(MENAFN- GlobeNewsWire - Nasdaq) 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
United States, Chicago, Nov. 01, 2024 (GLOBE NEWSWIRE) -- The Global Organic Chemical market is rising due to factors such as growing oil and gas production and exploration activities, Industrial technological advancements, and rising demand for improved oil recovery techniques. This expansion is further highlighted by a partnership between Neste and Mitsubishi Corporation to develop supply chains for renewable chemicals and plastics.
Introspective Market Research is excited to unveil its latest report, " Organic Chemical Market " . This in-depth analysis shows that the global Organic Chemical market, valued at USD 13.89 billion in 2023, is poised for substantial growth, expected to hit USD 26.19 billion by 2032. This growth trajectory aligns with a strong CAGR of 7.3% during the forecast period from 2024 to 2032.
The organic chemical Market includes varied carbon-based compounds like acids, alcohols, amines, amides, aldehydes, and ketones that are vital in different industries. These compounds can be found from natural sources or can be produced artificially. Organic chemicals are usually used in sectors such as Healthcare, pharmaceuticals, food & beverages, personal care, cosmetics, and agriculture. These chemicals play an important role in preserving various products, adjusting pH levels, flavor enhancers, and drug Coating purposes. The wide range of applications of these compounds in today's global industries is supported by their structural flexibility, which includes functional groups like hydroxyl, amino, and carbonyl.
The main factors driving growth in the organic chemicals market are growing industrialization, urbanization, and disposable income, mainly in areas cultivating living standards. Organic acids such as citric, malic, and lactic acids are widely utilized in packaged food items in the food and beverage sector for their ability to preserve and enhance flavor. The industry's dependence on organic compounds has been strengthened by the increased utilization of chemical-based preservatives in response to the growing millennial preference for packaged foods, which aims to prevent microbial contamination and spoilage. Likewise, the personal care and cosmetics sector uses organic chemicals in their formulations, increasing market demand as consumers focus on product safety and effectiveness.
Nevertheless, organic chemicals encounter obstacles mostly because of their expensive production costs, which can soar due to intricate manufacturing methods, feedstock expenditures, and energy requirements. The production of natural compounds is more expensive than synthetic options, necessitating substantial investments in technology, machinery, and skilled workers. Despite these difficulties, the pharmaceutical industry's increasing demand for sophisticated natural substances, utilized as both drug models and coverings to enhance drug durability and taste, has helped alleviate certain financial worries. Health and environmental regulations, along with advancements in R&D, are expected to drive steady growth in the organic chemicals market in key industries worldwide.
Growing Demand for Eco-Friendly Chemicals Amid Sustainability Focus
A responsiveness and awareness growth of ecological matters like pollution, change in climate, and depletion of resources has pushed industries to pursue eco-friendly alternatives to traditional chemical products. Bio-based chemicals offer a potential solution by minimizing ecological impact and decreasing dependence on fossil resources which are limited. They are derived from biomass sources like plants, algae, and waste materials which are sustainable. Bio-based compounds usually have a smaller carbon footprint compared to their petrochemical counterparts.
Methods that require less energy and result in lower greenhouse gas emissions are generally employed in producing bio-based chemicals, assisting in worldwide initiatives to battle climate change and lessen emissions from carbon. Developments in biotechnology like technologies of fermentation, and engineering in metabolic, and synthetic biology have permitted the growth of bio-based compounds that are advanced, have better-quality performance, improved functionality, and are more cost-effective. These high-tech developments encourage the adoption of chemicals that are bio-based in diverse industries. Bio-based compounds are manufactured using renewable resources that can be regenerated through industrial or agricultural methods.
Raw materials that are derived from fossils have limitations and are inclined to fluctuations in price and geopolitical uncertainties. Using renewable feedstock offers two advantages such as declining dependence on non-renewable resources and enhancing resilience in the supply chain. Government guidelines and policies are pushing for the use of bio-based chemicals to minimize harm to the environment and encourage sustainable methods. Businesses are urged to invest in bio-based alternatives and comply with sustainability regulations by receiving benefits such as tax credits, subsidies, and quotas for the bio-based content in their products.
