Organic Chemicals Market

Global Organic Chemicals Market Overview

Organic Chemicals Market Size was valued at USD 12.15 Billion in 2023. The organic chemicals industry is projected to grow from USD 13.06 Billion in 2024 to USD 21.66 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.53% during the forecast period (2024 - 2032). Food and beverage applications have a huge need, while the pharmaceutical business is seeing an increase in demand are the key market drivers enhancing the market growth.

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

Organic Chemicals Market Trends

• large demand from the food and beverage applications is driving the market growth

Market CAGR for organic chemicals is being driven by their abilities as antioxidants and preservatives, organic chemicals are frequently used in the food and beverage sector. Additionally, there is a rising market for foods made using softer processes like heat, salt, sugar, and chemicals. In addition, more advanced methods of preventing the development of hazardous bacteria are being developed, which raises the demand for organic chemicals used in food applications. The market for organic compounds in the expanding food and beverage industry.

Additionally, organic compounds have been demonstrated to have anti-coagulant and catabolic properties; as a result, they are primarily present in alcoholic beverages. The need for organic chemicals has also increased due to the millennial generation's increased consumption of packaged foods preserved with organic chemical-based preservatives to stop the spread of bacteria and fungus. These elements can be a major force boosting the organic chemical market in the expanding food and beverage industry.

As a result of the technology-driven nature of the organic chemical sector, R&D spending is essential to its value chain. The industry participants will have plenty of opportunities thanks to these R&D expenditures in cutting-edge applications and lower production costs. There are expected to be plenty of chances for organic market development due to significant government initiatives to support the manufacturing sector in emerging nations.

For instance, a new production line for propionic acid with a capacity of 30 kilotons per year was created in May 2019 by BASF-YPC Company Limited, a joint venture between BASF and Sinopec that is owned equally by both companies. As a result, it is anticipated that throughout the projection period, demand for organic chemicals will increase due to the rising extensive demand for food and beverage applications. Thus, driving the organic chemicals market revenue.

November 2023

Organic World (TOW), India's biggest organic and natural retail chain, launched three new Osh plant-powered home care products. As Indian families prepare for the Christmas season, the Bengaluru-based startup makes plant-based home cleaning products more affordable.

TOW launched Osh Fabric Conditioner, Toilet Cleaner, and Multipurpose Kitchen Cleaner, adding six plant-based home care products. Nimida Group brands include Organic World. Bengaluru-based Nimida Group enterprises provide better choices and create sustainable value. The firm operates in retail, consumer products, farming, and sports.

Organic Chemicals Market Segment Insights

Organic Chemicals Source Insights

The global organic chemicals market segmentation, based on source, includes natural and synthetic. The natural segment dominated the market, accounting for 35% of market revenue (3.95 Billion). The majority of organic compounds found in nature contain carbon. The segment's growth is projected to be fueled by the increasing emphasis on natural products and the depletion of fossil fuels.

Organic Chemicals Distribution Type Insights

The global organic chemicals market segmentation, based on type, includes aliphatic, aromatic, and carbonyl. The aromatic category generated the most income (41.2%). They are also known as arenes or aromatics. The two aromatic compounds that are most often used are toluene and benzene. Many are used as nonpolar solvents and chemicals for organic synthesis.

Organic Chemicals Distribution Application Insights

The global organic chemicals market segmentation, based on application, includes food and beverages, agrochemicals, pharmaceuticals, personal care, cosmetics, plastics and polymers. The food and beverages category generated the most income (36.5%). Due to the rising demand for fortified food and beverages, the food and beverage segment accounted for the largest market. Organic chemicals are frequently used in manufacturing food, beverages, and feed. 

Figure 1: Organic Chemicals Market, by Application, 2024 & 2032 (USD Billion)

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

Organic Chemicals Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Organic Chemicals market will dominate this market, owing to the large turnover for animal feed, the sizeable manufacturing facilities for producers of organic compounds, and modern manufacturing techniques. Recently, a preference for biological insecticides has emerged, largely due to the quick uptake of sustainable agricultural practices, including organic farming and integrated pest management (IPM) methods. According to empirical studies, biopesticides are a key element of eco-friendly IPM programs since they work in concert with other agricultural inputs.

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

Figure 2: ORGANIC CHEMICALS MARKET SHARE BY REGION 2023 (USD Billion)

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

Europe's Organic Chemicals market accounts for the second-largest market share due to the demand for organic chemicals rising quickly due to quick industrialization and urbanization, supported by supportive government measures. Further, the German Organic Chemicals market held the largest market share, and the UK Organic Chemicals market was the fastest-growing market in the European region.

The Asia-Pacific Organic Chemicals Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to large-scale domestic production, ambitious development plans in China, and the widespread presence of important producers in the area are the main causes of this. Moreover, China’s Organic Chemicals market held the largest market share, and the Indian Organic Chemicals market was the fastest-growing market in the Asia-Pacific region.

