The report “Global Chemical Industry Outlook 2024 – Navigating the sustainable and disruptive Horizon of Tomorrow”, published by MarketsandMarkets, the Top 7 Chemical sub-industries will grow from USD 2265 billion in 2023 to USD 2411 billion by 2024 at a YoY increase of 8%. These segments will offer new opportunities worth USD 165 billion in 2024 in the form of new technologies, sustainable solutions, new material, and energy transition. The global chemical industry is entering 2024 with a positive outlook. Despite the challenging years 2022 and 2023, the chemical industry is set to rebound with moderate growth in 2024. While challenges remain, the combined effect of rising demand, favorable regulations, and industry focus on sustainability & decarbonization, digitalization, and innovation is creating a strong foundation for growth and success in the years ahead.
Some of the prominent key players are:
- Veolia (France)
- Suez (France)
- Dupont (US)
- Evoque Water (US)
- Ecolab (US)
- Shell (US)
- BP (UK)
- Exxon Mobil (US)
- Total (France)
Scope
The base year considered in the report is 2023, and 2024 is the forecast year. The geographical scope includes North America, Europe, Asia Pacific, and the Rest of the World (RoW). The chemical segment in addition to bulk chemicals also includes both specialty chemical and niche chemicals. It is important to highlight that while the report provides quantitative details for various sub-industry segments, the emphasis on key developments and trends is directed solely toward the disruptive and emerging demand segments which could create a lucrative opportunity segment for a leading player intending to encash it.
Chemical industry developments in 2023 and upcoming 2024
In 2023, Recessionary effects in Europe, inflation in the United States, and slower growth in Asia Pacific are some of the key contributors to the bearish global demand for chemicals in 2022 and 2023. Many chemical companies around the globe posted negative growth in chemical sales during the first three quarters of the year 2023. However, the companies have a positive outlook for the 4th quarter ending December 2023 and are expecting to subdue the overall decline. Employment in this industry has fallen over a couple of 10,000 with overall chemical industry output growing by 1.2% compared to 2022. During the same period, industry witnessed multiple operational closures such, Trinseo, a US-based chemical company, has initiated the closure of its styrene plant in the Netherlands due to declining sales and earnings. Another leading player, Chemours has experienced industry struggles leading to plant closures, due to 14% dip in sales and a 45% drop in profits.
In the United States, the demand for chemicals during the first nine months (Jan-Sept 2024) have been sluggish due to recessionary and inflationary effect in the country, which in the fourth quarter started to ease, and demand is expected to see a modest rebound. The American Chemistry Council expects that the growth in the US chemical industry will be at a single-digit year on year till 2026. Another leading player Huntsman reported segments decreased in sales for Polyurethanes, Performance Products, and Advanced Materials in 2023 due to various factors such as lower sales volumes and decreased average selling prices.
