NORTH AMERICA COMMODITY CHEMICALS MARKET ANALYSIS

North America Commodity Chemicals Market Size and Trends

The North America commodity chemicals market is estimated to be valued at USD 57.33 Bn in 2024 and is expected to reach USD 82.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.

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The market growth is driven by growth in key end-use Industry industries such as construction, automotive, healthcare, and consumer goods. Increased spending on infrastructure development along with industrialization is further augmenting demand for commodity chemicals.

Growth in end-use industries coupled with rising per capita income will boost the consumption of commodity chemicals in the region. However, stringent environmental regulations regarding chemical manufacturing may slightly impact the market growth during the analysis years.

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Insights, By Product- Ester Segment Dominate Due to Wide Applications across Industries

In terms of product, ester segment is estimated to contribute the highest market share of 22.3% in 2024. This is primarily due to esters having a wide range of applications across multiple industries.

Esters are popular for use in fragrance ingredients, lubricants, plasticizers, solvents, surfactants, and more. Their mild, fruity aromas make them appealing for cosmetics, perfumes, and food flavoring. Many esters are also environmentally-friendly solvents used in industrial cleaning processes and coatings.

Insights, By End-use Industry- Plastics and rubber significantly drive consumption across various end-use industries

In terms of end-use industry, the plastic & rubber segment is estimated to contribute the highest market share of 26.3% in 2024. This heavy reliance on plastics and rubber stems from their widespread incorporation across numerous goods and industries throughout the region.

Plastics require a steady supply of commodity chemicals to function as raw materials, polymers, and additives. They serve as lightweight yet durable alternatives to traditional materials in manufacturing sectors. Automobiles, aircraft, appliances, electronics, construction, and more utilize plastics for parts requiring strength, flexibility, and corrosion resistance qualities.

Rubber products similarly rely on commodity chemicals for processing. Tires, hoses, seals, gaskets, footwear, and other rubber goods depend on raw inputs to achieve desired physical properties. Rubber assists industries like automotive, machinery, aerospace, and consumer goods in applying specialty elastomers fit for purpose.

Market Concentration and Competitive Landscape

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Top Strategies Followed by North America Commodity Chemicals Market Players

• Established players focus heavily on research and development to innovate new products. Companies like Dow Chemical and DuPont invest over 5% of annual revenue into R&D, working to create high-performance materials. There is also a push for strategic partnerships along the value chain. Large producers form alliances with distributors, compounders, and original equipment manufacturers.
• Mid-level players stay competitive by offering cost-effective solutions. Companies differentiate by providing quality chemicals and plastic resins at competitive prices. This targets cost-conscious consumers without compromising on performance. Collaborations are also a priority.
• Some focus solely on performance additives or develop patent-protected production processes. They target specialty chemical demand from specific industries like pharmaceuticals or food packaging. Technology adoption is also a strategy. Startups employ artificial intelligence, IoT, and 3D printing to develop revolutionary materials and production methods.

Emerging Startups in the North America Commodity Chemicals Market

Several startups are establishing themselves through innovative technologies. Companies like Carbon are commercializing carbon nanoparticle technology to create super-strong and lightweight materials for construction and automotive. Bioplastics companies like Anthropic and Biofine Technology use artificial intelligence to design new biodegradable plastics. Their bio-based resins could reduce petroleum waste. Such advanced technologies have potential to transform commodity chemicals production processes and the types of materials developed.

Sustainability is another focus. Firms like Agilyx focus on plastic recycling technologies to convert hard-to-recycle plastics into synthetic fuels and new chemical feedstocks. Another startup, Anthropic, develops green chemistry using AI to design green solvents and reduce environmental footprints. Their innovations help address the industry’s huge landfill waste challenge. Startups also target specialized market needs, like creating UV-blocking plastics for cannabis packaging. They form partnerships with consumer product companies to bring such niche applications to scale.

North America Commodity Chemicals Industry News

• On December 9, 2020, BASF announced a price increase for certain polyetheramine products in the U.S. and Canada, effective January 1, 2021, or as allowed by existing contracts. BASF’s amine products are featured in many applications as highly efficient curing agents and used in various segments including coatings and sealing compounds, for use in wind energy and electrical industries, as well as in composites, adhesives and flooring. BASF operates in multiple sectors, serving industries such as automotive, construction, agriculture, and consumer goods. The company emphasizes innovation and sustainability, aiming to develop solutions that meet the needs of its customers while minimizing environmental impact.
• In November 2020, Cabot Corporation announced carbon black capacity expansion in Cilegon, Indonesia by adding approximately 80,000 metric tons per year of additional production capacity. This is expected to be completed in 2021. Cabot focuses on providing high-quality products in areas such as carbon blacks, specialty chemicals, and advanced materials. The company serves various industries, including automotive, electronics, and energy, with a strong emphasis on innovation and sustainability.

