The chemical industry is one of the most crucial industries in the world, directly linked to many other important industries. According to a report by Precedence Research , the global basic chemicals market will grow to $979.63 billion by 2032 at an annual growth rate of 3.9%.
The chemical industry is one of the most crucial industries in the world, directly linked to many other important industries. According to a report by Precedence Research , the global basic chemicals market will grow to $979.63 billion by 2032 at an annual growth rate of 3.9%.
Chemicals Market Overview
According to Deloitte’s Chemical Industry Forecast 2024 , chemical companies have significantly revised their expectations for mid-2023. Overall global demand for chemicals has been impacted by several factors, including inflation in the United States, recession in Europe, and a weaker-than-expected recovery in demand in China. In addition, over-ordering in 2021 and 2022 resulted in many countries holding high inventory levels, leading to months of overstocking. This led to a decline in demand for chemicals, and in the first eight months of 2023, chemical production increased by less than 1% year-on-year.
Asian markets are expected to witness sluggish demand for chemicals in China due to the economic crisis. According to a forecast by S&P Global Inc., the petrochemical market in China is expected to remain under pressure in the first half of 2024 due to the property market crisis and the country’s slow economic growth. This will have a major impact on the overall petrochemical market as soon as China is the largest consumer of petrochemicals in Asia. That said, India is expected to remain a driving force with strong demand in the petrochemical segment – Indian chemicals are projected to grow by 8% in 2024.
The chemical industry landscape for 2024 is evolving rapidly, with a notable increase in the development of sustainable and green solutions, in line with global environmental initiatives.
Top 10 chemical importing countries in 2023
Global chemical imports in 2023 amounted to US$2.40 trillion, accounting for about 10.1% of the global trade market, with imports increasing by 8.45% year-on-year.
Top 10 chemical importers lists in 2023:
- United States: $324 billion (13.6%)
- Germany: $172 billion (7.2%)
- China: $161 billion (6.73%)
- Belgium: $104 billion (4.37%)
- Netherlands: $92.6 billion (3.87%)
- France: $86.5 billion (3.62%)
- Japan: $80.1 billion (3.35%)
- Italy: $77.6 billion (3.25%)
- India: $73.4 billion (3.07%)
- United Kingdom: $68.4 billion (2.86%)
3 trends that will change the chemical industry in 2024
At the end of 2023, the World Economic Forum invited members of its communities to provide a brief commentary on recent and future views on the chemical industry and its transformation . Here are their conclusions:
1. Low economic growth
The OECD has revised its forecast for global economic growth in 2024 to 2.7%, down 0.2% from June, citing limited sustainability of global Exporting chemicals trade due to fragmentation of the world economy and fundamental structural problems such as low fertility and an ageing population. With the decline expected to continue in 2024, businesses need sustainable survival strategies to adapt to a prolonged period of slow growth. Rapid transformation of business portfolios is therefore essential in response to uncertainty.
2. Climate change is on the agenda
According to the UN, we have entered an era of “global boiling” rather than “global warming.” This was the warning voiced by UN Secretary-General Exporting chemicals António Guterres after the average global temperature in July 2023 was the highest since records afghanistan telemarketing began. Given increased environmental regulation in several countries due to the climate crisis, adaptation to environmental challenges will be a critical determinant of growth and the ability to sustain economic growth and business activity.
3. Geopolitical changes and decarbonisation strategies for the chemical industry
As protectionism and geopolitical conflicts threaten supply chain operations, reconfiguring global supply chains and diversifying supplies are 3 negotiation and sales techniques on whatsapp becoming critical survival strategies. Major countries are expanding regulation, enforcing strict environmental standards, and investigating subsidies to protect domestic industries. This trend is expected to continue in 2024 and become a general issue across the entire value chain rather than an isolated problem. In response, companies must be strategic in sourcing, prospecting, partnering, and creating favorable conditions for traders.
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