Organic Chemical Market Synopsis

Organic Chemical Market Size Was Valued at USD 13.89 Billion in 2023, and is Projected to Reach USD 26.19 Billion by 2032, Growing at a CAGR of 7.3% From 2024-2032

Organic chemicals are a vast group of chemical compounds where carbon atoms are covalently connected to atoms of other elements, such as hydrogen, oxygen, or nitrogen. These compounds may occur naturally or result from artificial methods. Different types of organic chemicals are categorized based on their end products, including acids, alcohols, amines & amides, aldehydes & ketones, and various other compounds.

• Organic compounds have been found to have anti-coagulant and catabolic properties, assembly them prevalent in alcoholic drinks. These substances are commonly used in industries like pharmaceuticals, food & drinks, personal care & beauty products, agrochemicals, and other sectors. The food & beverage industry is growing due to factors like increased industrialization, urbanization, higher disposable income, improved standard of living, and a greater demand for packaged food. Organic acids like lactic acid, citric acid, malic acid, succinic acid, and malonic acid are usually used for various purposes in this industry.
• Also, the increase in popularity of packaged food among millennials has led to a higher demand for organic chemicals. These chemicals, which are used as preservatives in packaged food, help prevent the growth of bacteria and fungus. These factors could play a crucial role in driving the expansion of the organic chemicals market within the increasingly popular food & beverage industry. The organic chemical manufacturing industry is subject to numerous Federal regulations that have been enacted to protect human health and the environment. A complex web of requirements results from the fact that little correlation exists among regulations that target the same medium or activity.

Organic Chemical Market Trend Analysis

Rising demand for bio-based chemicals and sustainability concerns

• An increasing awareness regarding environmental glitches including pollution, climate change, and depletion of resources has led industry to look for more environmentally friendly substitutes for conventional chemical products. Bio-based chemicals present a possible answer since they minimise environmental effect and reduce dependency on finite fossil resources. They are obtained from renewable biomass sources, such as plants, algae, and waste products. Comparing bio-based compounds to their petrochemical corresponding item, the former usually have a reduced carbon footprint.
• Processes that use less energy and produce fewer greenhouse gas emissions are frequently used in the synthesis of bio-based chemicals, which helps with overall efforts to mitigate climate change and lower carbon emissions. The creation of innovative bio-based compounds with enhanced performance, functionality, and affordability has been made possible by developments in biotechnology, such as fermentation technologies, metabolic engineering, and synthetic biology. These technological advancements encourage the acceptance of bio-based chemicals across a variety of industries and broaden their potential applications. Renewable feedstocks that can be restored through industrial or agricultural processes are used in the production of bio-based compounds.
• Fossil-based feedstocks, on the other hand, are limited and vulnerable to fluctuations in price as well as unpredictability in geopolitical situations. Reducing reliance on non-renewable resources and improving supply chain resilience are two benefits of using renewable feedstocks. The adoption of bio-based chemicals is being driven by government rules and policies that aim to reduce environmental impact and promote sustainable practices. Companies are encouraged to invest in bio-based alternatives and adhere to sustainability regulations through incentives like tax credits, subsidies, and quotas for the amount of bio-based content in products.

Opportunity

Innovations and Technological Advancement

• The market for organic chemicals is expanding at a rapid rate due to ongoing innovation and technical developments. These advancements are transforming the synthesis, processing, and use of organic chemicals, resulting in increased productivity, sustainability, and creative uses. The development of novel organic chemical technologies is accelerated and creativity is fostered by collaboration between academic institutions, government agencies, and commercial businesses. The advancement of organic chemistry and related sciences is supported by corporate R&D expenditures, government grants, and venture capital investments.
• Advances in the field of materials science facilitate the creation and manufacturing of unique organic compounds with specific characteristics, resulting in significant advancements in domains like electronic materials, coatings, and polymers. Biotechnological innovations, such as metabolic engineering, genetic engineering, and enzyme optimisation, make it easier to produce renewable fuels and bio-based compounds from sustainable feedstocks. By producing bio-based compounds from renewable feedstocks, biotechnology and fermentation technologies are able to reduce dependency on fossil fuels and mitigate environmental effect. Throughout the chemical value chain, integrating circular economy concepts such as recycling, upcycling, and waste valorisation promotes resource efficiency and reduces environmental impact.
• Advances in molecular synthesis and design make it possible to create organic compounds with particular functions, better performance attributes, and increased stability in a variety of environments. Organic compounds are the building elements of multipurpose materials that are employed in modern manufacturing, electronics, and healthcare, among other fields. Through the analysis of large datasets and virtual screening, AI-driven technologies expedite the discovery of new materials, optimise chemical synthesis processes, and forecast molecular attributes. Platforms for data analytics provide quality assurance, predictive maintenance, and real-time monitoring of chemical processes, which boost output and make better use of available resources.

Organic Chemical Market Segment Analysis:

Organic Chemical Market is segmented on the basis of Product, Source, End-User, and Region.

