Strong reaction: Industry operators are expected to face rising raw material prices

The Organic Basic Chemical Manufacturing industry plays an important role in the chemical sector. Operators convert petrochemical feedstocks into basic organic chemicals such as olefins. Many of the products manufactured by the industry are the fundamental building blocks in a variety of consumer and industrial products. Industry revenue fell significantly in response to the financial crisis and more than halved in the space of two years between 2007-08 and 2009-10. This, in addition to revenue contractions over the past five years, meant that the industry is significantly smaller than it was prior to the recession...read more.

Industry Statistics & Market Size
Revenue
£9.9bn
Annual Growth 14-19
0.6%
Forecast Growth 19-24
Profit
Employment
10,886
Businesses
118
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has faced significant competition from producers in lower-cost countries
  • Prevailing uncertainty is expected to weaken confidence in the downstream manufacturing sector
  • The industry’s supply chain could change significantly should commercial fracking be introduced
  • Industry Report - Industry Key Buyers Chapter

    The Organic Basic Chemical Manufacturing industry is characterised by a low level of concentration. The four largest players are estimated to account for approximately 11.5% of industry revenue in 2017-18. This partly reflects the wide range of products covered by the industry. Concentration levels can be higher in some product segments. When analysing industry concentration patterns it is important to note that in a large number of instances, the products the company manufactures are intended for internal consumption by other business units in the same company. This can mean that some leading companies focus on a limited product range. the concentration of the four largest firms has increased in recent years as overall revenue has contracted at a faster rate than the biggest firms. ...purchase to read more.

    Additional Insights for the Organic Basic Chemical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Organic Basic Chemical Manufacturing Industry are

  • Having contracts which are favourable to purchaser
  • Optimum capacity utilisation
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Industrial production index in the Organic Basic Chemical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Organic Basic Chemical Manufacturing Industry?

    Companies in this industry manufacture organic chemicals via basic processes such as thermal cracking and distillation. Manufactured from refined petroleum or liquid hydrocarbons sourced from the upstream oil and gas extraction industries, the industry’s products are used in a wide variety of products including consumer goods, automotive components and various durable and consumable goods.

    Industry Products
  • Ethylene
  • Propylene
  • Industry Activities
  • Manufacturing basic organic chemicals
  • Manufacturing synthetic aromatic products
  • Distilling coal tar
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Industrial production index
  • World price of natural gas
  • Downstream demand from manufacturing
  • Real effective exchange rate

  • Current Performance
  • Feedstock effects
  • Downstream demand
  • International competition
  • Chart: Revenue Growth

  • Industry Outlook
  • An uncertain future
  • Fractured feedstock supply
  • Downstream demand
  • Table: Organic Basic Chemical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Organic Basic Chemical Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Primary Form Plastics Manufacturing
  • Soap & Detergent Manufacturing

  • Key Selling Industries
  • Forestry & Logging
  • Hard Coal Mining
  • Natural Gas Extraction
  • Petroleum Refining

  • Products & Services
  • Other
  • Ethylene
  • Propylene
  • Chart: Organic Basic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Internal consumption
  • Third-party manufacturers
  • Chart: Major Market Segmentation for the Organic Basic Chemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Organic Basic Chemical Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Basic Chemical Manufacturing Industry

  • Industry Globalization
    ExxonMobil Chemical Limited,
  • Table: ExxonMobil Chemical Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Organic Basic Chemical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Organic Basic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hydrocarbons
  • A compound that contains only hydrogen and carbon. Hydrocarbons occur naturally in crude oil, and can take the form of gases, liquids, waxes or polymers.
  • Olefins
  • Also known as alkenes, olefins are unsaturated chemical compounds containing at least one carbon-to-carbon double bond.
  • Supermajors
  • The World’s largest publicly owned oil and gas companies, including BP, Chevron, ConocoPhillips, Total, Shell and ExxonMobil.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Organic Basic Chemical Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Organic Basic Chemical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Organic Basic Chemical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Organic Basic Chemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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