Chemical Intermediate Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The chemical intermediates market is expected to grow at a rapid pace, from a current market size of $117.9 billion in 2024 to $201.1 billion in 2032. The CAGR for this period is a high 7.58 per cent. The main reason for this growth is the rising demand for chemical intermediates from various end-use industries, such as pharmaceuticals, agrochemicals and plastics. In these industries, the need to reduce costs by improving production processes is a constant concern, and this will continue to drive the market. Besides this, the development of newer intermediates, such as sustainable and bio-based chemicals, will also help to propel the market. These newer intermediates are eco-friendly and are in compliance with regulations and the requirements of consumers. Consequently, companies are investing heavily in research and development to create these newer alternatives. The leading players in the market, such as BASF, The Dow Chemical Company and Evonik Industries, are also engaging in strategic collaborations and acquisitions to expand their product portfolios and market shares. For instance, BASF’s investment in sustainable production technology indicates the industry’s shift towards greener solutions, and will help the company to benefit from the growing demand for newer chemical intermediates.

Regional Market Size

Regional Deep Dive

The chemical intermediates market is characterized by a wide range of applications across industries such as pharmaceuticals, agriculture, and manufacturing. Each region has its own unique characteristics, influenced by local demand, regulations, and economic conditions. It is a market that is undergoing a transformation, driven by increasing industrialization, technological advancements, and the need for sustainable practices. In particular, the demand for bio-based chemical intermediates is on the rise, in line with the broader trend towards sustainable practices and responsible stewardship.

Europe

• Europe is at the forefront of the regulatory initiatives aimed at reducing the dangers of chemicals, and the REACH regulation is pushing industry to keep up with the times and to comply with strict safety standards.
• The European Chemical Industry Council (Cefic) has launched initiatives to promote circular economy practices, encouraging the recycling and reuse of chemical intermediates, which is expected to reshape supply chains and reduce waste.

Asia Pacific

• The Asia-Pacific region is experiencing rapid industrial growth, particularly in countries like China and India, where the demand for chemical intermediates is surging due to expanding manufacturing sectors and urbanization.
• Local companies, such as Sinopec and Reliance Industries, are investing in advanced production technologies to enhance efficiency and reduce environmental impact, positioning themselves as key players in the global market.

Latin America

• Latin America is focusing on enhancing its chemical manufacturing capabilities, with Brazil and Mexico leading the way in developing local production of chemical intermediates to reduce import dependency.
• The region is also witnessing a rise in collaborations between local firms and multinational corporations, aimed at leveraging technology transfer and improving production processes, which is expected to boost market competitiveness.

North America

• The North American market for chemical intermediates is experiencing a high degree of innovation, particularly in the field of bio-based intermediates, mainly due to the fact that BASF and DuPont are investing heavily in sustainable chemistry.
• Regulatory changes, such as the implementation of the Toxic Substances Control Act (TSCA) reforms, are shaping the market landscape by promoting safer chemical practices and encouraging companies to invest in greener alternatives.

Middle East And Africa

• The Middle East and Africa are seeing increased investment in petrochemical projects, with companies like SABIC and Adnoc expanding their production capacities to meet rising global demand for chemical intermediates.
• Government initiatives in the region, such as Saudi Arabia's Vision 2030, are promoting diversification away from oil dependency, leading to the development of a more robust chemical industry focused on value-added products.

Did You Know?

“Did you know that the production of chemical intermediates accounts for approximately 70% of the total chemical production in the world, highlighting their critical role in the chemical supply chain?” — International Council of Chemical Associations (ICCA)

Segmental Market Size

The intermediates market is a vital part of the chemical industry, which links the raw materials with the final products and is currently growing steadily. The main drivers of the market are the growing need for specialty chemicals in various industries, such as the pharmaceutical and agricultural industries, as well as stricter regulations aimed at achieving sustainable development. The demand for intermediates is also boosted by technological innovations in chemistry, which are improving the efficiency of production. At present, the market is in its mature application stage, with BASF and The Dow Chemical Company leading the way in new applications. North America and Europe, where the regulatory frameworks are encouraging the development of environment-friendly chemical intermediates, are the most notable regions. The most important applications are in solvents, adhesives, and coatings. The main application areas are the automotive and construction industries. The trends of sustainable development and the circular economy are accelerating the growth of the market. Green chemistry and biocatalysis are influencing the evolution of the industry, enabling more efficient and environment-friendly production methods.

Future Outlook

The chemical intermediates market will be in a state of accelerated growth from 2024 to 2032, with a CAGR of 7.58%. The growth is mainly driven by the increasing demand from the pharmaceutical, agrochemical and plastics industries. The chemical intermediates are used as raw materials in the production process of these industries. These industries are expanding and developing rapidly, and their production capacity is increasing, so the penetration of chemical intermediates is also increasing, and the consumption of chemical intermediates in the major industries will increase by about 15% by 2032. Driven by the demand for more efficient and sustainable production methods. Especially in the field of green chemistry and bioprocessing, technological breakthroughs will play a decisive role in the development of the chemical intermediates industry. The trend of green chemistry and the strict implementation of the upcoming environment-related laws and regulations will accelerate the transition to bio-based intermediates, which will further drive the market growth. The chemical industry is in the process of digital transformation, which involves the application of artificial intelligence and big data. It optimizes the production process and supply chain, and reduces the cost of the whole industry chain. The market for chemical intermediates will be further developed, bringing more business opportunities for industry players, and will be more sustainable in the long run.