Indonesia Basic Chemicals Market Thumbnail Image

2021

Indonesia Basic Chemicals Market

Indonesia Basic Chemicals Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, Application and Sales Channel : Opportunity Analysis and Industry Forecast, 2021-2030

MC : Bulk Chemicals

Select an option
Author's: Nikhil Mittal | Eswara Prasad
Publish Date:

Get Sample to Email

Indonesia Basic Chemicals Market Outlook - 2021–2030

The Indonesia basic chemicals market size was valued at $17.6 billion in 2020, and is projected to reach $35.1 billion by 2030, growing at a CAGR of 7.2% from 2021 to 2030.

Basic chemicals are usually produced in large quantities and are crucial products that are used in the industrial and consumer sectors. Basic chemicals are mainly grouped into three categories, which include organic petrochemicals, inorganic chemicals, and oleochemicals. Sulphuric acid, phosphoric acid, caustic soda, nitric soda, hydrochloric acid (HCL), are types of inorganic chemicals. Organic petrochemicals include ethylene, propylene, benzene, toluene, xylene, and methanol, while oleochemicals include fatty acids, fatty alcohols, methyl ester, and glycerol.

Indonesia-Basic-Chemicals-Market-2021-2030

Understanding the manufacturing process and chemical composition of basic chemicals is of utmost importance. This helps cut down the manufacturing cost and comply the stringent environmental regulations set up by various governmental and non-governmental bodies.  For instance, Intertek is global leader that tests and analyze basic chemicals utilized in sectors such as polymer, agrochemical, pharmaceuticals, and textiles. This is expected to escalate the growth of the Indonesia basic chemicals market. Applications of basic chemicals such as fertilizer manufacturing, synthetic detergents, household cleaning products, pulp & paper, and water treatment plants are driving the adoption of basic chemicals. Dilute phosphoric acid is widely adopted as food additive, owing to its pleasing smell and lending acidic property to soft drinks and it is main component in fertilizers, detergents, and products that are used for household cleaning. This is anticipated to drive the growth of the market.  

On the contrary, chemicals such as sulfuric acid and nitric acid are highly corrosive in nature and may cause chemical burn and secondary thermal burn. In addition, other basic chemicals can cause severe health issues such as blindness if they are splashed into eye. These factors are predicted to hamper the Indonesia basic chemicals market growth. Moreover, inhalation of air that contains high level of nitric acid leads to throat dryness, cough, shortness of breath, and chest pain. 

Ethylene dichloride (EDC) is utilized mainly for production of vinyl chloride monomer, which can be further used for manufacturing of PVC and production of chlorinated solvents such as trichloroethylene, ethylene amines, vinylidene chloride, and trichloroethane that uses EDC as an intermediate chemical compound. Use of EDC as a catalyst during production of hexachlorophene and as an intermediate for manufacturing of perchloroethylene is anticipated to open up new opportunity in the future.

The Indonesia basic chemicals market is segmented on the basis of type, application, and sales channel. On the basis of type, the market is divided into inorganic chemicals, organic petrochemicals, and oleochemicals. The applications covered in the study include packaging, energy, pharmaceuticals, agriculture, building & construction, and others. Based on sales channel, the Indonesia basic chemicals market is segmented into B2B and B2C. 

The major companies profiled in this report include PT. Mega Chemical Pratama, PT Asahimas Chemical, Chandra Asri Petrochemical (CAP) Tbk, PT Dow Indonesia, PT. Lautan Luas Tbk, BASF SE, Solvay, PT. Indonesia Acids Industry, PT. Sumitomo Indonesia, and PT. Polychem Indonesia Tbk. 

Indonesia Basic Chemicals Market, by Type 

The organic petrochemicals segment is projected to grow at the fastest CAGR of 7.8%. Ethylene is a common hydrocarbon used as oxy-fuel in metal cutting, high-velocity thermal spraying, welding, refrigerant, rubber extraction, and other purposes. Polypropylene is a colorless fuel gas having superior combustion performance.

Indonesia Basic Chemicals Market
By Polyethylene
Your browser does not support the canvas element.

