Overview

Chemical imbalance: Increasing import penetration has hindered industry growth

IBISWorld’s Basic Organic Chemical Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$2bn
Annual Growth
2012 - 2017
1.6%
Annual Growth
2017 - 2022
Profit
Employment
1,265
Business
120

Industry Threats & Opportunities

  • Several companies have ceased local production in the face of 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

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    Industry Analysis & Industry Trends

    The history of Australia’s Basic Organic Chemical Manufacturing industry dates back to the establishment of the first organic chemical company in 1925. Since then, the industry has undergone a series of structural changes. Several companies have recently ceased local production in the face of changing market conditions. Today, 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. These are used as raw material inputs by a range of other chemical industries, including the manufacture of petrochemicals, pharmaceuticals, personal-care products, food and beverages, coatings, plastics and explosives...

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    Industry Report - Industry SWOT Analysis Chapter

    The industry is in the decline phase of its life cycle, as is signified by its declining contribution to GDP. Industry value added (a measure of an industry's contribution to the economy) is expected to fall by 3.8% annualised over the 10 years through 2021-22. In comparison, comparable GDP growth is expected to equate to 2.5% annualised over the same period. This suggests that the industry is significantly underperforming relative to the wider economy.

    In addition over the past five years, the number of players has fallen due to cost pressures and intensifying competitive forces on the international stage. For example players have closed inefficient plants with high cost structures. These negative trends are expected to further reduce enterprise numbers over the next five years. Hig..

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    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 favourable to the 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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    Industry Products

    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 carbon black, 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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Weak growth
  • 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

  • Products & Markets
    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 industries
  • Export markets
  • Local manufacturing industries
  • Chart: Major Market Segmentation for the Basic Organic Chemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and rent
  • Other costs
  • 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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Basic Organic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Captive Use
  • Products made by a manufacturer for its own use.
  • E-Commerce
  • 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.
  • Why buy this report?

    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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