Frost & Sullivan: Asia Set to Lead the Global Chemicals Market ~ Indonesia's large domestic market coupled with a growing middle class population will drive demand for variety of products ranging from food to cars to houses. This will drive the need for high quality, sustainable chemicals and materials"
JAKARTA, Indonesia, June 21, 2013 /PRNewswire/ -- Frost & Sullivan predicts that the global chemicals market is expected to grow at CAGR 4.6% from 2012-2015 with Asia as the fastest growing region in the world, with chemicals sales expected to grow at a CAGR of approximately 7% from 2012-2015. The growth in Asia chemicals market has largely been driven by China which will surpass the United States as the largest chemicals producer.
"While the global growth slowed down in 2012, the Asia's share of the Chemical Pie has increased to 52% of the global chemical market in 2012 from 32.8% in 2001," noted Amit Bajpayee, Consulting Director, Chemicals, Materials & Food, Asia Pacific, Frost & Sullivan.
ASEAN is emerging as the next frontier for growth, commented Krithika Tyagarajan, Senior Director, Chemicals, Materials and Food Practice, Asia Pacific Frost & Sullivan. She further explained that the growth of global chemicals market will be driven by unique transformative forces called Mega Trends.
Frost & Sullivan identified numerous key Mega Trends that will shape the chemical industry globally such as urbanization, globalization, social trends, energy trends, e-mobility, health and wellness, as well as sustainability.
Urbanization and connectivity will drive the growth of mega cities in Asia. This calls for solutions and chemicals and materials that are founded on the twin principles of energy conservation and energy sufficiency. The demand for smart and sustainable infrastructure drives usage of chemicals that provide functionality as well as energy efficiency.
"Almost half of the Global Urban Population in 2020 will be from Asia and the maximum surge of urban population will be witnessed in China, India & Indonesia, throughout until 2030," said Tyagarajan.
She noted that in 2015, over 175 Million Indonesians will live in urban areas and the mega city Jakarta projected to contribute nearly $700 Billion to Indonesia's GDP in the same period of time.
With its potential, Indonesia is set to gain market share as ASEAN is gaining importance in the globalization game.
On the other side, the need for food and nutrition ingredients to address the health and wellness trend is also encouraging. The high costs of healthcare and lack of access to good quality care in developing markets allows the chemical industry to step up and offer solutions to combat obesity and address cardiovascular health and weight management health.
"Functional ingredients including Omega 3 and weight management ingredients are expected to show high growth. However, scientific evidence is key to this growth," said Tyagarajan.
Besides Mega Trends, the market growth in Asia will also open opportunity for players in chemicals industry globally, particularly those globalized companies who have a presence in Asia.
Indonesia is a large market waiting to be tapped. "The per capita consumption of most chemicals in Indonesia is much lower than the developed markets indicating a large untapped potential. The construction industry in Indonesia is a good example which sees large investment in residential and infrastructure projects. Construction chemicals such as concrete admixtures, paints and coatings as well as protective coatings are expected to grow,"Bajpayee concluded. Besides construction chemicals, other areas that are promising include agrichemicals, oilfield chemicals, palm oil based oleochemicals and food ingredients.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Sr. Corporate Communications - Indonesia
Phone : +62 21 571 0838
Mobile : +62856 7800 792
Email : email@example.com
SOURCE Frost & Sullivan