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Specialty Chemicals and Plastics Propels Strong Growth in Asia Pacific Chemical Industry Finds Frost & Sullivan - Strong demographics, rising middle class and growth in various investment across industries expected to drive the consumption and production of chemicals in Asia
Specialty Chemicals and Plastics Propels Strong Growth in Asia Pacific Chemical Industry Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Singapore, Singapore, 2013/03/19 - Strong demographics, rising middle class and growth in various investment across industries expected to drive the consumption and production of chemicals in Asia.

   
 
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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."

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Specialty Chemicals and Plastics Propels Strong Growth in Asia Pacific Chemical Industry Finds Frost & Sullivan

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