Download Sample 250 Pages Of Organic Chemical Market Report@
Rising Demand within Food and Beverage Markets
Demand from the food and beverage industry driving the organic chemical market. This is due to the unique characteristics of organic chemicals such as preservatives and antioxidants. Organic compounds play a vital role in extending the product's shelf life, preventing any kind of spoilage, and nutritional value maintenance. As the demand of consumers for natural, minimally processed foods grows, manufacturers are progressively spinning to organic chemicals as a safer and more sustainable alternative to synthetic additives. With the rise in popularity of methods like softer processing, such as heat treatment, salt, and sugar, organic chemicals are becoming integral to achieving product stability without compromising on health benefits or flavor.
The demand for organic chemicals in food applications is also being driven by innovative techniques to inhibit bacterial growth. Advanced preservation methods are minimizing foodborne risks while meeting stringent safety standards, further fueling the need for organic compounds in this sector. Major consumers of packaged foods prefer options with organic-based preservatives which give enhanced safety and longevity.
R&D plays an important role in the organic chemical sector, mainly due to the technology-driven nature of this industry. R&D spending aims to create advanced organic applications while also reducing production costs, making it feasible for manufacturers in emerging markets to adopt these solutions. In addition, government initiatives supporting the manufacturing sector in these nations present substantial growth opportunities for organic chemicals in food and beverage applications. Through R&D and policy support, the organic chemicals industry is set for significant expansion, as these factors enhance its role in global food security and sustainable practices across the food and beverage sector.
"Research made simple and affordable – Trusted Research Tailored just for you – IMR Knowledge Cluster"
How Can Emerging Technologies in Organic Chemistry Revolutionize the Chemical Industry?
Ongoing innovation and technical developments are causing the organic chemicals market to grow quickly. These inventions are changing the way organic chemicals are manufactured, handled, and utilized in various applications. This leads to higher efficiency, ecological friendliness, and advanced applications. Collaboration among academic institutions, government agencies, and commercial businesses speeds up the advancement of new organic chemical technologies and encourages creativity. Corporate research and development funding, government grants, and venture capital investments contribute to the progress of organic chemistry and related fields.
Development in materials science allows the growth and invention of organic compounds with specific traits, leading to prominent development in areas such as electronic materials, coatings, and polymers. Biotechnology advancements such as metabolic-genetic engineering, and enzyme improvement, simplify the manufacture of renewable fuels and bio-based substances from sustainable sources. Technologies like Biotechnology and fermentation can lessen dependency on fossil fuels and lessen environmental impact by creating bio-based compounds from renewable sources. Incorporating circular economy principles like recycling, upcycling, and waste valorization in the chemical value chain enhances resource efficiency and minimizes environmental footprint.
Innovations in molecular synthesis and design enable the production of organic compounds with specific functions, enhanced performance characteristics, and greater resilience in diverse surroundings. Organic compounds serve as the foundational components of versatile materials used in various industries such as modern manufacturing, electronics, and healthcare. AI-driven technologies speed up the discovery of new materials, enhance chemical synthesis processes, and predict molecular attributes by analyzing vast datasets and conducting virtual screening. Data analytics platforms improve the efficiency of chemical processes by ensuring quality, predicting maintenance needs, and offering real-time monitoring, ultimately increasing output and optimizing resource utilization.
What are the Challenges Faced in the Organic Chemical Market?
Organic chemicals have been shown adversely impact freshwater ecosystems. Pesticides, tributyltin, polycyclic aromatic hydrocarbons, and brominated flame retardants were the major contributors to the chemical risk. Their presence was related to agricultural and urban areas in the upstream catchment. The risk of potential acute lethal and chronic long-term effects increased with the number of ecotoxicologically relevant chemicals.
