Chemicals Market Report 2025

The chemicals market size has grown strongly in recent years. It will grow from $5.61 trillion in 2024 to $6.15 trillion in 2025 at a compound annual growth rate (CAGR) of 9.7%. The growth in the historic period can be attributed to global economic conditions, global economic trends, raw material costs, market consolidation, global population growth.

The chemicals market size is expected to see strong growth in the next few years. It will grow to $8.58 trillion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to stringent environmental regulations, shift in consumer preferences, renewable and bio-based materials, geopolitical factors, health and safety prioritization. Major trends in the forecast period include sustainability and green chemistry, digital transformation, circular economy, advanced materials and nanotechnology, supply chain resilience, digitalization and industry 4.0.

The anticipated growth in the chemicals market is expected to be propelled by industrial and economic expansion. Various factors contribute to this expansion, including technological advancements, increased productivity, and improved transportation systems. Industrialization signifies the shift of an economy from predominantly agrarian production to the mass production of technologically advanced goods and services. Several industries, such as paper and pulp, energy, packaging, adhesives, and sealants, extensively utilize diverse types of chemicals in their production processes. For instance, in September 2023, the Bureau of Economic Analysis (BEA) reported that the real gross domestic product (GDP) of the United States grew at an annual rate of 2.1% in the second quarter of 2023. Additionally, the Federal Reserve Board noted a 0.4% increase in industrial production in August 2023, with capacity utilization reaching 79.7%, aligning with its historical average. Therefore, the chemicals market's growth is being driven by ongoing industrial and economic expansion.

The anticipated growth in the chemicals market is expected to be propelled by the increasing demand for inorganic chemicals in the fertilizer industry. Fertilizers, substances that naturally or artificially contain chemical elements enhancing plant growth and productivity, play a crucial role in agriculture. Inorganic fertilizers, which consist of basic inorganic chemicals, facilitate the transport of essential nutrients to sustain crops and enhance output. The rising demand for inorganic chemicals in the fertilizer industry is highlighted by a report from S&P Global Inc. in December 2022, indicating that fertilizer shipments totaled 224 million metric tones. Fertilizer intermediates such as ammonia, sulfur, and phosphate rock were sold in quantities exceeding 100 million metric tones. The primary fertilizer demand value is projected to more than double, increasing from $115 billion to approximately $231 billion. This growth is attributed to various factors influencing both the supply and demand chains. Therefore, the increasing demand for inorganic chemicals in the fertilizer industry serves as a driving force for the growth of the overall chemicals market.

To mitigate the environmental impact of chemical manufacturing, chemical companies are increasingly adopting sustainable and eco-friendly processes. Technological advancements in chemical sciences enable companies to use alternative fuels for chemical production, including the utilization of naturally available carbon dioxide to produce fuels, industrial products, and other substances. Notably, Akzo Nobel N.V., a major player in chemicals and coatings, plans to invest significantly in Green Lizard Technologies' patented process for producing surfactants from plants rather than oils.

Innovation in the chemicals market extends to the adoption of advanced technologies such as blockchain by major companies. The implementation of blockchain aims to enhance visibility along circular polymers and chemicals value chains. This technology is particularly crucial in the polymers and chemicals sector, given the industry's multiple processing stages and frequent blending and co-processing of materials. For example, in May 2022, Neste, a chemical producing company, collaborated with Circularize to launch its blockchain technology. This digital solution enhances supply chain visibility, a significant aspect for the polymers and chemicals sector, considering the industry's complex processing stages and material blending.

Major companies operating in the chemicals market include Sinopec Limited, China National Chemical Corporation (ChemChina), BASF SE, Procter & Gamble Company, Unilever plc, Dow Inc., Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries N.V., L'Oreal SA, LG Chem Ltd., Mitsubishi Chemical Holdings Corp., Wanhua Chemical Group Co. Ltd., Sumitomo Chemical Co. Ltd., Evonik Industries AG, Covestro AG, PPG Industries Inc., Solvay S.A., Arkema S.A., DuPont de Nemours Inc., Air Products and Chemicals Inc., Shin-Etsu Chemical Co. Ltd., Akzo Nobel N.V., Eastman Chemical Company, Celanese Corporation, Huntsman Corporation, Formosa Plastics Corporation, FMC Corporation, Guardian Industries LLC, JXTG Holdings Inc., Clariant AG, Nippon Paint Holdings Co. Ltd., Henkel AG & Co. KGaA, The Sherwin-Williams Company, DIC Corporation.

Asia-Pacific was the largest region in the chemicals market in 2024. North America was the second-largest region in the chemicals market. The regions covered in the chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the chemicals market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The chemicals market consists of the sales of petrochemicals, industrial gas, ethyl alcohol, organic chemicals and inorganic chemicals, resins, synthetic rubber, and artificial and synthetic fibers and filaments, pesticides, fertilizers, and other agricultural chemicals. The chemicals industry establishments produce a variety of chemical products by processing raw materials such as air, water, natural gas, oil, metals and minerals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Chemical compounds are generated through the conversion of both organic and inorganic raw materials via a chemical process and the formulation of products. Chemicals exhibit characteristics such as flammability, toxicity, acidity, reactivity, and heat of combustion.

The primary categories of chemicals encompass general chemical products, printing inks, toiletries, soap and cleaning compounds, adhesives, paints and coatings, pesticides, and various agricultural chemicals, chemical fertilizers, synthetic rubber and fibers, plastic materials and resins, ethyl alcohol, and other fundamental types of organic chemicals, as well as basic inorganic chemicals, synthetic dyes, pigments, industrial gases, and petrochemicals. Printing ink, utilized in the printing process, comprises pigments of the required color mixed with oil or varnish. Intermediate chemicals include methanol, ethylene oxide, and propylene oxide. End-users span pharmaceuticals, agrochemicals, water treatment, construction, paints and dyes, oil and gas, rubber chemicals, surfactants, personal care, and other sectors.

The chemicals market research report is one of a series of new reports that provides chemicals market statistics, including chemicals industry global market size, regional shares, competitors with a chemicals market share, detailed chemicals market segments, market trends and opportunities, and any further data you may need to thrive in the chemicals industry. This chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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