Frost & Sullivan: Specialty Chemicals and Plastics propels strong growth in Asia Pacific chemical industry
Strong demographics, rising middle class and growth in various investment across industries expected to drive the consumption and production of chemicals in Asia
SINGAPORE, March 18, 2013 /PRNewswire/ -- The global chemical industry grew from USD 1.8 trillion in 2001 to about USD 3.7 trillion in 2012. This growth has largely been driven by Asia with chemical sales expected to grow at CAGR of approximately 4% to 5% from 2009 to 2020. Conversely, European chemical sales are looking to grow at a CAGR of less than 2% per annum to 2020. This change is astounding and globalized companies who have a presence in Asia experienced high performance with growth driving from Asia.
Krithika Tyagarajan, Senior Director, Chemicals, Materials and Food Practice, Asia Pacific Frost & Sullivan said, "The chemical industry is expected to see growth driven by Asia demand. While other developed regions are flat or fragile, Asia is the growth region for the global chemical industry. The Asian chemical industry is set to grow at 7% p.a.
Tyagarajan added, "The per capita consumption of most chemicals in Asia is much lower than the developed markets indicating a large untapped potential from these developing economies. The construction industry in Asia 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 in developing markets including Indonesia and Vietnam besides the traditional big markets like India and China."
Besides the growth in Asia, mega trends are also shaping the chemical industry globally. Urbanization will drive the growth of smart cities and eco-friendly cities that need chemicals and materials that provide functionality as well as energy efficiency. They include smart windows, materials for battery storage, desalination materials and materials for green energy including solar and wind.
Tyagarajan said, "The need for chemicals for the healthcare sector is also great. 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 the key to this growth."
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?
Corporate Communications – Asia-Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
Corporate Communications – Asia-Pacific
P: +65 6890 0942
F: +65 6890 0988
SOURCE Frost & Sullivan
More by this Source
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.