EXPERTISE SECTORChemical & Plastic Products

The chemical and plastic industry is getting more complex

The chemical and plastic industry has been growing in the past years until recently. Investors have slowly shifted their sentiment toward the industry because of assumptions and predictions for the future. Chemical companies will need to consider strategies with uncertainty—as they may be forced to take big risks ahead.

The chemical industry includes industrials, chemicals, and producers. The chemical and plastic industries are industries that overlap as some chemical companies also produce plastics. Chemicals manufacturers produce different types of chemicals from raw materials such as oil, gas, air, water, metal, and minerals. The most common end products produced include polymers and plastics (e.g. polyethylene, polyvinyl chloride, polycarbonate, and polypropylene). These manufactured outputs are being used and distributed among different sectors such as agriculture, pharmaceutical, construction, and service industries.

There is a growth rate decline in the demand for chemical products. Major trends such as the accelerating deglobalization, COVID-19 pandemic, and potential regulation to curb climate change account for the potential hurdles in the industry. The industry is worth about $3.7 trillion in 2021, the chemical industry is expected to grow to $4.3 trillion in 2025. The biggest chemical producers include BASF, SINOPEC, DOW, SABIC, INEOS, and Formosa.

Chemicals as Commodities

Commodity chemicals, also called bulk chemicals, are chemicals produced in bulk to be distributed to the global market. Those chemical are then used to produce other chemicals or end-user products.


The chemical industry produces chemical products to supply the pharmaceutical industry. Chemicals are then used in the production of drug substances and other pharmaceutical products to be consumed by patients.


Chemical products such as fertilizers, pesticides, and other chemical-based agricultural products are included in the agrochemical sector. Agrochemicals are used in agriculture to enhance quality and ensure the safety of food production.

Consumer Products

Chemicals produced by chemical companies are being used to manufacture a wide range of consumer products. Such products include soap, cosmetics, detergents, cleaners, and many more.

Key trends in chemical & plastic products industry

M&A Activities
Cost Efficiency
Geopolitical Tensions

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