Chemicals are present in our day to day life in one or the other way. It is one of the principal industries directly influencing the economy of every single country across the globe. The global chemical market size in 2010 was valued at over USD 4 trillion. From 2000 to 2010, the Global Chemical Production Regional Index calculated by the American Chemistry Council depicted a total production increase of 54%. The OECD countries dominate the bulk chemical production sector currently, however, emerging economies such as China, India, Brazil, South Africa, Russia, and Indonesia have witnessed prolific growth.
Global chemicals market is expected to perform well with strong demand being generated from end-use industries such as electronics, textile, polymers, cement, paints & coatings, oil & gas, etc. Global chemical mergers and acquisitions (M&A) activity are anticipated to gather pace in 2016, poaching on the robust impetus witnessed in 2015, with sustained portfolio rearrangement and consolidation plays in different segments. Companies are looking to strengthen their core competencies and acquirements to deliver growth and greater shareholder value.
Increasing urban population, strong growth of industrial manufacturing and escalating investments in emerging economies are anticipated to generate significant demand for chemicals over the next decade. Rising automotive sales coupled with increasing construction spending in Asia Pacific and Middle East are macro factors boosting overall chemicals industry growth at a rapid rate.
Bulk organic & inorganic chemicals, agricultural chemicals, mining chemicals, etc. are projected to exhibit high consumption growth in terms of volume
Major market research companies forecast global chemicals sales to continue growing at an estimated volume growth of +1.1%. Sinking naphtha price has enabled Asian and European chemicals to come closer to their North American competitors that are boosted by their higher exposure to low ethane prices. Futuristic stakeholders and proactive administration teams have played the role of stimulus for reforming the global chemical market. This has resulted in an additional emphasis on core competencies and end-use industries, with the proposition of generating more worth for shareholders and streamlining overly multifaceted commercial simulations. Once the strategy to separate has been made, many important decisions remain including how to effectuate the separation.