Chemical reaction: Overcapacity of some of the industry's products has constrained growth

Over the five years to 2016, the Inorganic Chemical Manufacturing industry has experienced a slight decline. Inorganic chemical production depends on demand from downstream users in an array of industries, ranging from paper production to oil refining. Industry products are used for many applications, which insulates diversified producers from a degree of volatility. At the same time, many industries are linked to one another and a decline in one may reduce production in others. Over the next five years, the industry is expected to slowly expand, as downstream industries grow. As the housing sector improves, demand from the construction, paint and glass manufacturing sectors are expected to drive industry sales...purchase to read more.

Industry Statistics & Market Size
Revenue
$32bn
Annual Growth 12-17
-3.3%
Forecast Growth 17-22
Profit
Employment
36,835
Businesses
655
Market Share of Companies

Industry Threats & Opportunities

  • As manufacturing and construction activity have expanded, so has demand for products made with inorganic chemicals
  • Restructuring, consolidation and divestitures have modified the industry landscape
  • Downstream demand for chemicals is expected to increase, fueling revenue growth
  • Industry Report - Starting a New Business Chapter

    This industry is capital-intensive. In addition to acquiring, maintaining and updating specialized technical equipment, companies must have access to competitively priced inputs like natural gas. Also, companies seeking entry into the industry require a workforce that is specialized in inorganic chemical production. Because specialized labor demands higher wages, industry players incur higher operating costs. Consequently, newcomers find it challenging to meet the capital requirements of this industry. As a result, capital costs act as a barrier to entry for prospective operators.Financial investment is high for companies entering the industry, and continued technological innovations are essential. Ope...purchase to read more.

    Additional Insights for the Inorganic Chemical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Inorganic Chemical Manufacturing Industry are

  • Having contracts that are favorable to purchaser
  • Economies of scale
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Housing starts and Industrial production index in the Inorganic Chemical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Inorganic Chemical Manufacturing Industry?

    This industry produces inorganic chemicals including titanium dioxide, chloralkali products and carbon black. Inorganic chemicals are mineral based, while organic chemicals are carbon based (see IBISWorld report 32519 Organic Chemical Manufacturing). Inorganic chemicals are mainly used as inputs in manufacturing and industrial processes. Inorganic chemicals, which are used as pigments and dyes (32513) or pesticides (32532) are not included in this industry.

    Industry Products
  • Chlorine
  • Caustic soda
  • Potassium, sodium and other alkali compounds
  • Chemical catalysts
  • Inorganic acids
  • Carbon black
  • Other inorganic chemicals
  • Industry Activities
  • Manufacturing alkalies and chlorine
  • Manufacturing carbon black
  • Manufacturing ammonia
  • Manufacturing titanium dioxide
  • Manufacturing all other basic inorganic chemicals
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Industrial production index
  • Price of electric power
  • Trade-weighted index
  • Consumer spending

  • Current Performance
  • Volatile demand
  • Narrowing profit margins
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets
  • Growing profit
  • International trade
  • Table: Inorganic Chemical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Inorganic Chemical Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Paperboard Mills
  • Cardboard Box & Container Manufacturing
  • Dye & Pigment Manufacturing
  • Fertilizer Manufacturing
  • Pesticide Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Paint Manufacturing
  • Soap & Cleaning Compound Manufacturing
  • Plastic Pipe & Parts Manufacturing
  • Glass Product Manufacturing

  • Key Selling Industries
  • Electric Power Transmission
  • Fertilizer Manufacturing
  • Inorganic Chemical Manufacturing
  • Mineral & Phosphate Mining
  • Organic Chemical Manufacturing

  • Products & Services
  • Other inorganic chemicals
  • Potassium, sodium and other alkali compounds
  • Chemical catalysts
  • Caustic soda
  • Inorganic acids
  • Carbon black
  • Chlorine
  • Chart: Inorganic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Other Manufacturing Industries
  • Chemical manufacturing
  • All Other Industries
  • Chart: Major Market Segmentation for the Inorganic Chemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Inorganic Chemical Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Inorganic Chemical Manufacturing Industry

  • Industry Globalization
    Olin Corporation, The Chemours Company,
  • Table: Olin Corporation - financial performance
  • Table: The Chemours Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Inorganic Chemical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Inorganic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of electric power (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Alkalies
  • Soluble salts obtained from the ashes of plants and consisting largely of potassium or sodium carbonate.
  • Carbon Black
  • Various colloidal black substances that consist wholly or principally of carbon that is usually obtained as soot and used especially in tires and as pigments.
  • Soda Ash
  • Commercial anhydrous sodium carbonate that is obtained as a grayish white powder or lumps.
  • Trona
  • A gray-white or yellowish-white monoclinic mineral that consists of hydrous acid sodium.
  • What Our Customers Say

    Why buy this report?

    The Inorganic Chemical Manufacturing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Inorganic Chemical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Inorganic Chemical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Inorganic Chemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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