By Source, Synthetic Segment Is Expected to Dominate the Market During the Forecast Period

• Chemical synthesis techniques facilitate the large-scale production of synthetic organic compounds, providing a steady supply and scalability to satisfy industrial needs. However, because they are frequently extracted from plant or animal sources, natural organic compounds may not always be readily available or scalable. Producing synthetic organic chemicals is usually less expensive than producing natural organic ones. Greater control over production parameters made possible by synthetic methods results in more economical manufacturing and resource usage. It is possible to synthesise synthetic organic molecules to high purity levels and constant quality, satisfying the exacting needs of a variety of industries, including electronics, agriculture, and pharmaceuticals.
• The composition of natural organic compounds can change or contain contaminants as a result of environmental variables or seasonal variations. When it concerns customising and modifying chemical structures to adjust qualities like solubility, reactivity, and stability, synthetic organic compounds provide flexibility. Because of their adaptability, synthetic organic compounds can be used in a wide range of industries and applications.
• In order to verify that synthetic organic chemicals meet regulatory standards for performance, safety, and environmental effect, they are frequently subjected to extensive testing and review. Natural organic chemicals may require more involved regulatory approval procedures because of issues with sustainability, biodiversity, and ecological effect. New synthetic pathways and methodologies for the synthesis of complex organic compounds have been made possible by developments in synthetic chemistry techniques and technologies. These developments have strengthened synthetic organic chemicals' market dominance and broadened the field of synthetic organic chemistry.

By End-User, Pharmaceutical Segment Held the Largest Share In 2023

• The manufacture of APIs (Active Pharmaceutical Ingredients) the essential ingredients in pharmaceuticals by the pharmaceutical industry mostly depends on organic chemicals. Numerous organic chemical procedures, like as reactions and purification methods, are used to create these APIs. Huge amounts of organic compounds are typically required by pharmaceutical companies in order to produce medications on a commercial basis. The market for organic chemicals is significantly impacted by this essential since pharmaceutical companies buy raw materials and intermediates in large quantities.
• Complex organic synthesis is commonly needed for many medicinal molecules, and this process can involve several phases and specialised reactions. Manufacturers of organic chemicals meet this need by offering custom synthesis services that are provided to the unique needs of pharmaceutical firms. Stringent quality standards are applied to intermediates, final goods, and raw materials in the pharmaceutical business, which is severely controlled. Manufacturers of organic chemicals are required to abide by these rules and offer pure, premium compounds that satisfy standards for medicinal use.
• To find and create new medications, pharmaceutical companies make significant investments in research and development. Manufacturers of organic chemicals are essential to this process because they provide building blocks, essential intermediates, and specialised synthesis services that aid in the search for new drugs. Pharmaceutical businesses operate and distribute their products globally, demonstrating the global aspect of the industry. In a similar vein, producers of organic chemicals cater to a worldwide clientele, providing pharmaceutical firms in various geographical locations with intermediates and raw ingredients.

Organic Chemical Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• The organic chemistry industry is supported by a strong industrial infrastructure in North America, especially in the United States. This covers access to raw supplies, modern industrial facilities, and effective transportation systems. North America is home to several of the top organic chemical firms in the world. Enterprises such as Dow Chemical Company, DuPont, ExxonMobil Chemical, and Eastman Chemical Company are well-established and play a major role in the market's hegemony. Businesses in North America are frequently at the forefront of technological and process innovation for the production of organic chemicals. Their market domination and competitive advantage are bolstered by this innovation.
• Organic chemical demand is high in North America and is fuelled by a variety of sectors including the automobile, building, electronics, healthcare, and agricultural industries. The high demand in the region is driving the expansion of the organic chemical industry. Even though there are strict laws governing the production of chemicals and environmental preservation, North American businesses have successfully adapted to these laws. Adherence to safety and environmental regulations bolsters their standing and competitiveness in the international marketplace. In the field of organic chemicals, North America makes large investments in research and development. This investment promotes innovation, which strengthens the supremacy of the region by resulting in the development of new goods, methods, and applications.
• Companies that produce organic chemicals in North America are heavily involved in exporting and trading internationally. They retain their dominance by supplying their products to markets across the globe and making use of their production capacity, distribution networks, and technological know-how. In order to increase their market position and obtain access to new markets and technology, North American businesses frequently engage in acquisitions and strategic alliances. Their competitive advantage and domination in the organic chemical sector are a result of these calculated actions.

Organic Chemical Market Active Player

• BASF SE (Germany)
• Dow Chemical Company (USA)
• DuPont de Nemours, Inc. (USA)
• ExxonMobil Chemical (USA)
• LyondellBasell Industries NV (Netherlands)
• SABIC (Saudi Arabia)
• INEOS Group Holdings S.A. (Switzerland)
• Chevron Phillips Chemical Company LLC (USA)
• Mitsubishi Chemical Holdings Corporation (Japan)
• Solvay SA (Belgium)
• Eastman Chemical Company (USA)
• Huntsman Corporation (USA)
• Celanese Corporation (USA)
• Sumitomo Chemical Co., Ltd. (Japan)
• Akzo Nobel N.V. (Netherlands)
• Formosa Plastics Corporation (Taiwan)
• LG Chem Ltd. (South Korea)
• Braskem S.A. (Brazil)
• PPG Industries, Inc. (USA)
• Evonik Industries AG (Germany)
• Arkema S.A. (France)
• Clariant AG (Switzerland)
• Toray Industries, Inc. (Japan)
• Covestro AG (Germany)
• Asahi Kasei Corporation (Japan)
• LANXESS AG (Germany)
• Eastman Chemical Company (USA) and other active players.

