Chemical Intermediate Market

Global Chemical Intermediate Market Overview

The Chemical Intermediate Market Size was valued at USD 108.4 Billion in 2023. The Chemical Intermediate industry is projected to grow from USD 117.83 Billion in 2024 to USD 211.4 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 7.58% during the forecast period (2024 - 2032). Increased demand for chemical intermediates from end-use industries and the increasing demand for bio-based building blocks are the key market drivers enhancing the growth of the market.                       

Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review

Chemical Intermediate Market Trends

• Growing demand for chemical intermediates from end-user industries is driving the market growth.

Market CAGR for chemical intermediates is being driven by the rising demand for chemical intermediates from end-user industries. The production of a comprehensive range of chemicals requires chemical intermediates as an important component. Therefore there is an increasing requirement to generate a large range of chemicals in the business. In order to make a vast range of compounds, chemical intermediates are used as a building component.

The chemical intermediates are largely being used to generate agricultural chemicals like fertilizers and insecticides. Thus, increasing agricultural production is the prime booster of the chemical intermediate market growth. Additionally, the pharmaceutical section also frequently utilizes chemical intermediates for the production of medicines. The rise of the chemical industry in healthcare is due to the increasing disease prevalence and ongoing strive to produce new treatments. With the use of 1-hydroxy hexane-2, and 5-dione as a chemical intermediary, there is an increasing need for bio-based 5-hydroxymethylfurfural building blocks that further help the intermediate chemical market to grow globally. The HMF building blocks can be cured in high yield from biomass and converted to different interesting products in simple steps. In order to make possible the conversion of HMF to 1-hydroxy hexane-2, 5-dione (HHD), various researchers have been researching it over the last two decades. Through a hydrogenation ring-opening reaction, the HMF can be converted to HHD in an aqueous phase with different homo and heterogeneous catalysts.

The recent developments in the use of HHD as a building block for different useful compounds, inclusive of cyclopentanone derivatives, pyrroles, and triols, and also state-of-the-art HHD synthesis, consisting of mechanistic aspects of its creation. Thus the demand for chemical intermediates is rising due to the popularity of the bio-based chemical intermediate building blocks. The chemical intermediate is also being acquired for the purpose of coatings and is used in plastic manufacturing. The advancement in technology has led to the development of better and new avenues by the manufacturers of chemical intermediates. Thus, driving the Chemical Intermediate market revenue.

However, the growth of the market can be hampered due to the differences in the prices of the raw materials. Also, the primary raw materials consist of the downstream components of crude oil that are required to create chemical intermediates. Hence, crude oil demand volatility also affects the cost of the raw materials utilized in chemical intermediates. Furthermore, the difficulty in the production of bio-based chemical building blocks acts as a commercial restraint.

The launch of LyondellBasell's +LC (Low Carbon) solutions, a new line of Intermediates and Derivatives (I&D) chemicals made using a mass balance methodology certified by the International Sustainability and Carbon Certification (ISCC) PLUS, marks the expansion of the company's sustainable offerings in 2023. These +LC solutions, which have a lower carbon footprint than fossil fuel-based alternatives, are sourced from recycled and renewable feedstocks and are intended to support businesses in meeting their greenhouse gas (GHG) emissions reduction goals while maintaining high-quality applications necessary for modern, sustainable living.

In March 2024, the International Chemical Investors Group (ICIG) completed the purchase of a controlling interest in Vasant Chemicals, a well-known Indian company that produces specialty chemicals and pharmaceutical intermediates. Vasant Chemicals will now be part of the WeylChem Group, which is the fine chemicals division of ICIG. This acquisition forms part of WeylChem's plan to increase its footprint in the global specialty chemicals market.

Chemical Intermediate Market Segment Insights

Chemical Intermediate Product Insights

The global Chemical Intermediate market segmentation, based on products, includes Ethylene Amines, Caustic Products, Hydraulic Acid, and Others. The ethylene amines segment dominates the market, accounting for the largest market revenue. Ethylene amines are volatile molecules that can alter the chemicals' characteristics. Thus, ethylene amine is widely used in different applications, like building & construction additives, oil cutting, gas sweetening, seed protection, and some others. Ethylene amine has the advantages like low environmental impacts, low energy utilization, and better yields compared to other products, therefore increasing the demand in the market.

