Organic chemicals are formed when carbon and its derivatives combine with components such as hydrogen, oxygen, nitrogen, and sulphur. The derivatives can be found in either a carbon ring or a carbon chain. End-use sectors such as agrochemicals, pharmaceuticals, food & beverages, and cosmetics are predicted to develop in response to rising global population and urbanisation, boosting the organic chemicals market. Because of the high economic expansion in India and China, Asia Pacific is the market's growth engine. Ethyl alcohols, synthetic organic alcohols, synthetic flavours, and insecticides are some of the most frequently utilised organic compounds in industries like pharmaceuticals, food and drinks, and fertilisers.
The consumption of food and beverages is expanding dramatically over the world, according to data from the World Bank. In emerging economies, Organic Chemicals Market for food and beverages among lower-income individuals is estimated to be over US$ 5 trillion, which is predicted to enhance the food and beverage industry in countries like China and India throughout the forecasted period.
Organic Chemicals Market Outlook - Pharmaceutical Industry Growth Accelerating Market Growth
The incidence rate of many diseases has increased dramatically during the last decade. As a result, many government and non-governmental groups have increased their investment on discovering efficient treatments to combat such diseases, moving the pharmaceuticals industry forward. This tendency is projected to continue over the forecast period, boosting the organic chemicals market's growth. Global pharmaceutical behemoths such as Pfizer spent US$ 7872 million in 2016, up 2% from 2015, and Novartis spent US$ 8400 million in 2016, both of which represent considerable increases in R&D spending for effective drug development.
Market Challenges for Organic Chemicals – Strict Environmental Regulations
One of the primary difficulties for the end user industry is to raise knowledge about the detrimental health and environmental repercussions linked with the manufacturing and use of organic chemicals. For example, India's Ministry of Environment and Forest (MoEF) adopted the water (prevention and pollution control) act 1974 and the air pollution act 1981 on December 23, 2010. The law establishes tight guidelines for the manufacture, use, import, and export of a variety of dangerous compounds, including phthalates and benzothiazole. The Organic Chemicals Market production company must go through a variety of rigorous steps before discharging hazardous waste chemicals into the environment.
TCI America, BASF SE, PPG Industries, The Dow Chemicals Company, AkzoNobel, Royal Dutch Shell, Sinopec, ExxonMobil, Formosa Plastics, LyondellBasell Industries, DuPont, Ineos, Huntsman, and Reliance Industries are among the major competitors in the organic chemicals market. The market is fragmented, with some of the major players based in North America and Asia. Furthermore, the leading companies' continued investment in R&D and M&A is likely to increase their Organic Chemicals Market share.
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