Basic Chemicals Market Projected to Reach $949.1 Billion by 2030
The global basic chemicals market is set for explosive growth, projected to hit $949.1 billion by 2030 from $649.8 billion in 2020, at a 3.9% CAGR. This expansion is primarily driven by rising demand in the food & beverage and pharmaceutical industries. Organic chemicals lead by product type, while the chemical industry is the largest end-user, with the polymer industry and Asia-Pacific region exhibiting the fastest growth rates. Health risks pose a restraint.
The global basic chemicals market, valued at $649.8 billion in 2020, is forecasted to achieve substantial growth, reaching $949.1 billion by 2030, registering a Compound Annual Growth Rate (CAGR) of 3.9% from 2021 to 2030. This robust expansion is fueled significantly by increasing demand from the food & beverage sector for processing and preservation, and the rapid advancements within the pharmaceutical industry, which requires a wide array of chemical intermediates. Opportunities also arise from innovations in agricultural additives like fertilizers and crop protection chemicals. However, health-related risks associated with certain toxic chemicals present a notable restraint, limiting adoption and increasing regulatory scrutiny.Segmental analysis highlights organic chemicals as the dominant product type, accounting for nearly three-fifths of the market, driven by ethanol usage. Inorganic chemicals are anticipated to show the fastest growth, propelled by applications such as ammonia in fertilizers and chlorine in water disinfection. From an end-use perspective, the chemical industry is the largest consumer, utilizing basic chemicals as essential raw materials. The polymer industry, boosted by expanding plastics use across various sectors, is projected to be the fastest-growing end-use segment. Regionally, Asia-Pacific leads the market and is expected to maintain the highest CAGR of 4.5% through 2030, supported by significant investments and a strong competitive landscape, with North America also contributing substantially. Key market players include BASF SE, LyondellBasell Industries, and Mitsubishi Chemical Corporation.