Organic petrochemicals segment is the most lucrative segment

Indonesia Basic Chemicals Market, by Application

By application, the others segment garnered the largest share in the Indonesia basic chemicals market in 2020, and is projected to exhibit a CAGR of 7.5% during the forecast period. The other applications of basic chemicals include the manufacturing of pulp & paper, soap & detergents, coatings, and disinfectants. Proliferating demand for more sustainable and recyclable packaging material has made consumers become more linear towards using papers. Thus, owing to the use of basic chemicals for manufacturing paper may increase the demand for basic chemicals among pulp & paper sectors. 

Indonesia Basic Chemicals Market
By Application
Your browser does not support the canvas element.

Energy application is projected as the fastest growing segment

Indonesia Basic Chemicals Market, by Sales Channel

Depending on sales channel, the B2B segment acquired the largest revenue share in the Indonesia basic chemicals market. This is attributed to the fact that most of the chemical manufactured are directly used by the industrial sectors for manufacturing of other chemical compounds. In addition, there are different B2B marketplaces that are set up for selling and buying of all ranges of chemicals. For instance, some popular B2B marketplaces include buyerguide.com, lookchem.com, and others.  

Indonesia Basic Chemicals Market
By Sales Channel
Your browser does not support the canvas element.

B2B sales channel segment would exhibit highest CAGR of 7.40% during 2021-2030.

Key benefits for stakeholders

  •  Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  •  It outlines the current Indonesia basic chemicals market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
  •  The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
  •  The profiles of key players and their key strategic developments are enlisted in the report.

Impact of COVID-19 on the Indonesia basic chemicals market 

  • The COVID-19 pandemic has negatively affected the global economy and is subsequently shrinking the GDP in global economies; thereby, changing consumer spending patterns globally.
  •  Several challenges have been faced by the plastic industry due to the outbreak of the pandemic such as temporary closure of manufacturing sites and travel restrictions, which, in turn, has created     logistical supply issue and delay is shipment.
  •  Major construction & building sector across the world are facing problems despite of no construction ban. This is attributed to disruption in value chain and closure of other industries that are directly  or indirectly linked with the construction sector.
  •  The real estate sector is directly dependent on the growth of the building & construction sector. Owing to unavailability of raw materials, slowdown in the construction sector, and restrictions laid by government to prevent the spread of virus, the demand for building & construction has declined considerably. Thus, consumption and production of basic chemicals have been hampered during the  COVID-19 pandemic.      
  •  In addition, other industries such as food & beverage and agriculture are hit due to the global health crisis, which, in turn, has negatively affected the Indonesia basic chemicals market.  

KEY MARKET SEGMENTS

 By Type

  •  Inorganic Chemicals
  •  Organic Petrochemicals
  •  Oleochemicals

 By Application

  •  Plastic 
  •  Food & Beverage
  •  Pharmaceuticals
  •  Agriculture
  •  Building & Construction
  •  Others

 By Sales Channel

  •  B2B
  •  B2C

Key players in the Indonesia Basic Chemicals market are:

  • PT Mega Chemical Pratama
  • PT Asahimas Chemical 
  • Chandra Asri Petrochemical (CAP)
  • PT Dow Inonesia
  • PT. Lautan Luas Tbk 
  • BASF SE
  • Solvay
  • PT. Indonesia Acids Industry 
  • PT. Sumitomo Indonesia 
  • PT. Polychem Indonesia Tbk

Indonesia Basic Chemicals Market Report Highlights

Aspects Details
icon_5
By Type
  • Inorganic Chemicals
  • Organic Petrochemicals
  • Oleochemicals
icon_6
By APPLICATION
  • Packaging
  • Energy
  • Pharmaceuticals
  • Agriculture
  • Building & Construction
  • Others
icon_7
By SALES CHANNEL
  • B2B
  • B2C
icon_8
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
icon_9
Key Market Players

PT Asahimas Chemical, PT Dow Indonesia, BASF SE, PT. Sumitomo Indonesia, PT Chandra Asri Petrochemical Tbk, PT. Polychem Indonesia Tbk, PT Lautan Luas Tbk, PT Indonesia Acids Industry, Solvay, PT. Megachemical Pratama

Analyst Review

The Indonesia basic chemicals market is expected to exhibit high growth potential due to its extensive use in plastic and food & beverages sectors. In addition, these chemicals can also be used in sectors such as pharmaceuticals, agriculture, and building & construction. Fatty acids are type of oleochemicals that have various functions in human body such as energy storage, and in absence of glucose the body utilizes fatty acids to fuel the cells, which is the major growth factor of the market. Omega-3 are type of fatty acids that are proven to be effective against reducing risk of sudden cardiac death and they are capable of improving blood lipid levels, which in turn reduces the risk of coronary heart disease, which is escalating the growth of the Indonesia basic chemicals.

