Chemicals & Materials

Bio-based and Green chemicals to help sustain in the long run

The chemicals and materials industry has been charting steadfast growth post the last economic downturn of 2007. Advent of novel products and applications, rising environmental awareness, and changing consumer preferences are positively impacting the growth of chemicals and materials industry. Economic growth and growth of ancillary industries in emerging economies, have been key to the growth of the chemical and materials industry over the recent past. 

Development of bio-based and renewable chemicals is a new trend that has come to the fore. These materials are likely to address environmental issues associated with chemical industries. Environmental protection, social responsibility, and economic growth are the prerequisites that the industry needs to satisfy to counter growth hurdles in the long run. 

However, as the industry continues to face skyrocketing prices of raw materials, devising sustainable growth objectives will be a task. With these impediments, sustaining growth in the long run will be a challenge too. Also, concerns regarding emissions of hazardous materials, and stringent regulations in place to curb the use of certain chemicals are a threat to the industry. As there is limited scope of product differentiation, companies operating in this industry require robust business strategies to achieve growth objectives. 

High return on investment (ROI) and heavy subsidies from governments is attracting small players to this industry. The trend is mostly observed in emerging economies that are reeling under economic and social pressures to undertake growth objectives that are attainable.