Organic Chemicals Market Size (2023-2030)

The Global Organic Chemicals Market was estimated to be worth USD 11.5 Billion in 2022 and is anticipated to reach a value of USD 21.29 Billion by 2030, growing at a fast CAGR of 8% during the forecast period 2023-2030.

Organic chemicals are chemicals containing natural compounds that have a wide range of applications in various industries. Moreover, carbon is the major element in organic chemicals, as it can form stable bonds with other elements in nature. Further, organic compounds are classified based on the reactivity and behavior of the element. Some of the most common types of organic chemicals are hydrocarbons, amines, ketones, carboxylic acids, aromatic compounds, and others. Moreover, these compounds are widely used in pharmaceuticals, agriculture, the manufacturing of plastics and polymers, petroleum, textiles, and other industries. Furthermore, growing environmental concerns and rising demand for organic materials-based products have boosted the demand for organic chemicals in the market.

Global Organic Chemicals Market Drivers:

Environmental concerns drive the growth of organic chemicals in the market.

The growing consumer awareness regarding the chemical impact on the environment has driven the demand for organic chemicals in the market. As opposed to synthetic chemicals, organic chemicals have a lower impact on the environment as it causes less pollution and wastage in the environment. Furthermore, organic chemicals are derived from natural sources, which are biodegradable in nature. Additionally, manufacturers of various industries are shifting their focus towards using renewably sourced chemicals such as chemicals derived from agricultural and animal waste, biomass, and others. Furthermore, growing consumer demand for clean and green products has induced manufacturers and producers to utilize organic chemicals in the production and manufacturing process that cause less harm to the environment.

Technological advancements boost the demand for organic chemicals in the market.

Technology has played an essential role in the development of organic chemicals. These include the use of advanced synthesis techniques such as biocatalysis has enabled researchers in researching and developing new combinations of organic chemicals that can produce higher efficient and sustainable materials. Furthermore, the use of machines, robotics, and AI has enabled researchers to perform high throughput screening for drug discovery, liquid handling, analyzing sensitive genetic data, and other purposes. Additionally, nanotechnology is used in the study of organic chemicals to understand the molecular structure of nanomaterials and enhance its properties, and increase in usage in various sectors such as electronics, medicine, pharmacy, and others. Furthermore, trends in plastic recycling by using macromonomers have opened various opportunities in producing, manufacturing and recycling sustainable plastics. In addition, green chemistry initiatives have helped industries in reducing the impact of toxic chemicals on public health and the environment by developing and using more eco-friendly processes for producing organic chemicals.

Global Organic Chemicals Market Challenges:

The sourcing of raw materials and environmental concerns can hamper the growth of organic chemicals in the market. Organic chemicals often rely on natural waste and petrochemical feedstocks, which is many times difficult to source due to market volatility and transportation restrictions. Furthermore, sourcing raw materials for the production of organic chemicals can result in exhausting the natural environment, leading to waste generation and a negative impact on human health and the environment.

Global Organic Chemicals Market Opportunities:

The Global Organic Chemicals Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, growing trends in environment-friendly materials and products are predicted to develop the market for Organic Chemicals and enhance its future growth opportunities.

COVID-19 Impact on the Global Organic Chemicals Market:

The pandemic hurt the organic chemicals market. Due to the lockdown, all the industries witnessed a slowdown, which led to the closure of various industries during the pandemic. This declined the demand for organic chemicals in food and beverage, chemical & petrochemical, construction, and other major industries. Moreover, supply chain disruptions delayed the organic chemical-based product distribution process during the pandemic. However, organic chemicals witnessed an increase in demand from the healthcare sector for manufacturing medical equipment and chemicals such as rubber gloves, masks, PPE kits, hand sanitizers, surface disinfectants, and others.

Global Organic Chemicals Market Recent Developments:

• In February 2023, Kemin Industries launched FermSAVER, a tea-extract product that is utilized during yeast fermentation for producing ethanol. The product is developed to reduce stress and excess heat generation during ethanol production.

• In February 2022, Cosmo Speciality Chemicals launched a range of organic complexing agents. The agent has excellent chelation properties and is suitable for pre-treatment, dyeing, and printing processes such as de-sizing, bleaching, dyeing, and printing purposes.