Fatty alcohol is used as an active agent for production of detergents and different surfactants, which is also predicted to act as a major growth factor in the market. It can also be used as essential component in cosmetics, food, and industrial solvents, and can be used as co-emulsifiers and thickeners, which is anticipated to offer lucrative growth opportunities in the future. Moreover, organic petrochemicals such as py-gas are highly aromatic compounds that are used majorly as a high-octane gasoline blend, and it is a valuable cracker by-product utilized for production of benzene, toluene, and xylene. Thus, all these factors are predicted to augment the growth of the Indonesia basic chemicals market.

Furfural is an oleochemical that has gained attention, owing to its use for production of biofuels & biochemicals. It is used as a natural precursor to manufacture furan-based chemicals and dihydropyran, methyl tetrahydrofuran, tetrahydrofuran, and methyl furan furfuryl alcohol. In addition, furfural and its derivatives have gained importance in sectors such as plastic manufacturing, pharmaceutical, and agrochemical. This factor is not only gaining immense attention in the market but is also emerging as a key strategy in terms of gaining additional market demand.

 

 

Author Name(s) : Nikhil Mittal | Eswara Prasad
Frequently Asked Questions?

Rise in use of organic chemicals for industrial applications such as production of metal acetates, and antiseptics are the key factors that are boosting the Indonesia basic chemicals market growth

The Indonesia basic chemicals size is projected to reach $35.1 billion by 2030.

PT Mega Chemical Pratama, PT Asahimas Chemical, Chandra Asri Petrochemical (CAP), BASF SE, Solvay are the most established players in Indonesia basic chemicals market

Building & construction and packaging industry is projected to increase the demand of Indonesia basic chemicals market

The Indonesia basic chemicals market is segmented into type, application, and sales channel. On the basis of type, the market is categorized into inorganic chemicals, organic petrochemicals, and oleochemicals. The applications covered in the study include packaging, energy, pharmaceuticals, agriculture, building & construction, and other.

Rise in use of basic chemicals in sectors such as energy, pharmaceuticals, building & construction, and packaging is the major growth factor in the Indonesia basic chemicals market.

Extensive utilization of basic chemicals for manufacturing of phosphate fertilizers such as superphosphate of lime and ammonium sulfate and rise in use of sulfuric acid for manufacturing of hydrochloric acid, nitric acid, synthetic detergents, and dyes & pigments applications are expected to drive the adoption of Indonesia basic chemicals market.

COVID-19 has impacted negatively on the Indonesia basic chemicals market. This is attributed due to • The COVID-19 pandemic has negatively affected the global economy and is subsequently shrinking the GDP in global economies; thereby, changing consumer spending patterns globally. • Several challenges have been faced by the plastic industry due to the outbreak of the pandemic such as temporary closure of manufacturing sites and travel restrictions, which, in turn, has created logistical supply issue and delay is shipment. • Major construction & building sector across the world are facing problems despite of no construction ban. This is attributed to disruption in value chain and closure of other industries that are directly or indirectly linked with the construction sector. • The real estate sector is directly dependent on the growth of the building & construction sector. Owing to unavailability of raw materials, slowdown in the construction sector, and restrictions laid by government to prevent the spread of virus, the demand for building & construction has declined considerably. Thus, consumption and production of basic chemicals have been hampered during the COVID-19 pandemic. • In addition, other industries such as food & beverage and agriculture are hit due to the global health crisis, which, in turn, has negatively affected the Indonesia basic chemicals market

Loading Table Of Content...

Indonesia Basic Chemicals Market

Opportunity Analysis and Industry Forecast, 2021-2030