Commodity chemicals are basic chemicals that serve as building blocks and raw materials for the production of many other chemical products. They are produced in bulk quantities and are generally used for manufacturing of end products across various end-use industries such as agriculture, construction, automotive, pharmaceuticals, paints & coatings, etc. in the North America. Some of the major commodity chemicals manufactured in the region are ethylene, propylene, benzene, butadiene, methanol, etc. North America has a well-established chemicals industry due to the presence of major end-use industries. This results in steady demand for commodity chemicals from these industries. Growing end-use industries along with demand for materials for manufacturing drive the growth of this market in the region.
The North America commodity chemicals market is estimated to be valued at US$ 74503.08 Mn in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the North America commodity chemicals market are BASF SE, Ecolab Inc., Solvay SA, SNF (United Kingdom) Ltd, Cytec Industries Inc., Akferal, Kemira Oyj, Jayem Engineers, TRIO Chemicals & Allied Products, Yide Chem, Evoqua Water Technologies, SUEZ, and Feralco. BASF SE is one of the leading players engaged in manufacturing bulk chemicals and materials.
The commodity chemicals market offers growth opportunities through developing bio-based commodity chemicals. Owing to environmental concerns, many companies are investing in R&D to develop bio-based commodity chemicals.
Key players are focused on expanding their global presence to tap emerging markets for commodity chemicals in Asia Pacific and Middle East regions. regional players through acquisitions and partnerships.
Market Drivers
Presence of well-established end-use industries drives the demand for commodity chemicals as basic raw materials in the region. Some key industries include agriculture, automotive, construction, pharmaceuticals, etc.
Advancement in shale gas extraction technology has enhanced North America's competitiveness in global commodity chemicals market. Cheap feedstock provides cost advantage to chemical producers.
Market Restraints
Volatility in crude oil and natural gas prices poses major challenge as it affects production cost of commodity chemicals.
Growing environmental concerns and stringent regulations related to emissions may restrict the growth of commodity chemicals market. Shift towards bio-based and green chemicals is a major challenge.
Segment Analysis
The North America Commodity Chemicals Market Demand is dominated by basic inorganic chemicals sub segment. Basic inorganic chemicals accounted for over 35% of total market share in 2024. This is because basic inorganic chemicals find wide applications across various end use industries such as chemicals, agriculture, construction, and others. They are major raw materials used in the production of other chemicals. For example sulfuric acid and sodium hydroxide are used in the manufacture of detergents, dyes, drugs, fertilizers, etc. Thus, growing demand from end use industries is driving the basic inorganic chemicals sub segment.
The plastics materials and resins sub segment held the second largest share and is expected to witness steady growth during the forecast period.This is due to increasing consumption of plastics in various industrial and consumer applications such as packaging, construction, automotive, and others. Furthermore, resins find usage in applications such as coatings, adhesives, printing inks, and others. Thus, growing end use applications are augmenting the plastics materials and resins sub segment growth.
Global Analysis
On the basis of region, the North America commodity chemicals market is segmented into United States, Canada, and Rest of North America. The United States held largest market share in 2024 and is projected to maintain its dominance during the forecast period. This is attributed to presence of major commodity chemical producers in the region. Additionally, growing construction and automotive industries are supplementing market growth in the country.
Asia Pacific region is poised to witness fastest growth during 2024-2030. This is due to shifting of production facilities from developed regions like North America and Europe to Asia Pacific owing to availability of cheap labor and raw materials. China represents major market for commodity chemicals in Asia Pacific due to presence of lucrative end use industries and favorable government policies supporting chemicals sector growth. Thus, Asia Pacific is emerging as a prominent region in terms of both production and consumption of commodity chemicals globally.
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