Exclusive extracts from this 118-page-long report:
- What is the business?
The chemicals business is characterised by its very large scope. It supplies all other industries of the global economy, converting raw materials into inputs for the agriculture, manufacturing, construction, services, and goods industries. From nutritional products to paints, mobile phones to synthetic fibres, chemical products are an essential part of everyday life and are related to all facets of the global economy. […]
- What are the main markets?
While China, which encompasses a third of global demand, will remain the center of gravity of the diversified chemicals industry, mature geographies will remain competitive – the US due to shale gas extraction, which serves as a competitive advantage; and Europe, as an exporter of high value-added specialty and fine chemicals. Nonetheless, emerging market players are becoming more important as a result of demand shifts. Over the coming decades, they are expected to take on chemical giants based in the West. […]
- How intense is competition?
The diversified chemical industry is characterized by hypercompetition. Despite a recent consolidation wave, the industry remains highly fragmented. In Europe, 96% of chemical companies are small and medium enterprises. The level of competition varies by industry segment. In the basic chemicals business, products are commoditised and producers mainly compete on price to gain market share on a global scale. Overcapacity in this segment puts further pressure on companies' margins. In the specialty chemicals segment, companies compete in terms of innovation, customisation and branding, with rivalries tending to be more regional. […]