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2023

Organic Chemicals Market

Organic Chemicals Market Size, Share, Competitive Landscape and Trend Analysis Report by Product, by End Use Industry : Global Opportunity Analysis and Industry Forecast, 2023-2032

MC : Renewable, Speciality and fine chemicals

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Author's: Raushan Karn | Eswara Prasad
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Organic Chemicals Market Research, 2032

The global organic chemicals market was valued at $153.3 billion in 2022, and is projected to reach $286.1 billion by 2032, growing at a CAGR of 6.5% from 2023 to 2032. 

Report Key Highlighters:

  • The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
  • The organic chemicals market is fragmented in nature among prominent companies such as Akzonobel, BASF SE, Cargill, CHEMPLAST SANMAR LIMITED, Dow, Hindustan Organic Chemicals Limited, and Royal Dutch Shell plc.
  • The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), key regulation analysis, pricing analysis, and Porter’s Five Force Analysis across North America, Europe, Asia-Pacific, LAMEA regions. Moreover, the report covers sub-segments that is studied across all the regions.
  • Latest trends in global organic chemicals market such as undergoing R&D activities, regulatory guidelines, and government initiatives are analyzed across 16 countries in 4 different regions.
  • More than 3,000 organic chemicals-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for global organic chemicals market.

Organic Chemicals Market

Organic chemicals are termed as large class of chemical compounds in which one or more atoms of carbon are covalently linked to atoms of other elements, most commonly hydrogen, oxygen, or nitrogen. These chemicals can be obtained naturally or can be produced by artificial processes as well. Organic chemicals are classified on the basis of product into acids, alcohols, amines & amides, aldehydes & ketones, and others. These chemicals are widely employed in sectors such as pharmaceuticals, food & beverages, personal care & cosmetics, agrochemicals, and others.

Factors such as a rise in industrialization, urbanization, increase in the disposable income, improvement in the standard of living among people, and rise in demand for packaged food are responsible for the growth of the food & beverage industry where organic acids such as lactic acid (2-hydroxypropanoic acid), citric acid (2-hydroxypropane-1,2,3-tricarboxylic acid), malic acid (2-hydroxybutanedioic acid), succinic acid (butanedioic acid), and malonic acid (propanedioic acid) are used as pH regulators, flavor enhancers, baking additives, and bio-preservatives.

Moreover, organic chemicals is shown to exhibit anti-coagulant and catabolic functions and due to this it is mainly found in alcoholic beverages. Furthermore, rise in demand for packaged food among millennials has surged the demand for organic chemicals where organic chemical-based preservatives are impregnated in packaged food that prevents the growth of bacteria and fungus. These factors may act as one of the key drivers responsible for the growth of organic chemicals market in the growing food & beverage sector.

Moreover, the rapid increase in the population, rise in pharmaceuticals R&D, up-gradation in technology, increased focus in the healthcare field in developed and developing nations, such as the U.S., China, and India, and surge in the incidence rate of chronic disorders have boosted the demand for organic chemicals in the pharmaceutical sector. Organic chemicals are used not only for the drug itself, however, also for drug coating. Organic coating of drugs helps to minimize the bitter taste, while also preserving the medicine for a longer period. Some medicines created employ organic compounds as the prototype to build new and effective medicines. These factors together escalate the growth of organic chemicals in the pharmaceutical industry.

However, the overall price of organic chemicals depends upon factors such as costs of feedstock, energy requirements, and marketability of products. These factors have made organic chemicals expensive as compared to synthetic chemicals. Furthermore, high processing costs and complex manufacturing processes lead to an increase in the overall prices of organic chemicals. Moreover, the manufacturing/extraction of organic chemicals requires big machinery and skilled workforce. These factors directly influence the price of organic chemicals and make them costlier. Moreover, when compared to synthetic counterparts, some organic chemicals have proved to be exceedingly expensive. This factor may restrain the growth of the organic chemicals during the forecast period.

On the contrary, the majority of organic chemical manufacturing companies in countries such as India, China, and others work on a small scale when compared to global players. Hence, there are opportunities for organic chemical industry in these countries. Moreover, the domestic players can emerge as a more competitive industry, thus, creating remunerative opportunities for the organic chemicals market.

The organic chemicals market is segmented on the basis of product, application, and region. On the basis of product, the market is categorized into acids, alcohols & ethers, amines & amides, aldehydes & ketones, and others. On the basis of end-use industry, it is divided into pharmaceuticals, agrochemicals, personal care & cosmetics, food & beverages, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Organic Chemicals Market by Product

In 2022, the alcohols and ethers segment was the largest revenue generator, and is anticipated to grow at a CAGR of 6.3% during the forecast period. The increase in demand for consumer goods has led the industrial manufacturing sector in both developed and developed economies to witness a significant growth where ethanol is widely used as a solvent, in the synthesis of other organic chemicals. This factor may act as one of the key drivers responsible for the growth of the organic chemicals market for alcohols.

Furthermore, the rise in severity of diseases coupled with change in eating habits has surged the risk of heart-related problems among people of 45-70 years. This factor has surged the demand for therapeutic drugs where propanol is widely used to treat heart problems, help with anxiety, and prevent migraines. This may further augment the growth of the organic chemicals market for alcohols type. Moreover, the surge in demand for personal grooming coupled with increase in demand for luxury and exotic fragrances has led the perfume manufacturing sector to witness a rapid surge in demand where organic ethers are widely used as major solvent in perfume manufacturing. This may boost the growth of the organic chemicals market during the forecast period.