Hydrocarbons are major components of crude oil and refined products such as petroleum and lubricating oils. They may enter the environment as a result of accidents and bioremediation has been attempted in the aquatic and the terrestrial environments.
They may enter groundwater in which anaerobic degradation is significant. The organic chemicals are another group of substances that are found in polluted water. Petroleum products pollute many sources of water due to accidents such as major oil spills in oceans.
Other organic substances with serious impacts are the pesticides that drift down from sprays or runoff from lands. Various industrial chemicals like polychlorinated biphenyls, (PCBs) which are used as cleansing solvents, detergents, and fertilizers add to the list of water pollutants. Thus organic chemicals show varied environmental issues and adverse effects on the environment.
Key Manufacturers
Market key players and organizations within a specific industry or market that significantly influence its dynamics. Identifying these key players is essential for understanding competitive positioning, market trends, and strategic opportunities.
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) Archer Limited (Bermuda), Other Active Players
In May 2024, Arkema 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 the 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 can 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 automobiles for one year.
Do you need any industry insights on Organic Chemical Market , Make an enquiry now >>
Key Segments of Market Report
By Source:
The synthetic segment is set to dominate the organic chemical market over the forecast period, driven largely by the advantages of chemical synthesis techniques. These techniques allow for the large-scale, reliable production of synthetic organic compounds, meeting the industrial demand for a steady supply. Unlike natural organic compounds, which may fluctuate in availability due to reliance on plant or animal sources, synthetic chemicals provide consistent accessibility. Furthermore, the scalability of synthetic production is well-suited to fulfill the extensive demands of industries such as electronics, agriculture, and pharmaceuticals, which rely heavily on the steady and predictable supply that synthetic methods enable.
Another key factor supporting synthetic dominance is cost efficiency. Synthetic production is generally more economical than natural sourcing, given the lower material and production costs associated with chemical synthesis. Through controlled production processes, synthetic methods allow manufacturers to optimize resources, minimizing waste and streamlining operations. The ability to control these parameters securely contributes to more predictable and manageable costs, creating a competitive advantage over natural alternatives.
Synthetic organic compounds also offer unmatched flexibility in chemical customization, enabling manufacturers to tailor properties such as solubility, reactivity, and stability. This adaptability is especially beneficial in sectors where specific functionalities and properties are crucial, including advanced electronics and specialized agricultural chemicals. In contrast, natural compounds are more variable in composition and may be affected by environmental or seasonal factors. The ability to engineer specific molecular characteristics in synthetic compounds thus enhances their applicability across a broad range of industries, solidifying their role in diverse applications.
Regulatory compliance is another area where synthetic compounds often hold an advantage. Due to controlled manufacturing, synthetic compounds undergo rigorous testing to ensure they meet regulatory standards for performance, safety, and environmental impact. Natural compounds may face additional regulatory scrutiny because of sustainability concerns, biodiversity impacts, and ecological effects. As synthetic chemistry technologies continue to advance, new methods for producing complex organic compounds emerge, strengthening the market position of synthetic chemicals and expanding their applications. These innovations are instrumental in consolidating synthetic compounds as the preferred choice in the organic chemical market.
By End-User:
The organic chemical industry is led by the pharmaceutical sector. This is because of the high demand for Active Pharmaceutical Ingredients needed for the manufacturing of various medicines across the globe. Pharmaceutical companies profoundly depend on organic chemicals for manufacturing active pharmaceutical ingredients. This API plays a critical role in a varied range of medications which contains antibiotics, painkillers, and advanced therapeutics. To create these APIs on a huge scale, significant amounts of biological compounds are needed, making the pharmaceutical industry a key player in the organic chemical market. This dependence determines a strong cycle of demand, advancing the organic chemical market and solidifying pharmaceuticals as the dominant sector.
