May 23, 2024
North America Commodity Chemicals Market

North America Commodity Chemicals Market is driven by rising demand for specialty chemicals

The North America commodity chemicals market describes production of basic chemicals that serve as intermediates and raw materials for various industrial applications including chemicals, plastics, paints, pharmaceuticals, and others. Commodity chemicals such as organic and inorganic chemicals provide advantageous properties including corrosion resistance, non-reactivity, high tensile strength, and heat resistance.

The North America Commodity Chemicals Market is estimated to be valued at US$ 74,503.08 Mn in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the North America commodity chemicals are BASF SE, Ecolab Inc., Solvay SA, SNF (United Kingdom) Ltd, Cytec Industries Inc., Akferal, Kemira Oyj, Jayem Engineers, TRIO Chemicals & Allied Products, Yide Chem, Evoqua Water Technologies, SUEZ, Feralco,Tidal Vision, Others. The key players are focusing on strategic collaborative agreements to expand their production facilities coupled with research and development activities to introduce innovative specialty chemicals.

The demand for commodity chemicals in North America is growing owing to increasing applications in various end-use industries including construction, automotive, pharmaceuticals, agriculture, textiles and others. Rapid industrialization and urbanization in the region has fueled the growth of manufacturing sector thereby augmenting the demand for basic chemicals.

North America commodity chemicals market is expanding globally with key players diversifying their production bases to other regions including Asia Pacific and Latin America. Manufacturers are investing in new facilities and production sites through mergers and acquisitions to leverage opportunities in developing markets and strengthen global footprint.

Market key trends

One of the key trends in the North America Commodity Chemicals Market Demand is growing preference for sustainable and bio-based chemicals. With rising awareness about environmental protection, manufacturers are focusing on developing renewable feedstock derived chemicals through fermentation processes. For instance, BioAmber developed sustainable vinyl acetate produced from biobased acetic acid. Such sustainable chemicals have lesser environmental impact and carbon footprint. This trend is expected to significantly influence research activities and production patterns in the regional market over the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the North America commodity chemicals market as setting up production facilities requires large capital investments and the market has many established players.

Bargaining power of buyers: Buyers have moderate to high bargaining power in this market due to availability of alternatives in the market and undifferentiated nature of products.

Bargaining power of suppliers: Suppliers have moderate bargaining power as they provide bulk raw materials required for production. However, diversified supplier base mitigates their power.

Threat of new substitutes: Threat of substitutes is low to moderate as there are limited substitutes and existing products cater well to specific applications with customized formulations.

Competitive rivalry: The rivalry is intense due to the presence of many domestic and international players competing on the basis of price, quality, product differentiation and customer service.

Geographical Regions

The United States accounts for the major share of the North America commodity chemicals market in terms of value due to large production capacities and presence of major players in the country. According to industry estimates, the US market accounted for over 85% share of the total North America market in 2024.

The Canada commodity chemicals market is expected to be the fastest growing region during the forecast period, expanding at a CAGR of over 4.5%. This growth can be attributed to rapidly growing end-use industries like plastics, personal care, pharmaceuticals and agriculture in the country coupled with supportive government policies and initiatives to promote domestic manufacturing. Establishing production facilities by international players is further expected to drive the Canadian market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it