Organic Chemicals Market by End Use Industry

By end use industry, the pharmaceutical segment dominated the global market in 2022, and is anticipated to grow at a CAGR of 6.9% during forecast period. Pharmaceutical sector is recognized as the growing sector owing to surge in spending on development highly efficient drugs where organic chemicals act as a major pharmaceutical solvent. For instance, according to a report published by India Brands Equity Foundation, the Indian pharmaceutical industry witnessed a growth of 17.7% in 2021 and is expected to grow by 22% by the end of 2022. This may foster the growth of the organic chemicals market during the forecast period.

In addition, the cost of branded drugs has increased rapidly, along with rise in cost of healthcare facilities, which in turn has led the customers become more linear toward using generic drugs where organic chemicals are widely used as a major pharmaceutical solvent in preparing various generic drug formulations. This is anticipated to increase the sales of organic chemicals for producing generic medicines; thus, creating remunerative opportunities for the market.

Organic Chemicals Market by Region

The Asia-Pacific organic chemicals market size is projected to grow at the highest CAGR of 6.8% during the forecast period and accounted for 60.9% of organic chemicals market share in 2022. China's food & beverage sector has grown rapidly, which has forced the organic chemicals manufacturers to increase their manufacturing capacities where organic chemicals are frequently used in beverage, food, and feed production. This may act as one of the key drivers responsible for the growth of the organic chemicals market.

Furthermore, the pharmaceutical sector in India has witnessed a significant growth owing to increase in severity of diseases where organic chemicals is widely used to produce various pharmaceutical formulations and drug coatings. For instance, according to a report published by India Brands Equity Foundation, India’s pharmaceutical sector stood at $42 billion in 2021 and is anticipated to reach $65 billion by 2024. This is anticipated to increase the sales of organic chemicals among the growing pharmaceutical sector; thus, creating lucrative opportunities for the organic chemicals market in the Asia-Pacific region.

The global organic chemicals market profiles leading players that include Akzonobel, BASF SE, Cargill, CHEMPLAST SANMAR LIMITED, Dow, Hindustan Organic Chemicals Limited, Neogen Chemicals Limited, Royal Dutch Shell plc, TCI America, Vinati organics Limited. The global organic chemicals market report provides in-depth competitive analysis as well as profiles of these major players.

IMPACT OF COVID-19 ON THE GLOBAL ORGANIC CHEMICALS MARKET

  • The organic chemicals market was negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on food & beverage, textile, and other industrial sectors. According to a report published by the Organization for Economic Co-operation and Development (OECD), decreased consumer demand has put downward pressure on the prices and production of chemical-based products..
  • However, several key players such as Cargill, BASF, Dow, and others were constantly engaged in increasing their production and sought for new investment opportunities amid the COVID-19 situation. These factors have fueled the growth of the organic chemicals post COVID-19 period.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the organic chemicals market analysis from 2022 to 2032 to identify the prevailing organic chemicals market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the organic chemicals market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global organic chemicals market trends, key players, market segments, application areas, and market growth strategies​​​​​​​

    Organic Chemicals Market Report Highlights

    Aspects Details
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    Market Size By 2032

    USD 286.1 billion

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    Growth Rate

    CAGR of 6.5%

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    Forecast period

    2022 - 2032

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    Report Pages

    605

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    By Product
    • Acids
      • Type
        • Acetic Acid
        • Lactic Acid
        • Citric Acid
        • Others
    • Alcohols and Ethers
    • Amines and Amides
    • Aldehydes and Ketones
    • Others
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    By End Use Industry
    • Agrochemicals
    • Personal Care and Cosmetics
    • Food and Beverages
    • Others
    • Pharmaceuticals
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    By Region
    • North America  (U.S., Canada, Mexico)
    • Europe  (Germany, UK, France, Spain, Italy, Rest of Europe)
    • Asia-Pacific  (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific)
    • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
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    Key Market Players

    TCI America, Hindustan Organic Chemicals Limited, Dow, neogen chemicals limited, CHEMPLAST SANMAR LIMITED, BASF SE, akzonobel, Royal Dutch Shell plc, vinati organics limited, Cargill

    Analyst Review

    The global organic chemicals market is expected to exhibit high growth potential owing to its use in the production of various industrial chemicals, solvents, pharmaceutical formulations, preservatives, and colorants. Organic chemicals are expected to face tough competition from inorganic chemicals. However, lower cost and optimum properties of organic chemicals compared to inorganic chemicals helped the market to gain high traction during the forecast period. Moreover, the availability of abundant feedstock and biomass is an added benefit for the production of organic chemicals. It is further expected that in few years, organic chemicals can completely replace inorganic chemicals, owing to sustainable development and surge in adoption of eco-friendly products. These factors are expected to drive the global organic chemicals market during the forecast period.?

    Furthermore, CXOs added that sustained economic growth coupled with rapid development of pharmaceutical, agrochemicals, personal care & cosmetics, and food & beverage sector may lead the organic chemicals market to witness a significant growth.

     

    Author Name(s) : Raushan Karn | Eswara Prasad
    Frequently Asked Questions?

    Increasing adoption of organic chemicals in food & beverage sector, robust demand from the pharmaceutical sector, and rise in demand for organic chemicals among paint manufacturing sector are the upcoming trends in the organic chemicals market.

    Pharmaceuticals is the leading application of organic chemicals market.

    Asia-Pacific is the largest regional market for organic chemicals.

    The organic chemicals market valued for $153.2 billion in 2022 and is estimated to reach $286.0 billion by 2032, exhibiting a CAGR of 6.5% from 2023 to 2032.

    Akzonobel, BASF SE, Cargill, CHEMPLAST SANMAR LIMITED, Dow, Hindustan Organic Chemicals Limited, Neogen Chemicals Limited, Royal Dutch Shell plc, TCI America, and Vinati organics Limited are the top companies that hold prominent share in the organic chemicals market.

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    Organic Chemicals Market

    Global Opportunity Analysis and Industry Forecast, 2023-2032