Key Takeaways from Analyst

• The North America commodity chemicals market is poised for steady growth, driven by a resurgence in domestic manufacturing and a focus on sustainable practices. The region's robust infrastructure and access to low-cost feedstock, particularly natural gas, position it favorably in the global arena. Key sectors such as automotive, construction, and agriculture are significant consumers, fueling demand for various chemicals such as ethylene and benzene.
• However, the market faces challenges, including fluctuating raw material prices and regulatory pressures regarding environmental impacts. Increasing emphasis on sustainability is prompting companies to innovate, leading to the development of bio-based and eco-friendly alternatives.
• Additionally, geopolitical factors and trade policies could impact supply chains and pricing dynamics. The shift towards circular economy practices is also gaining momentum, encouraging recycling and waste reduction initiatives. Overall, while the North America commodity chemicals market has growth potential, stakeholders must navigate regulatory complexities and market volatility to capitalize on emerging opportunities.

Market Report Scope

Market Dynamics

Market Driver - Rapid growth of the construction sector

The construction industry in North America has seen significant growth in recent years, primarily driven by increased residential and non-residential building activity. The recovery of the housing market post 2008 recession has boosted demand for new homes across U.S. and Canada. Low interest rates, job market growth, and urbanization trends have encouraged more construction of residential spaces. According to the U.S. Census Bureau data released in January 2024, the seasonally adjusted annual rate of housing starts in March 2022 was over US$ 1.793 million which is 4.4% above the February rate. This upward trend in residential construction is expected to continue over the coming years supported by favorable mortgage rates and strong demand for homes amid rising home prices. Additionally, strong economic conditions have prompted companies to expand operations and invest in new commercial and industrial facilities. Various infrastructure projects related to roads, bridges, energy and public transport have also fueled construction spending.

Market Challenge - Strict rules & regulations pertaining to production of commodity chemicals

The North American commodity chemicals market is facing significant challenges due to strict rules and regulations pertaining to the production of these chemicals. Many commodity chemicals are hazardous in nature and their production involves the use of toxic raw materials and chemicals. As a result, governments across North America have implemented stringent environmental and safety standards for manufacturing facilities. Complying with these norms such as obtaining various certifications and permits within a short time period has increased the cost of doing business. Moreover, the penalties for non-compliance have also been made stricter. The productivity gains from implementing advanced manufacturing technologies also take a hit due to regulatory compliance work occupying a major share of plant staff's time and effort. This is according to a 2021 report by the United Nations Environment Program which analyzed policy impacts on major industrial sectors. This regulatory burden has discouraged new capital investments and facility expansions in the commodity chemicals space.

Market Opportunity: Emerging Applications for Commodity Chemicals

The North American commodity chemicals market is witnessing new opportunities arising from emerging applications. With technological advancements, the use of commodity chemicals is increasing in various industries such as construction, automotive, packaging, etc. For example, there is growing demand for methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI) from the manufacturing of durable products like polyurethane rigid foams for building insulation and automotive parts. For example, a 2021 report from America Makes, the national accelerator for additive manufacturing, predicted that 3D printing will impact 20% of the U.S. manufacturing and support over US$ 20 billion in annual sales by 2030. Similarly, epoxy resins derived from epichlorohydrin are utilized in coatings, composites and adhesives. Moreover, innovative applications in areas such as water treatment, 3D printing, and bio-materials are also contributing to new revenue streams. Market players need to closely track these emerging application trends and accordingly expand or diversify their product portfolios to capitalize on new opportunities.

Market Segmentation

•  By Product Insights (Revenue, USD, 2019 - 2031)
• • Ester
  • Ether
  • Amine
  • Alcohol
  • Aliphatic Hydrocarbon
  • Aromatic Hydrocarbon
  • Chlorinated Solvents
  • Fatty Chemicals
  • Others
•  By End-Use Industry Insights (Revenue, USD, 2019 - 2031)
• • Plastics & Rubber
  • Electronics & IT
  • Food & Beverages
  • Pharmaceuticals & Personal Care
  • Building & Construction
  • Automotive
  • Agriculture
  • Mining, Oil & Gas
  • Others
• Key Players Insights
• • BASF SE
  • 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