ORGANIC CHEMICALS MARKET REPORT COVERAGE:

Global Organic Chemicals Market Segmentation: By Product Type

• Acetic Acid

• Ethyl Alcohol

• Methanol

• Citric Acid

• Aldehydes

• Formaldehyde

• Polymers

• Ketones

• Aliphatic

• Others

In 2022, based on market segmentation by product type, ethyl alcohol occupies the highest share in the market. Ethanol or ethyl alcohol is a widely used chemical in various industries such as pharmaceuticals, food and beverage, and others. The increased usage of ethyl alcohol in various industries is due to its easy solubility in water and with other compounds. Furthermore, it is the least toxic of all chemicals and is therefore widely used in the production of consumer goods such as cosmetics, personal care products, and others.

The polymers segment is the fastest-growing segment during the forecast period. Polymers are large molecules made from monomers and have a wide range of applications in almost every industry. The increased usage of polymer in various industries is attributed to its varying level of hardness, flexibility, biodegradability, and versatility with other elements. Furthermore, due to their excellent resistance properties such as thermal, electrical, and corrosion resistance, they are increasingly used in electrical insulations, paints, and coatings in buildings and for vehicles, and packaging items.

Global Organic Chemicals Market Segmentation: By Application

• Plastics and Polymers

• Food & Beverages

• Paints & Coatings

• Agrochemicals

• Pharmaceuticals

• Others

In 2022, based on market segmentation by application, plastics & polymers occupies the highest share of the market. Plastics and polymers find various applications of organic chemicals and hence is the largest consumer of organic chemicals in the market. Organic chemical compounds are increasingly used in the production of thermoplastics, epoxy resins, elastomers, and others. Further, these plastics and polymers are increasingly used in the packaging industry, in manufacturing and packaging medical equipment and devices due to their excellent biocompatibility and compatibility with various sterilization methods.

Global Organic Chemicals Market Segmentation: By Industry

• Pharmaceuticals & Healthcare

• Automotive

• Construction

• Food & Beverage

• Consumer Goods

• Chemicals & Petrochemicals

• Others

In 2022, based on market segmentation by industry, the chemicals & petrochemicals industry occupies the highest share of the market. Organic chemicals are increasingly used as raw material in the chemical and & petrochemical sector to produce various materials such as packaging plastics, synthetic fibers, rubber, paints, adhesives, and feedstock in the production of petrochemicals and other products. Additionally, these chemicals are widely used in making solvents and agents in chemical processes.

The consumer goods segment is the fastest-growing segment during the forecast period. Organic chemicals are increasingly used in the production and manufacturing of consumer goods due to their excellent versatility with other compounds. Further, they are increasingly used in the formulation of cosmetics and personal care products such as shampoos, body washes, face creams, moisturizers, cleansers, and others. Moreover, organic acids such as alpha hydroxy acids are extensively used in cosmetic formulations such as anti-aging products. Furthermore, organic chemicals are widely used in house cleaning products such as disinfectants, surfactants, detergents, and others, as they are non-toxic, environment friendly, and natural solutions for cleaning that reduces the negative impact on the health and surrounding environment.

Global Organic Chemicals Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Based on market segmentation by region, Asia-Pacific occupies the highest share of the market. Rapid urbanization due to the growing population has increased construction activities, which has boosted the demand for organic chemicals in the construction industry of the region. These chemicals are extensively used in paints, coatings, sealants, and other building materials in the region. Moreover, technological innovations have further led to the development of new organic products in the region. For instance, in December 2020, Nouryon launched a tintable and antiviral paint in China. The product was made for surface cleanliness and germ prevention during the pandemic and has witnessed increased demand from the building and infrastructure sector in Asian markets.

North America is the fastest-growing region during the forecast period. Organic chemicals have witnessed increased demand from the chemicals and petrochemicals industry of the region due to rising demand for organic and natural materials. Moreover, an abundance of shale gas in the USA has further propelled the market for organic chemicals in the region. Additionally, organic chemicals are used to produce plastic and polymer for various applications in packaging, consumer goods, and the automotive sector of the region. Moreover, the USA is amongst the leading countries in the production of plastic and polymer, which are widely used in coatings and packaging in the region.

Global Organic Chemicals Market Key Players:

1. BASF SE

2. Cargill

3. Dow

4. Eastman Chemical Company

5. Vinti Organics Ltd

6. Hindustan Organic Chemicals Ltd

7. Neogen Chemicals Ltd

8. Shell Chemical

9. Spectrum Chemicals

10. Chemplast Sanmar Ltd