoate is a widely used preservative in food and beverages products. It has antimicrobial properties and effectively inhibits the growth of mold, yeast and bacteria. Sodium benzoate occurs naturally in some fruits such as green plums, cranberries, and prunes.... View more

Coherent Market Insights Nitrobenzene Market

Published Date : Jun 2024

The nitrobenzene market is estimated to be valued at USD 12.15 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031. Nitrobenzene is an important basic organic compound that is widely used as an intermediate in the manufacture of anili... View more

Coherent Market Insights Global Chlorine Market

Published Date : Jun 2024

The global chlorine market is estimated to be valued at USD 40.53 Bn in 2024 and exhibit a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031. Chlorine is a yellow-green gas with a pungent odor. It is a halogen element with chemical symbol Cl and atomic numb... View more

Coherent Market Insights Monochloroacetic Acid Market

Published Date : Jun 2024

The monochloroacetic acid market is estimated to be valued at USD 1.02 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.  Monochloroacetic acid or MCA is an important organic compound that finds application as a building block... View more

Coherent Market Insights Methyl Methacrylate Mma Market

Published Date : Jun 2024

The methyl methacrylate market is estimated to be valued at USD 18.21 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031. Methyl methacrylate (MMA) is an organic compound that is widely used in the production of acrylic resins, coati... View more

Coherent Market Insights Propylene Market

Published Date : Jun 2024

The propylene market is estimated to be valued at USD 4.66 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031. The propylene market has been witnessing significant growth over the past few years owing to the increasing demand from va... View more

Coherent Market Insights Sodium Hexametaphosphate Shmp Market

Published Date : Jun 2024

The sodium hexametaphosphate market is estimated to be valued at USD 704.6 Mn in 2024 and is expected to reach USD 933.4 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031. Sodium hexametaphosphate (SHMP) is an inorganic polyphosphat... View more

Coherent Market Insights Sulfur Hexafluoride Market

Published Date : May 2024

The sulfur hexafluoride market is estimated to be valued at USD 305.8 Mn in 2024, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031. Sulfur hexafluoride is an inorganic, odorless, colorless, non-flammable, and non-toxic gas. It has a boiling po... View more

Coherent Market Insights Silicon Tetrachloride Market

Published Date : May 2024

The Global Silicon Tetrachloride Market is estimated to be valued at USD 2.58 Bn in 2024 and is expected to exhibit a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031. The global silicon tetrachloride market has been growing steadily over the past few year... View more

Coherent Market Insights Butadiene Market

Published Date : May 2024

Global butadiene market is estimated to be valued at USD 35.38 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031. Global butadiene market has been witnessing steady growth over the past few years, owing to rising demand from various... View more

Coherent Market Insights White Oil Market

Published Date : May 2024

The global white oil market is estimated to be valued at USD 1.74 Bn in 2024, growing at a compound annual growth rate (CAGR) of 4.8% from 2024 to 2031. The global white oil market has witnessed significant growth in the recent years. White oil refers to refined miner... View more

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