Pharmaceutical companies need detailed organic synthesis methods to create APIs and other medicinal compounds, which frequently require numerous chemical reactions and complicated purification steps. These processes require specific knowledge and tailored synthesis services offered by organic chemical manufacturers to meet the distinct needs of pharmaceutical companies. The pharmaceutical industry must meet stringent governing requirements for uncontaminated substances. This makes it necessary for organic chemical manufacturers to follow Good Manufacturing Practices and other supervisory protocols.
Discovering and developing new drugs and advanced treatment options is crucial for pharmaceutical companies and depends severely on research and development. Manufacturers of organic chemicals are important in providing crucial intermediates, custom synthesis services, and special building blocks for developing new molecular units. Organic chemical providers play a vital role in supporting the innovation pipeline of the pharmaceutical industry, leading to the discovery and development of new therapies. As a result, the pharmaceutical industry's research and development needs to boost the growth of the organic chemical market, emphasizing the importance of this segment.
If you require any specific information that is not covered currently, we will provide the same as a part of the customization >>
By Region:
North America is expected to lead the organic chemical market due to its strong infrastructure of industry and innovation-driven approach. The United States stands as a main hub. North America has easy access to abundant raw materials, advanced industrial facilities, and well-developed transportation networks. This creates an ideal environment for the organic chemistry industry to thrive. Dow Chemical, DuPont, ExxonMobil Chemical, and Eastman Chemical are in North America. These established enterprises solidify their dominance in the global market.
The demand for organic chemicals in North America is powered by key sectors like the automotive industry, construction industry, electronics industry, healthcare industry, and agriculture industry. The above industries highly need organic chemicals for essential products and services. This varied demand fast-tracks growth and positions of North America as a top key consumer and manufacturer of organic chemicals. Regardless of strict regulations like environmental and safety, governing the chemical industry. Companies in North America have successfully adapted the regulatory compliance. Their devotion to regulatory standards supports their reputation. This enhances both competitiveness and market standing on a global scale.
Investments in research and development have given North American companies an edge in the organic chemical industry. These investments create innovation which leads to the formation of new products, processes, and applications, which further bolsters the region's market supremacy. The continuous focus on R&D not only supports product diversification but also enhances efficiency, positioning North America as a leader in cutting-edge chemical technology and sustainable practices.
North American organic chemical companies are active players in the global market through their robust export strategies. By employing well-established production capacities, distribution channels, and technological expertise, they reach international markets, extending their influence worldwide. Many companies engage in strategic alliances and acquisitions to strengthen their market position, securing access to new technologies and markets. These strategic moves are instrumental in maintaining North America's stronghold in the organic chemical sector, fostering continued growth and competitive advantage.
Comprehensive Offerings:
Historical Market Size and Competitive Analysis (2017–2023): Detailed assessment of market size and competitive landscape over the past years. Historical Pricing Trends and Regional Price Curve (2017–2023): Analysis of historical pricing data and price trends across different regions. Market Size, Share, and Forecast by Segment (2024–2032): Projections and detailed insights into market size, share, and future growth by segment. Market Dynamics: In-depth analysis of growth drivers, restraints, opportunities, and key trends, with a focus on regional variations. Market Trend Analysis: Evaluation of emerging trends that are shaping the market landscape. Import and Export Analysis: Examination of trade patterns and their impact on market dynamics. Market Segmentation: Comprehensive analysis of market segments and sub-segments, with a regional breakdown. Competitive Landscape: Strategic profiles of key players across regions, including competitive benchmarking. PESTLE Analysis: Evaluation of the market through Political, Economic, Social, Technological, Legal, and Environmental factors. PORTER's Five Forces Analysis: Assessment of competitive forces influencing the market. Industry Value Chain Analysis: Examination of the value chain to identify key stages and contributors. Legal and Regulatory Environment by Region: Analysis of the legal landscape and its implications for business operations. Strategic Opportunities and SWOT Analysis: Identification of lucrative business opportunities, coupled with a SWOT analysis. Conclusion and Strategic Recommendations: Final insights and actionable recommendations for stakeholders.