Figure 1: Global Chemical Intermediate Market, by Product, 2022 & 2032 (USD Billion)                         

Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review

Chemical Intermediate End User Insights

The global Chemical Intermediate market segmentation, based on end users, includes Energy & Power, Healthcare, Chemical & Petrochemical, Agriculture, and Others. The healthcare category dominates the market of chemical intermediates. The rising number of cases for chronic diseases and the growing research and development initiatives and activities in the pharmaceutical industries are boosting the intermediate chemical market. The developing technologies used, like bioinformatics, high throughput, and combinatorial chemistry in order to enhance candidate identification, have grown. Furthermore, drug research has developed due to the new chemical intermediate forms that allow the approach to be more refined, dependable, and time-consuming.

Chemical Intermediate Regional Insights

By region, the study offers market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Chemical Intermediate market area dominates the market with the increasing utilization of chemical intermediates in chemical industries. There is an increasing amount of investment in the research and development section for boosting the regional chemical intermediate market growth.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.

Figure 2: GLOBAL CHEMICAL INTERMEDIATE MARKET SHARE BY REGION 2022 (USD Billion)                       

Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review

The Asia-Pacific Chemical Intermediate Market accounts for the second-largest market revenue due to the surging demand for chemical intermediates in this region's textile and leather industries. Moreover, China’s Chemical Intermediate market held the largest market share, and the Indian Chemical Intermediate market was the rapid-growing market in the Asia-Pacific region.

Europe's Chemical Intermediate market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing requirement in different industries in this region. Further, the German Chemical Intermediate market held the largest market share, and the UK Chemical Intermediate market was the rapid-growing market in the European region.

Chemical Intermediate Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Chemical Intermediate market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Chemical Intermediate industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers used in the global Chemical Intermediate industry to benefit clients and increase the market sector. In recent years, the Chemical Intermediate industry has offered some of the most significant advantages to the chemical industry. Major players in the Chemical Intermediate market, including Deepak Nitrite Ltd., BASF SE, Rossari Biotech Ltd., INVISTA Nylon Chemical Co. Ltd., Stepan Company, LG Royal DSM, Chevron Corporation, Himalaya Chemicals, Akzo Nobel NV, and others, are attempting to increase market demand by investing in research and development operations.

BASF is the world's leading chemical company. In March 2016, the company concluded its two-step capacity expansion for the intermediate chemical 1,4-butanediol (BD) by roughly 20 percent at its Verbund site in Geismar, Louisiana, while the first quarter of 2016. the investment raised the production capacity by implementing measures to fuel efficiency and enhanced infrastructure. With this expansion, BASF decided to strengthen its position in the market of South and North America and meet the growing chemical intermediate requirement of the customers from the local assets in Geismar. Additionally, BASF invested in various products in North America, recently in formic acid, to spread the firm availability in the market and the commitment to the customers. BASF is a Tire-1 Company in the market of intermediate chemicals, and the expansion strategy of the company will boost the market growth.

Long-term access to QIRA® bio-based 1,4-butanediol (BDO) will be granted to BASF in 2023 by Qore® LLC (Qore), a joint venture between Cargill and HELM AG. To this end, BASF and Qore have reached a mutual understanding. At Cargill's biotechnology campus and corn refining facility in Eddyville, Iowa, Qore will manufacture the bio-based BDO. With QIRA, BASF will add bio-based versions of BDO derivatives, such as polytetramethylene ether glycol (polytetrahydrofuran, or PolyTHF) and tetrahydrofuran (THF), to its current portfolio. It is anticipated that the first commercial amounts will be accessible in Q1 2025.