Key Industry Developments in the Organic Chemical Market:

• In May 2024, Arkema has agreed to acquire Dow’s flexible packaging laminating adhesives business, one of the leading producers of adhesives for the flexible packaging market, generating annual sales of around US$250 million. The proposed acquisition will significantly expand Arkema’s portfolio of solutions for flexible packaging, enabling the Group to become a key player in this attractive market.
• In Oct 2023, BASF becomes first company to successfully produce metal-organic frameworks on a commercial scale for carbon capture Production scale-up of MOF successfully completed for Canadian technology provider Svante Technologies Inc. MOFs will be applied in Svante’s own carbon capture technology. BASF has capacity to produce customized MOFs at multiple sites.
• In Feb 2023, Honeywell announced that ExxonMobil will deploy one of Honeywell's carbon capture technologies – Honeywell's CO2 Fractionation and Hydrogen Purification System - at its integrated complex in Baytown, Texas. This technology is expected to enable ExxonMobil to capture about 7 million tons of carbon dioxide (CO2) per year, the equivalent of the emission of 1.5 million of automobiles for one year.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. ORGANIC CHEMICAL MARKET BY PRODUCT (2017-2032)
   1. ORGANIC CHEMICAL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. ACIDS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. ALCOHOLS AND ETHERS
   5. AMINES AND AMIDES
   6. ALDEHYDES AND KETONES
   7. HYDROCARBONS
   8. OTHERS {GLYCOLS, ORGANIC PEROXIDE, PHENOLS, ORGANIC SULPHIDE}
7. ORGANIC CHEMICAL MARKET BY SOURCE (2017-2032)
   1. ORGANIC CHEMICAL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. NATURAL
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. SYNTHETIC
8. ORGANIC CHEMICAL MARKET BY END-USER (2017-2032)
   1. ORGANIC CHEMICAL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AGROCHEMICALS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. PHARMACEUTICALS
   5. FOOD & BEVERAGES
   6. CHEMICAL MANUFACTURING
   7. PERSONAL CARE & COSMETICS
   8. OTHERS {TEXTILE PROCESSING, AUTOMOTIVE INDUSTRY, ELECTRONICS MANUFACTURING, CONSTRUCTION, WATER TREATMENT}
9. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Benchmarking
      2. Organic Chemical Market Share by Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. BASF SE (GERMANY)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves and Recent Developments
      10. SWOT Analysis
   3. DOW CHEMICAL COMPANY (USA)
   4. DUPONT DE NEMOURS, INC. (USA)
   5. EXXONMOBIL CHEMICAL (USA)
   6. LYONDELLBASELL INDUSTRIES NV (NETHERLANDS)
   7. SABIC (SAUDI ARABIA)
   8. INEOS GROUP HOLDINGS S.A. (SWITZERLAND)
   9. CHEVRON PHILLIPS CHEMICAL COMPANY LLC (USA)
   10. MITSUBISHI CHEMICAL HOLDINGS CORPORATION (JAPAN)
   11. SOLVAY SA (BELGIUM)
   12. EASTMAN CHEMICAL COMPANY (USA)
   13. HUNTSMAN CORPORATION (USA)
   14. CELANESE CORPORATION (USA)
   15. SUMITOMO CHEMICAL CO., LTD. (JAPAN)
   16. AKZO NOBEL N.V. (NETHERLANDS)
   17. FORMOSA PLASTICS CORPORATION (TAIWAN)
   18. LG CHEM LTD. (SOUTH KOREA)
   19. BRASKEM S.A. (BRAZIL)
   20. PPG INDUSTRIES, INC. (USA)
   21. EVONIK INDUSTRIES AG (GERMANY)
   22. ARKEMA S.A. (FRANCE)
   23. CLARIANT AG (SWITZERLAND)
   24. TORAY INDUSTRIES, INC. (JAPAN)
   25. COVESTRO AG (GERMANY)
   26. ASAHI KASEI CORPORATION (JAPAN)
   27. LANXESS AG (GERMANY)
   28. EASTMAN CHEMICAL COMPANY (USA)
10. GLOBAL ORGANIC CHEMICAL MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Product
       4. Historic And Forecasted Market Size by Source
       5. Historic And Forecasted Market Size by End-User
       6. Historic And Forecasted Market Size by Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Brazil
          2. Argentina
          3. Rest of South America
11. INVESTMENT ANALYSIS
12. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies
       1. 1. Thailand
          2. Vietnam
          3. The Philippines
          4. Australia
          5. New-Zealand
          6. Rest Of APAC
    3. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    4. SOUTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Segments
       4. Historic And Forecasted Market Size by Country
          1. Brazil
          2. Argentina
          3. Rest of South America
13. INVESTMENT ANALYSIS
14. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies