NORTH AMERICA COMMODITY CHEMICALS MARKET ANALYSIS

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.