Organic Chemicals Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product, by End Use Industry : Global Opportunity Analysis and Industry Forecast, 2023-2032

Organic Chemicals Market

Organic chemicals are termed as large class of chemical compounds in which one or more atoms of carbon are covalently linked to atoms of other elements, most commonly hydrogen, oxygen, or nitrogen. These chemicals can be obtained naturally or can be produced by artificial processes as well. Organic chemicals are classified on the basis of product into acids, alcohols, amines & amides, aldehydes & ketones, and others. These chemicals are widely employed in sectors such as pharmaceuticals, food & beverages, personal care & cosmetics, agrochemicals, and others. 

 

Factors such as a rise in industrialization, urbanization, increase in the disposable income, improvement in the standard of living among people, and rise in demand for packaged food are responsible for the growth of the food & beverage industry where organic acids such as lactic acid (2-hydroxypropanoic acid), citric acid (2-hydroxypropane-1,2,3-tricarboxylic acid), malic acid (2-hydroxybutanedioic acid), succinic acid (butanedioic acid), and malonic acid (propanedioic acid) are used as pH regulators, flavor enhancers, baking additives, and bio-preservatives. 

 

Moreover, organic chemicals is shown to exhibit anti-coagulant and catabolic functions and due to this it is mainly found in alcoholic beverages. Furthermore, rise in demand for packaged food among millennials has surged the demand for organic chemicals where organic chemical-based preservatives are impregnated in packaged food that prevents the growth of bacteria and fungus. These factors may act as one of the key drivers responsible for the growth of organic chemicals market in the growing food & beverage sector. 

 

Moreover, the rapid increase in the population, rise in pharmaceuticals R&D, up-gradation in technology, increased focus in the healthcare field in developed and developing nations, such as the U.S., China, and India, and surge in the incidence rate of chronic disorders have boosted the demand for organic chemicals in the pharmaceutical sector. Organic chemicals are used not only for the drug itself, however, also for drug coating. Organic coating of drugs helps to minimize the bitter taste, while also preserving the medicine for a longer period. Some medicines created employ organic compounds as the prototype to build new and effective medicines. These factors together escalate the growth of organic chemicals in the pharmaceutical industry. 

 

However, the overall price of organic chemicals depends upon factors such as costs of feedstock, energy requirements, and marketability of products. These factors have made organic chemicals expensive as compared to synthetic chemicals. Furthermore, high processing costs and complex manufacturing processes lead to an increase in the overall prices of organic chemicals. Moreover, the manufacturing/extraction of organic chemicals requires big machinery and skilled workforce. These factors directly influence the price of organic chemicals and make them costlier. Moreover, when compared to synthetic counterparts, some organic chemicals have proved to be exceedingly expensive. This factor may restrain the growth of the organic chemicals during the forecast period. 

 

On the contrary, the majority of organic chemical manufacturing companies in countries such as India, China, and others work on a small scale when compared to global players. Hence, there are opportunities for organic chemical industry in these countries. Moreover, the domestic players can emerge as a more competitive industry, thus, creating remunerative opportunities for the organic chemicals market. 

 

The organic chemicals market is segmented on the basis of product, application, and region. On the basis of product, the market is categorized into acids, alcohols & ethers, amines & amides, aldehydes & ketones, and others. On the basis of end-use industry, it is divided into pharmaceuticals, agrochemicals, personal care & cosmetics, food & beverages, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

 

In 2022, the alcohols and ethers segment was the largest revenue generator, and is anticipated to grow at a CAGR of 6.3% during the forecast period. The increase in demand for consumer goods has led the industrial manufacturing sector in both developed and developed economies to witness a significant growth where ethanol is widely used as a solvent, in the synthesis of other organic chemicals. This factor may act as one of the key drivers responsible for the growth of the organic chemicals market for alcohols.

