Chemical reaction: Demand from key buyers will strengthen, but operating costs are set to rise

IBISWorld’s Organic Chemical Manufacturing Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Organic Chemical Manufacturing industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
Annual Growth

Industry Threats & Opportunities

  • Demand from key buying industries will expand, driven by higher domestic consumer consumption and manufacturing output
  • Export growth has been hindered by a strengthening dollar
  • Exports will rise as growth in developing nations drives demand for consumer and construction-related goods
  • Industry Analysis & Industry Trends

    The Organic Chemical Manufacturing industry has experienced significant economic challenges in recent years. Lower industrial and manufacturing activity from emerging economies have led to depressed demand for organic chemicals produced by this industry. Over the next five years, ensuing economic growth will cause many of the industry's operators to increase their production levels as consumer spending rises and demand from key buying markets, such as consumer goods manufacturers and the construction sector, remains strong.

    Industry Report - Industry Investment Chapter

    The Organic Chemical Manufacturing industry has a high level of capital intensity. For every dollar spent on labor, the industry spends an estimated $0.48 on capital, which indicates that many of the processes are automated with many of the products being mass-produced. Due to the high level of technology use, many companies operating within this industry employ fewer than 20 workers. Over the past five years, the industry came to rely even more heavily on capital since employment was one of the easiest places to cut costs. However, wages have increased over the past five years as industry players invested more in human resources and expanded their research and development teams to become more efficient and remain competitive.

    Additional Insights for the Organic Chemical Manufacturing Industry

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

  • Comply with government regulations
  • Ability to accommodate environmental requirements
  • Having contracts that are favorable to purchaser
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Trade-weighted index in the Organic Chemical Manufacturing industry impact industry performance..

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    Industry Products

    What is the Organic Chemical Manufacturing Industry?

    This industry manufactures basic organic chemicals (other than petrochemicals), industrial gases and synthetic dyes and pigments. Key product groups include gum and wood products, cyclic crudes and intermediates, ethyl alcohol and other basic organic chemicals. These products are predominantly intermediates that are used as raw material inputs by other manufacturing industries in the production of downstream products.

    Industry Products
    Ethyl alcohol
    Cyclic crudes, coal tar, wood chemical and intermediate products
    All other basic organic chemical products
    Fatty acids
    Synthetic organic alcohols
    Synthetic flavor and perfume materials
    Bulk pesticides
    Industry Activities
    Manufacturing gum and wood chemicals
    Manufacturing cyclic crudes and intermediates
    Manufacturing ethyl alcohol
    Manufacturing other basic organic chemicals
    Manufacturing synthetic organic alcohols
    Manufacturing fatty acids
    Manufacturing bulk pesticides

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Trade-weighted index
  • Consumer spending
  • Value of construction
  • World price of crude oil

  • Current Performance
  • Downstream demand
  • Industry trade declines
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth in downstream demand
  • Profit margins contract
  • Table: Organic Chemical Manufacturing Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Organic Chemical Manufacturing
  • Plastic & Resin Manufacturing
  • Paint Manufacturing
  • Adhesive Manufacturing
  • Cosmetic & Beauty Products Manufacturing

  • Key Selling Industries
  • Organic Chemical Manufacturing
  • Oxygen & Hydrogen Gas Manufacturing
  • Petrochemical Manufacturing

  • Products & Services
  • All other basic organic chemical products
  • Ethyl alcohol
  • Cyclic crudes, coal tar, wood chemical and intermediate products
  • Fatty acids
  • Synthetic organic alcohols
  • Synthetic flavor and perfume materials
  • Bulk pesticides
  • Chart: Organic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other chemical manufacturing including agricultural chemicals
  • Export markets
  • Plastic and resin manufacturing
  • Rubber manufacturing
  • Food Manufacturing
  • Chart: Major Market Segmentation for the Organic Chemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Organic Chemical Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Chemical Manufacturing Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Organic 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
    Key Statistics
    Table: Industry Data for the Organic Chemical Manufacturing Industry
  • 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)
  • Industrial production index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Captive Use Product
  • A product that is made specifically for use with another product.
  • Co-Product
  • A product that is manufactured along with a different product.
  • Ethyl Alcohol
  • Also called ethanol, pure alcohol, grain alcohol or drinking alcohol, ethyl alcohol is a volatile, flammable and colorless liquid.
  • Feedstock
  • Raw material supplied to a machine or processing plant.
  • Vinyl Acetate Monomer (Vam)
  • A colorless, liquid organic compound with a pungent odor; it is the precursor to polyvinyl acetate, an important polymer within the Organic Chemical Manufacturing industry.
  • Why buy this report?

    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 Organic 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 Organic 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 Organic 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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