Organic Chemicals Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the organic chemicals market, grow even more. Participants in the market are also engaging in a variety of strategic initiatives to footprint, with important market developments including new product launches, contracts, acquisitions, heftier investments, and cooperation with other parties organizations. To expand and survive in a more competitive and rising market climate, the organic chemicals industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global organic chemicals industry to benefit clients and increase the market sector. In recent years, the organic chemicals industry has offered some of the most significant advantages to medicine. Major players in the Organic Chemicals market, Global organic chemicals market leaders include Cargill (US), Eastman Chemical Company (US), BASF SE (Germany), Koninklijke DSM N.V. (Netherlands), Royal Dutch Shell (Netherlands), PPG Industries (US), AkzoNobel (Netherlands), Sinopec (China), ExxonMobil (US), Ineos (UK), Reliance Industries (India), LyondellBasell Industries (Netherlands), and The Dow Company (US).

BASF SE is a chemical company. Chemicals, plastics, performance goods, practical solutions, agricultural solutions, and oil and gas are among the six business segments that the company engages in. In addition to offering items for these industries, BASF also offers a variety of system solutions and services. These include products for the chemical, automotive, construction, agriculture, oil, plastics, electrical, electronics, furniture, and paper sectors. A new production line for propionic acid with a capacity of 30 kilotons per year was created in May 2019 by BASF-YPC Company Limited, a joint venture between BASF and Sinopec owned equally by both companies.

Akzo Nobel N.V. manufactures specialty chemicals. The business sells decorative paints, coatings, surfactants, polymers, pulp and paper, bleaching and oxidizing, salt chlorine, and other chemical goods. Products from Akzo Nobel are available for purchase by customers worldwide. AkzoNobel, a producer of performance coatings, said in January 2018 that its facility in Los Reyes, Mexico, would be upgraded and its manufacturing capacity would be increased.

Key Companies in the Organic Chemicals market include

• BASF SE (Germany)
• Cargill (US)
• LyondellBasell Industries (Netherlands)
• Eastman Chemical Company (US)
• Koninklijke DSM N.V. (Netherlands)
• PPG Industries (US)
• AkzoNobel (Netherlands)
• Royal Dutch Shell (Netherlands)
• Sinopec (China)
• ExxonMobil (US)
• Ineos (UK)
• Reliance Industries (India)
• The Dow Company (US)

Organic Chemicals Industry Developments

August 2019: The chemical intermediates division of Huntsman Corporation will be purchased by Indorama Ventures, a Thai-based petrochemical firm, for US$ 2.1 billion.

January 2019: A joint venture between BP and Lotte called Lotte BP Chemical Company Limited has agreed to increase production capacity in Ulsan, South Korea. The factory is anticipated to raise its annual production capacity to 650 kilotons by adding a 100,000-tonne capacity for acetic acid.

November 2018: The acetic acid production at Clear Lake, Texas, will increase to 2,000 kilotons per year by the end of 2021, according to an announcement by Celanese Corporation, a multinational specialty chemicals manufacturer.

Organic Chemicals Market Segmentation

Organic Chemicals Source Outlook

• Natural
• Synthetic

Organic Chemicals Type Outlook

• Aliphatic
• Aromatic
• Carbonyl

Organic Chemicals Application Outlook

• Food and beverages
• Agrochemicals
• Pharmaceuticals
• Personal Care and Cosmetics
• Plastics and Polymers

Organic Chemicals 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

Organic Chemicals Source Outlook (USD Billion, 2018-2032)

• Natural

• Synthetic

Organic Chemicals Type Outlook (USD Billion, 2018-2032)

• Aliphatic

• Aromatic

• Carbonyl

Organic Chemicals Application Outlook (USD Billion, 2018-2032)

• Food And Beverages

• Agrochemicals

• Pharmaceuticals

• Personal Care And Cosmetics

• Plastics And Polymers

Organic Chemicals Regional Outlook (USD Billion, 2018-2032)

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

  • North America Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • North America Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • North America Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • US Outlook (USD Billion, 2018-2032)

  • US Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • US Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • US Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • CANADA Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • CANADA Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Europe Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Europe Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Germany Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Germany Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • France Outlook (USD Billion, 2018-2032)

  • France Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • France Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • France Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • UK Outlook (USD Billion, 2018-2032)

  • UK Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • UK Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • UK Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • ITALY Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • ITALY Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Spain Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Spain Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

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

  • Rest Of Europe Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • REST OF EUROPE Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • REST OF EUROPE Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

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

  • Asia-Pacific Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Asia-Pacific Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Asia-Pacific Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • China Outlook (USD Billion, 2018-2032)

  • China Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • China Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • China Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Japan Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Japan Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • India Outlook (USD Billion, 2018-2032)

  • India Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • India Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • India Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Australia Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Australia Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

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

  • Rest of Asia-Pacific Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Rest of Asia-Pacific Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Rest of Asia-Pacific Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

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

  • Rest of the World Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Rest of the World Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Rest of the World Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

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

  • Middle East Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Middle East Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Middle East Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Africa Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Africa Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers

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

  • Latin America Organic Chemicals by Source

    • Natural

    • Synthetic

    • Submarine

  • Latin America Organic Chemicals by Type

    • Aliphatic

    • Aromatic

    • Carbonyl

    • Clamps

    • Conductors

    • Others

  • Latin America Organic Chemicals by Application

    • Food And Beverages

    • Agrochemicals

    • Pharmaceuticals

    • Personal Care And Cosmetics

    • Plastics And Polymers