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Shift To Asia – Get More Profit In Chemicals Production.


The focus of production is now being shifted to developing countries like China, India, as these countries are increasingly investing in local chemicals production. Rapid growth is expected in local chemicals production in China, India, the Middle East and Africa. During the 2016- 2021 period China’s chemicals production is expected to grow at 10% per year. Similarly, chemicals production in India is expected to have a compound annual growth rate (CAGR) of 8% from 2015 – 2021. Local production in the Middle East is also expected to grow at over 5% per year from 2014 to 2021. Lower labor costs, low trade barriers, advances in technology and ease of transportation are the key drivers that contribute towards the shift in a significant portion of production in the chemicals industry from developed countries to the developing countries.

CHEMICALS MARKET TO REACH $6.2 TRILLION BY 2020 ACCORDING TO THE BUSINESS RESEARCH COMPANY.

The Business Research Company expects the global chemicals market to grow to $6.2 trillion in 2020. Asia was the largest region in the chemicals market in 2016, accounting for almost $3 trillion. China and India are the fast-growing chemicals markets in this region. China accounts for more than half of Asia's chemicals sales. Other than China and India, Japan and Singapore are the important markets in Asia. The growth of the Asian economies, the lower cost of labor and the concentration of manufacturing industries in these countries are the key reasons for their dominance in the global market.

The chart and table below shows the year-on-year growth of the global chemicals market during 2016 - 2020.

According to The Business Research Company’s Chemicals Consultant, Yogesh Bathula, global chemicals mergers and acquisitions (M&A) are expected to increase in the coming years, building on a strong year of activity in 2016, for instance ChemChina acquired Syngenta for $43 billion in August 2016. Chemicals companies are continuing to realign portfolios and pursue profitable inorganic growth opportunities. In addition, M&A interest is likely to be fuelled by stronger corporate balance sheets and liquid debt markets.

SINOPEC was the largest company in the chemicals market with revenues of $199 billion for the financial year 2015. The strategy of SINOPEC is to make its businesses technologically innovative. Its innovations are divided into the following five divisions:

  1. Key Research Development Areas

  2. Major Technology

  3. R&D for new products

  4. New energy

  5. Technological innovation and IT.

The chemicals industry is one of the largest manufacturing industries in the world. It manufactures a variety of chemicals products by processing raw materials such as air, water, natural gas, oil, metals and minerals.

While many of the products from the industry, such as detergents, soaps and perfumes, are purchased directly by the consumer, 70% of chemicals manufactured are used by other industries, including other branches of the chemicals industry itself, to make products.

The products of the chemicals industry can be broadly classified into three categories: basic chemicals, specialty chemicals and consumer chemicals.

Basic chemicals mainly include petrochemicals, polymers and basic inorganic compounds. These chemicals are usually produced in huge quantities and are sold either to other industries or within the chemicals industry as raw materials.

Specialty chemicals mainly comprise chemicals which are known for their specific function or performance. Adhesives, paints, pigments and dyes are a few examples of specialty chemicals.

Consumer chemicals are chemicals which are sold as an end product to the general consumer. Examples of consumer chemicals include soaps, detergents and toilet cleaning products.

Basic and specialty chemicals are used as raw materials in various industries; for example chemicals are used to produce fertilizers and pesticides which are then used as end products in agriculture. Similarly, chemicals are used to produce synthetic dyes and fibers for the textile industry. Chemicals are also used to make plastics and rubber for the packaging and automobile industries respectively.

Chemicals Global Market Briefing is a detailed report giving a unique insight into this market. The report is priced at $750 for an individual user. To use across your office the price is $1000 and $1350 if you wish to use across a multinational company.

About The Business Research Company

Visit TheBusinessResearchCompany.com, mail info@tbrc.info or call +447443439350 or +918897263534 or +919160996838 for more information on this and many other titles.

The Business Research Company is a market research and intelligence company, which excels in company, market and consumer research.

It has research professionals at its offices in the UK, India and the US as well a network of trained researchers globally. It has specialist consultants in a wide range of industries including manufacturing, healthcare, chemicals and technology.

The Business Research Company's management has more than 20 years of varied business research experience. They have delivered hundreds of research projects to the senior management of some of the world's largest organizations.


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