Acid test: Imports and volatile input prices will continue to challenge the industry

The Basic Organic Chemical Manufacturing industry has undergone a series of structural changes over recent years. Several companies have ceased local production due to changing market conditions and the industry is in the decline phase of its life cycle. Key products manufactured by the industry include organic acids, industrial alcohols, organic dyes and pigments, charcoal briquettes, wood tar and organic tanning extracts. A range of other chemical industries use these products as raw material inputs for purposes such as manufacturing petrochemicals, pharmaceuticals, personal-care products, food and beverages, coatings, plastics and explosives. The industry is expected to account for over 20% of the nation's basic chemical manufacturing sector...read more.

Industry Statistics & Market Size
Revenue
$997m
Annual Growth 13-18
-5.4%
Forecast Growth 18-23
Profit
Employment
1,250
Businesses
127
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Several companies have ceased local production due to changing market conditions
  • The industry has undergone extensive rationalisation over the past five years
  • Profit will remain weak due to intense competition and volatile raw material input costs
  • Industry Report - Starting a New Business Chapter

    Barriers to entry are considerable and include the need for substantial capital requirements to construct a complex on a world competitive scale, able to compete in a mature industry dominated by a few, but well- established manufacturers. In addition, the industry is characterised by specialised technical requirements. Petrochemical plants are highly integrated complexes and special technical equipment, machinery and expertise are required to undertake organic chemical production.An entry barrier of growing importance is the ability to access competitively priced feedstocks and raw materials. This need has increased in importance over the past five years given the recent high degree of volatility in the cost of raw material inputs. Ano...purchase to read more.

    Additional Insights for the Basic Organic Chemical Manufacturing Industry

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

  • Having contracts which are favourable to purchaser
  • Optimum capacity utilisation
  • Level of competition existing in the market
  • IBISWorld analysts also discuss how external factors such as Demand from basic chemical and chemical product manufacturing and World price of crude oil in the Basic Organic Chemical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Basic Organic Chemical Manufacturing Industry?

    The industry produces various basic organic industrial chemicals that are mainly used as inputs in other chemical manufacturing processes. Key products include wood or gum chemicals, high-grade activated charcoal, and organic dyes and pigments. Other products include organic acids and industrial alcohols such as ethanol, methanol, ethylene glycol and ether.

    Industry Products
  • Organic acids
  • Other organic chemicals
  • Organic dyes and pigments
  • Ethylene, ethylene oxide and derivatives
  • Industrial alcohols
  • Industry Activities
  • Organic acid including acetic acid, citric acid and lactic acid
  • Wood and gum chemicals via extraction and distillation
  • Organic dye and pigment
  • Other basic organic chemicals
  • Industrial alcohol
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from basic chemical and chemical product manufacturing
  • World price of crude oil
  • Demand from manufacturing
  • Trade-weighted index

  • Current Performance
  • A shrinking industry
  • Low profitability
  • Import domination
  • Ongoing rationalisation
  • Chart: Revenue Growth

  • Industry Outlook
  • A shrinking industry
  • Further rationalisation
  • Regulation and the environment
  • Table: Basic Organic Chemical Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Synthetic Resin and Synthetic Rubber Manufacturing
  • Basic Organic Chemical Manufacturing
  • Pharmaceutical Product Manufacturing
  • Cosmetics, Perfume and Toiletries Manufacturing

  • Key Selling Industries
  • Basic Organic Chemical Manufacturing
  • Grain Growing
  • Logging
  • Petroleum Refining and Petroleum Fuel Manufacturing
  • Sugar Cane Growing

  • Products & Services
  • Other organic chemicals
  • Ethylene, ethylene oxide and derivatives
  • Industrial alcohols
  • Organic acids
  • Organic dyes and pigments
  • Chart: Basic Organic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream demand
  • Price and competition
  • Environment, regulation and technology

  • Major Markets
  • Chemical manufacturers
  • Export markets
  • Other local manufacturers
  • Chart: Major Market Segmentation for the Basic Organic Chemical Manufacturing Industry

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

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Basic Organic 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 Basic Organic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Captive Use
  • Products made by a manufacturer for its own use.
  • Ecommerce
  • Commerce that takes place over the internet.
  • Feedstock
  • A term used to describe raw materials, or production inputs (such as oil and gas) used in the manufacturing process.
  • International Organization For Standardization
  • An international-standard-setting body that determines industrial and commercial standards that are administered by accreditation bodies worldwide.
  • Mass Production
  • The production of large amounts of standardised products, usually made on assembly lines.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Basic Organic Chemical Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Basic Organic 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 of 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 Basic Organic 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 Basic Organic 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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