Related Report Links:
Organic Peroxide Market : Organic Peroxide Market Size Was Valued at USD 1892.72 Million in 2023, and is Projected to Reach USD 2520.52 Million by 2032, Growing at a CAGR of 4.89% From 2024-2032.
Bromine Derivatives Market : Bromine Derivatives Market Size is Valued at USD 1.06 Billion in 2023, and is Projected to Reach USD 1.60 Billion by 2032, Growing at a CAGR of 5.34% From 2024-2032.
Friction Materials Market : Friction Materials Market Size is Valued at USD 5.84 Billion in 2023, and is Projected to Reach USD 8.20 Billion by 2032, Growing at a CAGR of 4.40% From 2024-2032.
Green Chemicals Market : Green Chemicals Market Size Was Valued at USD 104.62 Billion in 2023, and is Projected to Reach USD 221.3 Billion by 2032, Growing at a CAGR of 9.8% From 2024-2032.
Global Silicone Gel Market : Global Silicone Gel Market size is expected to grow from USD 1.9 Billion in 2023 to USD 3.16 Billion by 2032, at a CAGR of 5.8% during the forecast period (2023-2032).
Oil to Chemical Market : Oil to Chemical Market Size Was Valued at USD 19510.23 Million in 2023 and is Projected to Reach USD 36784.08 Million by 2032, Growing at a CAGR of 7.3% From 2024-2032.
Global Chemical Logistics Market : Global Chemical Logistics Market Size Was Valued at USD 242.46 Billion in 2023 and is Projected to Reach USD 304.76 Billion by 2032, Growing at a CAGR of 2.9% From 2024-2032.
Global Chemical Sensor Market : Global Chemical Sensor Market size was valued at USD 25.32 Billion in 2023 and is projected to reach USD 49.28 Billion by 2032, growing at a CAGR of 7.68% from 2024 to 2032.
Green Chemicals Market : Green Chemicals Market Size Was Valued at USD 104.62 Billion in 2023, and is Projected to Reach USD 221.3 Billion by 2032, Growing at a CAGR of 9.8% From 2024-2032.
Construction Chemicals Market : Construction Chemicals Market Size Was Valued at USD 50.24 Billion in 2023, and is Projected to Reach USD 81.29 Billion by 2032, Growing at a CAGR of 6.2% From 2024-2032.
About Us:
Introspective Market Research, a leading global market research firm, utilizes both big data and advanced analytics to provide strategic insights and consulting services to aid clients in forecasting future market trends. At IMR, our team of professionals assists businesses in grasping historical and current market patterns to offer guidance on upcoming advancements.
Our strong connections with leading industry companies enable us to collect essential market information, leading to accurate research data tables and precise market predictions. Under the leadership of CEO Mrs. Swati Kalagate, who advocates for a culture of excellence, our focus is on delivering high-quality data and helping our clients achieve their business goals.
Our reports contain information gathered through interviews with key executives from top companies in the relevant industries. Our comprehensive method of gathering secondary data involves in-depth research online and offline, along with detailed discussions with industry experts and analysts.
IMR Knowledge Cluster Reports:
AI in Automotive Industry in Europe
Global Chronic Disease Patient Landscape
Global Online Food Delivery Industry Outlook
Cancer Treatment Market In India
6G Technology Industry in Asian Countries
Contact Us:
Canada Office
Introspective Market Research Private Limited, 138 Downes Street Unit 6203- M5E 0E4, Toronto, Canada.
APAC Office
Introspective Market Research Private Limited, Office No. 401, Saudamini Commercial Complex, Kothrud, Pune, India 411038
Ph no: +91-81800-96367 / +91-7410103736
Email: ...
LinkedIn | Twitter | Facebook | Instagram
Ours Websites : | | | | |
MENAFN01112024004107003653ID1108843209