EXPERTISE SECTORChemical & Plastic Products

The chemical and plastic industry is getting more complex

The chemical and plastic indusry has been growing in the past years until recently. Investors slowly shifts their sentiment toward the industry becasuse of some assumptions and predictions of the future. Chemical companies will need to consider strategies under a level of uncertainty—and they may still be forced to make risky bets.

The chemical industry includes industrials chemicals producers. The chemical and plastic industries are industry that are overlapping as some chemical companies also produce plastics. Chemicals manufacturers produce different kind 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 of the demand for chemical products. Major trends such as the accelerating deglobalization, COVID-19 pandemic, and potential regulation to curb climate change account as 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, Formosa

Chemicals Commodities

Commodities 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.

Pharmaceuticals

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.

Agrochemicals

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

Sustainability
Digitalization
Technology
Diversification
M&A Activities
Regulations
Cost Efficiency
Geopolitical Tensions

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