 

Furthermore, the rise in severity of diseases coupled with change in eating habits has surged the risk of heart-related problems among people of 45-70 years. This factor has surged the demand for therapeutic drugs where propanol is widely used to treat heart problems, help with anxiety, and prevent migraines. This may further augment the growth of the organic chemicals market for alcohols type. Moreover, the surge in demand for personal grooming coupled with increase in demand for luxury and exotic fragrances has led the perfume manufacturing sector to witness a rapid surge in demand where organic ethers are widely used as major solvent in perfume manufacturing. This may boost the growth of the organic chemicals market during the forecast period.

 

By end use industry, the pharmaceutical segment dominated the global market in 2022, and is anticipated to grow at a CAGR of 6.9% during forecast period. Pharmaceutical sector is recognized as the growing sector owing to surge in spending on development highly efficient drugs where organic chemicals act as a major pharmaceutical solvent. For instance, according to a report published by India Brands Equity Foundation, the Indian pharmaceutical industry witnessed a growth of 17.7% in 2021 and is expected to grow by 22% by the end of 2022. This may foster the growth of the organic chemicals market during the forecast period.

 

In addition, the cost of branded drugs has increased rapidly, along with rise in cost of healthcare facilities, which in turn has led the customers become more linear toward using generic drugs where organic chemicals are widely used as a major pharmaceutical solvent in preparing various generic drug formulations. This is anticipated to increase the sales of organic chemicals for producing generic medicines; thus, creating remunerative opportunities for the market.

 

The Asia-Pacific organic chemicals market size is projected to grow at the highest CAGR of 6.8% during the forecast period and accounted for 60.9% of organic chemicals market share in 2022. China's food & beverage sector has grown rapidly, which has forced the organic chemicals manufacturers to increase their manufacturing capacities where organic chemicals are frequently used in beverage, food, and feed production. This may act as one of the key drivers responsible for the growth of the organic chemicals market.

 

Furthermore, the pharmaceutical sector in India has witnessed a significant growth owing to increase in severity of diseases where organic chemicals is widely used to produce various pharmaceutical formulations and drug coatings. For instance, according to a report published by India Brands Equity Foundation, India’s pharmaceutical sector stood at $42 billion in 2021 and is anticipated to reach $65 billion by 2024. This is anticipated to increase the sales of organic chemicals among the growing pharmaceutical sector; thus, creating lucrative opportunities for the organic chemicals market in the Asia-Pacific region.

 

The global organic chemicals market profiles leading players that include Akzonobel, BASF SE, Cargill, CHEMPLAST SANMAR LIMITED, Dow, Hindustan Organic Chemicals Limited, Neogen Chemicals Limited, Royal Dutch Shell plc, TCI America, Vinati organics Limited. The global organic chemicals market report provides in-depth competitive analysis as well as profiles of these major players.

Report Metric	Details
Report Name	Organic Chemicals Market
Accounted market size in 2022	$ 153.3 billion
Forecasted market size in 2032	$ 286.1 billion
CAGR	6.5%
Base Year	2022
Forecasted years	2024 - 2032
By Product	● Acids ○ Type ○ Acetic Acid ○ Lactic Acid ○ Citric Acid ○ Others ● Alcohols and Ethers ● Amines and Amides ● Aldehydes and Ketones ● Others
By End Use Industry	● Agrochemicals ● Personal Care and Cosmetics ● Food and Beverages ● Others ● Pharmaceuticals
By Region	North America (United States, Canada) Europe (Germany, France, UK, Italy, Russia) Rest of Europe Nordic Countries Asia-Pacific (China, Japan, South Korea) Southeast Asia (India, Australia) Rest of Asia Latin America (Mexico, Brazil) Rest of Latin America Middle East & Africa (Turkey, Saudi Arabia, UAE, Rest of MEA)
Forecast units	USD million in value
Report coverage	Revenue and volume forecast, company share, competitive landscape, growth factors and trends

FAQ for this report