AdvanSix, a diverse chemical firm, said today that three of its manufacturing locations—Frankford, Pennsylvania; Hopewell, Virginia; and Chesterfield, Virginia—have received certification to the International Sustainability and Carbon Certification (ISCC) PLUS level for 2024. An internationally renowned optional certification program for creating sustainable supply chains is called ISCC PLUS. The ISCC PLUS certification, which is confirmed by a

Deepak Nitrite Ltd., is a company of chemical manufacturer in India. Deepak Nitrite generates a wide range of chemicals, inclusive of colorant, agrochemicals, rubber, specialty, and fine chemicals, and pharmaceuticals. In September 2017, an ambitious target to attain USD 1 billion in turnovers was set by intermediate chemicals major Deepak Nitrite in the next three to four years, along with its 1,400 crore rupees phenol-acetate facility at Petroleum, Chemicals And Petrochemicals Investment Region (PCPIR) in Dahej, Gujarat. The largest phenol-acetone plant is being set up by the company at Dahej PCPIR, with a capacity of about 200,000 tonnes per year. Upon the commissioning of the project, it will create many new opportunities for India's intermediate chemical market.

Key Companies in the Chemical Intermediate market include

• Deepak Nitrite Ltd.
• BASF SE
• Rossari Biotech Ltd.
• INVISTA Nylon Chemical Co. Ltd.
• Stepan Company
• LG Royal DSM
• Chevron Corporation
• Himalaya Chemicals
• Akzo Nobel NV

Chemical Intermediate Industry Developments

In March 2022, Pure Health Apple Cider Vinegar Gummies were introduced by KaraMD, delivering a ketotic nature, regulatory mechanism on digestion, weight management and better energy levels for vegetarians as a gummy.

In July 2021, Rossari Biotech Ltd, a specialty chemicals manufacturer, reportedly expressed things for Tristar Intermediates Pvt. Ltd. Rossari. According to the subject to customary closing conditions and the agreement terms, they will acquire all the equity share capital of Tristar Intermediates.

In February 2020, the construction of the adiponitrile plant was started by INVISTA Nylon Chemicals Co., Ltd at the Shanghai chemical industry park with 400,000 tons per year. This investment which is more than 7 billion RMB, will help in addressing the escalating demand for nylon 6,6 chemicals intermediates in China and the Asia-Pacific region.

In 2020, INVISTA Nylon Chemicals (China) Co., Ltd constructed a China-based adiponitrile (ADN) plant in the Shanghai chemical industry park. It has a capacity of 400,000 tons a year. A more than RMB 7 billion (more than 1 billion USD) investment will address the expanding demand for solvents that can be employed in nylon 6,6 manufacturing

Chemical Intermediate Market Segmentation

Chemical Intermediate Product Outlook

• Ethylene Amines
• Caustic Products
• Hydraulic Acid
• Others

Chemical Intermediate End User Outlook

• Energy & Power
• Healthcare
• Chemical & Petrochemical
• Agriculture
• Others

Chemical Intermediate Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America

Chemical Intermediate Product Outlook (USD Billion, 2018-2032)

• Ethylene Amines

• Caustic Products

• Hydraulic Acid

• Others

Chemical Intermediate End User Outlook (USD Billion, 2018-2032)

• Energy & Power

• Healthcare

• Chemical & Petrochemical

• Agriculture

• Others

Chemical Intermediate Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • North America Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • US Outlook (USD Billion, 2018-2032)

  • US Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • US Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • CANADA Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Europe Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Germany Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • France Outlook (USD Billion, 2018-2032)

  • France Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • France Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • UK Outlook (USD Billion, 2018-2032)

  • UK Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • UK Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • ITALY Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Spain Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • REST OF EUROPE Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Asia-Pacific Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • China Outlook (USD Billion, 2018-2032)

  • China Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • China Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Japan Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • India Outlook (USD Billion, 2018-2032)

  • India Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • India Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Australia Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Rest of Asia-Pacific Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Rest of the World Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Middle East Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Africa Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Chemical Intermediate by Product

    • Ethylene Amines

    • Caustic Products

    • Hydraulic Acid

    • Others

  • Latin America Chemical Intermediate by End User

    • Energy & Power

    • Healthcare

    • Chemical & Petrochemical

    • Agriculture

    • Others