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3 Changes on the World Stage that will Affect the Chemical Industry

The global chemicals industry is in a constant state of flux. It waxes and wanes like any other industry, but with so many subsectors to account for, the chemicals market is almost always pivoting, never shrinking.

Let’s take a look at three recent events that will lead to noticeable differences within the chemicals industry for this year and beyond.

  1. Increased Globalization Leading to Niche Specializations The overall acceleration of globalization means supply centers continue to shift. To respond to the need for strategic agility, chemical suppliers around the world are specializing to gain footing within specific segments of the market. Production lifecycles are shrinking, creating the demand for more optimized logistics processes between chemical suppliers and customers; specialized, service-oriented manufacturers are better positions to meet this need. As the commoditization process of products continues to speed up, specialty chemical producers will have advantages in the areas of adaptability and customization.
  2. Ripple Effects from the Paris AgreementA little more than a year after its ratification, the Paris Agreement is already leading to significant changes within the green chemicals industry and in the chemicals industry at large. The renewable energy sector (solar power, wind power, etc.) is especially poised for growth in the wake of national tax changes globally; this will result in higher demand for the chemicals involved in energy storage, such as batteries. Biochemicals are also primed for a surge as purpose-grown crops and feedstock help ramp up production of “green” chemicals such as those used for textiles and manufacturing.
  3. Pharmaceutical Production Spurs Demand

    The global pharmaceuticals market is in the middle of a steady period of growth. Product innovation is largely responsible, particularly within the areas of drug development and advanced research. Pharmaceutical chemical demand will mostly grow within the fine chemicals sector as the need for high-purity chemicals for both testing and production ramps up. A rush of new pharmaceutical companies (and the consolidation of many longstanding players) should continue to spur chemical demands from CDMOs.

The world’s economic, political, and industrial climates are all inextricably linked to the chemicals industry. Chemical production relies on demand, and demand is always driven by the overall health and advancement of several key industries.

Noah Chemicals is a leading name among global chemical suppliers. Our team of in-house chemists specialize in supplying high-purity chemicals for R&D and production; we also maintain an inventory of thousands of hard-to-find and commonly-requested chemicals and chemical compounds in stock.

To learn more about the Noah Chemicals difference, reach out to our team today. From custom chemicals to scalable scheduled orders, our commitment to customer service is where Noah Chemicals shines.

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