Chemical Industry: Production, Global Impact, and Market Analysis
The Chemical Industry
The chemical industry encompasses the extraction and processing of raw materials, both natural and synthetic, and their conversion into substances with different characteristics to meet human needs and improve quality of life. Its primary goal is to produce high-quality products at the lowest possible cost, while minimizing environmental impact. Common products include fertilizers, dyes, explosives, plastics, rubber, detergents, insulation, artificial fibers, photographic products, and pharmaceuticals. The industry’s reliance on technology means it is primarily located in major industrial countries and plays a crucial role in modern economies. It is a key industry present in all areas of life, such as food, clothing, housing, communications, transportation, recreation, education, and home products. It also plays a decisive role in the development of other sectors, including environmental, energy, and information technology.
The chemical industry can be divided into three groups:
- Developing products with specific chemical compositions.
- Primary processing or treatment of commodity products.
- Chemical and mechanical processes.
Inorganic and organic products, including petrochemicals, plastic resins, thermosetting resins, artificial and synthetic fibers, synthetic rubbers, fertilizers, and pesticides, are grouped into sets of homogeneous products that constitute the Chemical Industry.
Chemical Industry in the World
The chemical industry in the European Union accounts for more than 55% of world exports and 46% of imports, solidifying its position in the international market. The EU is the only area with a positive coverage ratio (exports over imports), with the chemical industry making the greatest contribution to the European industry’s trade surplus. With 30.3% of worldwide turnover, the European (EU-25) turnover in 2006 was 639 billion. Germany generated a quarter of the EU volume (25.4%), positioning itself as the fourth-largest producer. France (15.7%), Italy (12.4%), and the UK (9.8%) are the second, third, and fourth largest in terms of turnover, respectively. Spain, through its growth since 2000, is the fifth European country with 7.5% of the total, representing approximately 47 billion euros in turnover.
Regarding the distribution of chemical consumption, over 40% of the global chemical business volume in 2006 was more than 2.1 billion euros, an increase of almost one billion euros in the last decade from 1.247 million euros in 1996.
America remains the world leader in the sector with 23.2% of turnover, followed by China in second place with 9.4%, and Japan in third with 8.9%. Europe leads by geographical area with 35.1% of the world’s business turnover (30.3% for the European Union), followed by Asia with 30.8%, thanks to the emergence of China, India, and Southeast Asian countries. Finally, NAFTA accumulated 26.1% of global turnover.