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

The Organic Chemical Manufacturing industry has experienced significant economic challenges in recent years, with revenue expected to decline over the five years to 2018. Industry exports have declined consistently from 2013 to 2016, as lower industrial and manufacturing activity from emerging economies such as China led to depressed demand for organic chemicals produced by this industry. Moreover, declining organic chemical prices further pressured industry revenue. However, over the next five years, economic growth is expected to cause many of the industry's customers to increase their production levels as consumer spending rises. This, combined with rising input prices, are expected to return the industry to growth moving forward...purchase to read more.

Industry Statistics & Market Size
Revenue
$133bn
Annual Growth 13-18
-3.2%
Forecast Growth 18-23
Profit
Employment
89,538
Businesses
1,176
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Economic growth is expected to cause many of the industry’s customers to increase their production levels as consumer spending rises
  • The recent decline in exports is a stark departure from the years prior
  • As disposable income grows, rising consumer demand for beauty products will underpin this trend
  • Industry Report - Industry Key Buyers Chapter

    The Organic Chemical Manufacturing industry has a low level of concentration, with no single player accounting for more than 5.0% of industry revenue in 2018. Similar to other capital and resource intensive manufacturing sectors, the industry contains a significant amount of small as well as large operators. For example, according to the US Census Bureau and IBISWorld estimates, slightly more than one-third of total industry establishments employ less than 20 people. Therefore, there are many smaller organic chemical manufacturers. In 2018, an estimated 83.9% of industry establishments will have fewer than 100 employees. Additionally, low barriers to entry, including moderate technological change, will support a low market concentration over the next five years...purchase to read more.

    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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
  • Synthetic organic alcohols
  • Fatty acids
  • 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
  • Food Manufacturing
  • Chart: Major Market Segmentation for the Organic Chemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Organic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Industrial production index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Organic Chemical Manufacturing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear